This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
This product (Strategy Dynamics) is a 20-slide PPT PowerPoint presentation slide deck (PPT), which you can download immediately upon purchase.
The Strategy Dynamics model, developed by Kim Warren, is a technique to explain our organization’s performance up to the current date; and to develop and execute strategies for improving our future performance. This approach emphasizes building and sustaining the resources and capabilities necessary to succeed.
Strategy Dynamics focuses on performance over time. The overarching objective of strategic management is to develop a sustainable approach to quantitatively improve performance through time. This can apply to the enterprise as a whole, or for a key functional areas (e.g. sales).
Strategy Dynamics seeks to answer 3 key questions:
1. Why is performance following its current path?
2. Where will performance go if we continue as we are doing today?
3. How can we design a robust strategy to radically improve that performance into the future?
Strategy Dynamics is applicable to every kind of enterprise, whether commercial, public-service, or voluntary, as well as to every corporate function within an organization. It is also applicable to not yet existing enterprises, such as new ventures or voluntary initiatives.
The Strategy Dynamics model is a comprehensive framework that breaks down the process into three critical stages: identifying resources, understanding the flows that fill and drain these resources, and pinpointing the factors that cause resources to be won and lost. This step-by-step methodology ensures that every aspect of resource management is scrutinized, providing a clear picture of the organization's performance dynamics. The model's emphasis on historical data underscores the importance of understanding past performance to predict future outcomes accurately.
The PPT also delves into the extensions of the core architecture, highlighting the role of potential resources, various development states, and the impact of intangible factors like reputation and morale. Competitive rivalry and organizational capabilities are also explored, offering a holistic view of the strategic landscape. This detailed analysis equips executives with the tools needed to craft robust strategies that are both data-driven and adaptable to changing market conditions.
This PPT slide outlines a structured approach to understanding performance dynamics over time through a three-stage process. It begins with the "Resources" stage, where the focus is on identifying the essential resources that underpin performance. This could include financial assets, human capital, or technological capabilities. Recognizing these resources is critical, as they form the foundation for any strategic initiatives.
Next is the "Flows" stage. Here, the emphasis shifts to understanding how these resources are managed—specifically, the flows that either contribute to resource accumulation or lead to depletion. This stage is vital for diagnosing how effectively resources are being utilized and whether there are any bottlenecks or inefficiencies in the system.
The final stage is "Factors," which involves identifying the external and internal elements that influence resource acquisition and loss. This could encompass market trends, competitive actions, or organizational changes. By analyzing these factors, organizations can gain insights into the dynamics that affect their resource base.
The overall process aims to provide a comprehensive understanding of performance changes over time. By systematically addressing each stage, organizations can develop strategies that are informed by a clear understanding of their resource dynamics. This approach not only facilitates better decision-making, but also enhances the ability to adapt to changing circumstances. The slide effectively communicates a logical framework that can be applied to various organizational contexts, making it a valuable tool for executives seeking to improve performance.
This PPT slide outlines critical factors influencing the flow rates of resources, specifically focusing on how quickly customers are acquired and staff attrition occurs. It identifies 3 primary categories: Management Decisions, External Factors, and Existing Resource Levels.
Management Decisions emphasize the impact of financial investments, such as marketing expenditures, on customer acquisition rates. It highlights that salary offerings can significantly affect employee retention, indicating that strategic financial choices directly correlate with resource flow.
External Factors are presented as influences from outside the organization. This includes competitive marketing strategies, salary benchmarks from other firms, and the disposable income of customers. These elements are crucial as they shape the environment in which the organization operates, affecting both customer and employee dynamics.
Existing Resource Levels focus on the current state of resources, particularly service quality and staffing adequacy. It suggests that customer loss rates are tied to the quality of service provided, which in turn relies on having sufficient staff numbers. This relationship underscores the importance of maintaining optimal resource levels to ensure service excellence.
The slide concludes by indicating that when these 3 factors are synthesized, they create an integrated framework known as the Strategic Architecture. This framework serves as a visual representation of how these elements interconnect and influence overall organizational performance. Understanding these factors can provide valuable insights for decision-making, helping organizations to strategically align their resources for better outcomes.
This PPT slide outlines a systematic approach to identifying the resources that underpin organizational performance. It emphasizes a causal analysis rather than relying on statistical correlations. The method encourages asking "what causes what?" to drill down into the factors influencing revenue and costs. For instance, revenue is defined as the product of sales volume and price, while costs are broken down into salaries, sales, marketing, and R&D expenses.
A key aspect of this analysis is the mapping of each element onto a diagram, which can be created using various tools like paper, whiteboards, or software. This visual representation helps track performance outcomes over time, allowing for a clearer understanding of how different elements interact and contribute to overall performance.
The slide introduces the concept of "accumulating asset-stocks," which are resources that exhibit specific behaviors—they can accumulate or deplete over time. The logical causality rule remains applicable, meaning that the relationships between sales volume, customer counts, and salaries are interconnected and can be quantified. For example, sales volume is derived from the number of customers multiplied by sales per customer, while total salaries are calculated based on the number of staff and their average salaries.
The concluding note highlights common examples of resources, including customers, cash, personnel, product catalogs, and capacity. This structured approach provides a framework for executives to assess and optimize the resources critical to their organization's success.
This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
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