Rokudan metaframework Strategic Thinking Strategic Analysis Differentiation value

Roku-dan meta-framework • • • Strategic Thinking Strategic Analysis (Differentiation, value proposition) (validation, selection) Domain knowledge Intuition Framing Context switching Sense making • • RBV • TCE • Porter • M&A theory • Game Theory Diversification Generic strategies Network externalities Operationalization (Translate to execute, Align actions) Communicate Budgets Pre-mortems Process design Strategic Management & Execution • • • Deliberate Emergent Measurement Adapting Learning

The Four Components • Strategic Thinking • Strategic Analysis • Operationalization (Where the rubber hits the road) • Execution & Management

Strategic Thinking Defining the problem / opportunity • Framing the problem — What really matters, what doesn’t? • Context switching — What other problems have similar features? • What do different frames / context imply — Projecting out • Translating (fitting) the new frame or context to the situation at hand

Asking the right questions • Questions should be — Tractable • “How can we double revenues”? is too big – break down into smaller questions — Actionable • “Why is the competition gaining ground”? isn’t • But these are: – “What do customers want”? (market research) – “What do we offer”? – “What are they offering” (competitive intelligence)

Asking the right questions • Look at Small as well as Large issues – Small items compound • Use many different perspectives – Team Diversity • Focus on Day-to-Day – Where is the action • Do not over simplify Interpretations – nothing is that simple • You do not have all the answers –Learn • Having Specific Domain Knowledge – the devil is in the detail

Framing • Mental models (or ‘schemas’) — We all use mental models to represent a complex world — Models must include how things work (cause and effect) — Must be challenged and updated with mew information or changes • How you Frame shapes the solution — Activates different schemas — Logic of appropriateness — E. g. Opportunity (offense) or Threat (defense) • Adopt multiple Frames – multiple perspectives • Leaders must be careful not to impose personal frames

Intuition • Look for Cues or Clues — Focus on Higher Impact • Pattern recognition & matching • Pattern matching produces scripts to follow • Strategic Imagination — project into the future

Sensemaking • Most things are not Linear — Sensemaking is an iterative process • Trial and small errors — Sensemaking = understanding cause & effect • Sensemaking relies on intuition

Strategic Thinking • Gain insight… Asking the Right Questions 1. Framing the Information Strategic Thinking (Differentiation, value proposition) Sense Making Intuition and Strategic Imagination Internal Insight External Insight

Strategic Analysis Financial Metrics Customer Metrics Financial Operating Metrics Financial Development Metrics Internal Analysis Customer Analysis Competitor Analysis Strategic Analysis (validation, selection) Market Analysis Environmental Analysis External Analysis Miller / Okumoto, Inc.

Operationalizatin • Creating Alignment Financial Strategic Metrics Themes Priorities Financial Strategic Metrics Programs Operationalization (Translate to execute, Align actions) Financial Strategic Metrics Projects Financial Strategy Metrics Mapping Internal Alignment Miller / Okumoto, Inc.

Management & Execution • Execute • Measure • Compare / assess • Correct… – Actions (SLL) – Goals (DLL) • Repeat Strategic Management & Execution