| Date post: | 04-Jun-2018 |
| Category: |
Documents |
| Upload: | sandeep-chowdhury |
| View: | 218 times |
| Download: | 0 times |
of 38
8/13/2019 Egon New
1/38
Strategic Review at Egon Zehnder International
8/13/2019 Egon New
2/38
Strategy Implementation
8/13/2019 Egon New
3/38
Strategy is the path taken by people in the company on itsway to becoming an effective economic performer .
8/13/2019 Egon New
4/38
Competitiveness is born in the gap
between a companys resources and
its managers goals.
8/13/2019 Egon New
5/38
The Processes of Strategy Definition and
Implementation
8/13/2019 Egon New
6/38
Intended strategies might be executed exactly as
envisioned if three conditions are met.
First, those in the organization must understand each
important detail in managements intended strategy.
Second, if the organization is to take collective action,
the strategy needs to make as much sense to each
member of the organization as they view the world from
their own context, as it does to the management.
Third, the collective intentions must be realized with little
unanticipated influence from outside political,technological or market forces.
Since it is difficult to find a situation where all three
conditions apply, it is rare that an intended strategy can
be implemented without significant alteration.
8/13/2019 Egon New
7/38
Bower suggests that generally, proposals go through a
process comprising four components:
definitionthe articulation of the problem or idea;
impetusthe determination of whether the defined
proposal is viable and worthy of support or funding;
structural contextthe organizational forces that
influence the definition and impetus processes; and
measurementthe determination of the proposals
return on investment.
8/13/2019 Egon New
8/38
Competitiveness is born in the gap
between a companys resources and
its managers goals.
8/13/2019 Egon New
9/38
Strategy as Stretch and Leverage
8/13/2019 Egon New
10/38
We can analyze companies in mind-
numbing detail, perform autopsies, and
render verdicts, but we are still
addressing the what of
competitiveness, not the why.
8/13/2019 Egon New
11/38
Abundant resources alone wont keep
an industry giant on top when its
hungrier rival practices the strategic
discipline of stretch.
8/13/2019 Egon New
12/38
Convergence: Have we created a
chasm between resources and
aspirations that will compel creative
resource leverage? Have we been loyal
to our strategic goals and consistent in
their pursuit?
8/13/2019 Egon New
13/38
Focus: Have we clearly identified the
next competitive advantage that we
must build?Is top managements
attention focused firmly on the task
until it is accomplished?
8/13/2019 Egon New
14/38
Extraction: Are we willing to apply
lessons learned on the front line, even
when they conflict with long-held or
thodoxies? Have we found a way to
tap the best ideas of every employee?
8/13/2019 Egon New
15/38
Borrowing: Are we willing to learn
from outsiders as well as from
insiders? Have we established
borrowing processes and learning
goals for employees working within
alliances and joint ventures?
8/13/2019 Egon New
16/38
Blending: Have we created a class of
technology generalists who can
multiply our resources? Have we
created an environment in which
employees explore new skill
combinations?
8/13/2019 Egon New
17/38
Balancing: Have we pursued high
standards across the board so that our
ability to exploit excellence in one
area is never imperiled by mediocrity
in another? Can we correct our
imbalances?
8/13/2019 Egon New
18/38
Recycling : Do we view core
competencies as corporate resources
rather than the property of individual
businesses? Have we created lateral
communication to ensure that ideas
arent trapped?
8/13/2019 Egon New
19/38
Co-option: Have we identified the
industry players who are dependent on
us for some critical skill or for their
very livelihood? Do we understand
how to enroll others in the pursuit of
our goals?
8/13/2019 Egon New
20/38
Shielding: Do we understand
competitors blind spots and
orthodoxies? Can we attack without
risking retaliation? Do we know how
to explore markets through low cost,
low-risk incursions?
8/13/2019 Egon New
21/38
Recovery: Have we shortened product-
development, order-processing, and
product-launch times? Have we built
global brands and distribution
positions that allow us to prempt
slower rivals?
8/13/2019 Egon New
22/38
Filters
Resource AllocationProcess:
Decisions about what
to do,
what not to do,
and what to prioritize
IntendedStrategy:
Analytical project
followed by
implementation
Emergent
Strategy:Response to
unforeseen
opportunities
and crises
New products,
services, processes,
And acquisitions
Actual strategy
that is
implemented
Results
8/13/2019 Egon New
23/38
Unique regarding EZI ?
8/13/2019 Egon New
24/38
Client first Philosophy
Personal Character
One firm Partnership
EZI seven Tenets
8/13/2019 Egon New
25/38
Why consider a strategic review ?
8/13/2019 Egon New
26/38
Competition from US based search firms
IPOs by competitors
Internet Competition
Zehnders retirement
Internal differences on the firm's future strategic directions
8/13/2019 Egon New
27/38
Strategic review Exercise .
How to conduct ?Who does it ?
How much time it takes?
What are the deliverables ?
What should be the focus ?
Topics/subjects/themes
8/13/2019 Egon New
28/38
Was skeptical of walking blindly down the path that
could throw all the balls in the air and could lead to a
complete revamping of the inner workings , values and
ideals of the firm. The firm was too precious to risk
changing everything .
8/13/2019 Egon New
29/38
Exercise
8/13/2019 Egon New
30/38
Bold Strokes: large decisions taken quicklyby a few leaderscommanding clear actions
Long marches: Slow involved initiativesthroughout the company , are not controlled by
leaders.
8/13/2019 Egon New
31/38
SRP should tell if we were doing right things or if we
should change things .
Provide an outlet for people in the firm to ask questions
and seeks answers
Be a therapeutic process for equal partnership .
4 member team
8/13/2019 Egon New
32/38
Participative , bottom up
July 2000 survey to all consultants90% response rate
Nov 2000: Five buckets
Positioning
People
Internet
Structure/process./client service
Productivity :Technology/support
8/13/2019 Egon New
33/38
The Brussels meeting
Key findings
Positioning
Measure growth
Invest in the US by hiring and developing people ( v
buying a firm)People: To succeed as lockstep , essential to have rigorous
appraisal and review
Structure : Strengthen practices ( V geographies)
Productivity : Knowledge management
Internet : Not invest in doing search via the internet
8/13/2019 Egon New
34/38
Reactions to the Brussels conference
Deeply introspective
Validating that our alignment was strong
Open debate and discussion
Gave us an opportunity
Our entire partnership understood that our strategy lies in
aligning our value system with our operational system .
8/13/2019 Egon New
35/38
The Economic downturn
Internet bust
In hind sight our partners ,made some very astute
choices in June 2001.
To invest in measured growth
Not to grow too hastily by acquiring a firm in the US
Not to invest in the Internet just because everyone else
was doing it .
Subsequent events have taught us that the partnership asa body is a very wise animal
Austerity measures : IT,Infrastructure,expenses, number
cut 10% without destroying our value system and
culture .
8/13/2019 Egon New
36/38
Personnel reduction 2002
No office closing
No last in first out
Not on the basis of seniority or position
Transparent and bottom up
Local offices to recommend reductions based on people
contribution
2months30 professionals
8/13/2019 Egon New
37/38
Navigating difficult Times.
2001 ( Sept 11, SARC scare , Afghanistan and Iraq wars)
Needed to increase our share of a shrinking pie ( office
performance metrics)
Stuck to Our core values
No office closing , election partnership
EZI does better than competitors .
Heidrick laid off 50% of professionals, experienced 6quarters of loses.EZI market share increased through margins
declined .
8/13/2019 Egon New
38/38
C-5
Perpetuity , Equal partnership and collaboration
