A JOURNEY

INTO

STRATEGIC MANAGEMENT
PROCESS
SESSION : 16 15/12/2015

CONTENT
DEVELOPING STRATEGIC VISION AND MISSION
ESTABLISHING VALUES
SETTING OBJECTIVES
FORMULATING STRATEGY
IMPLEMENTING STRATEGY
EVALUATING PERFORMANCE AND INITIATING
CORRECTIVE ADJUSTMENTS

APPROACHES
IT IS A PARADOXICAL BUT PROFOUNDLY
TRUE AND IMPORTANT PRINCIPLE OF LIFE
THAT THE MOST LIKELY WAY TO REACH A
GOAL IS TO BE AIMING NOT AT THAT GOAL
ITSELF BUT AT SOME MORE AMBITIOUS GOAL
BEYOND IT.
- ARNOLD TOYNBEE
CONTINUAL IMPROVEMENT IS AN UNENDING
JOURNEY
- LLOYD DOBENS

ABCDE OF STRATEGIC PLANNING MODEL

WHERE WE ARE WHERE WE WANT TOHOW WE WILL DOHOW ARE WE
BE
IT
DOING

Assessment

Baseline

Components

Down to Specifics

Evaluate

Environmental Scan

Situation Past,
Present and Future

Mission & Vision

Performance
Measurement

Performance
Management

Background
Information

Significant Issues

Values / Guiding
Principles

Targets / Standards of
Performance

Review Progress
Balanced Scorecard

Situational Analysis

Align / Fit with

Capabilities

Major Goals

Initiatives and
Projects

Take Corrective
Actions

SWOT Strengths,
Weaknesses,
Opportunities,
Threats

Gaps

Specific Objectives

Action Plans

Feedback upstream
revise plans

SIX TASKS OF STRATEGIC MANAGEMENT

DEVELOP STRATEGIC VISION AND MISSION
ESTABLISH CORE VALUES
SETTING OBJECTIVES
DEVISING STRATEGIES
IMPLEMENTATION / EXECUTION OF STRATEGY
EVALUATING PERFORMANCE & INITIATING
CORRECTIVE ADJUSTMENTS

NEED FOR AN EXPLICIT AND SHARED VISION

CRYSTALIZES
DIRECTION

VIEWS

OF

FIRMS

LONG

TERM

ALLIGNS PERFORMANCE GOALS AROUND VISION

WHEN ALL EMPLOYEES ARE COMMITTED TO FIRMS
LONG TERM DIRECTION, OPTIMUM CHOICES ON
BUSINESS DECISION ARE MORE LIKELY
AVOIDS INCOMPATIBLE DECISION MAKING
IMPROVES DAILY EXECUTION OF STRATEGY
MICRO LEVEL PLAN GETS LINKED TO STRATEGIC
VISION

SPECIFIC QUESTIONS THAT HELP FORM

STRATEGIC VISION
WHAT BUSINESS ARE WE IN?
WHAT BUSINESS DO WE WANT TO BE IN?
WHAT WILL OUR CUSTOMERS WANT IN FUTURE?
WHAT ARE EXPECTATIONS OF OUR
STAKEHOLDERS?
WHO ARE/ WILL BE OUR FUTURE COMPETITORS,
SUPPLIERS, PARTNERS?
HOW WILL TECHNOLOGY IMPACT OUR INDUSTRY?
WHAT ENVIRONMENTAL SCENARIOS ARE
POSSIBLE?

EXAMPLES OF STRATEGIC VISION

INDIAN OIL
A MAJOR DIVERSIFIED, TRANS-NATIONAL, INTEGRATED ENERGY
COMPANY WITH NATIONAL LEADERSHIP AND A STRONG
ENVIRONMENT CONSCIENCE, BUILD A NATIONAL ROLE IN OIL
SECURITY AND PUBLIC DISTRIBUTION

ONGC
TO BE A WORLDCLASS OIL AND GAS COMPANY INTEGRATED IN
ENERGY BUSINESS WITH DOMINANT INDIAN LEADERSHIP AND
GLOBAL PRESENCE.

INFOSYS
TO BE A GLOBALLY RESPECTED CORPORATION THAT PROVIDES
BEST-OF-BREED BUSINESS SOLUTIONS, LEVERAGING TECHNOLOGY,
DELIVERED BY BEST-IN-CLASS PEOPLE.

EXAMPLES OF STRATEGIC VISIONS

TOYOTA MOTORS
TO BE THE MOST SUCCESSFUL AND RESPECTED CAR
COMPANY IN AMERICA

GENERAL ELECTRIC
IMAGINE, SOLVE, BUILD AND LEAD FOUR BOLD VERBS
THAT EXPRESS WHAT IT IS TO BE PART OF GE. THEIR
ACTION ORIENTED NATURE SAYS SOMETHING ABOUT WHO
WE ARE AND SHOULD SERVE TO ENERGISE OURSELVES
AND OUR TEAMS AROUND LEADING CHANGE AND DRIVING
PERFORMANCE

NASA

TO IMPROVE LIFE HERE

TO EXTEND LIFE THERE
TO FIND LIFE BEYOND

EXAMPLES OF STRATEGIC VISIONS

CODELCO(NACIONAL DEL COBRE DE CHILE)
"CODELCO, A COMPANY 100% STATE OWNED, WILL
BE WORLD LEADER IN COMPETITIVITY, FULLY
DEVELOPING ALL THE POTENTIAL OF ITS PEOPLE
AND BUSINESS CAPACITY".
STERLITE

INDUSTRIES (INDIA)LTD

(SIIL)
'TO BE THE WORLD'S 'BEST-IN-CLASS' COPPER
PRODUCER AND BUILD A PROGRESSIVE
ORGANISATION THAT ALL STAKEHOLDERS ARE
PROUD TO BE ASSOCIATED WITH'

DEVELOPING A MISSION STATEMENT

WHERE TOP MANAGEMENT INTENDS TO TAKE THE FIRM?
MUST BE NARROW ENOUGH TO SPECIFY REAL ARENA OF
INTEREST
BE SIMPLE AND CONCISE
SPEAK LOUDLY AND CLEARLY
PROVIDES CLEAR VIEW OF WHAT FIRM IS TRYING TO
ACOMPLISH FOR ITS CUSTOMERS?
AROUSES STRONG SENSE OF ORGANISATIONAL
IDENTITY
MOTIVATES AND ENTHUSES THE EMPLOYEES TO REACH
A COMMON GOAL

HOW EXTERNAL STAKEHOLDERS

CAN BE VALUED AS STRATEGIC
CONSTITUENCIES OF
ORGANIZATIONS.

EXAMPLES OF MISSION
DIRECTORATE OF ENGINEERING, USA :
TO ENABLE THE ENGINEERING AND SCIENTIFIC COMMUNITIES TO
ADVANCE THE FROINTERS OF ENGINEERING RESEARCH,
INNOVATION AND EDUCATION, IN SERVICE TO SOCIETY AND THE
NATION.

TOYOTA MOTORS :
TO ATTRACT AND ATTAIN CUSTOMERS, WITH HIGH VALUED
PRODUCTS AND SERVICES AND THE MOST SATISFYING
OWNERSHIP EXPERIENCE IN AMERICA.

NASA :

TO UNDERSTAND AND PROTECT OUR HOME PLANET

TO EXPLORE THE UNIVERSE AND SEARCH FOR LIFE
TO INSPIRE THE NEXT GENERATION OF EXPLORERS AS ONLY
NASA CAN

EXAMPLES OF MISSION
BHEL :
A WORLD CLASS ENGINEERING ENTERPRISE COMMITTED TO
ENHANCE STAKEHOLDER VALUE .

ROYAL DUTCH SHELL :

SHELL IS A GLOBAL GROUP OF ENERGY AND PETROCHEMICAL
COMPANY. THE AIM OF THE SHELL GROUP IS TO MEET THE
ENERGY NEEDS OF SOCIETY IN WAYS THAT ARE
ECONOMICALLY, SOCIALLY AND ENVIRONMENTALLY VIABLE
NOW AND IN THE FUTURE.

INFOSYS :
TO ACHIEVE OUR OBJECTIVE IN AN ENVIRONMENT OF
FAIRNESS, HONESTY AND COURTESY TOWARDS OUR CLIENTS,
EMPLOYEES, VENDORS AND SOCIETY AT LARGE

Examples Good and Bad

Mission Statements

Components

NASA
To Explore the
Universe and Search
for Life and to
Inspire the Next
Generation of
Explorers

Does a good job of expressing the core values

of the organization. Also conveys unique
qualities about the organization.

Walt Disney
To Make People Happy

Too vague and and unclear. Need more

descriptive information about what makes the
organization special.

ESTABLISHING CORE VALUES

STATEMENT ON FIRMS CORE VALUES
CLEAR GUIDELINES AS TO HOW BUSINESS WILL BE
CONDUCTED
COMMUNICATING THAT VALUES AND NORMS
REMAIN THE BEDROCK FOR BEING IN BUSINESS
EXPLICIT VALUES PROMOTES STRONG COMPANY
IDENTIFICATION
VISIBLE REWARDS/ PENALTIES FOR FOLLOWING/
BREACHING THE LAID DOWN VALUES AND NORMS

EXAMPLES OF CORE VALUES

BHP-BILLITON
SAFETY AND THE ENVIRONMENT AN OVERRIDING COMMITMENT TO
HEALTH, SAFETY, ENVIRONMENTAL RESPONSIBILITY AND SUSTAINABLE
DEVELOPMENT.
INTEGRITY INCLUDING DOING WHAT WE SAY WE WILL DO.
HIGH PERFORMANCE THE EXCITEMENT AND FULFILMENT OF
ACHIEVING SUPERIOR BUSINESS RESULTS AND STRETCHING OUR
CAPABILITIES.
WIN-WIN RELATIONSHIPS HAVING RELATIONSHIPS WHICH FOCUS
ON THE CREATION OF VALUE FOR ALL PARTIES.
THE COURAGE TO LEAD CHANGE ACCEPTING THE RESPONSIBILITY
TO INSPIRE AND DELIVER POSITIVE CHANGE IN THE FACE OF ADVERSITY.
RESPECT FOR EACH OTHER THE EMBRACING OF DIVERSITY,
ENRICHED BY OPENNESS, SHARING, TRUST, TEAMWORK AND
INVOLVEMENT.

EXAMPLES OF CORE VALUES

GENERAL MOTORS (RANK # 5)
A. CORE VALUES :
CUSTOMER ENTHUSIASM
INTEGRITY
TEAM WORK
INNOVATION
CONTINUOUS IMPROVEMENT
INDIVIDUAL RESPECT & RESPONSIBILITY
B.

CULTURAL PRIORITY :
ENHANCED PRODUCT AND CUSTOMER FOCUS
ACT AS ONE COMPANY
EMBRACE STRETCH TARGETS
MOVE WITH SENSE OF URGENCY

EXAMPLES OF CORE VALUES

INDIAN OIL
CARE

STANDS FOR CONCERN, EMPATHY, UNDERSTANDING,

COOPERATION AND EMPOWERMENT

PASSION

STANDS FOR COMMITMENT, DEDICATION,

EXPLORATION, OWNERSHIP, ZEAL AND ZEST.

TRUST

STANDS FOR RELIABILITY, DEPENDABILITY, INTEGRITY,

FRUITFULNESS, TRANSPARENCY

INNOVATION

STANDS FOR CREATIVITY, ABILITY, LEARN, FLEXIBILITY,

CHANGE

PRIDE,

EXAMPLES OF CORE VALUE

ROYAL DUTCH SHELL
SHELL HAS BUILT ITS BUSINESS ON A
CLEAR COMMITMENT TO ACTION WITH
INTEGRITY. OUR CORE VALUES HONESTY,
INTEGRITY AND RESPECT FOR PEOPLE ARE
CENTRAL
TO
OUR
OPERATIONS
WORLDWIDE. WE EMPLOY A MOST DIVERSE
GROUP OF PEOPLE AND VALUE THE
BENEFITS THIS BRINGS. WE RESPECT THE
HUMAN RIGHTS OF OUR EMPLOYEES AND
STRIVE TO PROVIDE THEM WITH SAFE
WORKING CONDITIONS, PROMOTE THE

CHARACTERISTICS OF OBJECTIVES

SPECIFIC
MEASURABLE
ACHIEVABLE
REALISTIC
TIME FRAME

BROAD CLASSIFICATION OF OBJECTIVES

SHORT RUN

LONG RUN

FINANCIAL

STRATEGIC

PROCESS OF OBJECTIVE SETTING

TOP-DOWN PROCESS FOR UNITY AND COHESION
START WITH ORGANIZATION WIDE OBJECTIVE
SET BUSINESS AND PRODUCT LINE OBJECTIVE
ESTABLISH OBJECTIVES FOR FUNCTIONAL
AREAS AND DEPARTMENTS
SET INDIVIDUAL PERFORMANCE STANDARD

TYPES OF STRATEGIC OBJECTIVES

BIGGER MARKET SHARE
LOWER OVERALL COSTS
PRODUCT DIFFERENTIATION
BETTER CUSTOMER SERVICE
LEADER IN TECHNOLOGY
ABILITY TO COMPETE IN INTERNATIONAL
MARKET
HIGHER INDUSTRY RANK

TYPES OF FINANCIAL OBJECTIVES

ANNUAL REVENUE GROWTH
INCREASE EARNINGS
INCREASE DIVIDEND
INCREASE NET PROFIT TO SALES RATIO
IMPROVE RETURN ON CAPITAL EMPLOYED
HIGHER CREDIT RATING
DIVERSIFIED REVENUE BASE

EXAMPLES OF STRATEGIC OBJECTIVES

A.

TISCO (AFTER ACQUISITION OF CORUS GROUP)

BY THE YEAR 2007, WE EXPECT TO ENTER INTO AT LEAST
ONE MAJAOR NEW BUSINESS THAT WOULD HAVE GROWTH
COMPARABLE IN SIZE TO THE CORE BUSINESS.
TO MAKE THE CORE BUSINESS EVA POSITIVE BY 2009
ACQUISITION FOR ACCELERATE GROWTH

B.

GENERAL ELECTRIC :
BUILD LEADERSHIP BUSINESSES

FOCUS
DISCIPLINE

ON

RELIABLE

EXECUTION AND

DRIVE GROWTH AS A PROCESS

MAKE EVERY EMPLOYEE GE ZELOT

FINANCIAL

EXAMPLES OF FINANCIAL OBJECTIVES

A. GENERAL ELECTRIC
ORGANIC REVENUE GROWTH OF 2-3 X GDP
RETURN ON AVERAGE TOTAL CAPITAL OF 20%
B. ROYAL DUTCH SHELL
TO RAISE US $ 22-23 BILLION IN 2007 BY
DISINVESTMENT
OPERATIONAL SYNERGIES AND COST SAVING :
US $ 0.5 BILLION ADDITION TO PROFIT

INTENDED/UNINTENDED STRATEGY
A. INTENDED : DELIBERATE AND PURPOSEFUL ACTION AFTER
STRATEGY
THOROUGH ANALYSIS AS TO HOW TO :
ACHIEVE STRATEGIC OBJECTIVES
ACHIEVE FINANCIAL OBJECTIVES
ENSURE SUSTAINABLE COMPETITIVE ADVANTAGE
RESPOND TO CHANGING INDUSTRY AND
COMPETITIVE CONDITIONS
BE AND REMAIN A GOOD CORPORATE CITIZEN

B. UNINTENDED : QUICK REACTION TO UNANTICIPATED DEVELOPMENT/

STRATEGY
COMPETITIVE PRESSURES/ REGULATORY CHANGES

ATTRIBUTES OF WINNING STRATEGY

MAPS OUT FIRMS INNOVATION AND BUSINESS
CREATIVITY
RISK TAKING AND BEING VENTURESOME
STRONG ENOUGH TO OVER POWER RIVALS
FLEXIBLE ENOUGH TO OVERCOME OBSTACLES
RESPOINSIVE TO CHANGING CONDITION
CONSTANTLY LOOKING FOR AND SEIZING
OPPORTUNITIES FOR GROWTH
WEDDING ALL THE EMPLOYEES TO THE VISION,
MISSION AND OBJECTIVES OF THE FIRM

Major Components of the

Strategic Plan / Down to Action

Components

Strategic Plan

Vision
Missio
n

Initiatives
Measures
Targets

AI1

How do we conduct
business

O1
AI2

M1 M2 M3
T1

T1

T1

Evaluate Progress

Ways forward

Core
values
Objectives

Action Plans

What we want to be

O2
AI3

Specific outcomes expressed in

measurable terms (NOT
activities)
Planned Actions to
Achieve Objectives
Indicators and
Monitors of success
Desired level of
performance and
timelines

FACTORS AFFECTING STRATEGY

OF A SINGLE BUSINESS COMPANY
Kind of Diversification
Basic Competitive
Approach
Manufacturing
Strategy

Corporate
Strategy

Marketing Strategy

Moves to Build
Competitive
Advantage Via
Diversification
Moves to Strengthen
Positions and Profit in
Existing Business

R&D Strategy
Human Resources
Strategy

Responses to
Changing Conditions

Finance Strategy

STRATEGY PYRAMID OF
A SINGLE BUSINESS COMPANY
Senior Managers

Business Strategy

Two Way Influence

Heads of Major
Functional Areas

Functional
Strategies
Two Way Influence

Plant Managers,
Lower-Level
Supervisors

Operating Strategies

THREE LEVELS OF STRATEGY IN

ORGANIZATIONS : CORPORATE, BUSINESS,
AND FUNCTIONAL STRATEGIES.

NETWORKING OF MISSIONS
OBJECTIVES & STRATEGIES
Level 1
Overall Scope &
Strategic Mission

Corporate Level
Objectives

Corporate Level
Strategy

Two Way Interface

Two Way Interface

Two Way Interface

Business Level
General Managers

Business Level
Mission

Business Level
Objectives

Business Level
Strategies

Level 3

Two Way Interface

Two Way Interface

Two Way Interface

Heads of Major
Functional Areas

Functional Areas
Missions

Functional Area
Objectives

Functional Area
Strategic

Two Way Interface

Two Way Interface

Two Way Interface

Corporate Level
Managers
Level 2

Level 4

Plant Managers,
Lower-Level Supervisors

Operating
Missions

Field Unit
Objectives

Operating
Strategies

SWOT : AN ANALYSIS OF STRENGTHS,

WEAKNESSES, OPPORTUNITIES,AND THREATS.

WHAT ARE OUR WHAT ARE OUR

STRENGTHS?
WEAKNESSES?
MANUFACTURING
EFFICIENCY?
SKILLED
WORKFORCE?
GOOD MARKET
SHARE?
STRONG
FINANCING?
SUPERIOR
REPUTATION?

OUTDATED
FACILITIES?
INADEQUATE
RESEARCH AND
DEVELOPMENT?
OBSOLETE
TECHNOLOGIES?
WEAK
MANAGEMENT?
PAST PLANNING
FAILURES?

WHAT ARE OUR WHAT ARE

OPPORTUNITIES
OUR
?
THREATS?
POSSIBLE NEW
MARKETS?
STRONG ECONOMY?
WEAK MARKET
RIVALS?
EMERGING
TECHNOLOGIES?
GROWTH OF
EXISTING MARKET?

NEW
COMPETITORS?
SHORTAGE OF
RESOURCES?
CHANGING
MARKET TASTES?
NEW
REGULATIONS?
SUBSTITUTE
PRODUCTS?

ANALYSIS : PORTERS 5 FORCES MODEL

PORTERS 5 FORCES MODEL- 1

BARGAINING
POWER OF
SUPPLIER

THE TERM 'SUPPLIERS' COMPRISES ALL

SOURCES FOR INPUTS THAT ARE NEEDED IN
ORDER TO PROVIDE GOODS OR SERVICES
SUPPLIER BARGAINING POWER IS LIKELY TO BE
HIGH WHEN:-

THE MARKET IS DOMINATED BY A FEW

LARGE SUPPLIERS RATHER THAN A
FRAGMENTED SOURCE OF SUPPLY
THERE ARE NO SUBSTITUTES FOR THE
PARTICULAR INPUT

PORTERS 5 FORCES MODEL- 2

BARGAINING
POWER OF
BUYERS

DETERMINES HOW MUCH CUSTOMERS CAN

IMPOSE PRESSURE ON MARGINS AND
VOLUMES.
CUSTOMERS BARGAINING POWER IS
LIKELY TO BE HIGH WHEN

BUYERS ARE CONCENTRATED

BUYERS PURCHASE SIGNIFICANT
PROPORTION OF PRODUCTION
THE CUSTOMER KNOWS ABOUT THE
PRODUCTION COSTS OF THE PRODUCT
LOW WHEN

PRODUCER THREATEN FORWARD

INTEGRATION
PRODUCER SUPPLY CRITICAL OF
BUYERS INPUT

PORTERS 5 FORCES MODEL- 3

THREAT OF
NEW
ENTRANTS

THE THREAT OF NEW

ENTRANTS WILL DEPEND
ON THE EXTENT TO WHICH
THERE ARE BARRIERS TO
ENTRY . THESE ARE,
PATENTS
HIGH INITIAL INVESTMENTS AND
FIXED COSTS
BRAND LOYALTY OF CUSTOMERS
SCARCITY OF IMPORTANT
RESOURCES, E.G. QUALIFIED
EXPERT STAFF
EXISTING PLAYERS HAVE CLOSE
CUSTOMER RELATIONS

PORTERS 5 FORCES MODEL- 4

THREAT OF
SUBSTITUTES

THREAT FROM
SUBSTITUTES EXISTS
IF THERE ARE
ALTERNATIVE
PRODUCTS WITH
LOWER PRICES OR
BETTER
PERFORMANCE
PARAMETERS AND
ENHANCED VALUES

PORTERS 5 FORCES MODEL- 5

This force describes the intensity of
competition between existing
players (companies) in an industry

Competitive
Rivalry
between
Existing Players

Competition between existing

players is likely to be high when

There are many players of about the

same size

Players have similar strategies

There is not much differentiation

between players and their products

PORTERS GENERIC STRATEGIES

FRAMEWORK: SOFT-DRINK
INDUSTRY EXAMPLES.

HOW ARE STRATEGIES

FORMULATED?

BCG MATRIX
TIES STRATEGY FORMULATION TO
ANALYSIS OF BUSINESS
OPPORTUNITIES ACCORDING TO
INDUSTRY OR MARKET GROWTH
RATE
LOW VERSUS HIGH

MARKET SHARE
LOW VERSUS HIGH

THE BCG MATRIX APPROACH TO

CORPORATE STRATEGY FORMULATION.

Study Question 4: How are strategies

formulated?
BCG matrix business conditions

and related strategies:

Stars
High share/high growth businesses.
Preferred strategy growth.

Cash cows
High share/low growth businesses.
Preferred strategy stability or modest
growth.
Management - Chapter 9
47

Study Question 4: How are strategies

formulated?
BCG matrixbusiness conditions and

related strategies (cont.):

Question marks

Low share/high growth businesses.

Preferred strategy growth for promising
question marks and restructuring or
divestiture for others.

Dogs
Low share/low growth businesses.
Preferred strategy retrenchment by
divestiture.
Management - Chapter 9
48

Baseline

Gap Analysis
Baseline / Org Profile

Challenges / SWOT

Gap
Gap == Basis
Basis for
for Long-Term
Long-Term
Strategic
Strategic Plan
Plan

FORMULATION
OF BUSINESS STRATEGY
HOW TO ENSURE FIRMS GROWTH
HOW TO ENSURE SUSTAINABLE COMPETITIVE
ADVANTAGE

HOW TO BUILD AND STRENGTHEN FIRMS LONG

TERM COMPETITIVE POSITION

UNITING STRATEGY INITIATIVE OF FUNCTIONAL

AREAS

RESPOND CHANGES IN REGULATORY AND

POLITICAL ARENA

FORMULATION
OF FUNCTIONAL STRATEGY
TO SUPPORT OVERALL BUSINESS STRATEGY
A BUSINESS NEEDS AS MANY FUNCTIONAL
STRATEGIES AS MEMBERS OF ITS VALUE
CHAIN SYSTEM
TO SPECIFY HOW TO ACHIEVE FUNCTIONAL
AREAS PERFORMANCE OBJECTIVES

FORMULATION OF OPERATING STRATEGY

A. SCOPE:
LIMITED TO NARROWER STRATEGIC APPROACHES
FOR MANAGING KEY OPERATING UNITS
STRATEGY CRITICAL PERFORMANCE TARGETS AT
OPERATING LEVEL UNITS
B. EXAMPLES:
BOOSTING WORKER PRODUCTIVITY
IMPROVED INCENTIVE COMPENSATION PLAN
BETTER SELECTION PROCESS TO ENSURE INDUCTION
OF BEST QUALIFIED CANDIDATES
IMPROVED JIGS & FIXTURES
IMPROVED DELIVERY AND ORDER FILLING

EXAMPLES OF STRATEGY
T I S C O (AFTER ACQUISITION OF CORUS GROUP)
MANAGE KNOWLEDGE
INCREASE INNOVATION AND ALLOW FREEDOM
TO FAIL
EXCEL AT TBEM
UNLEASH PEOPLES POTENTIAL AND CREATE
LEADERS WHO WILL BUILD FUTURE
ENSURE SAFETY AND ENVIRONMENT
SUSTAINABILITY
INVEST, MERGE AND ACQUIRE

EXAMPLES OF STRATEGY
HSBC HOLDING
GROWTH AMBITION IN ALL ITS FOUR BUSINESS SEGMENTS
BENCH MARKING ITS PERFORMANCE BOTH ABSOLUTELY AND
IN COMPARISON WITH A PEER GROUP
COMMUNICATING CORE VALUES OF HSBC TO ITS CUSTOMERS,
SHAREHOLDERS AND EMPLOYEES
REWARD SUCCESS AND REJECT MEDIOCRITY
FOCUS ON INVESTING IN ITS DELIVERY PLATFORM,
TECHNOLOGY, PEOPLE AND ITS BRAND
ESTABLISHING STRONG LINKAGE WITH CORPORATE SOCIAL
RESPONSIBILITY, LONG TERM SUCCESS AND VALUE CREATION

IMPLEMENTING STRATEGY
ESTABLISHING STRATEGY SUPPORTIVE POLICIES
BUILDING A CAPABLE ORGANIZATION
INSTITUTING BEST PRACTICES FOR CONTINUOUS
IMPROVEMENT
SHAPING CORPORATE CULTURE TO STRATEGY
INSTALLING SUPPORT SYSTEM FOR CARRYING
OUT STRATEGIC ROLES
ALLOCATING RESOURCES
INSTITUTING EFFECTIVE REWARD SYSTEM

ESTABLISHING STRATEGY SUPPORTIVE POLICIES

EMPOWERMENT
STRIVE TO ACHIEVE LITTLE STEP FORWARD EACH
DAY
ENFORCE CONSISTENCY IN PERFORMANCE OF
STRATEGY CRITICAL ACTIVITY
CHANGING CORPORATE CULTURE
REINFORCE CORPORATE ETHICS AND VALUE
PROGRAMMES
ENERGIZE ENTIRE ORGANISATION TO ACCOMPLISH
STRATEGY

Down to

SANITY CHECK . . .

Specifics

MAKE SURE EVERYTHING IS LINKED AND

CONNECTED FOR A TIGHT END-TO-END
MODEL FOR DRIVING STRATEGIC EXECUTION.

OBJECTIVE
Improve Employee
Satisfaction

MEASURE / TARGET

Targe
t

Matt H. Evans,
matt@exinfm.com

Employee
Satisfactio
n Survey
Rating
90%
favorable
overall

90
%
Percent
Satisfaction

Measur
e

45
%

Targe
t

Actu
al

ga
p

INITIATIVE
Employee
Productivity
Improvement
Program

ACTION PLAN
Identify issues per
a company wide
survey

BUILDING A CAPABLE ORGANIZATION

STRONG LEADERSHIP
SELECT ABLE PEOPLE FOR KEY POSITIONS
CREATING A STRATEGY SUPPORTIVE ORGANIZATION
STRUCTURE
FUNCTIONAL ORGANIZATION STRUCTURE (TRADITIONAL)

PROCESS ORIENTED ORGANIZATION STRUCTURE

GEOGRAPHIC ORGANIZATION STRUCTURE
DECENTRALISED ORGANIZATION STRUCTURE
SBU ORGANIZATION STRUCTURE

MATRIX ORGANIZATION STRUCTURE

INSTITUTING BEST PRACTICES FOR

CONTINUOUS IMPROVEMENT
BUSINESS PROCESS RE-ENGINEERING
TOTAL QUALITY MANAGEMENT
CORPORATE RISK ASSESSMENT
CREATING CORE COMPETENCY
OUTSOURCING NON-CRITICAL STRATEGIC
ACTIVITIES

INSTITUTING EFFECTIVE REWARD SYSTEM

DEFINE JOBS IN TERMS OF RESULTS TO BE ACCOMPLISHED

AND NOT ACTIVITIES

USE PERFORMANCE TARGETS IN STRATEGIC PLAN AS BASIS

FOR INCENTIVE COMPENSATION
PROVIDE AMPLE REWARD TO PEOPLE WHO ACHIEVES
OBJECTIVES
NO EXECUSES STANDARD MUST PREVAIL
DENY REWARD TO THOSE NOT ACHIEVING THE OBJECTIVES
PERFORMANCE TARGETS TO BE CLEARLY DEFINED AND
UNDERSTOOD BY PERSONS /GROUP
MAKE REWARD STRUCTURE AS MANAGEMENT MOST
POWERFUL IMPLEMENTATION TOOL

GENERIC COMPETITIVE STRATEGY OF

TOP PERFORMERS
BEST PRACTICE

COMMENTS

DIFFERENTIATION AND NICHE

FOCUS

FOCUS ON A LIMITED NUMBER OF NICHES AND

DEVELOP AN EXPERTISE IN EACH.

COMPETE BASED UPON VALUE

COMPETE BY PROVIDING CUSTOMER VALUE,

RATHER THAN LOW PRICE.

FOCUS ON CLIENT SATISFACTION

EXCEED CLIENT EXPECTATIONS SEEK TO

DELIGHT AND AMAZE THE CUSTOMER.

ATTRACT & DEVELOP THE BEST

ATTRACT THE BEST (RIGHT) TALENT. CULTIVATE

AN ENVIRONMENT TO FACILITATE EMPLOYEE
DEVELOPMENT.

STRIVE FOR OPERATIONAL

EXCELLENCE

CONTINUOUSLY STRIVE TO BE THE BEST IN THE

NICHES PURSUED.

ALIGN MISSION AND STRATEGY

ALIGN MISSION AND STRATEGY TO ACHIEVE

CONSISTENT AND COMPATIBLE ACTION.