Strategic frame & Strategic continuum PV215 - 8 2 Leaders Managers Workers   System of Corporate Ideas   Strategic Frame   Strategic Continuum PV215 - 8 3 Products, Services, Processes & Projects, Resources, Tasks, Competencies, Feedbacks, Feedforwards, HR development, ... Goals & Objectives Strategic Frame PV215 - 8 4 Strategic Frame PV215 - 8 5 Dynamics Stability Effectiveness Usefulness Integrat ion Synergetiz ation Habilitation Motivation Orientation Definition Leaders Defines company and its business Instrument of strategic management • Defines only boundary which delimits space for free activity of management • Submission for company management Strategic frame ought to be an eternal source of inspiration, orientation and motivation for people working for company, for suppliers, investors, ... Strategic frame is the seed the company ideas grow from Absence of strategic frame is often reason of chaos in companies which leads to their failure PV215 - 8 6 Environment understanding • trends, challenges, opportunities Emotional perspective • wishes, intuition, instincts • unconsciousness Rational perspective • measurable parameters • consciousness PV215 - 8 7 “The future belongs to people who see possibilities before they become obvious.” --Ted Levitt Strategic frame Business hypothesis Mission VisionStrategy Values and Rules PV215 - 8 8 (C) J. Plamínek PV215 - 8 9 Gains trust of investors, owners, managers, workers Identifies business opportunities in surrounding environment Clarifies why intended business will generate sufficient income to sustain itself in the future Includes trend estimations of target customers behavior and other subjects considering development in environment • business, market, political, technological, economical, ecological and social Delimits a space where the company will operate and describes the position which company want to fill Strategi c frame Busines s hypoth esis Vision Mission Values and Rules Strateg y PV215 - 8 10 Strategi c frame Busines s hypoth esis Vision Mission Values and Rules Strateg y PV215 - 8 11 Strategi c frame Busines s hypoth esis Vision Mission Values and Rules Strateg y Re-inventing a wheel ideas are very common However, do not give up. New, polished and better wheels may be also appreciated PV215 - 8 12 Strategi c frame Busines s hypoth esis Vision Mission Values and Rules Strateg y for more visit http://www.bookswim.com/ Indicates the benefits for customers, suppliers, employees Offers products and services to satisfy needs of the subjects Appeals to wider customer groups Attracts attention rather than explain usefulness exactly PV215 - 8 13 Strategi c frame Busines s hypoth esis Mission Vision Strateg y Values and Rules Google • to organize the world's information and make it universally accessible and useful. Kofola • Kofola's mission is to enthusiastically create an attractive brand of beverages, which will offer consumers a functional and emotional value that they become an important part of their lifes. PV215 - 8 14 Strategi c frame Busines s hypoth esis Mission Vision Strateg y Values and Rules Answers the question: What the business and company will look like in a distant future? Reflects feelings and ideas of leaders (emotional perspective) Includes measurable parameters and its values indicating achievement of vision (rational perspective) PV215 - 8 15 Strategi c frame Busines s hypoth esis Mission Vision Strateg y Values and Rules Google • to develop a perfect search engine. Kofola • Kofola group's vision to be the preferred choice for customers, employees and shareholders. By 2012 we want to be an overall "number two" in the soft drinks market in the Czech Republic, Slovak Republic and Poland. In each of these countries, our goal is to have in the segments of cola drinks and water brands that will be 1 or 2 place in these segments. In other categories to be imaginary third place. PV215 - 8 16 Strategi c frame Busines s hypoth esis Mission Vision Strateg y Values and Rules Defines specific business activities which enable to sustain success of company both in the presence and in the future • markets to operate on, customers and clients to serve, competitive advantage to gain The parts of the strategy focused on the presence and on the future have to be clearly distinguished • to avoid confusion of managers • to prepare step changes to surprise both clients and competitors PV215 - 8 17 Strategi c frame Busines s hypoth esis Mission Vision Strateg y Values and Rules PV215 - 8 18 Strategi c frame Busines s hypoth esis Mission Vision Strateg y Values and Rules A vision without a plan is just a dream. A plan without a vision is just a drudgery. But a vision with a plan can change the world. Focus on potential ways leading to achievement of goals outlined in vision Emotionally, it is a set of shared and felt values which company ought to obey when realizing the vision • examples: Give-Take Matrix compliance, exploit any flaw in law at all costs Shared values are rationalized into the set of clear rules which observance is measurable • example: every contract must be revised by XY from the perspective of Give-Take Matrix compliance PV215 - 8 19 Strategi c frame Busines s hypoth esis Mission Vision Strateg y Values and Rules Operational Strategic Interval First DSI* Second DSI* Third DSI* Leaders (define strategy) defined defined defining training resources Managers (design processes) defined defining training resources - Workers (performance) realizing training resources - PV215 - 8 20 * DSI – Developing Strategic Interval here and now (C) J. Plamínek Strategi c frame Busines s hypoth esis Mission Vision Strateg y Values and Rules PV215 - 8 21 Company • benefits from current competitive advantage • delivers products or services through defined processes with all necessary resources • generates profit for owners and further development Workers • directly realize current strategy Managers • “only” monitor and tune the performance Leaders • practically do not interfere OSI FDSI SDSI TDSI Leaders defined defined defined resource s Managers defined defined resourc es Workers realized resourc es - - Strategi c frame Busines s hypoth esis Mission Vision Strateg y Values and Rules PV215 - 8 22 Company • prepares itself to realize upcoming step change bringing new competitive advantage formulated by FDSI-strategy Managers • validates FDSI-strategy • (re)define (new) products and services, (re)design (new) processes and projects, procure necessary resources, key performance indicators, ... • (re)define (new) requirements Workers • prepare their resources to meet new requirements Leaders • consult FDSI-strategy with managers OSI FDSI SDSI TDSI Leaders defined defined defined resource s Managers defined defined resourc es Workers realized resourc es - - Strategi c frame Busines s hypoth esis Mission Vision Strateg y Values and Rules PV215 - 8 23 Company • seek for and design new step change bringing new competitive advantage – a core of SDSI-strategy to be Leaders • seek for new opportunities, business hypotheses and essential competitive advantages • revise strategic frame • use intuition, invention, creativity in the following contexts: needs of current and potential customers, trends in society, technology, politics, economy, ... Managers • may help with creating feasibility studies of SDIS-strategy being newly formulated • prepare their resources to meet new requirements Workers • specialists may help with creating feasibility studies of SDIS-strategy being newly formulated OSI FDSI SDSI TDSI Leaders defined defined defined resource s Managers defined defined resourc es Workers realized resourc es - - Strategi c frame Busines s hypoth esis Mission Vision Strateg y Values and Rules PV215 - 8 24 Operational Strategic Interval First DSI* Second DSI* Third DSI* Leaders (define strategy) defined defined defining training resources Managers (design processes) defined defining training resources - Workers (performance) realizing training resources - * DSI – Developing Strategic Interval primary focus secondary focus PV215 - 8 25 Strategic Frame shows the future of the company Strategic Frame is key instrument to keep all involved subject oriented and motivated Strategic Frame has to be continuously updated to always show the future Once it stops to show the future, all its orientation and motivation potential disappears   2007-2009 ◦  Business hypothesis   A lot of organizations need to solve Mycroft problem. ◦  Mission   To solve Mycroft problem. ◦  Vision and Strategy ◦  Values and Rules   GTM compliance   solve problem, not your position in it   communication rules   informal and open communication   2010 ◦  Business hypothesis   There is a lot of problems/opportunities that CEP tech. may help to solve. New market emerges for it. ◦  Mission   Mycroft Mind helps you gain insight into networks of today’s world ◦  Vision   To succeed in CEP solution implementation and deployment. PV215 - 8 26   Business Hypothesis ◦  There is a lot of problems/opportunities that CEP technology may help to solve. New market emerges for it.   Mission ◦  Distilling oceans of data into valuable flows of information.   Vision   Strategy   Values and rules ◦  remain the same PV215 - 8 27   System of Corporate Ideas   Strategic Frame ◦  business hypothesis ◦  vision ◦  mission ◦  values and rules ◦  strategy   Strategic Continuum ◦  OSI, FDSI, SDSI, TDSI ◦  to enable to seek for and define new step changes ◦  to prevent confusing the presence and the future strategies PV215 - 8 28