Can You Get Ones Head Around Multi-national Master Plan Integrations?

The need to forecast and manage uncertainty requires intuition, creative insight and the ability to respond to events quickly, effectively and imaginitively. It is not simply what we know that matters, but how we react to what we do not know. In a volatile, competitive and international commercial environment, organisations must be alert and adaptable. Continuous improvement is always to be valued, but there are times when more dramatic change is needed.
How could you position your products or services in such a way that they are clearly superior to those of your competitors? What could you do more of or less of to improve the attractiveness of your offering in comparison to your competitors? What could you start doing (or stop doing) to make your products or services more appealing than your competitors?
An offensive business strategy targets an organisation’s competitors. Whether it’s through lower, more competitive prices, new enhancements to products or services, or even marketing plans that directly attack the competition, an offensive strategy aims to take on a bigger share of the market.
If you make a commodity product, your strategy is going to be based on becoming a low-cost producer. In this case, your structure is intended to achieve economies of scale and scope. What can you standardize? How can you reduce costs? What tasks can you make repeatable?

You Need Outside Help

The functional model of organizations is an important reason why so many companies struggle with the gap between strategy and execution. It makes a company good at many things, but great at nothing. When functional boundaries prevail, there is no construct for managing capabilities. It isn’t clear who owns the capabilities, how to track spending on them, or how to connect them to the strategy or to each other.
It takes courage to fire the salesperson responsible for the company’s biggest, most lucrative account when that same salesperson drives a company car drunk and causes an accident. There will be many times when CEOs will want to smooth over something that requires decisive action because of the potential consequences or because they just can’t take on one more challenge at the moment. However, CEOs who exercise poor moral judgment will lose their personal integrity with all of their employees watching.
The principle of maneuver requires that you continually anticipate what might happen. You develop fallback positions. You prepare to be able to move forward, backward, and sideways in the market, if necessary. You resolve never to get locked into a single plan with no flexibility or no other choice. You continually keep your options open and develop new options.
As industry history shows, new market spaces are being created every day and are fluid with imagination. Buyers prove that as they trade across alternative industries, refusing to see or be constrained by the cognitive boundaries industries impose upon themselves. And firms prove that as they invent and reinvent industries, collapsing, altering, and going beyond existing market boundaries to create all new demand.

Imagine No Limitations

Closing the gap between strategy and execution may not be about better execution but rather about better learning — about more dialogue between strategy and operations, a greater flow of information from customers to executives, and more experiments.
Ensure that your strategy remains competitive. Choose a market that is either not served or underserved with little or no competition, and be the first one there. This way, you capture the market share, build your brand and position your company well in that marketplace, making it harder for any new entrants.
Build some tolerance for variance into your numbers. Your budget stops being accurate the moment you finish it, and when variances occur—and they will—make sure the numbers allow opportunity for your managers to act creatively. Although budgets should be designed to create accountability, accountability should be related to the real issues behind the numbers, not the numbers alone.
Growth through capability development is an evolutionary extension of your capabilities system, building one capability from another. This is sometimes known as “capabilities chaining,” because each new form of proficiency, while fitting into your capabilities system, enables you to establish a chain of new businesses that in turn spur the development of other capabilities.

Plan For Profits

If you’re not striving toward the end goal, you’re likely to veer off the path. If you want your team to fully invest in your social strategy — and you need the support of your entire team – you’ll need to communicate your vision with clarity and passion.
A strategy is successful if it focuses your efforts and time on what you do very well. Strategic planning is not only about what you need to start doing based on your strategy choices. It’s also about what you need to stop doing.
By staying true to your strengths, you can concentrate on differentiating your enterprise in ways that naturally outpace your competitors. If a business segment slows down, you don’t chase every opportunity that appears; instead, you look for areas of growth where you will have the right to win, based on the capabilities you have now or those you can develop.
Before considering decisions that can build and strengthen brands, it is helpful to understand what advantages they offer. The value of a brand lies in the understanding or trust of customers. This leads to the first advantage: pricing. A successful and established brand can command a price premium that exceeds any extra cost in terms of production and marketing, derived from the element of trust that a brand provides.

Recognize What You Want From Your Stakeholders

As uncertainty is increasing and competition is becoming more fierce, leaders and executives need to have a broader understanding of competition itself in order to sustain an edge.
Organisations must create the conditions for effective information use. Information management is the responsibility of every manager and information responsibility means that managers have to discover what information they need, how that information should be provided, and who will supply it and when.
One of the most popular methods of generating answers to problems is brainstorming, whereby those involved in the process come up with many solutions to a problem. Most will be inappropriate, but from the ideas generated it is hoped that a creative and effective solution will emerge. Brainstorming is a process in which a group employs all of its creative talent. However, it is only through the adoption of several important principles that it is likely to work.
A defensive business strategy, meanwhile, protects an organisation from its competitors. It aims to inspire customer loyalty and safeguard its market share, and will use tactics such as incentives, exclusive products – or exclusive arrangements with suppliers or partners – as well as above-average customer service, to entice and retain customers and maintain its competitive position.

Be Methodical

Many marketing experts believe that all marketing today is segmentation. This is the development of absolute clarity about those specific customers who most appreciate the qualities of your product or service in your area of specialization.
In almost every case, it is ideal to retain customers than to constantly chase new ones. And this is one major area where business strategy is extremely necessary. In the absence of a sound business plan, you will find it hard to generate customer loyalty.
As you shift your strategic focus from current competition to alternatives and noncustomers, you gain insight into how to redefine the problem the industry focuses on and thereby reconstruct buyer value elements that reside across industry boundaries. Conventional strategic logic, by contrast, drives you to offer better solutions than your rivals to existing problems defined by your industry.
Every business needs a safety net of protocol to help them make those tough decisions. What a documented strategy can do is give your business the extra support and guidance it needs if put to test.

Understand The Market

It used to be that the strategy for growing operations went in only one direction: scaling up. Scaling up was the best way to get the most productivity and to reduce unit costs. Bigger was better. Ten 100-ton dump trucks using ten drivers carry the same amount of load as 100 ten-ton dump trucks requiring 100 drivers! So scale up to those 100-ton dump trucks as soon as you can.
In most companies, the culture manifests itself in the way people look at things and talk to each other; in the way they compliment and criticize one another; in the posters on the wall and the knickknacks on the desks. Most of all, it is evident in the stories people tell each other, about what matters at this company or why some people fit in while others don’t.
When companies invest in managerial ego, they often take their best salespeople, their best marketing people, and their biggest advertising budgets and focus them on selling a product or service that is no longer successful or, even worse, has never been successful. But because somebody thought up this product and gave it the go-ahead, resources are wasted.
In the business strategy process, managers spend the majority of strategic thinking time filling in boxes and running numbers instead of thinking outside the box and developing a clear picture of how to break from the competition. If you ask companies to present their proposed strategies in no more than a few slides, it is not surprising that few clear or compelling strategies are articulated.

Values Create A Strong Foundation

Ad hoc firms are low process and high input. These firms do not have a codified, recurring process that they follow every time they make a strategic change. But when a change needs to be made, the leader pulls their team together to take action. The exact steps the firm follows and the exact people in the room change from one decision to the next. The benefit of an ad hoc system is that rigid rules don’t constrain the firm.
It’s far more difficult for large organizations to tolerate risk than it is for smaller ones. They simply have much more to lose. Big businesses are more inclined to accept lower-risk concepts than new ideas that involve greater risk. Smaller organizations looking to edge out much larger counterparts must have a greater propensity for failure.
Too often strategists conflate predictability and malleability — thinking that any environment that can be shaped is unpredictable — and thus divide the world of strategic possibilities into only two parts (predictable and immutable or unpredictable and mutable), whereas they ought to consider all four.
Resilience is more than a reactive approach to business. Indeed, we believe that these building blocks offer a foundation on which business can innovate, confident that it can achieve strategic advantage in a way that anticipates change, and can contribute to to the creation of resilient societies that enable people to thrive in a just and sustainable world.

Directing Efforts And Behaviour

To create a strategy, you have to iterate—think a little bit about “aspirations and goals,” then a little bit about “where to play” and “how to win,” then back to “aspirations and goals” to check and modify, then down to “capabilities and management systems” to check whether it is really doable, then back up again to modify accordingly. Each of the five boxes are related to each other.
Organisations should focus on opportunities where they may benefit from scarcity, keeping a special eye on the future. Where does scarcity lie and where is it likely to develop? In our finite world, there will always be bottlenecks, blockages or things that there is a need for but which are unavailable. But because someone somewhere will come up with innovative solutions, the scarcity will not remain the same for long.
A business strategy is a set of competitive moves and actions that a business uses to attract customers, compete successfully, strengthening performance, and achieve organisational goals. It outlines how business should be carried out to reach the desired ends.
When everyone is looking to you for answers, you may feel you need to provide them all yourself. But your employees must own this change, too, and they need to feel competent in the new regime. If ever there was a time to delegate, it’s now. Encourage discussion, collaboration, and creative thinking among team members around specific problems or challenges that arise.

Overcoming The Fear Of Risk

To manage the risk inherent in commercial decisions requires an awareness of what the risks are and the danger signals that risk is becoming reality. This is the starting point: in making any major strategic choice you must be confident that you can detect and absorb any potentially dislocating events.
Because the assumptions underlying your business model are embedded in all your processes — and because stable businesses need predictability — it won’t be easy to change course. Organizations are very good at resisting change.
When you don’t commit to an identity, you risk becoming scattered among a variety of objectives. It is all too easy to continually shift your focus—to deal with exigencies and never quite build the capabilities you need. You gain a right to play in many markets, but a right to win in none.
If you are not aware of a problem, you cannot deal with it; what matters is being honest, open and transparent. It is important that everyone speaks the truth as they see it, without fear of recriminations. If you are in a services business, then providing a better standard of service than your competitors, relative to price, is crucial. If you are in manufacturing or retailing, you must produce or sell things that people want at a price they are willing to pay.

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