7497944 COG Analysis in Business Planning

download 7497944 COG Analysis in Business Planning

of 41

Transcript of 7497944 COG Analysis in Business Planning

  • 7/31/2019 7497944 COG Analysis in Business Planning

    1/41

    Attacking the

    Centre of Gravity

    Military Approachto

    Business Planning

    Graeme Davis [email protected]

    13 Aug 2003

  • 7/31/2019 7497944 COG Analysis in Business Planning

    2/41

    Mission

    My mission here today is to overview the

    Military Appreciation Process (MAP) in

    order to assist you improve yourbusiness planning.

    Appreciation - estimation, judgementConcise Oxford

  • 7/31/2019 7497944 COG Analysis in Business Planning

    3/41

    References

    Any good book storeCNN/FoxSun Tzu - The Art of War

    Clausewitz - On Warwww.dodccrp.org/ActivitiesAustralian Infantry Magazine - April 2003Moving Mountains - LTGEN Gus Pagonis

    Front Line Logistics - Supply Chain Review

  • 7/31/2019 7497944 COG Analysis in Business Planning

    4/41

    COMBINED AND JOINT

    [No BSU is an Island]

  • 7/31/2019 7497944 COG Analysis in Business Planning

    5/41

    The nicest thing about not planning is

    that failure comes as a complete

    surprise thus avoiding months ofworry and angst.

  • 7/31/2019 7497944 COG Analysis in Business Planning

    6/41

    Some New Jargon Asymmetric Warfare

    Attritionist Centre of Gravity

    Commanders Intent

    Critical Vulnerability Decisive Events

    Directive Control

    End State

    Lines of Operation MAP

    Mission

    Situational Awareness SMEAC

    SNAFU

  • 7/31/2019 7497944 COG Analysis in Business Planning

    7/41

    Situational AwarenessEye on the Ball, Finger on the

    Pulse

    You must live and breath

    the Situation, plan within it,and then, as changes occur,

    review and modify the

    Plan as appropriate.

  • 7/31/2019 7497944 COG Analysis in Business Planning

    8/41

    GLOBAL

    POLITICS

    MEDIA PRODUCT

    CLIMATE

    COMPETITOR

    PERSONNEL

    RESOURCES

    ECONOMY

    CULTURE

    &

    RELIGION

    LEGAL

    SITUATIONAL AWARENESS

  • 7/31/2019 7497944 COG Analysis in Business Planning

    9/41

    Failures that plunged

    UK operations into crisis

    AMP chief executive Andrew Mohl

    thought he understood the depth of theproblems in the UK operations ..

    AFR 3 May 03

  • 7/31/2019 7497944 COG Analysis in Business Planning

    10/41

    Situational Awareness is not enoughTo achieve the Mission you must have a Plan

    Military planning previously only went to H-Hour.

    Now it plans toEnd State.

  • 7/31/2019 7497944 COG Analysis in Business Planning

    11/41

    Individual - Field Commander

    MILITARY APPRECIATION PROCESS

    Staff- Headquarters

    Joint - Army/Navy/Air Force

  • 7/31/2019 7497944 COG Analysis in Business Planning

    12/41

    Intelligence

    Personnel (HR)

    Current Operations

    Logistics

    Future Operations

    Communications

    Civil Affairs

    Public Relations

    Training

    Health

    Legal

    Chaplain

    FinanceDiscipline

    HQ STAFF

  • 7/31/2019 7497944 COG Analysis in Business Planning

    13/41

    Military Appreciation Process

    Courses ofAction

    Mission

    A B

    Analysis (eg Wargame)

    C

    Decision(Best/Modified)

    Detailed Plans

    Prepared

    Review&

    Confirm

    Commanders

    Intent

    Execution

    PurposeMethodEnd State

  • 7/31/2019 7497944 COG Analysis in Business Planning

    14/41

    Centre of Gravity

    That characteristic, capability or localityfrom which a force, or nation derives

    its freedom of action,strength or

    will to fight

    Could include weapons (eg tanks,

    cargo ships, air force, satellites),

    leadership (eg Churchill, Gandhi) or

    national resolve (eg Viet Cong)

    Both Blue and Red forces have a COG

  • 7/31/2019 7497944 COG Analysis in Business Planning

    15/41

    Corporate

    Centre of Gravity What is your competitive strength ?

    What worries you about your competitor ?

    Could include;

    key personnel (sales, IT, production)

    faster and less expensive equipment

    multiple sites

    prepared to accept reduced margin

    friendly banker

  • 7/31/2019 7497944 COG Analysis in Business Planning

    16/41

  • 7/31/2019 7497944 COG Analysis in Business Planning

    17/41

    Commanders Intent

    The Commander (Board/CEO) has a vision of wherethe force (business) will be in x weeks/months/years.

    The vision is expressed as Purpose, Method and End

    State.

    For the military it could be capture of City Y.

    For a business it could be to capture 30% of the widget

    market from competitor Z by designing a faster and

    cheaper widget.

    Commanders Intent leads to preparation of the Mission

    Statement.

    Mi i St t t

  • 7/31/2019 7497944 COG Analysis in Business Planning

    18/41

    Mission StatementWho, What, Where, When, Why

    but not How!! Your mission Mr Phelps is to

    Military - B Company is to clear Hill 123

    by 1500 hours 14 August in order to protectthe right flank of the Battalion advance.

    Corporate - The Marketing Department is

    to prepare and execute a plan that willincrease revenue from Product AA by 15%

    in order for XYZ Ltd to achieve its 30 June

    profit projections.

  • 7/31/2019 7497944 COG Analysis in Business Planning

    19/41

    Critical Vulnerabilities

    Determine where the Red Force is vulnerableand then attack that point.

    Military example 1: The Afrika Corps had

    mobility, tanks and air superiority but relied onsupplies (eg fuel) coming from Europe. The

    supply chain was critical in achieving

    Rommels Mission but it was vulnerable to

    attack.

    Military example 2 : Night Vision Goggles

    enable 24 x 7 combat. Blue Force has the

    advantage if Red Force does not have them.

  • 7/31/2019 7497944 COG Analysis in Business Planning

    20/41

    Corporate Vulnerabilities

    Through situational awareness you identifiedyour competitors COG and where he is

    vulnerable.

    Vulnerabilities could include:dissatisfied key personnel (poaching)

    major clients who would transfer their business

    negative cashflow/profitability (sustainability)shareholders - are they happy with the dividend ?

    obsolete infrastructure (competitiveness)

    environmental constraints eg labour availability/cost

  • 7/31/2019 7497944 COG Analysis in Business Planning

    21/41

    The Plan

    You have received Guidance from the

    Commanderand you know what is happening in

    the marketplace because of yourSituationalAwareness

    All you have to do is prepare and execute a Plan

    Lets quickly revise the MAP

  • 7/31/2019 7497944 COG Analysis in Business Planning

    22/41

    Military Appreciation Process

    Courses of

    Action

    Mission

    A B

    Analysis (eg Wargame)

    C

    Decision(Best/Modified)

    Detailed Plans

    Prepared

    Review&

    Confirm

    Commanders

    Intent

    Execution

    WE ARE

    AT

    THIS

    STAGE

  • 7/31/2019 7497944 COG Analysis in Business Planning

    23/41

    COURSES of ACTION (1)

    You move from Current State toEnd State by

    strikingat the enemies (competitors) COG while at

    the same time protecting your own COG. Determine Courses of Action (COA) - options

    COA should be significantly different

    Each COA consists of co-ordinated and sequenceddecisive events (milestones) that progress towards

    the enemys COG by the destruction or

    neutralisation of their critical vulnerabilities

  • 7/31/2019 7497944 COG Analysis in Business Planning

    24/41

    AFRIKA CORPS

    COG was mobility, armour and air

    superiority

    Critical Vulnerability was the supply chain -without fuel they were immobile

    The Allied plan was to disrupt the supply

    chain by using the Navy to attack convoys inthe Mediterranean and Special Forces in the

    desert to blow up fuel dumps and parked

    aircraft

  • 7/31/2019 7497944 COG Analysis in Business Planning

    25/41

  • 7/31/2019 7497944 COG Analysis in Business Planning

    26/41

    SECOND GULF WAR

    The sea port near Basra was closed to shipping

    due to a few WW1 vintage mines - Coalition

    supply chain was impacted.

    Coalition road convoys were attacked.

    Severe dust storms restricted visibility,

    movement and targeting.

    Did the Coalition think the fighting would end

    when the Regime (COG) was beaten ?

    With the benefit of hindsight perhaps the

    Coalitions End State was poorly defined.

  • 7/31/2019 7497944 COG Analysis in Business Planning

    27/41

    USS COLE Two (2) terrorists in a

    rubber boat loaded with400-700kg of explosive

    17 deaths and 39 injuries

    $240M repair bill

    14 months out of service

    Example ofAsymmetric

    Warfare where an

    adversary pits strengthagainst a weakness,

    sometimes in an

    unconventional manner

  • 7/31/2019 7497944 COG Analysis in Business Planning

    28/41

    Corporate

    Asymmetric Warfare

    ASK YOURSELF

    If I want to obtain a larger share of the

    market do I attack head on (Attritionist) or

    should I adopt Asymmetric tactics?

  • 7/31/2019 7497944 COG Analysis in Business Planning

    29/41

    COURSES of ACTION (2)

    Having developed COA they need to be:

    Tested - eg Wargame, Monte Carlo simulations,

    third party/due diligence reviews, pilot launchModified if the situation has changed or a better

    way is identified

    Select the one most likely to succeed Obtain stakeholder (Commander) sign-off

  • 7/31/2019 7497944 COG Analysis in Business Planning

    30/41

    POLITICS

    MEDIAPRODUCT

    CLIMATE

    COMPETITOR

    PERSONNEL

    RESOURCES

    ECONOMY

    CULTURE

    &

    RELIGION

    LEGAL

  • 7/31/2019 7497944 COG Analysis in Business Planning

    31/41

    Military Appreciation Process

    Courses of

    Action

    Mission

    A B

    Analysis (eg Wargame)

    C

    Decision(Best/Modified)

    Detailed Plans

    Prepared

    Review&

    Confirm

    Commanders

    Intent

    Execution

    WE ARE

    AT

    THIS

    STAGE

  • 7/31/2019 7497944 COG Analysis in Business Planning

    32/41

    Detailed Planning & Execution

    Military precision; went like clock-work;timed to the minute; or SNAFU ?

    A detailed project plan needs to be prepared,

    communicated and controlled.In the first Gulf War 75% ofcontainers had to be

    opened on the wharf as their manifests were

    unreliable

    Lack ofasset tracking meant that they could not

    find a misplaced dozer blade

    Different religions have different Holy Days - this

    has to be res ected and factored into the lan

  • 7/31/2019 7497944 COG Analysis in Business Planning

    33/41

    2003 Gulf War

    New Approach to Logistics New technology and logistics capability allowed our

    forces to move further and faster.. with very deadly

    effectiveness Weve gotten out of the business of warehousing

    huge mountains of inventories, but we still manage

    small hills of critical and high-demand items

    RFID and tracking technology meant the forces couldadvance much faster and further along much thinner

    supply lines

  • 7/31/2019 7497944 COG Analysis in Business Planning

    34/41

  • 7/31/2019 7497944 COG Analysis in Business Planning

    35/41

  • 7/31/2019 7497944 COG Analysis in Business Planning

    36/41

    Presenting and Selling the Plan

    SMEACSituation

    MissionExecution

    Administration

    Control

    I took the chart I had been briefing (Schwarzkopf) and wrote -

    Logisticians will not let you or our soldiers down.

    LTGEN William G Pagonis, 29 Dec 1990

  • 7/31/2019 7497944 COG Analysis in Business Planning

    37/41

    COMPETITOR REACTION !

    No plan survives the first shot.US Defence Secretary Rumsfeld

  • 7/31/2019 7497944 COG Analysis in Business Planning

    38/41

    ART & SCIENCE

    The MAP is a proven technique but for best

    results it requires practitioners to use

    both sides of their brain:

    Left - Sequential Analysis

    Creative Solutions - Right

    G t Wh

  • 7/31/2019 7497944 COG Analysis in Business Planning

    39/41

    Go to Whoa

    Current

    State

    End

    State

    Situational Awareness

    Commanders Intent

    Mission

    Courses of Action Identified

    Courses of Action Analysed

    Decision

    Detailed Plan (Orders) Prepared

    Execution

    Decisive EventsEnemy Centre of Gravity

    Contingenc Lines of Operation

  • 7/31/2019 7497944 COG Analysis in Business Planning

    40/41

    With apologies to

    General George Patton

    It is better to develop and execute a

    workable plan in a timely manner

    as opposed to continuing to develop

    the perfect plan on the wayto the PW cage - or bankruptcy!

  • 7/31/2019 7497944 COG Analysis in Business Planning

    41/41