A Generic Approach to Strategic Management

Creating and Presenting Strategic Plans

Part 2

•Surely every business is different

Yes....and.....No

The Winning Rules for Every Business

•Navigation

•Health

•Strategy

Most easily understood through generic rules

Generic Approaches to Complex Issues

•Impossible - every country/ocean is different

The Generic Rules for Navigation

•Possible - there are a few rules that apply everywhere

N

W E

S

The Compass

Generic Rules Ought to be:

•Simple - understood by all

•Timeless - never changing

•Effective - always work

Physical environment: good

Home environment: goodWorking environment: good Parental health: good

Physique: good

Age: relative

Stress: low Education: high

Affluence: high

Environmental factors Inherited factors

Lifestyle factors

Fitness factorsExercise: goodDiet: healthy

The Health Compass: LIFE

•If we can have generic rules for healthy individuals

Health = Profits

An Assumption

•We can have generic rules for profitable (healthy) firms

Competitive position

Markets addressed

Leadership

Asset utilization

The Strategy Compass

Competitive positionSales # 1

Rel. Mkt. Share # 1

Degree of innovation: highPatents/Mkt. Control: yes

Market share # 1

Relative Quality # 1

Asset utilisationInvestment intensity: lowest

Productivity, people + assets: #

1

Fixed Vs Liquid assets: lowest Capacity utilisation: # 1

Markets addressed

Size of ticket item: large

Customer power: weakestLogistics: simplest

Market growth rate: highest

Concentration: High

The Strategy Compass: CALM

LeadershipLeadership: respected, visionary

Labour turnover: lowest People: connected Absenteeism: lowest

Communication and values

Competitive positionSales # 1

Rel. Mkt. Share # 1

Degree of innovation: highPatents/Mkt. Control: yes

Market share # 1

Relative Quality # 1

Asset utilisationInvestment intensity: lowest

Productivity, people + assets: #

1

Fixed Vs Liquid assets: lowest Capacity utilisation: # 1

Markets addressed

Size of ticket item: large

Customer power: weakestLogistics: simplest

Market growth rate: highest

Concentration: High

The Strategy Compass: CALM

LeadershipLeadership: respected, visionary

Labour turnover: lowest People: connected Absenteeism: lowest

Communication and values

The Strategy Compass: CALMMarkets

addressed

Competitive position

Asset utilisation

Leadership

B.2.3. Markets addressedB.2.3.1. Markets addressedB.2.3.2. Product niche analysisB.2.3.3 Customer group

analysis

B.2.4. Competitive analysisB.2.4.1. Industry competitive

analysisB.2.4.2. Firm competitive analysisB.2.4.3. Actual competitor analysisB.2.5. Leadership

B.2.5.1. Behavioural analysis

B.2.5.2. Leadership and change

B.2.5.3. Leadership measurementB.2.6. Asset Utilisation

B.2.6.1. Overall asset utilisation

B.2.6.2. Productivity B.2.6.3. Financial

performance

The Skeleton Strategic Plan

Section A: Background to the strategic planA.1. Introduction A.2. Executive summary Section B.1. The overall strategic plan B.1. Mission, goals and strategy

B.1.1. MissionB.1.2. GoalsB.1.3. Strategies

Section B.2. The detailed strategic plan B.2.1. Defining the businessB.2.2. The product market portfolioB.2.3. Markets addressed

B.2.3.1. Markets addressedB.2.3.2. Product niche analysisB.2.3.3 Customer group analysis

B.2.4. Competitive analysisB.2.4.1. Industry competitive analysisB.2.4.2. Firm competitive analysisB.2.4.3. Actual competitor analysis

B.2.5. LeadershipB..2.5.1. Behavioural analysisB.2.5.2. Leadership and changeB.2.5.3. Leadership measurement

B.2.6. Asset utilisation B.2.6.1. Overall asset utilisationB.2.6.2. ProductivityB.2.6.3. Financial performance

Section B.3. ForecastsB.3.1. Overall forecastsB.3.2. Risks

Section B.4. ImplementationB.4.1. Implementation; incrementalB.4.2. Implementation: strategic

The Skeleton Strategic Plan

The Strategy D

rives th

e Financia

ls

not

The Financia

ls Drive

the Strategy

The End