Approach to strategy development

Roadmap to develop actionable strategy

Agenda
1/ Introduction
2/ Process
3/ Definition
4/ Analysis
5/ Recommendation

Three tenets of strategy development

Aim to produce actionable, useable recommendations

Define the questions

1/ Avoid bias, subjectivity and hype
2/ Concentrate on value creation
3/ Deliver actionable recommendations

Develop a hypothesis
Seek data & test hypothesis
Re calibrate hypothesis
Synthesize findings
Produce results

Strategy report without actions is a research report

2

Strategy development is not an exact science

NOT a linear process
Feedback loops are key

Definition

Analysis

Defining the question.

Identify the rationale
Allocate time & resources
Prioritise projects

Create a framework
Start with a hypothesis
Seek data (quant & qualitative)
Build models
Refine hypothesis
Collate findings
Sanity check results

Recommendation

Most important stage

Create the story
Identify stakeholders incentives
Define story to resonate with
management
Final Presentation

Multiple engagements with all stakeholders needed to complete the feedback loop
3

Drivers can come from anywhere

Understand the question
Identify champion stakeholder

Longer

Response time

CxO Agenda

Shorter

strategy
workshops

Adhoc

Response to
competition

Emergent
strategy

Defensive
move

Regulatory
changes
Strategy drivers

Macro trends

New
Technology

Understand the question

Assess the rationale
Identify stakeholders
Apply general Project
management principles

Not to scale
Planned

Champion stakeholder will help in navigating political roadblocks

4

Qualitative & Quantitative assessment is the core of analysis

Multiple internal & external sources used
Emphasis on financial assessment

Qualitative Assessment
Strategic Frameworks
o
o

SWOT
Competition Review

Value chain Analysis

o

Identify the landscape, players & value

propositions

Game theory
o

Competitor response

Quantitative Assessment
Revenue Model
o
o

Identify key revenue drivers

Assess business KPIs in play

Cost Synergy Model

o
o

High level assessment of cost model

Identify synergistic components

To Quad or not ?

Sources
External
Research Papers
Investment Bank Reports
GSMA Intelligence
Company Websites
Annual Reports
Industry Conferences
Consulting Firms White papers
Syndicated Research
Internal
Products & Pricing teams
Networks & Technology view
Commercial enablement &
Decision Support
Legal opinion
Vendor & Supplier workshops

SAMPLE

Insights generated here are juxtaposed against firms capabilities in next step
5

Mapping strategy with firms capabilities

Resource based view yields actionable recommendations

Intended Strategy
Resource based
View

Gap
Analysis

Capability
mapping

Actionable
recommendation

SAMPLE

RBV cuts the noise and leaves behind what's relevant for the firm
6

Delivery is all about story telling

Manage subjectivity & cultural clashes here

A report gathering dust is no good

A good report with no buy ins is wasted effort

Identify stakeholders
Assess their incentives
Re word the messaging
Create a story board
Position the narrative
Tell the story

Re-evaluate
Its all about telling a good story
7

A typical actionable recommendation

Actionable is the key word

1/ The ABC initiative should be driven forward

because of the following

Strategic
o

Technology due diligence

Financial

revenue uplift of x million over 3 years

total cost of ownership will be x million in first three years
NPV would be x million @ discount : 10 %
Increases TSV

4/ Next Steps

Commence due diligence

Identify resource from product and network teams
Involve vendors in workshop

Competition
o

This will positon us as a market leader

Financial
o
o
o
o

3/ Gap analysis

It will give us first mover advantage over our competitors

Product
o
o
o

Mass uptake of product is expected because

Similar product did well in that market
Focus groups show interest in the product

5/ Revenue & Cost Model

Drive revenue by x million over three years (table)

Cost will be driven down by x% (table)

6/Commitments needed from Stakeholders

2/ Price of not pursuing this initiative

Lose market advantage

Increased completion
Loss of revenue

Budget
o
o

x K for due diligence in the next three months

y K for product development

Resource
o
o

100 man hours from tech teams

X FTE heads on the project
8

SAMPLE

Thank You