Strategic Management Process

1
Strategic Management Process

• Session 2

2
Strategic Leadership Facing the challenge of
transformation

• Ken Lewis, Bank of America
• Reorganizing the loopiest organizational
  structure ever
• Jim Kilts, Gillette
• Everything that could go wrong at Gillete has
• Paul Fireman, Reebok
• Tough work in an industryflat as a pancake

Source Fortune, Money, Bank of America, Reebok
and Gillette websites
3
Strategy levels

• Functional
• Business
• Global
• Corporate

4
Business level strategy
Strategic advantage
Uniqueness Low cost position
Industrywide
Strategic Target
FOCUS
Specific segment
Source Michael Porter
5
Strategic Leadership

• Vision, eloquence consistency
• Commitment
• Well informed
• Delegating and empowering
• Astute use of power
• Emotional intelligence

6
Pop Quiz

• Name the successors to
• General Motors Alfred Sloan
• Fords Henry Ford
• Polaroids Edwin Land
• Hewlett Packards David Packard
• ITTs Harold Geneen

Source Bennis OToole, 2000
7
Strategic Leadership

• Jacques Nasser (Ford) Teaching as a means of
  change
• John Browne (British Petroleum) Creating an
  environment conducive for learning.

Source HBR
8
Staying power

• Edward Whitacre
• SBC
• Michael Eisner
• Disney
• Charles Knight
• Emerson Electric

Source NY Times
9
Here today, gone tomorrow

• Jill Barad, Mattel
• Durk Jager, Procter Gamble
• Douglas Ivester, Coca Cola
• Bob Ayling, British Airways
• Rick Thoman, Xerox
• Robert Nakasone, Toys R Us

Source NY Times
10
Strategy Formation
Realized
Deliberate
Intended
Unrealized
Emergent
Core Competencies
Source Mintzberg
11
The Fall of Strategic Planning

• Uncertainty in the environment
• (wrong about the environment)
• Action failure
• (wrong about own capabilities)
• Timing failure
• Strategic intent v/s strategic fit

12
Cognitive Bias Strategic Planning

• Prior hypothesis bias
• Escalating commitment
• Reasoning by analogy
• Representativeness
• Illusion of control