PART 2: THE STRATEGIC THINKING ABCs TEMPLATE

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PART 2THE STRATEGIC THINKINGABCs TEMPLATE
The Most Universal Thinking Framework on Earth
BY STEVE HAINES AND JIM MCKINLAY
Founded in 1990 Offices in over 20
Countries
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SYSTEMS THINKING

• The Science of Living Systems
• The natural way the world works
• Backed by 50 Years of Scientific Research

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WHO IS JIM MCKINLAY?
Jim is the Co-Founder Canadian Managing
Partner of the Haines Centre for Strategic
Management

• Has provided consulting services to clients in
  government, business and the community sector
  since 1970
• Has a masters in Human Resource Development
• Co-authored Enterprise-Wide Change book with
  Stephen Haines Gail Aller-Stead (2005)
• Consulted in redesign of Health Care Systems in
  Canada using the Centres Systems Thinking
  Approach
• International work in Australia, Europe the
  Caribbean
• He lives in White Rock, BC with his wife Colleen

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WHO IS STEVE HAINES?

• STEVE HAINES
• Founder CEO
• Haines Centre for Strategic Management
• Systems Thinking Press
• Founded in 199038 Offices20 Countries

• STEVE
• is a
• CEOEntrepreneurGlobal Strategist
• and
• A FacilitatorSystems ThinkerProlific Author
• (of 14 books)

• A graduate of the US NAVAL ACADEMYs
• Legendary Leadership Class of 1968

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OUR COMPLEX WORLD TODAY!
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AN OVERVIEW OF THE NATIONAL INTELLIGENCE
COMMUNITY
Dept. of Energy
Homeland Security
State Dept.
USAF
USA
CIA
USCG
DIA
NATIONAL
INTELLIGENCE
Dept. Treasury
DEA US Justice
GeoSpatial Intelligence Agency
National Reconnaissance Office
FBI
USMC
NSA
USN (NCIS)
2007
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THINKPLANACTRESULTS
How you think (Simplicity) Is how you plan
(Clarity) Is how you act (Speed) And
that Determines the results you get in work and
life
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GREAT LEADERS
Great leaders know how to keep it simple . .
. "Great leaders are almost always great
simplifiers, who can cut through argument,
debate, and doubt to offer a solution everybody
can understand."                                  
             - General Colin Powell  
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WHAT DO THESE S REPRESENT?TABLE GROUP EXERCISE

• EXERCISE AT YOUR TABLES
• They are the natural way the world works
• 3
• 12
• 10
• 2
• 4

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SIMPLICITY

• EVERYTHING IS SIMPLE, YOU SEE
• BUT
• YOU JUST HAVE TO SEE IT
• KEYS
• Ask the 1 Systems Question Clarity of
  Purpose/Goal?
• One piece of paper documents
• Rule of 33 Minute Rule

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THREE MAIN PREMISES

• MAIN PREMISE 1 PLANNING AND CHANGE ARE THE
  PRIMARYJOB OF LEADERS
• MAIN PREMISE 2PEOPLE SUPPORT WHAT THEY HELP
  CREATE
• MAIN PREMISE 3 USE SYSTEMS THINKINGFOCUS ON
  OUTCOMESSERVE THE CUSTOMER!

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MAIN PREMISE 1

• PLANNING AND CHANGE
• ARE
• THE PRIMARY JOB
• OF LEADERSHIP

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• OUR LEVEL OF THINKING
• Problems that are created
• by our current level of thinking
• cant be solved
• by that same level of thinking.
• -Albert Einstein
• So. If we generally use
• analytical thinking,
• we now need real Systems Thinking
• to resolve our issues.
• -Stephen G. Haines

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GET A HIGHER AND BROADER PERSPECTIVE

• Take a Helicopter View of Life!

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ANALYTIC VS. SYSTEMS THINKINGStrategic
Consistency yet Operational Flexibility
STOP

• Using Analytic Approaches to Systems Problems
• Systems vs. Analytic Thinking
• In Systems Thinking the whole is primary and the
  parts are secondary.
• vs.
• In Analytic Thinkingthe parts are primary and
  the whole is secondary.

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STRATEGIC-ORIENTED ORGANIZATION

• ENTERPRISE-WIDE CHANGE THE ORGANIZATION AS A
  SYSTEM
• An organization is a system a complex network
  of inputs,
• processes, outputs and feedback from suppliers,
  employees, and
• customers.
• Management therefore needs a set of concepts and
  tools for wiring
• and aligning those components together,
• with the integrity needed
• for
• improving quality and service, reducing time and
  costs

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DESCRIBE ANY SYSTEM

• HOW WOULD YOU DRAW ANY SYSTEM
• IN
• THE SIMPLEST WAY POSSIBLE??

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SIMPLICITY OF SYSTEMS THINKING
A Holistic, Integrated, Organizing Framework
ENVIRONMENT
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JIGSAW PUZZLESARE SYSTEMS
The Key is to Build the Framework First
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THE SYSTEMSTHINKING APPROACH

• Five Strategic Thinking Questions In Sequence
• PHASE A Where do we want to be?
• PHASE B How will we know when we get there?
• PHASE C Where are we now?
• PHASE D How do we get there?
• PHASE E Ongoing What will/may change in your
  environment in the future?
• vs. Analytic Thinking Which
• Starts with today and the current state, issues,
  and problems.
• Breaks the issues and/or problems into their
  smallest components.
• Solves each component separately (i.e., maximizes
  the solution).
• Has no far-reaching vision or goal (just the
  absence of the problem).

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STRATEGIC THINKING ABCs TEMPLATE
Clarify and Simplify Your Thinking About your
Project
__________________________________________________
_________________(Name of the Organization
Issue Problem Project Change Effort, etc
E
Future Environmental Scan What will be changing
in your future environment that will affect us?
___________ Todays Date
C
D
System Throughput/Processes How do we get there
(close the gap from C A )?
Current State Assessment Where are you now?

C
A
A
___________ Future Date
Inputs (SWOT)
CORE STRATEGIES
TOP PRIORITY ACTIONS
OUTPUTS/OUTCOMES
. . . . .

• Strengths

• Weaknesses

Desired Outcomes- 1 System
Question Where do we want to be?

• Opportunities1
• 2
• 3
• 4
• 5
• 4

• Threats

B
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SKEPTIC
Future Environmental
Scanning/Trends
List the 5-10 environmental trends projections
opportunities threats facing you over the
life of your plan
S Socio-Demographics (People/Society)







K Competition/Substitutes
E Ecology
E Economics
P Political / Regulatory
T Technical
I Industry / Supplier
C Customers/Citizens
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TAKE A TWO-MINUTE STRETCH BREAK
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STRATEGIC PLANNING DEFINED

• Is it
• An event?
• A process?
• A change in our roles?
• A change in the way we run the business
  day-to-day?
• What's your belief? Why?

If you always do What youve always done You
WONT always get What youve always
gotten Because the world has changed!
Insanity. . . Is doing the same things In the
same way And expecting different results Steve
Haines
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REINVENTING STRATEGIC PLANNING TO DELIVER
CUSTOMER VALUE
A Yearly Strategic Management System and Cycle
Strategic Planning Clarity
Strategic Thinking Simplicity
Strategic Change Speed
The Systems Thinking Approach
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THE ABCs OF STRATEGIC MANAGEMENTSM

• STRATEGIC PLANNING HAS BEEN REINVENTED
• IT IS NOW STRATEGIC MANAGEMENT
• Planning
• 2. People
• 3. Leadership
• 4. Change
• AND
• Strategic Management is the new wayA yearly
  cycle onHow to run your business more
  strategically!

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THREE GOALSINSTRATEGIC MANAGEMENT

• GOAL 1 DEVELOP STRATEGIC AND ANNUAL PLANS
  (AND DOCUMENTS)
• GOAL 2 ENSURE SUCCESSFUL IMPLEMENTATION (AND
  ENTERPRISE-WIDE CHANGE)
• GOAL 3BUILDING SUSTAINING HIGH
  PERFORMANCE (YEAR AFTER YEAR)
• THE RESULTS BUSINESS EXCELLENCE SUPERIOR
  RESULTS (YEAR AFTER YEAR)

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REINVENTING STRATEGIC MANAGEMENT Planning
People Leadership Change
THE SYSTEMS THINKING APPROACHTM TO CREATING YOUR
COMPETITIVE EDGE

A OUTCOMES
D PROCESSES
CUSTOMER VALUE
C INPUT
STRATEGIC CHANGE MANAGEMENT
STATE
CURRENT
10. ANNUAL STRATEGIC REVIEW (AND UPDATE)
FUTURE
STATE
SMART START 8. PLAN-TO IMPLEMENT
9. STRATEGY IMPLEMENTATION (AND ENTERPRISE-WIDE
CHANGE)
7. ANNUAL PLANS/ STRATEGIC BUDGETS

• ENV. SCAN

2. IDEAL FUTURE VISION
6. THREE-YEAR BUSINESS PLANS

• VISION
• MISSION
• CORE VALUES
• POSITIONING
• RALLY CRY

5. STRATEGY DEVELOPMENT

• ALIGNMENT OF DELIVERY
• ATTUNEMENT WITH PEOPLE

B. FEEDBACK
3. KEY SUCCESS MEASURES/GOALS
4. CURRENT STATE ASSESSMENT
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YEARLY STRATEGIC MANAGEMENT CYCLETHE SYSTEMS
THINKING APPROACHTM
D
Actions, Change And Follow-Up

• "Thinking Backwards to the Future"

Your Ideal Future
Today
Strategic Management System
C
A
Strategies, Business Plans and Priorities
Vision, Mission And Values
B
Feedback And Measures
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DRUCKER QUESTIONS SELF ASSESSMENT

• Peter Drucker on Strategic Management

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GENERAL ELECTRICS STRATEGIC MANAGEMENT SYSTEM
Leadership Performance Reviews at
Business Locations All Business
Staffs Initiative Leadership Review Level of
Commitment/ Quality of Talent on
Initiatives Differentiation (20 / 70 /
10) Promote / Reward / Remove
Corporate Executive Council (CEC at Crotonville
Locations 35 Business and Senior Corporate
Leaders Initiative Best Practices Level of
commitment/ Rev. of Initiative Leadership
Customer Impact Business Management Course
(BMC) Recommendations

• Anonymous Online
• CEO Survey
• 11,000 Employees
• Do you Feel
• Initiated Yet?
• Do your customers feel it?
• Sufficient Resources
• To Execute?
• Messages Clear
• And Credible?

Operating Managers Meeting (Boca) 600
Leaders INITIATIVE LAUNCH Case for New
Initiative Outside Company Initiative
Experience One Year Search Targets Role Model
Presentations Re-Launch of Current Initiatives

• Corporate Executive council
• CEC at Crotonville
• 35 Business and Senior
• Corporate Leaders
• Early Learning?
• Customer Reaction?
• Initiative Resources Sufficient?
• Business Management Course
• (BMC) Recommendations

First Quarter

• Intense
• Energizing
• of Initiatives
• Across
• Businesses

Second Quarter
February
June
March
January
April
May
September
October
July
November
August
December
Corporate Executive Council (CEC at
Crotonville) 35 business and Senior Corporate
Leaders Business Management Course
(BMC) Recommendations Clear Role Models
Identified Outside Compnay Best Practices
Presented Initiative Best Practices (All
Businesses) Customer Impact of Initiatives
Corporate Officers Meeting (Crotonville) 150
Officers Next-Year Operating Plan Focus Role
Models Present Initiative Successes Executive
Development Course (EDC) Recommendations All
Business Dialogues What Have we Learned?
Corporate Executive Council (CEC at
Crotonville) 35 business and Senior Corporate
Leaders Agenda for Boca Individual
Business Initiative Highlights Business
Management (BCM) Course Recommendations
Session 1 3-Year Strategy Economic /
Competitive Environment General Earnings
Outlook Initiatives Update/ Strategy Customer
Impact Initiative Resource Requirements
Operating Plans Presented All Business
Leaders Initiatives Stretch Targets Individual
Business Operating Plans Economic Outlook
Informal Idea Exchanges at Corporate
and Businesses
Third Quarter
Fourth Quarter
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THE SECRET OF NUMMI
THE TOYOTA MANAGEMENT SYSTEM The secret is
not in the individual pieces.
The secret is in the integration of practices
into a management system.
Corporate GM Study Detroit, Michigan
0919X/4/7/86/page 6 Shnummi2.dtp 060691
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TOYOTA MANAGEMENT SYSTEM

• Linking the Seven Key Functional Areas

International Production Strategy
Production Management (ISCIM too)
Sales Management System
New Product Development
Flat Organization HR
Financial/Profit Management System
Cross- Functional Management
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THE SECRET OF NUMMI
Flexible Work?
Technology?
Quality Circles?
Consensus Decision Making?
KAIZEN?
Simple Product?
Education?
CULTURE
MUDA? MURA? MURI?
KANBAN?
JIDOKA?
Training?
Team Concept?
Back-to-Basics?
Just-In-Time?
Corporate GM Study Detroit, Michigan
0919X4/7/86/page 4 Shthesec.drw 060691
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SAMSUNGS NEW MANAGEMENT
FIRST CLASS COMPANY IN THE 21ST
CENTURY (Contributes to the Community and Mankind)
COMPETITIVENESS (Extremely Effective)
GLOBALIZATION
MULTIFACETED INTEGRATION
QUALITY MANAGEMENT
ONE DIRECTION
REDISCOVERING HUMANISM, MORALITY GOOD MANNERS
AND ETIQUETTE
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DELIVERING CUSTOMER VALUE-YR-YR
Within a Strategic Management System and Yearly
Cycle
(Planning People Leadership Change)
The Flywheel And The Rollercoaster
4
3
E
Strategic Management System And Yearly Cycle
A
D
2
1
C
B
YEAR 1
YEAR 2
YEAR 3
YEAR 4

• START

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THE SINGAPORE CITY-STATESTRATEGIC MANAGEMENT
SYSTEM

• URBAN REDEVELOPMENT AUTHORITY (URA)

A
CONCEPT PLAN -1971/2001
LAND STRATEGIC MANAGEMENT SYSTEM
D
-
C
B
DEVELOPMENT CONTROL -Formal Review 5 Years
MASTER PLAN -10 to 15 years
D
DEVELOPMENT IMPLEMENTATION
Supported by numerous Citizen involvement and
Feedback
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DUBAI CORE STRATEGIES
SEVEN CORE STRATEGIES SIX DEVELOPMENT SECTORS
CORE STRATEGIES 7 Horizontal Enablers (Cross-Sect
or)
6 Sectors for Focus and Development
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CHINESE MINISTRY OF SCIENCE AND TECHNOLOGY (MOST)

• MISSION Enhancing Technology Innovation and
  Industrialization
• Cultivating Technology-Based SMEs
• Developing Innovation Clusters
• Building an Innovative Environment

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TORCH CENTER
(TORCH High Technology Industry Development
Center October 1989 Solution)

• I. Seedling Cultivation EngineeringCultivate
  Technology-Based SMEs

II. Forestation EngineeringDeveloping Innovation
Clusters
III. Fertile Soil Building an Innovative
Environment TORCH Center Responsibility
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San Diego Police DeptsSTRATEGIC MANAGEMENT
ANNUAL CYCLE
Annual Strategic Planning Process
Environmental Scan
Look back at past year Celebrate Successes
New F.Y. Priorities
Review Current Goals Revise and/or Re-Commit!
Annual Strategic Review
Weekly CFC Discussion
YEARLY STRATEGIC MANAGEMENT CYCLE
Preview of Planning Process
Finish Strong To Years End
Assess and Adapt as Needed
Support Goals and Long Term Projects
Monthly Zoo Mgmt Meetings
Update Discussion by COs
Tri-Annual Report Out (TARO)
Ensure F.Y. Priorities Guide/Focus Strategies
Continue meetings, Stay focused
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GAO SHARED BUSINESS MODEL
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RAAA Convention2006

• State of the Association Address
• Dr. R.L. Bob Hough
• RAAA Executive Director

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Membership Growth
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Total Transfers
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IN SUMMARYKEEP IT SIMPLE

• IN STRATEGIC MANAGEMENT
• SIMPLICITY WINS THE GAME EVERY TIME
• ONE PIECE OF PAPER DOCUMENTS
• Strategic Plan Trifold
• Annual Plan Priorities (Cheat-SheetTo Do List)
• Key Success Measures Matrix (Continuous
  Improvementyear/year)
• Yearly Comprehensive Map of Implementation

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SUMMARY SIMPLICITY(OF THINKING DESIGN)

• SIMPLICITY WINS THE GAME
• EVERY TIME
• BANISH COMPLEXITY

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THE BOTTOM LINE
Time Management, Team Work and Organization
Effectiveness A Systems Approach to Strategic
Management (Planning, Leadership, and
Change) is the ultimate time management
tool for an entire organization.
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THANK YOU FOR YOUR PARTICIPATION

• JimMcKinlay and Steve Haines
• Haines Centre for Strategic Management