Strategy development and execution Mike Innes

E3Connect Ltd

Amazon has 40,000 books on business

strategy

I’ve not read them all.

But I believe the following is the essence of strategy

development and execution.

To start - what strategy is not

Mission or vision

statement

Collection of management buzz words

Financial projection

100 page document to keep

in a draw Developed by MD/CEO alone in

the office

Business success is based on creating economic value

Business costs

Customers’ recognition of value, (what they will

pay you)

Economic Value =

Strategy is how companies create and sustain economic value

Business costs

Customers’ recognition of value, (what they will

pay you)

Economic Value STRATEGY

So what does strategy look like?

Diagnosis of your situation

Work out where you are now and what

your challenges are.

So what does strategy look like?

Diagnosis of your situation

Clarity on business

model

Who (customers), What (products and value), How (Route

to Market) What (Competitive

advantage)

So what does strategy look like?

Diagnosis of your situation

Clarity on business

model

Prioritize key challenges

and opportunities

Decide what to do and what

not to do.

So what does strategy look like?

Diagnosis of your situation

Clarity on business

model

Prioritize key challenges

and opportunities

Execution

Why it matters,

clear actions, and

ownership

Diagnosis of your situation

Markets Customers

Competitors Capabilities

Most used tools for analysis SWOT PEST Ansoff Porters 5 forces

Diagnosis is all about gathering data and making sense of your current business situation

Get out in the market place, talk (and listen) to your customers, involve your whole business in the process.

Identify your best opportunities,

your major challenges,

and your biggest threats.

Get clarity on your business model – Who, What and How

Who do you serve?

WHO Your customer segments and ideal customer

profile.

Get clarity on your business model – Who, What and How

Who do you serve

What do you offer and how

does it add value?

WHAT is your value

proposition – Why should

customers buy from you?

Get clarity on your business model – Who, What and How

Who do you serve

How do you get to market?

HOW Your Route to Market (how do customers

access your solutions) and how

do you communicate with your customers.

What do you offer and how

does it add value?

Get clarity on your business model – Who, What and How

Who do you serve

What do you offer and how

does it add value

How do you get to market

What resources

and activities will sustain competitive advantage

What assets do you need and what

capabilities do you need to deliver your value proposition?

What is your competitive advantage?

Strategy is about making choices

Pick any two

Good

Fast Cheap

Prioritize your key challenges and opportunities – choose between 3 and no more than 5

Are they the most important things to your business? Do they add value to your customers? Do they address the most critical challenges? Are they focused on a 2 to 4 year horizon? Are they a clear target rather than a vague intent?

Peter Drucker

“Plans are only good intentions

unless

they immediately degenerate into

hard work”

Execution – Develop and implement coherent action plans, based on your chosen 3 to 5 strategic priorities

For each strategic objective What it is Clearly define the strategic objective, be specific.

Why it matters and what success looks like

Why is it important to focus on this priority, what impact will it have on your company when you succeed, how will it add value to your customers?

Define the supporting initiatives

What supporting projects must be delivered to support the overall objective.

Key metrics to guide progress

How will you track progress towards the objective. Focus on leading metrics rather than lagging metrics.

Challenges to overcome

Define the key external and internal challenges and constraints that need to be addressed. How will you create time and urgency?

Ownership and first action steps

Who will own the strategic priority and who will assist? What are the first actions that need to be taken over the next few months.

In summary - strategy is an iterative process to create and sustain economic value

Diagnose Work out where you are now and what your challenges are.

In summary - strategy is an iterative process to create and sustain economic value

Diagnose Work out where you are now and what your challenges are.

Choose Decide what to do and what not to do.

In summary - strategy is an iterative process to create and sustain economic value

Execute Why it matters, clear action steps to start, get individual commitment

Diagnose Work out where you are now and what your challenges are.

Choose Decide what to do and what not to do.

In summary - strategy is an iterative process to create and sustain economic value

Execute Why it matters, clear action steps to start, get individual commitment

Adjust Expect surprises, stay close to your customers, correct if necessary.

Diagnose Work out where you are now and what your challenges are.

Choose Decide what to do and what not to do.

Let me know if I can help

Mike Innes E3Connect Ltd

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Helping you define why your customers should buy from you. Creating compelling value propositions is a solid foundation for strategy development and execution

www.mikeinnes.com