Strategy Development Methodology (PowerPoint PPT Slide Deck)

This PPT slide presents Bower's framework for strategy development, focusing on resource allocation as central to strategic planning. Key components include "Strategic intent," which defines overarching goals; "Organizational context," encompassing governance structures and performance measures that influence decision-making; and "Market context," addressing customer demands and technological advancements affecting revenue. The "Capital market context" highlights the influence of capital providers on financial considerations in strategy. Central to the framework is "Resource allocation," a bottom-up approach for selecting projects aligned with strategic intent. The "Operating System" ensures internal processes support strategy execution. The interplay of these elements culminates in the "Realized strategy," reflecting actual outcomes of strategic planning efforts.

This PPT slide outlines the critical components of defining strategic intent, centered around the concept of "Intent." The 3 main areas are Objectives, Battlefields, and Core Competencies. "Objectives" focuses on setting clear goals, including shareholder and stakeholder requirements, and emphasizes the importance of key performance indicators (KPIs) for tracking measurable outcomes. "Battlefields" addresses market attractiveness relative to objectives, highlighting the need to understand market dynamics, potential market positions, and competitors' ambitions, positioning, and capabilities. "Core Competencies" examines internal strengths necessary to deliver on the value proposition, stressing the importance of understanding strengths, weaknesses, and the protectability of competencies for sustaining competitive advantage. This framework guides organizations in making informed strategic decisions by balancing internal capabilities with external market conditions.

The evolution of strategic development in the corporate sector since the 1950s encompasses 5 distinct phases. Phase 1 (1950s) focuses on Financial Planning with the theme "Meet the budget," emphasizing financial control and budget planning. Phase 2 (1960s) shifts to Long-term Planning, centered on "Forecast the future," introducing growth planning, resource allocation, SWOT analysis, and the Ansoff Matrix. Phase 3 (1970s) marks the emergence of Strategic Planning, characterized by "Think strategically to beat competition," introducing frameworks like the BCG Matrix for market position assessment. Phase 4 (1980s) emphasizes Strategy Renewal with "Strategy as positioning," incorporating Michael E. Porter's Five Forces and the Value Chain for competitive insights. Phase 5 (1990s to present) focuses on Strategic Management, encapsulated by "Integrate strategic planning and implementation," highlighting core competencies and frameworks like the Balanced Scorecard for aligning strategic objectives with operational execution.

A strategy development project consists of 3 phases: "Set Strategic Guidelines," "Define Strategic Intent," and "Execution Design." The first phase establishes foundational parameters, identifying key battlefields and aligning objectives with the company's vision. The second phase maps core competencies against these objectives, clarifying the relationship between capabilities and strategic goals. The final phase outlines strategic initiatives and actionable steps for effective implementation, incorporating strategy planning and budgeting to allocate resources appropriately. Successful execution depends on understanding the internal and external environments. This structured approach creates a cohesive framework that enhances strategic capabilities and improves overall effectiveness.

This PPT slide outlines critical components of execution design essential for realizing strategic intent. Central to this framework is "Execution," which requires effective management of "Strategic Initiatives" through ownership and leadership. "Maneuver tactics" emphasize agility and adaptability in execution. "Shape Strategy Planning & Budgeting" highlights structured planning processes, defining targets and prioritizing initiatives through systematic mechanisms. The "Design Organizational Context" element focuses on governance, organizational structure, and performance measures, ensuring alignment with strategic vision. The roles and capabilities of managers are crucial for successful execution. This holistic approach integrates strategic initiatives, planning, and organizational context to translate strategic intent into tangible outcomes.

This PPT slide outlines a structured approach to strategy development, emphasizing hierarchical involvement across organizational levels. At the corporate level, strategic guidelines are established, fostering alignment and understanding of the strategic direction. The business unit level focuses on defining strategic intent through workshops (WS) that promote iterative engagement and feedback loops for refining objectives. The execution design phase culminates in a comprehensive strategy that reflects input from all levels, resulting in a "final strategy & multilevel commitment" that ensures the strategy is actionable and supported organization-wide. This methodology enhances strategic planning processes and alignment across units.

This PPT slide introduces a framework for addressing strategic challenges in organizations, focusing on 3 key components: Current Situation, Strategy Execution, and Desired Future State. The "Current Situation" box prompts leaders to assess existing circumstances with the question, “Where are you coming from?” The "Strategy Execution" phase outlines necessary actions to transition from the current state to future aspirations, asking, “How do you get to where you want?” Finally, the "Desired Future State" box invites executives to define their vision with the question, “Where do you want to be?” This structured approach aids in identifying gaps and aligning stakeholders in the strategic planning process.

This PPT slide presents a framework for addressing strategic challenges, categorizing approaches into 3 methodologies: Thinking First, Seeing First, and Acting First. The Thinking First approach is suited for easier challenges, involving a linear process of defining the problem, diagnosing it, designing options, and making decisions. Seeing First is for more complex challenges, emphasizing preparatory steps like idea incubation and insights verification. The Acting First approach addresses the most complex challenges, advocating trial-and-error actions without extensive prior analysis, recognizing that immediate action can lead to learning in uncertain environments. Tailoring these strategies to the complexity of challenges enhances effective strategy development.

This PPT slide outlines a framework for addressing strategic challenges within organizations, emphasizing the hierarchy of strategy from corporate to functional levels. Strategic challenges are categorized into 3 areas: Strategic Intent, Ambiguity, and Execution Design. Organizations must clearly define objectives under Strategic Intent, identify uncertainties in Ambiguity, and operationalize strategies in Execution Design. A circular diagram links these concepts to practical actions like setting objectives and managing strategic initiatives, highlighting the interconnectedness of intent, execution, and ambiguity. This structured approach ensures alignment across all organizational levels to effectively tackle potential obstacles in strategy formulation and execution.

This PPT slide outlines a structured approach to strategy development, focusing on key components: setting objectives, defining battlefields, identifying core competencies, and managing strategic initiatives. It emphasizes the need for alignment between corporate-level strategic objectives and adaptations at divisional levels. Understanding market dynamics and competitive positioning is crucial for effective strategy formulation. Organizations must navigate ambiguity in strategic planning, with execution being critical to align initiatives with defined objectives. The design of the organizational context influences strategy implementation across functions such as HR, finance, marketing, and R&D. This framework enhances strategic planning processes and improves execution at all levels.

This PPT slide outlines 4 primary objectives of strategic planning. The first objective is value creation, emphasizing the importance of a strong value proposition for stakeholders, including customers and shareholders. The second objective focuses on winning, which involves outperforming competitors and achieving market leadership. The third objective highlights selectivity and resource allocation, indicating that effective strategies require prioritization of assets for maximum impact. The fourth objective stresses the need for speed and flexibility, reflecting the necessity for business transformation in a rapidly changing environment. A robust strategy encompasses these dimensions for long-term success.