Brand Positioning

the perfect match between work, people and value.

Our services

Executive Search & Interim Management

Assessment & Development

Organizational Development

Compensation Consulting

Board and Management Review

Executive Coaching

The strategic importance

of the current economical tendencies

for small and medium sized companies

Plato Academy

Fabiaan Van Vrekhem

Wednesday 29/09/2010

How companies grow

Each particular level is established to achieve particular objectives

Level of complexity correlates 100% with the time-span of realisation of the objective

Levels of work Time span

Value for the present

1 – Quality

2 – Service

1 day – 3 months

3 months – 1 year

Value for the future

3 – Practice

4 – Strategic Development

1 year – 2 years

2 years – 5 years

Value systems

5 – Strategic Intent

6 – Corporate Citizenship

7 – Corporate Prescience

5 years – 10 years

10 years – 20 years

20 years – 50 years

Quality Service PracticeCorporate Citizenship

Strategic IntentStrategic Development

Levels of work from a historical perspective

Corporate Prescience

Level III ( 1850)

Functional execution

Success was seen to be driven by the single function/holon of production

“You can paint it any color, so long as it’s black”.

Build capacity

Level V (1970)

Relative Competitive position

Boston Consulting Group .

Profitability was a function of the relative competitive position of one business to all others in that industry

Value creation

Level IV (1900)

Business Unit Profit

Profitability was recognized as the result of the interplay of new produc dev., production, sales, finance.

Value control

Level VI (1980)

Industry structure

Michael Porter.

Industry profitability is a function of the relative power position not only with competitors, but also with suppliers, customers, and potential competitors

Build goodwill and value

Level VII (2000)

Profitability is driven by Worldwide Industry and social structures

Succesful strategies at the higher levels were predicated on succesful execution of the strategic thinking at the lower levels.

Build society

Quality Service PracticeCorporate Citizenship

Strategic IntentStrategic Development

5

35

104

665

4.406

Analysis of the Belgian companies (based on sales)

874

# COMPANIES

109.731

6.8583.593

17

Sales

Gross Operating Margin

GOM/fte

560.000

349.000

69.000

9.300.000

2.763.000

78.000

39.000.000

9.500.000

91.000

327.500.000

74.250.000

112.000

8.506.000.000

739.000.000

168.000

Quality Service PracticeCorporate Citizenship

Strategic IntentStrategic Development

Example : Omega Pharma

Corporate Prescience

811m euro25.000 euro

1987 2009

“To be the most dynamic pan-European OTC company

“

Continuous innovation Geographic expansion

2000

178m euro

Start Internationalization

1998

23m euro

Human Capability – The origin of growthA person's capability

to perform complex tasks is both

a lifelong evolution and predictable.

There is a 0.97 correlation between organisational layers

and each step in complexity of mental processing

and thus potential capability

6

5

7

4

3

2

1

Human Capability – The origin of growth

Qu

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Ser

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Pra

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Dev

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Str

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Co

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Cit

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Co

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Pre

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Placeholder textManagerial hierarchy Is a reflection of discontinuous

steps in the nature of human capability

Human capability : Being in flow

Touch and Feel

Accumulating

Connecting

Modelling

Weaving

Revealing

Previewing

6

5

7

4

3

2

1Quality

Service

Practice

Strategic Development

Strategic Intent

Corporate Citizenship

Corporate Prescience

6

5

7

4

3

2

1

Complexity of the job Capability of the person

Demographic perspectives

Demographic perspectives

+ - Consumption will increase

New needs

New market opportunities

Headquarters shift to the East

Level 4/5/6 jobs decrease in Europe

Innovation capability increase in the East

Level 1 jobs shift to the East

Increased competition from the East

Increasing demand for natural resources

Increasing mobility

Strategic intent Value creation

Quality

Cost reduction

Service Cost control

Strategic development

Value control

coherence

judgement

review

Corporate citizenship

Goodwill

VIABILITYtangible measures

REPUTATIONintangible measures

THE FUTURE possibilities

G.Stamp/C.R.Vishwanath (1999)

PracticeCost efficiency

• Cost reduces profit• Competition on price and margin

• Cost is essential to create profit• Competition on service and quality

The paradox of strategy – how will demography affect your organization.