Week 10 (19.6.07)

Learnt

I have learnt so much in this past 5 weeks for Strategy Planning and Implementation. Why?

I had applied my learnings on the STRATEGICs process of Strategy Planning & Implementation in my assignment and also in reality in my work place. As the leader of the E-Card project, i will take lead to implement the pilot program for Private Hospital and also to roll it out later to all other hospitals nationwide.


Unlearnt

When presenting any Strategy Plan to CEO or management, as what i have learnt from Alfred Chan(AMA Marketing Director of Singapore) it is better to use the fore front approach which is sharing ahead what is the SCQ (Situation, Complication and Key Question) and establish using STRATEGICs process versus the traditional approach which is starting with Vision &Mission of company, Internal & External factors, Strategic Issues, Business Design, Action Plans & Review. The reason is this traditional approach will bring people go through a lot of introductory and background material and analysis before they come to saying what the report is trying to address. In general, people may loose interest when it comes to the real issue.

Relearn

As stated above, because of the good feedback from Alfred Chan, I agree with him to adopt this approach in my coming Strategy Planning & Implementation assignment. In view of the short time to complete by 23rd June, i will try my best to improvise my STRATEGICs process using the SCQ as the starting point. This is the reality in life, sometimes, it is good to seek others' view as experienced leaders have the knowledge to share or coach.

Week 9

Learnt

What Do You Know About Strategic Risks?
(Source: Early Warning by Ben Gilad)

Robert Simons defines strategic risk as "an unexpected event or set of conditions that significantly reduces the ability of managers to implement their intended business strategy". Strategic risk is the risk that the strategy itself is misaligned with market conditions.

3 main types of strategic risk: operational, asset-impairment, and competitive. Strategic risk from competitive environment, term as "industry dissonance" is much more difficult to manage.

Competitive Early Warning (CEW) relies on 3 steps (triangle):

1. Risk(or opportunity) identification - indicators (mostly from informal discussions, market research, scenario development and war gaming)
2. Intelligence monitoring - alerts
3. Management action - feedbacks

What creates risk? Uncertainty. What creates uncertainty? Change.

Industry change drivers are events or variables that drive the evolution of industries.

In most industries, 4 classes of drivers drive the most of the change:

1. New technology/science - can affect buyers' power or barriers to entry
2. Regulatory change/government action - can impact entry barriers
3. Social and demographic changes
4. Competitive action - buyers' hidden preferences

Unlearn

Learn to understand the 3 various types of risk. Competitive risk is the weakest link for many companies. I may have to change in response to a change in buyers' preference if a company's strategy no longer fits the emerging reality of the industry and the market. This can be achieved through intelligence monitoring.

Relearn

The sales team has regularly apply CEW by identifying the territory risks (usually through market observation and feedbacks) and gather market intelligence via sharing and feedback. All these reports will alert me as NSM or management should we take a precautonary actions or plan for strategy to counter attack (war game). Eg: competitor revise price or positioning.

Week 8

Learn

Strategy Innovation vs. Strategic Planning
(Source: The power of Strategy Innovation, by Robert E. Johnston et al.)

A strategy innovation process consists of:

Creative

• Strategy innovation requires a creative process, not an analytical one. It requires people to listen to customers in new ways, design new type of products, and envision strategies for markets that do not currently exist.

Market-Centric

• Strategy innovation requires a market-centric process, not one that is company-centric. Eg, if markets need household products at lower prices, companies should explore innovative ways of providing them. Successful strategy innovation requires a new business opportunity add significant value for both the customer and the company to be worthwhile. However, the starting point for that consideration should be the needs of the customer/market, not the company's needs.

Heuristic

• Strategy innovation is a grassroots, discovery ("heuristic") process that is dependent on the quality of the insights gained along the way. Sometimes it happens quickly, sometimes it takes many iterations before a breakthrough is achieved.
• Strategic planning process start the planning with "today" and then make projections, based on historical trends and today's statistics, out to "tomorrow".
• Strategy innovation process starts with "tomorrow" and then plans backwards to "today".

Summary, a process of strategy innovation should be the "fuzzy front end" of an overall strategy creation process, leading from opportunity identification and creation (strategy innovation) to opportunity evaluation and integration (strategic planning).

Do strategy innovation, THEN do strategic planning.

Unlearn

In this past one week, I had learnt so much of new knowledge on Strategic Planning and Implementation. When there are reflections need to be made for decision making, I had taken an approach to understand the corporate strategy in order to align my business unit strategy with corporate level.

Relearn

When I have a reflections of what i had learnt from Strategy Innovation, I realised my E-card program that i would want to develop for my Pfizer's private hospital, has elements of strategy innovation because it leads from opportunity identification and creation(strategy innovation) to opportunity evaluation and integration(strategic planning).

Week 7

Learnt

A good Business Strategy comprise of the following:

1. What “Intend” to do
   · Asymmetric Strategy
   · Offensive Strategy
   · Defensive Strategy
2. Explain “why” will be successful
   · Justify cause-effect relationship and assumptions
   · Show how competition react and impact to our strategy
3. Details “how” business intend to execute
   · Credible Plan of Action, address issues of competency, resources and organizational system or business design
   · Suggest Alternatives or Contingencies on how to reduce the impact
4. Identifies Financial and Non-financial Outcomes
   · Model economics sufficiently to deliver expectation of investors
   · Identifies non-financial measure of success
5. Periodic Evaluation
6. Based on STRATEGICSTM process of identifying and solving specific strategic issues, taking decisions and implementation
7. Built high level of collective confidence that it will be successful

Unlearn

Self learn and less teaches back to subordinates. No clear goals or objectives for strategy setting.

Relearn

As the leader of my team, I apply and teach back on the “Hub and Wheel” Model strategy with my working team on the E-card program. I shared with my superior, marketing team and my Philippines colleagues on winning and positioning of this E-card program using the offensive strategy by clearly defining on the 6 steps using the “Hub and Wheel” model. I will be using it to defend my Private Hospital Norvasc market share (will share it in my Strategy Planning assignment module).

Week 6

Learnt – Recognizing A Winning Business Strategy

A good business strategy must have an “intend” with asymmetric strategy, offensive strategy and defensive strategy.

Winning “offensive” strategy (“Hub and Wheel” Model of Strategy) – eg. DELL story

1. Clear Customer Target
2. Appropriate Product/Service Mix
3. Differentiated Customer Value Proposition (The “7 Ways” Model)
   · Premium Innovation
   · Value Innovation (Blue Ocean using ERRC Grid)
   · Disruptive Innovation
   · High end position, Head to Head position* and Low end position
4. Unique Business Design – through differentiation, unique technology and key choices. Alternative tools:
   · Mc Kinsey Business System
   · Porter’s Value Chain
   · Core Competency by Hamel and Prahalad
   * when there is “No differentiated Value Proposition & Unique Business Design”, clever Marketing Positioning is important! – Head to head position
5. Asymmetric Competitive Move – alternative tools:
   · SWOT Analysis
   · Game Theory
   · Competitive Move
6. Sustainable Profit
7. Industry Change
   · Industry or product life cycle
   · Scenario Planning – Early Warning Sign, Vertical Integration, Value Migration
   · Industry profitability – using Porter’s 5 forces & other forces analysis
   · Profit Pool Analysis - % Market share vs % Profit
   · Industry Value Chain – know the players and its’ profit

“Defensive” strategy – eg. Gillette story

1. Spotting Competitor
2. Scanning the Environment – alternative tools:
   · Value Chain Analysis
   · Profit Pool Analysis
   · Porter’s 5 forces and Complementors
   · Scenario Planning
   · Disruptive Innovation

Porter’s “generic strategies” can be divided into 3 parts:

1. Overall cost leadership – offer no-frills standardized product or service to mass market
2. Differentiation strategy – TQM, JIT
3. Focus strategy – particular product line, buyer or geographical market

Diversification

To increase growth, reduce risk and capture economy.
It can be carried through acquisition of related or unrelated business discipline.
It is better to grow from the Core business.

Unlearn

When faced with a strategic issue, I must relate back to understand the main issue or problem which I faced in order to use appropriately the offensive or defensive strategy.

Relearn

Applied defensive strategy by spotting on competitor using the 2007 IMS data to analyze Pfizer’s products market share versus competitors (start to work for Strategy Planning assignment).
Understand the natural growth inhibitors for a declining product and work out an action plan to remove the constraint on growth.
Analyzed and worked on the core competence of Pfizer’s products using the GfK field force ranking by sector business to improve on customer satisfaction.