From Delta Model to BSC - Strategic Management and the Complete Cycle of the Strategy. Part I

Corporate Strategy:From Delta Model to

BSCStrategic ManagementStrategic Management

Prof. Nivaldo Tadeu Marcusso

Corporate Strategy:From Delta Model to

BSCStrategic ManagementStrategic Management

Strategic ManagementStrategic Management

AGENDA

I. Strategic ManagementII. Blue OceanIII. Delta ModelIV.Balanced Scorecard (BSC)V. Complexity Management and Mind MapsVI. The Complete Cycle of the Strategy

Nivaldo T. Marcusso

AGENDA

I. Strategic ManagementII. Blue OceanIII. Delta ModelIV.Balanced Scorecard (BSC)V. Complexity Management and Mind MapsVI. The Complete Cycle of the Strategy

Program:1.Strategic Management:

– Strategy Management: Two Approaches

– Strategy Schools: An Overview

– Environmental Analysis

– Strategy Formulation

– Strategy Implementation

2. Delta Model3. Blue Ocean4.BSC

Strategic ManagementStrategic Management

Nivaldo T. Marcusso

Program:1.Strategic Management:

– Strategy Management: Two Approaches

– Strategy Schools: An Overview

– Environmental Analysis

– Strategy Formulation

– Strategy Implementation

2. Delta Model3. Blue Ocean4.BSC

Road Map for Strategy Development

• Strategy Communication and Adapting:– Build the timeline of the Organization to identify the

aspects of the current market position of the Companyand the needs to face the competition for the businessgoals.

– PESTEL Analysis (Political, Economic, Social ,Technology, Environmental and Legal) and identificationof the trends and impacts in your Market.

– Identify the strength and weakness of the market, the bestcustomers, segmentation and market penetration,Supplies, News Entrants, products substitutive and thebehaviors of the competition.

– Identify the market opportunities to develop the newproduct portfolio and new strategic positioning (products,services and Complementors) to face the competition.

– Communicate the Mission of the OrganizationNivaldo T. Marcusso

• Strategy Communication and Adapting:– Build the timeline of the Organization to identify the

aspects of the current market position of the Companyand the needs to face the competition for the businessgoals.

– PESTEL Analysis (Political, Economic, Social ,Technology, Environmental and Legal) and identificationof the trends and impacts in your Market.

– Identify the strength and weakness of the market, the bestcustomers, segmentation and market penetration,Supplies, News Entrants, products substitutive and thebehaviors of the competition.

– Identify the market opportunities to develop the newproduct portfolio and new strategic positioning (products,services and Complementors) to face the competition.

– Communicate the Mission of the Organization

The Tree of BusinessFrom Strong Roots To Superior Results

Marketing, Selling,Servicing, Partnering

“Profits should be a reflection not of a corporategreed but a vote of confidence from society that

what is offered by the firm is valued.”– Konosuke Matsushita

Deliver Superior Value

Live Your Vision

Nivaldo T. Marcusso

Vision, Values,Capabilities, Resources

© 2006 Vadim Kotelnikov

Strategies, Organization,Processes, Innovation

“For every thousand hacking at the leaves ofevil, there is one striking at the root.” – Henry

David Thoreau

Strengthen Your Roots

“Vision without action is a daydream. Actionwithout vision is a nightmare.”

– Japanese proverb

Live Your Vision

Source: Vadim Kotelnikov

Corporate VisionProviding Purpose, Direction and Motivation

Vision is a short and inspiring statement of what your organizationintends to become and to achieve at some point in the future.

Corporate Vision May Contain Commitment to:

Creating an outstanding value for customers and other stakeholders

Developing a great new product or service

Developing a great company

Nivaldo T. Marcusso

Corporate Vision May Contain Commitment to:

Creating an outstanding value for customers and other stakeholders

Developing a great new product or service

Developing a great company

GE We bring good things to life.

Ford To become the world's leading consumer company forautomotive products and services.

Microsoft To enable people and businesses throughout the world to realizetheir full potential.

Ten3 To inspire innovation and help people create a better world.

Examples of Corporate Vision


Mastering Your Enterprise StrategyThe Three Hierarchical Levels of Strategy

CorporateStrategy

Business you should be in

Enterprise strategy isconcerned with the

match between yourcompany’s internal

capabilities andits external

environment

Strategy is a set ofanalytic techniquesfor understandingand influencingyour company’sposition in themarket place

Nivaldo T. Marcusso

CorporateStrategy

Business you should be in

Business StrategyTactics

to beat the competition

Functional StrategyOperational methods

to implement the tactics

Enterprise strategy isconcerned with the

match between yourcompany’s internal

capabilities andits external

environment

Strategy is a set ofanalytic techniquesfor understandingand influencingyour company’sposition in themarket place


The Corporate Strategy LogicStrategy Pyramid (old) vs. Strategy Stretch (new)

STRATEGY PYRAMIDTop-down

Strategic Intent

Challenges

STRATEGY STRETCHTop-down + Bottom-up

Vision

Mission

Nivaldo T. Marcusso

Old Strategy-basedBusiness Development Model

• Effective in known & stable environment• Builds on existing competencies

New Opportunity-drivenBusiness Development Model

• Effective in new & unstable environment• Builds on new competencies

Opportunities

ChallengesGoals

Strategies

Tactics

Action plans


Opportunity-driven Business DevelopmentChoosing Between Strategy and Opportunity Approach

Use Strategy Approach Use Opportunity Approach

Known environment Unknown environment

Stable environment Unstable environment

Building on existingcompetencies, capabilities,products, markets

Building on new competences,capabilities, products, markets

Nivaldo T. Marcusso

1000ventures.com

Adapted from “Changing Strategic Direction”, Peter Skat-Rørdam

Building on existingcompetencies, capabilities,products, markets

Building on new competences,capabilities, products, markets

Need consolidation Need rapid growth

Need stability and certainty Need change, accept uncertainty

Lack capacity for flexibility,corporate venturing, and speed

Established capacity forflexibility, corporate venturing,and speed

Strategic ManagementStrategic Programming Model for Stable Environment

IdentifyMission

DeriveObjectives

STRATEGYFORMULATION

STRATEGY IMPLEMENTATION

Evaluate Results

FEEDBACK LOOP

Nivaldo T. MarcussoAdapted from “Strategic Management”, Alex Miller

DeriveObjectives

IdentifyAlternative Strategies

EvaluateAlternatives

SelectPreferred Alternatives

Create MasterPlans/Programs

Create Medium-RunPlans/Programs

Create Short-TermPlans/Programs

Establish MasterBudget

Establish Medium-RunOperating Budgets

Establish Short-TermTactical Budgets

STRATEGY IMPLEMENTATION


FutureStepStrategic Management for Adaptive Organizations

STRATEGICDIAGNOSIS

STRATEGYDEVELOPMENT

STRATEGYIMPLEMENTATION

1. Processplanning

andkick-off

2.Strategicissuesscan

6. Ecosystemmodeling

7. Scenariobuilding

10. Development of thestrategic agenda

11. Identification ofkey change initiatives

Nivaldo T. MarcussoAdapted from “Managing Complexity”, Robin Wood

1. Processplanning

andkick-off

2.Strategicissuesscan

3. Factfinding

andanalysis

4. Capabilityassessment

andprognosis

5. Mobilizingfor change

7. Scenariobuilding

8. Strategicoption building

9. Strategicgaming and simulation

11. Identification ofkey change initiatives

12. Identification ofstrategic triggers


Business-level StrategyFour Categories of Business Tactics

PREEMPTION

Frontal assault Flanking maneuver Guerilla warfare Siege warfare

Anticipatory Tactics Tactics of Engagement

OffensiveTactics

ATTACK

Pioneering Attacking yourself

Intimidation Capture

Nivaldo T. MarcussoAdapted from: “Strategic Management”, Alex Miller

Frontal assault Flanking maneuver Guerilla warfare Siege warfare

DefensiveTactics

DETERRENCE

Pioneering Attacking yourself

Intimidation Capture

Raising structural barriers Expected retaliation Discouraging attacks

Diplomatic peacekeeping

RESPONSE

Counterattack Fast follower Retrenchment Withdrawal


Strategic ManagementStrategy Programming vs. Strategy Innovation

AnalysisStrategy

ImplementationStrategy

Formulation

Analysis & Strategic Learning

STRATEGY PROGRAMMING STRATEGY INNOVATION

Dynamic Strategy Formulation

Experimental Strategy Implementation

AREAS OF EFFECTIVE APPLICATION

Nivaldo T. Marcusso

CONDITIONS STRATEGY PROGRAMMING STRATEGY INNOVATION

Environment Simple & stable Complex & dynamic

Organization Unadaptive Adaptive

Change Slow Fast

Innovation Incremental Radical

AREAS OF EFFECTIVE APPLICATION


Strategic Management

Nivaldo T. MarcussoSource: Premium Execution, Kaplan & Norton, 2008

Strategy

• Source: MBA – Curso Prático de Estratégia (Liam Fahey, Robert M. Randall) A Arte da Guerra (Sun Tzu) Strategy Safari – A Guide Tour Throught The Wilds of Strategic

Management (Henry Mintzberg) Strategy Bites Back (Henry Mintzberg) A Estratégia e o Cenário dos Negócios (Pankaj Chemawat) Strategy is Destiny (Robert A. Burgelman) Execution – The Discipline of Getting Things Done (Larry Bossidy & Ram

Charan) Mapas Estratégicos (Robert Kaplan e David Norton) Estratégia Empresarial – Prof. Armando Matiolli O Balanced Scorecard - Prof. Armando Matiolli Alinhamento (Robert Kaplan e David Norton)

Nivaldo T. Marcusso

• Source: MBA – Curso Prático de Estratégia (Liam Fahey, Robert M. Randall) A Arte da Guerra (Sun Tzu) Strategy Safari – A Guide Tour Throught The Wilds of Strategic

Management (Henry Mintzberg) Strategy Bites Back (Henry Mintzberg) A Estratégia e o Cenário dos Negócios (Pankaj Chemawat) Strategy is Destiny (Robert A. Burgelman) Execution – The Discipline of Getting Things Done (Larry Bossidy & Ram

Charan) Mapas Estratégicos (Robert Kaplan e David Norton) Estratégia Empresarial – Prof. Armando Matiolli O Balanced Scorecard - Prof. Armando Matiolli Alinhamento (Robert Kaplan e David Norton)

Strategy

• Source: Ansoff. H. Igor – A nova Estratégia Empresarial

São Paulo – Atlas - 1990 Ghemawat, Pankaj – A Estratégia e o cenário de negócios

Porto Alegre – Bookman - 2000 Ohmae, Kenichi – O Estrategista em Ação

São Paulo – Pioneira - 1985 Porter, Michael E. – Estratégia Competitiva

Rio de Janeiro – Campus - 1986 Porter, Michael E. – Vantagem Competitiva

Rio de Janeiro – Campus - 1990 Porter, Michael E. – What is Strategy?

Boston – Harvard Business Review – Nov/Dez. 1996

Nivaldo T. Marcusso

• Source: Ansoff. H. Igor – A nova Estratégia Empresarial

São Paulo – Atlas - 1990 Ghemawat, Pankaj – A Estratégia e o cenário de negócios

Porto Alegre – Bookman - 2000 Ohmae, Kenichi – O Estrategista em Ação

São Paulo – Pioneira - 1985 Porter, Michael E. – Estratégia Competitiva

Rio de Janeiro – Campus - 1986 Porter, Michael E. – Vantagem Competitiva

Rio de Janeiro – Campus - 1990 Porter, Michael E. – What is Strategy?

Boston – Harvard Business Review – Nov/Dez. 1996

Strategy

• Source: A Estratégia do Oceano Azul (W. Chan Kin e Renée Mauborgne) Balanced Scorecard e a Gestão do Capital Intelectual (José

Francisco Resende) Balanced Scorecard e a Gestão Estratégica (Emílio Herrero Filho) Transformando Conhecimento em Resultados (Beatriz Munoz

Seca e Josep Riverola) Peripheral Vision (George S. Day) The Boston Consulting Group On Strategy (Carl W. Stern e

Michael S. Deimler) The Well-Timed Strategy (Peter Navarro) Strategy Moves (Jorge A. Vasconcelos e Sá)

Nivaldo T. Marcusso

• Source: A Estratégia do Oceano Azul (W. Chan Kin e Renée Mauborgne) Balanced Scorecard e a Gestão do Capital Intelectual (José

Francisco Resende) Balanced Scorecard e a Gestão Estratégica (Emílio Herrero Filho) Transformando Conhecimento em Resultados (Beatriz Munoz

Seca e Josep Riverola) Peripheral Vision (George S. Day) The Boston Consulting Group On Strategy (Carl W. Stern e

Michael S. Deimler) The Well-Timed Strategy (Peter Navarro) Strategy Moves (Jorge A. Vasconcelos e Sá)

Contact

• Email: [email protected]• Fone: 11-87531352• Linkedin: http://www.linkedin.com/in/marcniv

– Group: Delta Model– Group: Praxis – Tecnologia Educacional

• Blog: www.nmarcusso.blogspot.com• Twitter: @nmarc

Nivaldo T. Marcusso

• Email: [email protected]• Fone: 11-87531352• Linkedin: http://www.linkedin.com/in/marcniv

– Group: Delta Model– Group: Praxis – Tecnologia Educacional

• Blog: www.nmarcusso.blogspot.com• Twitter: @nmarc

From Delta Model to BSC - Strategic Management and the Complete Cycle of the Strategy. Part I

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Transcript of From Delta Model to BSC - Strategic Management and the Complete Cycle of the Strategy. Part I