Business Dynamics Excellence - To keep pace with changes in the marketplace - Rudolf Ch. Takáč

CFO Zone 2015, 7 – 8 May 2015, Vienna

BUSINESS DYNAMICS EXCELLENCE

TO KEEP PACE WITH CHANGES IN THE MARKETPLACE

Rudolf Ch. Takáč


2BCognitus®

2BCognitus supports organisations to drive strategy and business improvement through the application of knowledge and best-practice.

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2BCognitus®

2BCognitus supports organisations to drive strategy and business improvement through the application of knowledge and best-practice.

Ethical approach

We are independent and prize our honesty.

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2BCognitus®

2BCognitus® introduced its unique concept - Business Dynamics Excellence - on the 28th IPMA Word Congress in Rotterdam, Sept 2014.

Business Dynamics Excellence is the strategic quality that enables organization not just withstand in the new market conditions, but more importantly thrive in this new strategic landscape and gain competitive advantage.

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IPMA Word Congress,Rotterdam 09/2014


Value & Dynamic Strategy Insights1

AGENDA

High – Quality Decision2

Result – Oriented Performance3


Value Creation Driven by Dynamic Strategy Insights Complex, Fast Changing and Dynamic World

Organization, CFOs, and Leaders have to cope with new level of complexity and uncertainty.

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Value Creation Driven by Dynamic Strategy Insights – CFO Role

CFOs play a bigger role in strategy. Strategy Alignment – Create and Protect Value

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Dynamic Strategy Insights

Strategy: Relevant, Meaningful

Strategy

Initiatives,Activities,Projects

Strategy Making

Strategy Execution

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Dynamic Strategy InsightsStrategy: Relevant, Meaningful, and Dynamic

Intended Strategy

New Strategy

Emergent Strategy


Strategy Making

Strategy Execution

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Dynamic Strategy InsightsStrategy: Relevant, Meaningful, and Dynamic

Intended Strategy

New Strategy

Emergent Strategy


Strategy Making

Strategy Execution

- reflecting real-time information about customer needs, competitors activities, organization capabilities

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Value Creation Driven by Dynamic Strategy Insights Strategy: Relevant, Meaningful, and Dynamic

Intended Strategy

New Strategy

Emergent Strategy


Strategy Making

Strategy Execution

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Engagement

Achieved Value

Planned Value


Conclusion

A company´s vision, strategy, and approach to strategy execution are never final (ongoing process)

Dynamic – reflecting Business Environment

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Conclusion

A company´s vision, strategy, and approach to strategy execution are never final (ongoing process)

Dynamic – reflecting Business Environment

CFOs play a bigger role in strategy making and execution.

Ensure that the company does the right strategy initiatives and projects.

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AGENDA




High – Quality Decision Strategy Cascading, Translating strategy

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Dynamic Strategy

Business Unit

Business Unit

Business Unit


High – Quality Decision – CFO Role

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Dynamic Strategy

Business Unit

Business Unit

Business Unit




Resource Allocation

Strategy Plan


High – Quality Decision

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Strategy Business

Unit

Business Unit

Business Unit




Resource Allocation

Strategy Plan Strategy Execution

Go

al:

Ben

efit

s, V

alu

e


High – Quality Decision – CFO Role

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Strategy Business

Unit

Business Unit

Business Unit




Resource Allocation


High Level FinancialResources Conflict Management

Res

ults

: B

enef

its,

Val

ue


High – Quality Decision Fast Changing and Dynamic Word

Part 2/3

Strategy Business

Unit

Business Unit

Business Unit




Resource Allocation


Strategy Initiatives Priorities

Res

ults

: B

enef

its,

Val

ue

New Strategy


Planned Measurable Benefits, Value

Expected Benefits, Value

Start

Planning Close-upExecuting,

Monitoring & Controlling

High – Quality Decision & Expected Value

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Finish

Planned

Benefits,

Value

Planned

Financial Resources,

Known Risks




Start



High – Quality Decision & Expected Value

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Finish

Planned

Benefits,

Value

Planned

Financial Resources,

Known Risks

Approved Risk Appetite


High – Quality Decision & Benefits

Part 2/3

t1 t2




Start



High – Quality Decision – Dynamic Word

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Finish

Achieved Benefits, Value

Dynamic World

Variance

t1


Project Value driven by strategy insights valid in t0

t0

Value ?

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High – Quality Decision – Create and Protect Value

Measuring progress and addressing misalignment Variance ?

t1



t0

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High – Quality Decision – Earned Value Method

Cost performance index CPI=BCWP/ACWP

Value ?

?

t1



t0

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Schedule performance index SPI=BCWP/BCWS

Value ?

?

t1



t0

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Schedule performance index SPI=BCWP/BCWS

Cost performance index CPI=BCWP/ACWP

Value ?

?

t1



t0

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Premature Closure!

Value ?

t1




t0

Higher Value

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Re-defined Benefits?

t1




t0

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Re-defined Benefits

Higher Value

t1





t0

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High – Quality Decision – Create and Protect ValueMeasuring progress and addressing misalignment – reflecting business environment

Added Value

?

t1 t2

Higher Value

?



Are the management levels, CFOs, Leaders prepared to work in this way to maximize strategic initiatives value?

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High – Quality Decision (step by step)

A) Frame (situation, problem)

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B) Data gathering (real time)

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C) Alternatives creation (agile, flexible)

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D) Value to select appropriate alternatives (new or re-setup measurable benefits)

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E) The best alternative selection

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E) The best alternative selection F) Plan to do (initiatives re-planning)

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Conclusion

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Value Focused Thinking (from Start-up to Close-up)

Strategy Insights data gathering

Risk Management & Dynamic Strategy (risk appetite, good risks)


Conclusion

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Value Focused Thinking (from Start-up to Close-up)

Strategy Insights data gathering

Risk Management & Dynamic Strategy (risk appetite, good risks)

Insuring that organization can execute its strategy

Real time reflecting decision



AGENDA




Result – Oriented Performance Strategy Alignment Decision Competency Dynamic Capabilities

Steering Framework

Decision Competency

Dynamic Capabilities

Strategy Alignment

Higher RealProject Value

Value-drivenBusiness Processes

Competitive Edge

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(i) Strategy Alignment

Exploring effective ways to align strategy and execution

Aligning financial and human resources and company strategy goals

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(ii) Decision Competency

Bringing clarity to complex decision situations and avoiding pitfalls of intuitive decision making

Leading decision team and facilitate interactions among those who support and provide input to the decision – making process, as well those who actually make the decision

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(iii) Dynamic Capabilities

Understand how to shape not just adapt to business changes

Establishing framework to sense, and size opportunities

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Conclusion Aligning financial and human resources and strategy goals Bringing clarity to complex decision situations Shape not just adapt to business changes

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Thank You.

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[email protected]

Business Dynamics Excellence - To keep pace with changes in the marketplace - Rudolf Ch. Takáč

Economy & Finance

Transcript of Business Dynamics Excellence - To keep pace with changes in the marketplace - Rudolf Ch. Takáč