Eleonora Escalante MBA-MEng, Strategic Corporate Advisory Services

© 2017 Eleonora Escalante-all rights reserved 1

Our Strategy Race:

Leg 3 - From Cape Town to Melbourne. Competitive Advantage

as a result of Organizational Capabilities and Resources

Picture source: Virtual Regatta Offshore

18 Dec 2017

OUTLINE Leg 3. Resources and Capabilities

Leg 3. From Cape Town to Melbourne

02The Resources of

the Firm

03Organizational

Capabilities

Eleonora Escalante MBA-MEng, Strategic Corporate Advisory Services

© 2017 Eleonora Escalante-all rights reserved

05Framework for

Analyzing Resources

and Capabilities

04Competitive

advantage as a

result of Resources

and Capabilities

01Role of Resource &

Capabilities in

Strategy

Formulation

06Summary and

Conclusions

We are here!

18 Dec 2017 2

Leg 3. Resources and Organizational Capabilities as Competitive Advantage

Leg 3. From Cape Town to Melbourne.

Eleonora Escalante MBA-MEng, Strategic Corporate Advisory Services

© 2017 Eleonora Escalante-all rights reserved 18 Dec 2017

We are here!

3

Source:

2017 Deloitte Global Human Capital Trends, Deloitte

University Press | Dupress. Deloitte.Co

Functional Area Capability

Corporate Functions • Financial Control

• Management Development

• Strategic Innovation

• Multidivisional Coordination

• Acquisition Management

• International Management

Management Information • Integrated MIS

• Network linked to managerial decision

making

Research and Development • Research

• Innovative new product development

• Fast-cycle new product development

Operations • Efficiency in volume manufacturing

• Continuous improvements in operations

• Flexibility and speed of response

Product Design • Design Capability

Marketing • Brand Management

• Building Reputation for quality

• Responsiveness to market trends

Sales and Distribution • Effective sales promotion and execution

• Efficiency and speed of order processing

• Speed of Distribution

• Customer Service

04Competitive

advantage as a

result of Resources

and Capabilities

Leg 3. From Cape Town to Melbourne.

We are here!

Leg 3. Resources and Organizational Capabilities as Competitive Advantage

When designing my idea of a “satellite organization”, I was inspired by three things:

1. This drawing from the

page 21 of the 2017 Deloitte

Global Human Capital

Trends Report

2. The Spanish phrase

“no pasa nada”.

No fear to failure and the

possibilities opened to learn

from mistakes

3. The moon orbit with

the Earth

18 Dec 2017Eleonora Escalante MBA-MEng, Strategic Corporate Advisory Services

© 2017 Eleonora Escalante-all rights reserved 4

04Competitive

advantage as a

result of Resources

and Capabilities

Leg 3. From Cape Town to Melbourne.

Eleonora Escalante MBA-MEng, Strategic Corporate Advisory Services

© 2017 Eleonora Escalante-all rights reserved 18 Dec 2017

We are here!

C

G

F

A

D

E

BC

G

F

A

D

E

B

C

G

F

A

D

E

B

C

G

F

A

D

E

B

Project I

Project II

Project III

Project IV Satellite

organization

C

G

F

A

D

E

B

Project VTeam 5

Team 3

Team 2

Team 1

Team 4

Source:

2017 Deloitte Global Human Capital Trends,

Deloitte University Press |

Dupress.Deloitte.Com

Leg 3. Resources and Organizational Capabilities as Competitive Advantage

5

04Competitive

advantage as a

result of Resources

and Capabilities

Leg 3. From Cape Town to Melbourne.

Eleonora Escalante MBA-MEng, Strategic Corporate Advisory Services

© 2017 Eleonora Escalante-all rights reserved 18 Dec 2017

We are here!

6

Satellite

organization

• It is a dream organization where

innovation flourishes

• It is an innovative way to promote

a nourishing culture of learning

from mistakes

• It is a transparent and solid

platform for gaining experience in

teams and after delivering results,

moving forward to more difficult

tasks.

• It is flexible. Rewarding. Inspiring.

• It is an ethical “knowledge based”

organization

Moon

Earth

Orbit

Leg 3. Resources and Organizational Capabilities as Competitive Advantage

04Competitive

advantage as a

result of Resources

and Capabilities

Leg 3. From Cape Town to Melbourne.

Eleonora Escalante MBA-MEng, Strategic Corporate Advisory Services

© 2017 Eleonora Escalante-all rights reserved 18 Dec 2017

We are here!

7

C

G

F

A

D

E

B

C

G

F

A

D

E

B

C

G

F

A

D

E

B

C

G

F

A

D

E

B

The shift:• Redefinition of the cross functional capabilities design.

• Each team-member is a functional specialist with his/her

expertise. Each will collaborate with other functional

specialists in specific projects.

• This team is a multidisciplinary one. (including an HR

specialist who will have the strategic role to facilitate and

orchestrate the communication with digital tools)

• The home office will be encouraged: employees on flex-

time programs, employees in satellite office (same

country), employees in satellite office (different country),

independent contractors, external short term advisors,

vendors or suppliers, other home-office employees from

sister or partner companies, even with competitors, etc.

Satellite

organization

Leg 3. Resources and Organizational Capabilities as Competitive Advantage

04Competitive

advantage as a

result of Resources

and Capabilities

C

G

F

A

D

E

B

C

G

F

A

D

E

B

C

G

F

A

D

E

B

C

G

F

A

D

E

B

Leg 3. From Cape Town to Melbourne.

Eleonora Escalante MBA-MEng, Strategic Corporate Advisory Services

© 2017 Eleonora Escalante-all rights reserved 18 Dec 2017

We are here!

8

• Each project is realized in an orbit period which

can be repeated several times until it is done with

excellence.

• Once the project is finished, each team member

has to leave a legacy of knowledge personally

and digitally to the rest and the company

(sharing culture)

• For a next new project: The teams will be re-

assigned by level of expertise required into the

new project with a new level orbit of difficulty

than the last one.

• This model can be applied to simple and complex

organizations in every industry: including

financial companies, government organizations

and many other industrial sectors.

Satellite

organization

Leg 3. Resources and Organizational Capabilities as Competitive Advantage

04Competitive

advantage as a

result of Resources

and Capabilities

C

G

F

A

D

E

B

C

G

F

A

D

E

B

C

G

F

A

D

E

B

C

G

F

A

D

E

B

Leg 3. From Cape Town to Melbourne.

Eleonora Escalante MBA-MEng, Strategic Corporate Advisory Services

© 2017 Eleonora Escalante-all rights reserved 18 Dec 2017

We are here!

9

• Lead by orchestration. Playbook based

• The company is viewed as an agile network

of nodes, empowered by team leaders and

fueled by collaboration and knowledge-

sharing

• Structure based on work initiatives and

projects, with teams focused on products,

customers and services.

• Culture of safety, abundance and

importance of risk-taking and innovation

• No more process based, but results –

project based orientation

Satellite

organization

Source:

2017 Deloitte Global Human Capital Trends,

Deloitte University Press |

Dupress.Deloitte.Com

Leg 3. Resources and Organizational Capabilities as Competitive Advantage

04Competitive

advantage as a

result of Resources

and Capabilities

Leg 3. From Cape Town to Melbourne.

Eleonora Escalante MBA-MEng, Strategic Corporate Advisory Services

© 2017 Eleonora Escalante-all rights reserved 18 Dec 2017

We are here!

10

Leg 3. Resources and Organizational Capabilities as Competitive Advantage

04Competitive

advantage as a

result of Resources

and Capabilities