Académique Documents
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Erwan Guiziou
Copyright Erwan Guiziou 2013 All rights reserved
2013
Agenda
Strategic analysis
Change
Agenda
STRATEGIC ANALYSIS OBJECTIVES AND STRATEGY CHANGE
Pre-announcement actions Internal analysis Options review HR management Announcement External analysis Strategy Quick wins Performance evaluation SWOT - Strengths - Weaknesses - Opportunities - Threats Services offer
Competitors reaction
Agenda and milestones Consequences
Agenda
STRATEGIC ANALYSIS OBJECTIVES AND STRATEGY CHANGE
Pre-announcement actions Internal analysis Options review HR management Announcement External analysis Strategy Quick wins Performance evaluation SWOT - Strengths - Weaknesses - Opportunities - Threats Services offer
Competitors reaction
Agenda and milestones Consequences
Internal analysis
M.O.S.T. Value system Structure Systems
Human Ressources
Sales / Marketing Finance Operations R&D / after-sale
Internal analysis
M.O.S.T. Value system Structure Systems
Human Ressources
Sales / Marketing Finance Operations R&D / after-sale
- Are the objectives of the company clearly defined ? - Are the objectives shared by employees ?
Internal analysis
M.O.S.T. Value system Structure Systems
Human Ressources
Sales / Marketing Finance Operations R&D / after-sale
Supplier
Firm
Customer
Inventory
- What is the value system in place ? - Advantages / drawbacks ?
Distribution channels
Internal analysis
M.O.S.T. Value system Structure Systems
Human Ressources
Sales / Marketing Finance Operations R&D / after-sale
Structure (1/3)
- Classical structure - Simple structure (SOHO)
Structure (1/3)
- Divisional structure (large companies)
- projects structure (building, communication or new product) - professionnal bureaucracy (hospitals, universities)
Structure (3/3)
- is the structure coherent towards the environnement or is it reaching its limits ? - is the structure sub-optimal and produces insufficient coordination or differentiation for the needs of the organisation ? - is the structure coherent regarding strategy ?
Organisational structure
to fonctional structure(SMB)
Analyse interne
M.O.S.T. Value system Structure Systems
Human Ressources
Sales / Marketing Finance Operations R&D / after-sale
Systems (1/2)
- Are the following systems in place? - Control - Coordination of the strategy implementation? - Information
Anthony, Planning and control systems: a framework for analysis, Division of research, Harvard Business School, 1965
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x
Pas assez de sys
x
No sys.
x
No sys.
Tactical
NA
14
P&L
6x
x
Sys. cout du travail mais rien dautre
10
Knowledge
NA
- Sys prise de commandes. - Data warehouse - Email + XL - Sys de gestion commandes - Data warehouse
11
12
x
- Sys gestion comm. 15
Operational
13 NA Production
16
Finance/ Accountancy
Sales/ Marketing
Human Resources
ACESI Systems
1 2 3 4 Strategic
6 x
Tactical
P&L en XL ?
x
11
x x
Knowledge
14
10
12
16
- Intranet
- Intranet
15
Finance/ Accountancy
Sales/ Marketing
Human resources
McKenney, McFarlan and Pyburn, The information archipelago plotting a course Harvard Business Review, Jan-Feb 1983
Copyright Erwan Guiziou 2012 2013 Tous All rights droits reserved rservs
Internal analysis
M.O.S.T. Value system Structure Systems
Human Ressources
Sales / Marketing Finance Operations R&D / after-sale
- Are the mechanims relevant ? Do they support the strategy ? - Does the reward strategy encourage a behaviour compatible with the overall strategy?
Copyright Erwan Guiziou 2013 All rights reserved
Non-money related
Money related
Individual-related
Copyright Erwan Guiziou 2013 All rights reserved
high
Sociability
Networked
Communal
Fragmented
low low
Mercenary
Solidarity
Mesure of the possibility for a community to pursue objectives rapidly and efficiently, without taking into account personal ties
high
Solidarity
Mesure of the possibility for a community to pursue objectives rapidly and efficiently, with taking into account personal ties
- People in our company understands and share the same business objectives - work is performed efficiently and is productive - Our company takes strong actions to solve inadequate performance - Our collective will to win is strong - When opportunities appear for a competitive advantage, we are quick to seize them* - We have the same strategic goals - We know who our competition is
Copyright Erwan Guiziou 2013 All rights reserved
high
Networked
- Advantages: Creativity, engagement - Drawbacks: Cliques, gossip, low productivity, little idea critics - Example: Unilever - Works when: long-term strategies, critical knowledge of the local market, the global success is a sum of local successses - Advantages : specialists in one domain (surgeons, lawyers) - Drawbacks : critical towards the organisation, little information sharing
- Advantages : Communal organisational identity, risks and rewards sharing, enthousiasm - Drawbacks : linked to the leader, pbs with growth, diversification or internationalisation - Example : start-ups - Works when : innovation with cooperation, long term strategies, dynamic and complexe business environnement - Advantages : competitive sense, will to win, high productivity - Drawbacks : little cooperation, ideas exchanges, creativity - Example : Dell - Works when : rapid change, clear and mesurable corporate goals, clear identified competition
Sociability
low
Fragmented
low
Mercenary
high
Solidarity
Copyright Erwan Guiziou 2013 All rights reserved
- Promote ideas sharing, interests and emotions to recruit PLU - increase social interactions between employees (parties, excursions, etc.) - reduce formality between employes - limit hierarchical differences - act as a friend, pay attention to those in need Mesure of the possibility for a community to pursue objectives rapidly and efficiently, with taking into account personal ties
Solidarity
- develop conscience of competition through videos, newsletters, memos, etc. - create a sense of urgency - stimulate the will to win - encourage adhesion to share organisational goals
News about EasyJet and Sir Stelios Haji-Ioannou Read on http://www.guardian.co.uk/business/2009/dec/09/easyjetboss-to-stand-down Analyse the document. Which HR issues are illustrated here ? What would you recommend to solve them ?
Internal analysis
M.O.S.T. Value system Structure Systems
Human Ressources
Sales / Marketing Finance Operations R&D / after-sales
- Market orientation from the top management or too busy by production? - Status of the marketing in the company? Sophisticated ? Or not developped enough ?
- Segmentation (transactional (SB, consumers) relationship (public, LA, LB)) - Targeting (different type
of offers for different segments)
- Posititioning (create an image of the product for the target and position it towards other products) - What is the process? Monitoring? - CRM in place?
Copyright Erwan Guiziou 2013 All rights reserved
Product (range)
Price
Place (channel) Promotion Services Strengths / weaknesses ?
Physical location
People Process
high
Market growth
low
high
low
- Milestones
Why such a
What about brand extension ? Advantages / drawbacks ? Quote other companies that do this Compare with the brand strategy at Body Shop
Copyright Erwan Guiziou 2013 All rights reserved
Internal analysis
M.O.S.T. Value system Structure Systems
Human Ressources
Sales / Marketing Finance Operations R&D / after-sales
Costs
Profit on sales
2 4
Assets
Sales generation
5
Sales / nb of employees
Sales / debtors
Sales / creditors
Sales / stock
Profit / nb employees
Current ratio
7
8
Debtors sales Creditors sales Stock sales
Liquidity ratio
Profit on sales = Profit on sales = measures how much out of every dollar of sales a company actually keeps in earnings
Sales generation = shows the value of sales generated from each $ of total assets. The higher the ratio, the better.
3 4
Fixed assets utilisation ( = sales / fixed assets) and current assets ( = sales / current assets ) utilisation: the same as #3 with more precision
6 7
Sales / # of employees
Profit / # nb of employees
Current liabilities
Sales
Stocks
Debtors x number of weeks in the period Sales for the period Creditors x number of weeks in the period Sales for the period
Finances (2/2)
- ROCE ? Profitable ? Profit growing ? - Return on sales? Do we have the correct marketing mix ? Are margins reduced because of competition? - Do the shareholders trust the company? - Ratios: compare with competition (part II) - Environnement: how is the company financed ? Coherent? Long-term? - Does the finance position of the company constraints its strategic choices?
Internal analysis
Finance video
Internal analysis
M.O.S.T. Value system Structure Systems
Human Ressources
Sales / Marketing Finance Operations R&D / after-sales
Copyright Erwan Guiziou 2012 2013 Tous All rights droits reserved rservs
1. Process initiation - Orders download from IT system (in parts) and description of order called the traveller (paper) 2. Parts availability checked --> orders not started if parts missing. Anti static tote with traveller on conveyor belt 3. Parts added to tote with pick to lights (PTL) system - each part scanned --> inventory and tracability measures 4. Chassis, memories and processors added at the end in a special tray as more costly (damage risks reduced) 5.Operator installs MB into chassis - delicate operation separated - conveyor moves system to furthest BTO cell 6. Three operators per cell - 2 for build, 1 for testing - when system built, quick test applied; if system fails test, it is 7. rerouted to another area where retest occurs. If fails again, disassembly process happens
Copyright Erwan Guiziou 2012 2013 Tous All rights droits reserved rservs
8. Systems removed from conveyor belt by multi-unit Stacker for SW download and tests - human damages avoided 9. Ten percent of systems pulled off from assembly line for quality assurance checks 10. Two test cycles - diagnostics and hardware. After software downloaded, systems re-tested 11. Common and some customer specific SW download - Final test, systems de-stacked and moved back to conveyor 11A. Specific customer hardware, software, asset tagging and labelling added 12. Brand and model labels applied - FCC and other suppliers label applied(e.g. Intel) - Here as at each stage, capture 13. of routing position - Full quality test (labels, cosmetics, hoods)
Copyright Erwan Guiziou 2012 2013 Tous All rights droits reserved rservs
14. System scanned - removed from tray by hoist and placed into pre-assembled cardboard box 15. Docs and accessories added and scanned into the box using PTL system (inventory and WIP adjust) 16. Ten percent of systems have contents checked 17. Daily, 1.5 percent of system are totally checked to evaluate customer experience with initial use of the equipment 18. Automatic seal of boxes - multiple orders move to staging area - single orders directly to shipping 19. Multi-unit order consolidated assembled together and placed on conveyor to shipping. Completed orders scanned 20. and moved directly to pre-assigned trucks. Last scan before truck. Peripherals and monitors merged offsite
Copyright Erwan Guiziou 2012 2013 Tous All rights droits reserved rservs
STT - Ship To Target: It measures the percentage of complete systems which ship from Dells manufacturing facilities within 5 days from the time the order was entered into the sales system
IFIR - Initial Field Incident Rate: It measures customer issues (real or perceived) requiring parts or service or replacement of a system within 30 days of the system shipment. MWD Missing, Wrong and Damaged: It measures customer issues when delivered systems either do not contain the right components or components are missing or systems are damaged. Very important for customer satisfaction. SDOTFTF Service Delivery On-Time First Time Fix: It measures the percentage of service calls completed by a Dell Service Provider (DSP) in which the technician arrived with the required part(s) within the contractual period (for example, 4 hours or Next Business Day) and resolved the issue on the first visit.
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Dell Confidential
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Supplier commits
Materials constraints
Requisition Purchase order placement Customer order received Mfg call off
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Suppliers
Dell
Customers
valuechain.dell.com Inside.dell.com
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Operations (2/2)
- What is the structure of the system ? - What are the options chosen to fight against competition? (word document) - Usage of resources vs Usage of material
Internal analysis
M.O.S.T. Value system Structure Systems
Human Ressources
Sales / Marketing Finance Operations R&D / after-sales
Agenda
STRATEGIC ANALYSIS OBJECTIVES AND STRATEGY CHANGE
Pre-announcement actions Internal analysis Options review HR management Announcement External analysis Strategy Quick wins Performance evaluation SWOT - Strengths - Weaknesses - Opportunities - Threats Services offer
Competitors reaction
Agenda and milestones Consequences
External analysis
P.E.S.T.L.E. + Key success factors + scenarii Strategic groups + market segments
Organisation
Market
External analysis
Macro-environnement
P.E.S.T.L.E. + key success factors + scenarii
Sector analysis
Data Porter 5 forces Industry lifecycle
Competition analysis
Strategic groups Market segments
Copyright Erwan Guiziou 2013 All rights reserved
Analyse externe
Macro-environnement
P.E.S.T.L.E. + key success factors + scenarii
Sector analysis
Data Porter 5 forces Industry lifecycle
Competition analysis
Strategic groups Market segments
Copyright Erwan Guiziou 2013 All rights reserved
22,6
23,0
20,0
18,4
15,0
10,0
9,6
5,0
3,5
0,0
0,0
-2,6
-5,0
New entrants
Rivalry intensity
Substitution threat
Rivalry intensity:
- industry growth? - how many competitors on the market? - easy differentiation? - exit barriers : low / high? - price war ?
Substitution threat:
- Product substitue possible?
Market size
Introduction
Growth
Consolidation
Maturity
Decline
Time
Low rivalry Low rivalry
Strong growth buyers are weak Barriers to entry low Key is capacitiy to growth
Extreme rivalry
A lot of exits Strong competition on price Cost and implication key
Market size
Introduction
Growth
Consolidation
Maturity
Decline
Time
Agenda
STRATEGIC ANALYSIS OBJECTIVES AND STRATEGY CHANGE
Pre-announcement actions Internal analysis Options review HR management Announcement External analysis Strategy Quick wins Performance evaluation SWOT - Strengths - Weaknesses - Opportunities - Threats Services offer
Competitors reaction
Agenda and milestones Consequences
Strengths
Weaknesses
- Financial independance limits the development - Experts recruitment is difficult - Strategy and marketing not formalised
Positive
- International development
- New services development (consultancy services) - Consultants not treating those aspects - Borders proximity
Negative
Opportunities
Threats
External
Copyright Erwan Guiziou 2013 All rights reserved
Agenda
STRATEGIC ANALYSIS OBJECTIVES AND STRATEGY CHANGE
Pre-announcement actions Internal analysis Options review HR management Announcement External analysis Strategy Quick wins Performance evaluation SWOT - Strengths - Weaknesses - Opportunities - Threats Services offer
Competitors reaction
Agenda and milestones Consequences
Agenda
STRATEGIC ANALYSIS OBJECTIVES AND STRATEGY
CHANGE
Pre-announcement actions Internal analysis Options review HR management Announcement External analysis Strategy Quick wins Performance evaluation SWOT - Strengths - Weaknesses - Opportunities - Threats Services offer Competitors reaction Agenda and milestones
Consequences
High
4 3 5
1
Low
7 8
Low
Copyright Erwan Guiziou 2013 All rights reserved
High
Diversification ?
Diversification ?
Source: Johnson and Scholes, 2009
High
Low
Performance
Agenda
STRATEGIC ANALYSIS OBJECTIVES AND STRATEGY
CHANGE
Pre-announcement actions Internal analysis Options review HR management Announcement External analysis Strategy Quick wins Performance evaluation SWOT - Strengths - Weaknesses - Opportunities - Threats Services offer Competitors reaction Agenda and milestones
Consequences
SFA analysis
Strategic options
Do nothing Withdrawal Consolidation Penetration Product development Market development Diversification
Suitability
Feasibility Directions
Acceptability
Remarks
Methods
Internal development (organic growth) Mergers and acquisitions Joint ventures and strategic alliances
Copyright Erwan Guiziou 2013 All rights reserved
Structural view
or environmental determinism
Agenda
STRATEGIC ANALYSIS OBJECTIVES AND STRATEGY
CHANGE
Pre-announcement actions Internal analysis Options review HR management Announcement External analysis Strategy Quick wins Performance evaluation SWOT - Strengths - Weaknesses - Opportunities - Threats Services offer Competitors reaction Agenda and milestones
Consequences
Pre-announcement actions
- Interview M. Brandon
- Retrieve the main ideas - Comment / analyse
Pre-announcement actions
- To get change accepted, management needs to identify the stakeholders, both from an interest and power point of view
High
Keep satisfied
Key players
Company management
Customers
Stakeholder power
Keep informed
High
Pre-announcement actions
People barrier
Motivation, rewards*, training, recrutement
Agenda
STRATEGIC ANALYSIS OBJECTIVES AND STRATEGY
CHANGE
Pre-announcement actions Internal analysis Options review HR management Announcement External analysis Strategy Quick wins Performance evaluation SWOT - Strengths - Weaknesses - Opportunities - Threats Services offer Competitors reaction Agenda and milestones
Consequences
HR management
Changing the structure
Dells video on structure what are the key lessons ?
Agenda
STRATEGIC ANALYSIS OBJECTIVES AND STRATEGY
CHANGE
Pre-announcement actions Internal analysis Options review HR management Announcement External analysis Strategy Quick wins Performance evaluation SWOT - Strengths - Weaknesses - Opportunities - Threats Services offer Competitors reaction Agenda and milestones
Consequences
Announcement
Internal announcement
explain the reason for change and instil a sense of urgency
Interactive
TYPE OF MEDIA
EFFECTIVE COMMUNICATION
Personal memo
General bulletins
(e.g. circulars, announcement on noticeboards)
Too little information and sensitivity leads to mistrust and lack of commitment
Lengel and Dafts effective communication of change / Source: Johnson and Scholes, p 564, 2002
Copyright Erwan Guiziou 2013 All rights reserved
Agenda
STRATEGIC ANALYSIS OBJECTIVES AND STRATEGY
CHANGE
Pre-announcement actions Internal analysis Options review HR management Announcement External analysis Strategy Quick wins Performance evaluation SWOT - Strengths - Weaknesses - Opportunities - Threats Services offer Competitors reaction Agenda and milestones
Consequences
Organise a all employees meeting ? Align employees objectives with the companys objectives until changes sink deeply into a companys culture [], new approaches are fragile and subject to regression (Kotter, 1995) Move dissenters sidelines Letting people go (illustration with John Roberts video)
Copyright Erwan Guiziou 2013 All rights reserved
Agenda
STRATEGIC ANALYSIS OBJECTIVES AND STRATEGY
CHANGE
Pre-announcement actions Internal analysis Options review HR management Announcement External analysis Strategy Quick wins Performance evaluation SWOT - Strengths - Weaknesses - Opportunities - Threats Services offer Competitors reaction Agenda and milestones
Consequences
Sales/Marketing
Customer perspective - Customer satisfaction survey - Call center satisfaction - Market share - Pricing index - Number of customers lost / won Internal business perspective
Operations
- Customer service lead-time - SDOTFTF: Service Delivery On Time First Time Fix - Tender success rate - Spare parts delivery performance
Innovation and learning perspective - Turnover - Staff survey - Number of employee suggestions - Profit per employee - Benchmarking index
HR / R&D
Agenda
STRATEGIC ANALYSIS OBJECTIVES AND STRATEGY
CHANGE
Pre-announcement actions Internal analysis Options review HR management Announcement External analysis Strategy Quick wins Performance evaluation SWOT - Strengths - Weaknesses - Opportunities - Threats Services offer Competitors reaction Agenda and milestones
Consequences
Competitorsmoves
Try not to get into a price war
Agenda
STRATEGIC ANALYSIS OBJECTIVES AND STRATEGY
CHANGE
Pre-announcement actions Internal analysis Options review HR management Announcement External analysis Strategy Quick wins Performance evaluation SWOT - Strengths - Weaknesses - Opportunities - Threats Services offer Competitors reaction Agenda and milestones
Consequences
Coaching plan
Training plan Training tools (user guide, e-learning, serious games) Resistance to change plan, feedback plan on change Events and key moments in the project (events limited to the change management team, launch events Metrics to measure plan follow up Roadmap for the change management Roadmap describing mission and objectives of the groupe, actions and means to implement, milestones
Deliverables
Surveys (offline or online) Training tools
Comments
Configuration and questions / answers Guided tours E-learning Questions and answers User guide Training material sandbox
Agenda
STRATEGIC ANALYSIS OBJECTIVES AND STRATEGY
CHANGE
Pre-announcement actions Internal analysis Options review HR management Announcement External analysis Strategy Quick wins Performance evaluation SWOT - Strengths - Weaknesses - Opportunities - Threats Services offer Competitors reaction Agenda and milestones
Consequences
Consequences
Think about the consequences for the company and its people in terms of :
A word of conclusion
Gouvernance about setting the overall strategy in large organisations (illustration video M. Dell)
Strategic analysis
Change