Lecture strategic management by Dr. Hartwig Maly

D H B W I n t e r n a t i o n a l O f f i c e,

V e r s i o n March 2013

Lecture

Baden-Wuerttemberg Cooperative State University Mannheim

Shaping ALPHA Power

International Office

Dr. Hartwig Maly

Coblitzallee 1-9

E-Mail: maly@shapingalphapower.com

68163 Mannheim

KuĂ&#x;maulstr. 4-6 68 167 Mannheim Tel.: +49 (0)170 55 46 628

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

Strategic Management

-1-

Topic

Page

Basics

1-24

1.1

Strategy names and buzz words

1.2

From vision to technology

1.3

Meaning of targets

1.4

Methodologies

1.5

Lifecycle and feasibility study

Tools

25-70

2.1

Entrepreneurial intuition

2.2

Forward accounting

2.3

Co-opetition/ Sensitivity Analysis

2.3

Delphi method

2.4

BCG: Portfolio, experience curve effects and product lifecycle

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

Status

Strategic Management

Agenda

-2-

Topic

Page

Tools

25-70

2.5

Porter‘s competition strategy: Five forces, generic strategies, value chain

2.6

Co-opetition

2.7

Technology-S-curve

Case-Studies

71-108

3.1

Sales Company for laboratory equipment: Identifying strategic scenarios with ´Sensitivity Analysis´

30-50

3.2

Sales Company: From SWOT-analysis to corporate strategy

71-83

3.3

Aviation company: Translation from vision to action with ´Balanced Scorecard

84-108

Lecture 2013

Status

Strategic Management

Agenda

-3-

Page

Exercise/ Question

Story of our lecture

Names of strategies

Ways of planning/ MBO

Two or more objectives

Meaning of methodologies

Sensitivity Analysis

PorterÂ´s Value Chain

108

Balanced Scorecard

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Strategic Management

Exercises / Questions

Lecture 2013

-4-

Strategic Analysis, Planning, Controlling

Which variables might be important?

Any Variable

Whatâ&#x20AC;&#x2DC; s a strategy?

Time

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

Strategic Management

Overview

-5-

Common Names for Strategies â&#x20AC;&#x201C; please explain!

Variable/ Company

Strategy

Low costs

Cost Leadership

High quality

Quality Leadership

Very innovative

Intellectual Leadership

Fastest acting

First Mover

Second fastest

Fast Follower

High quality and high depth of added value

Hidden Champion Strategy

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

Strategic Management

Overview

-6-

Strategic Management

Hidden Champions

Source: Wikipedia, Hidden Champions

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

-7-

Choosing a strategy for Nokia http://en.wikipedia.org/wiki/Nokia

Source: Knowledge engine Wolfram ALPHA http://www.wolframalpha.com/input/?i=nokia

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Source: http://www37.wolframalpha.com/input/?i=nokia Lecture 2013

Strategic Management

Imagine to be responsible for NOKIA as CEO. Which strategy would you prefer? The green one or the red strategy? How to define the right strategy?

-8-

History and presence

Battle of Waterloo

„Battle“ of selling Smart cars

Method: Sensitivity analysis, Pages 30 - 47

Lecture 2013

Strategic Management

Overview

-9-

A l l o c a t e B u z z Wo r d s

Any Variable

More interesting information: http://www.12manage.com/i_s. html

• • • • • •

Strategy Tactics Operations Target Objective Goal

Time

Lecture 2013

Strategic Management

Overview

- 10 -

Some definitions (8/ 100 pt)

You know . . . (15/ 100 pt)

If a friend would ask you about our lecture, what would you tell him? What is our lecture on?

. . . that strategies are describing the way between today‘s situation and an desired end state of an organisation (company, administration, etc).

Please list five different strategies and allocate only one characteristic attribute to each of them. If you like, its USP (unique selling proposition). (5)

ii.

Imagine your company to be in a highly competetive and volatile (quickly changing) market. Your company‘s success and your strategy therefore are very much dependent on time. (5)

iii.

Please list your five strategies in the order of diminishing utility for this purpose. (5)

Lecture 2013

Strategic Management

Question

- 11 -

Managerial Responsibilities

Management Levels

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Responsibilities

Function

Responsibility

Planning Horizon

Executive board

Vision Strategy

> 3 years

Manager

Tactics

1 â&#x20AC;&#x201C; 3 years

Group leader, Team leader

Operations

< 1 year

Lecture 2013

Strategic Management

Overview

- 12 -

F r o m V i s i o n t o Te c h n o l o g y

Harvard

Terms and Definitions

Vision Strategy:

long-term planning

Structure:

operational and organisational operational–processes organisational–f.e.line, staff

Technology: Infrastructure, f.e. IT, manufacturing facilities, Structure follows strategy and technology follows structure. (Prof. Alfred Chandler, 1962, Harvard University)

high rack warehouse

Lecture 2013

Strategic Management

Overview

- 13 -

Management Circle and Strategy

Remember our first definition of strategy (page 2)

Command structure

Strategy Tactic s Operations

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

Strategic Management

Overview

- 14 -

W h a t â&#x20AC;&#x2DC;s a Ta r g e t ?

Strategic Management

Overview

Definition

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

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M a n a g e m e n t b y Ta r g e t s

Hierarchy of Targets

Way of planning

Top - Down

Bottom - Up

Mixed Planning

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

Strategic Management

Overview

- 16 -

Strategic analysis (12/ 100 pt) Imagine to be chief executive manager. You have decided to manage your company using Peter Druckerâ&#x20AC;&#x2DC;s MBO.

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

What does it mean? (4)

ii.

What is the difference between an objective and a target/ goal? (4)

iii.

What is your related preferred way of planning? Please describe in brief. (4)

Lecture 2013

Strategic Management

Question

- 17 -

C o m p a t i b i l i t i e s o f Ta r g e t s Not compatible targets

Which are the consequences of non-compatible target for your planning ?

Target 2

Compatible targets

Any idea? What could it mean to be compatible or not compatibel?

Target 1

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Target 1

Lecture 2013

Strategic Management

Overview

- 18 -

Strategic Management

Question

Two or more objectives. (10/ 100 pt)

Imagine that you have already defined more than one objective as a first draft for 2012. i.

Which problems may occur? Mention at least two of them. (5)

ii.

How would you solve this problems? (5)

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

- 19 -

D i f fe r e n t M e t h o d o l o g i e s t o F i n d S t r a t e g i e s

Three-Step and Draw-See-Think

See-Think-Draw and From Vision to Action

There are many approaches to strategic planning but typically

An alternative to the Draw-See-Think approach is called See-

a three-step process may be used:

Think-Draw

Situation - evaluate the current situation and how it came

See - what is today's situation?

about.

Think - define goals/objectives

Target - define goals and/or objectives (sometimes called

Draw - map a route to achieving the goals/objectives

ideal state) Path - map a possible route to the goals/objectives

In other terms strategic planning can be as follows: Vision - Define the vision and set a mission statement with

One alternative approach is called Draw-See-Think

hierarchy of goals and objectives

Draw - what is the ideal image or the desired end state?

SWOT - Analysis conducted according to the desired goals

See - what is today's situation? What is the gap from ideal and

Formulate - Formulate actions and processes to be taken to

why?

attain these goals

Think - what specific actions must be taken to close the gap

Implement - Implementation of the agreed upon processes

between today's situation and the ideal state?

Control - Monitor and get feedback from implemented

Plan - what resources are required to execute the activities?

processes to fully control the operation

Strategic Management

Overview

http://en.wikipedia.org/wiki/Strategic_Planning ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

- 20 -

Strategic Management

Question

Methodologies (10 pt) Methodology is generally a guideline for solving a problem. In our case a guideline to reach a desired final state, applying a strategy. In literature there are two different methodologies mentioned for the strategy-business. i.

Please describe both in brief. (5)

ii.

Please mention two strength and two weaknesses of both. (5)

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

- 21 -

Boom, Bust and Strategy

Enough Information

But Not Power of judgement

WHY?

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

Strategic Management

Overview

- 22 -

P r o j e c t L i fe c y c l e M o d e l

Strategic Management

Overview

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

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Feasibility - Study Importance of Starting Points • •

Agenda Feasibility Study

Start of a project/ contract Description of the current situation (company f.e.)

Lecture 2013

Strategic Management

Overview

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O v e r v i e w o f S t r a t e g y To o l s

Important Entrepreneur (Intuition)

Ansoff Matrix

Benchmarking

Delphi Method

ValueAddedChain

Forward Accounting

Portfolio Experience Curve

Competition Analysis

Shareholder Value

Co-opetition

1980 1990 1970 1960 2000 „Strategie im Praxistest“, H. von Pierer, M. Mirow, HBM Okt. 2004, S. 18-25 © Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

Strategic Management

Tools

- 25 -

Forward Accounting

Description

Operational business, 5- 10 years, based on markets analysis and trend extrapolations

Strength

First strategic approach, is not meant to be universally applicable Quantitative, simple tools, works well under certain conditions

Weakness

Works well in steady markets with constant growth and strong correlation between variables

Example

Assured facts and correlations between e.g. growth of GDP, consumption of electricity Companies like Siemens or GE, producing power plants, could estimate capacities in the long run

Suitability for daily use

Improper for rapidly growing markets, innovative markets (groundbreaking technologies) 2006 2007 2008 2009 2010

2007 2008 2009 2010 2011

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

Strategic Management

Tools

- 26 -

Forward Accounting

Steady Markets

e.g. Production and consumption of electricity

Forecast

Capacity utilisation of 100 % Market growth 10 %

+ Nr. power plants

Consumption

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

Strategic Management

Tools

- 27 -

Exponential Growth

2000 - 2010

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

2011 - 2020

Strategic Management

Tools

Lecture 2013

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Consumption Electricity

Strategic Management

Tools

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

- 29 -

O v e r v i e w o f S t r a t e g y To o l s

Benchmarking

ValueAddedChain

Delphi Method

Important Entrepreneur (Intuition)

Forward Accounting

Portfolio Experience Curve

Competition Analysis

Shareholder Value

Co-opetition Co-opetition

1980 1990 1970 1960 2000 „Strategie im Praxistest“, H. von Pierer, M. Mirow, HBM Okt. 2004, S. 18-25 © Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

Strategic Management

Tools

- 30 -

Co-opetition

Porterâ&#x20AC;&#x2DC;s Force Field supplier

raw materials & manpower

competitor

Zero - sum

products & services

money

Win - win non - zero - sum

company

money

customer

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

Co-operator

Strategic Management

Tools

- 31 -

Sensitivity Analysis

Current Situation Company •

Sales Company for laboratory equipment

•

Consultation intensive products

•

Considerable know-how in sales is necessary to

Current Problems in Sales

Sales volume

be successful regarding products and possible

Turn over

fields of application

•

For a short time, sales commissions depend on Fluctuation of employees

profit margins

Lecture 2013

Strategic Management

Case Study I

- 32 -

Current Situation Customers

Current Situation for Customers • More often we have visits of your new sales

representatives at our company • Not familiar with our technical and internal problems. How shall they give us advice? • Although we have a cut of budget we have an

Field Sales Manager

increasing demand for support • Your competitors have already adjusted their prices to beat the competition • Difficult to justify the purchase of your products

Customer

Lecture 2013

Strategic Management

Case Study I

- 33 -

Current Situation Sales Representatives

Internal Problems

Sales Representatives

Our competitors are cutting prices. Sales returns are our only way to be succesful.

It spoils the party.

Field Sales Manager Our competitors are making quite attractice offers.

Although we encreased our efforts, we donâ&#x20AC;&#x2DC; t earn more than last year.

Strategic Management

Case Study I

Sales Representatives ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

- 34 -

Current Situation Controller

You can only manage, what you can

We are loosing money for month.

measure.

We have to raise our prices to increase our revenue.

Controller

We have to cut down our staff costs.

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Job hopping is a great problem for us. New sales represen-tatives have to be recruited and trained.

Lecture 2013

Strategic Management

Case Study I

- 35 -

Solution

Systemic modelling â&#x20AC;&#x201C; a possible

approach for complex situations.

1. Challenging conditions for the field manager.

2. No chance for a solution with unilateral measures. Find the root of all evil. I expect proposals for a sudden improvement.

3. Quite complex actual situation with difficult dependencies. 4. Common meeting with colleagues of relevant organisational units: Sales Controlling HR Department

Firm owner

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

Strategic Management

Case Study I

- 36 -

Kick-Off

Kick-Off Meeting

Sales volume Our problems seem to be . . .

Turn over

Fluctuation of employees

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

Strategic Management

Case Study I

- 37 -

Ta r g e t s / O b j e c t i v e s

Our Objectives

Letâ&#x20AC;&#x2DC; s start our brainstorming to find the most important variables. for a solution.

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

1. 2. 3.

Reduction of fluctuation/ employee turnover Improvement of turn over. Strengthening of customer loyalty.

Lecture 2013

Strategic Management

Case Study I

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Driving Gears

Brainstorming â&#x20AC;&#x201C; collecting important variables

14.Com petition

2. Customer loyalty

3. Fluktuation

4. Quality employees

7.Commission sales 5. Customer Care

6. Motivation 16.Commission basis

15.Budget parameters

11.Accepting offer

10.Sales volume

1. Net revenue 8.Overall costs

13.Price return and allowance

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

12.Price

9.Amount of coverage

Lecture 2013

Strategic Management

Case Study I

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Ta r g e t s

Targets [green]

14.Com petition

2. Customer loyalty

15.Budget parameters

4. Quality employees

3. Fluktuation 7.Commis-sion sales

5. Customer Care

6. Motivation

16.Commission basis 11.Accepting offer

10.Sales volume 1. Net revenue 8.Overall costs

13.Price return and allowance

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

12.Price

9.Amount of coverage

Lecture 2013

Strategic Management

Case Study I

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D i f fe r e n t i a t i o n b y I m p a c t

Steerable [ red ], Influence Sales [ orange ], External Variables [ yellow ]

14.Com petition

2. Customer loyalty

4. Quality employees

7.Commis-sion sales 5. Customer Care

6. Motivation 16.Commission basis

11.Accepting offer

15.Budget parameters

3. Fluktuation

10.Sales volume 1. Net revenue 8.Overall costs

13.Price return and allowance

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

12.Price

9.Amount of coverage

Lecture 2013

Strategic Management

Case Study I

- 41 -

First Network

Approach

4. Quality employees

14.Com petition

3. Fluktuation 7.Commis -sion sales

2. Customer loyalty

5. Customer Care

16.Commission basis 11.Accepting offer

15.Budget parameters

6. Motivation

10.Sales volume 1. Net revenue 8.Overall costs

13.Price return and allowance

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

12.Price

9.Amount of coverage

Lecture 2013

Strategic Management

Case Study I

- 42 -

Wheelwork

Immediate Affection on Targets

4. Quality employees

14.Com petition

3. Fluktua-tion 7.Commission sales

2. Customer loyalty

5. Customer Care

16.Commission basis 11.Accepting offer

15.Budget parameters

6. Motivation

10.Sales volume 1. Net revenue 8.Overall costs

13.Price return and allowance

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

12.Price

9.Amount of coverage

Lecture 2013

Strategic Management

Case Study I

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Strength of Influence

Strength of Arrows

4. Quality employees

14.Com petition

3. Fluktuation 7.Commission sales

2. Customer loyalty

5. Customer Care

6. Motivation 16.Commission basis

11.Accepting offer

15.Budget parameters

10.Sales volume 1. Net revenue 8.Overall costs

13.Price return and allowance

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

12.Price

9.Amount of coverage

Lecture 2013

Strategic Management

Case Study I

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Dynamics

black [ short-term ], blue [ middle-term ], light-blue [ long-term ]

3. Fluktuation

4. Quality employees

14.Com petition

7.Commission sales

2. Customer loyalty

5. Customer Care

6. Motivation 16.Commission basis

11.Accepting offer

15.Budget parameters

10.Sales volume 1. Net revenue 8.Overall costs

13.Price return and allowance

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

12.Price

9.Amount of coverage

Lecture 2013

Strategic Management

Case Study I

- 45 -

Wa y o f I n f l u e n c e

Same direction [ + ], inverse direction [ - ] +

4. Quality employees

14.Com petition

2. Customer loyalty

+ +

5. Customer Care

15.Budget parameters

13.Price return and allowance

+ +

16.Commission basis

10.Sales volume

7.Commis-sion sales

6. Motivation

+ 11.Accepting offer

3. Fluktuation

+ 12.Price

+ 1. Net revenue

+ 9.Amount of coverage

8.Overall costs

Strategic Management

Case Study I

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

- 46 -

Partial Network

Small world

Network „Commission Sales“ +

4. Quality employees

14.Com petition

2. Customer loyalty

+ +

5. Customer Care

15.Budget parameters

13.Price return and allowance

+ +

16.Commission basis

10.Sales volume

7.Commission sales

6. Motivation

+ 11.Accepting offer

3. Fluktuation

+ 12.Price

+ 1. Net revenue

+ 9.Amount of coverage

8.Overall costs

Strategic Management

Case Study I

Lecture 2013

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Partial Network

Targets compatible?

Network „Customer Loyalty“

Small world

+ 4. Quality employees

14.Com petition

2. Customer loyalty

+ +

3. Fluktuation

5. Customer Care

6. Motivation

16.Commission basis

+ 11.Accepting offer

15.Budget parameters

10.Sales volume 1. Net revenue

13.Price return and allowance

12.Price

9.Amount of coverage

Lecture 2013

Strategic Management

Case Study I

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Partial Network

Small world

Network Quality +

4. Quality employees

14.Com petition

2. Customer loyalty

+ +

5. Customer Care

3. Fluktuation

15.Budget parameters

7.Commis-sion sales

6. Motivation

16.Commission basis

11.Accepting offer

+ 13.Price return and allowance

+ 10.Sales volume

12.Price

+ 1. Net revenue

+ 9.Amount of coverage

8.Overall costs

Strategic Management

Case Study I

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

- 49 -

Sales volume

Strategic analysis (15/ 100 pt)

Turn over

You have finished your ‚sensitivity analysis` to find the most important drivers (KPIs) to achieve your targets.

Fluctuation of employees

What is going on in the ‚small world` between your targets ‚fluctuation (of empolyees)‘ and`customer loyalty‘ ? Please tell the story in brief. (5)

ii.

Please describe the compatibility of our targets. Possible to achieve both? (5)

iii.

Which KPI seem to be useful? (5)

Lecture 2013

Strategic Management

Question

- 50 -

O v e r v i e w o f S t r a t e g y To o l s

Benchmarking

ValueAddedChain

Delphi Delphi Method Method

Important Entrepreneur (Intuition)

Forward Accounting

Portfolio Experience Curve

Competition Analysis

Shareholder Value

Co-opetition

1980 1990 1970 1960 2000 „Strategie im Praxistest“, H. von Pierer, M. Mirow, HBM Okt. 2004, S. 18-25 © Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

Strategic Management

Tools

- 51 -

Delphi Method

Description

Experts were asked to give their opinion on the probability, frequency and intensity of possible enemy attacks or development of groundbreaking technologies. Other experts could anonymously give feedback. This process was repeated several times until a consensus emerged.

Strength

Brainstorming of trends Qualitative and quantitative forecasts possible Diverse experts important

Weakness

Depends on choice of experts

Example

Japan: Forecast of technological megatrends

Suitability for daily use

Very useful for forecasts

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

Strategic Management

Tools

- 52 -

Brainstorming

Strategic Management

Tools

The name "Delphi" derives from the Oracle of Delphi.

The authors of the method were not happy with this name, because it implies "something oracular, something smacking a little of the occult". The Delphi method is based on the assumption that group judgments are more valid than individual judgments. The Delphi method was developed at the beginning of the Cold War to forecast the impact of technology on warfare. In 1944, General Henry H. Arnold ordered the creation of the report for the U.S. Army

Air Corps on the future technological capabilities that might be used by the military. ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

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O v e r v i e w o f S t r a t e g y To o l s

Benchmarking

ValueAddedChain

Delphi Method

Important Entrepreneur (Intuition)

Forward Accounting

1960

Portfolio Experience Curve

1970

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

1980

Competition Analysis

Shareholder Value

1990 Lecture 2013

Co-opetition

Strategic Management

Tools

2000 - 54 -

Portfolio

Description

The BCG matrix is a chart that had been created by Bruce Henderson for the Boston Consulting Group in 1968 to help corporations with analyzing their business units or product lines. This helps the company allocate resources and is used as an analytical tool in brand marketing, product management, strategic management, and portfolio analysis

Strength

•It encourages top management to evaluate each of the corporation’s businesses individually and to set objectives and allocate resources for each. •It stimulates the use of externally oriented data to supplement management’s judgment. •It raises the issue of cash flow availability for use in expansion and growth. •Its graphic depiction facilitates communication.

Weakness

•It is not easy to define market segments. • It suggests the use of standard strategies that can miss opportunities or be impractical. • It provides an illusion of scientific rigor when in reality positions are based on subjective judgments. • Terms like “cash cow” and “dog” can lead to self-fulfilling prophecies. • It is not always clear what makes an industry attractive or what stage a product is at in its life cycle. • Naively following the prescriptions of a portfolio model may actually reduce corporate profits if they are used inappropriately.

Example

Nr. 1 strategy Siemens,General Electric

Suitability for daily use

Quite good for qualitative development of strategies

Lecture 2013

Strategic Management

Tools

- 55 -

Basics

low

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

high

Lecture 2013

Strategic Management

low

high

Tools

- 56 -

BCG Portfolio

Strategic Management

Tools

Question marks (also known as problem child) are growing rapidly and thus consume large amounts of cash, but because they have low market shares they do not generate much cash. The result is a large net cash consumption. A question mark has the potential to gain market share and become a star, and eventually a cash cow when the market growth slows. If the question mark does not succeed in becoming the market leader, then after perhaps years of cash consumption it will degenerate into a dog when the market growth declines. Stars are units with a high market share in a fast-growing industry. The hope is that stars become the next cash cows. Sustaining the business unit's market leadership may require extra cash, but this is worthwhile if that's what it takes for the unit to remain a leader. When growth slows, stars become cash cows if they have been able to maintain

their category leadership, or they move from brief stardom to dogdom. ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

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BCG Portfolio

Strategic Management

Tools

Cash cows are units with high market share in a slowgrowing industry. These units typically generate cash in excess of the amount of cash needed to maintain the business. They are regarded as staid and boring, in a "mature" market, and every corporation would be thrilled to own as many as possible. They are to be "milked" continuously with as little investment as possible, since such investment would be wasted in an industry with low growth. Dogs, or more charitably called pets, are units with low market share in a mature, slow-growing industry. These units typically "break even", generating barely enough cash to maintain the business's market share. Though owning a break-even unit provides the social benefit of providing jobs and possible synergies that assist other business units, from an accounting point of view such a

unit is worthless, not generating cash for the company.

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

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M c F a r l a n â&#x20AC;&#x2DC;s I T P o r t f o l i o M a t r i x

Strategic Management

Tools

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

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Examples Portfolio

Strategic Management

Tools

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

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P o r t f o l i o - Ve c t o r

Strategic Management

Tools

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

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O v e r v i e w o f S t r a t e g y To o l s

Benchmarking

ValueAddedChain

Delphi Method

Important Entrepreneur (Intuition)

Forward Accounting

1960

Portfolio Experience Curve

1970

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

1980

Shareholder Value

Competition Analysis

1990 Lecture 2013

Co-opetition

Strategic Management

Tools

2000 - 62 -

P o r t e r â&#x20AC;&#x2DC;s F i v e F o r c e s

the bargaining power of customers

the threat of substitute products

the intensity of competitive rivalry

the threat of new entrants

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

the bargaining power of suppliers

Lecture 2013

Strategic Management

Tools

- 63 -

P o r t e r â&#x20AC;&#x2DC;s G e n e r i c S t r a t e g i e s

Strategic Management

Tools

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

- 64 -

Va l u e - A d d e d C h a i n

Strategic Management

Tools

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

- 65 -

Porter‘s value chain (15/ 100 pt) Your company is producing and selling laboratory equipment. You are in a precarious financial situation (rich portfolio of products, many of them with a negative profit margin, etc. page 5 ). i.

How would you utilize Michael Porter‘s ‚Competition Theory‘ to improve your situation? (5)  

ii.

Which measures could be taken regarding the primary and secondary Porter-processes? (5)   

iii.

Five-Forces-Approach Value Added-Chain

for the short term (operational measures) in the medium term (tactical measures) In the long term (strategic measures)

Do you see any additional use of the coopetion-approach? (5)

Lecture 2013

Strategic Management

Question

- 66 -

Strategic Management

B r e a kd o w n S t r u c t u r e

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

- 67 -

Flow Chart „Order to cash“

allocation of resources for „make to order“

confirm standard offer

customer approval ?

yes

receive customer order

yes

prereservation of resources

cancel prereservation

material from stock ?

Confirm customer order

yes

Conditions unchanged

recheck/match conditions

Lecture 2013

Strategic Management

Tools

- 68 -

Co-opetition

Porterâ&#x20AC;&#x2DC;s Force Field supplier

raw materials & manpower

competitor

Zero - sum

products & services

money

Win - win non - zero - sum

company

money

customer

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

Co-operator

Strategic Management

Tools

- 69 -

Te c h n o l o g y - S - C u r v e

Strategic Management

Tools

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

- 70 -

Developing Corporate Strategy

Strategic Management

Case Study

Internal/ external assessments

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

- 71 -

S t e p 1 : F r o m S e n s i t i v i t y - A n a l y s i s t o S W OT - A n a l y s i s

Sensitivity Analysis

SWOT-Analysis

Remember the current situation of our case study (sales company for laboratory equipment, see page 19) and our proposals to succeed/ achieve our targets. ii. Define all targets SMART. (see page 12) iii. Collect internal and external assessments of our company for SWOT-analysis (see page 19 â&#x20AC;&#x201C; 25) i. ii. iii. iv.

iv. v. vi. vii.

Distances between variables and targets (see page 26, 30) Strength of arrows (see page 31) Time axis/ dynamics (see page 32) Tendencies/ +,(see page 33)

Allocate internal assessments to Strength or Weaknesses (see pages 44, 45) Allocate external assessments to Opportunities or Threats (see pages 44, 45) Weigth all items between [0, 10] Generate action items for important entries in SWOT- matrix (see page 47)

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

Strategic Management

Case Study

- 72 -

S W OT - A n a l y s i s

Orienting SWOTS to an objective

Collecting items

used to evaluate the Strengths, Weaknesses,

favourable and unfavourable to achieving that objective. The technique is credited to Albert Humphrey, who led a convention at Stanford University in the 1960s and 1970s using data from

Attributes to the organisation

identifying the internal and external factors that are

Strength

Opportunities

External origin

objective of the business venture or project and

Internal origin

a business venture. It involves specifying the

Fortune 500 companies.

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Harmful To achieving the objective

Attributes to the environment

Opportunities, and Threats involved in a project or in

Helpful To achieving the objective

Lecture 2013

S W Weaknesses

O T

Threats

Strategic Management

Case Study

- 73 -

S W OT - A n a l y s i s

Generating action items How can we use and capitalise on each strength?

How can we exploit and benefit from each opportunity?

How can we improve each weakness?

S W

How can we mitigate each threat?

Threat?

O T ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

Strategic Management

Case Study

- 74 -

Step 2: Potential - Analysis

Strength/ Weaknesses 1.

Find the most important variables out of SW-Matrix and list of action items (6- 10 including relevant targets)

Paint an polygon with scaled axis from [0, 10]

Each axis represents one important variable respectively target.

Paint the current status of our sales company according the weights in your SWOT- matrix (see picture 1)

0 means weakness, 10 strength

Connect this points for an polygon represen

strength potential

ting the current status (see picture 2)

Paint the future status according each variable to achieve the targets.

0 weakness

The difference between both pictures represents the potential of changes

Strategic Management

Case Study

of our company Picture 1 ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Picture 2 Lecture 2013

- 75 -

S t e p 3 : Tr a n s fe r o f A c t i o n I t e m s t o Va l u e A d d e d C h a i n

Definition

Value-added-chain

The value chain, also known as value chain analysis, is a concept from business management that was first described and popularized by Michael Porter in his 1985 best-seller, Competitive Advantage: Creating and Sustaining Superior Performance. A value chain is a chain of activities. Products pass through all activities of the chain in order and at each activity the product

gains some value. The chain of activities gives the products more added value than the sum of added values of all activities. It is important not to mix the concept of the value chain with the costs occurring throughout the activities. A diamond cutter can be used as an example of the difference. The cutting activity may have a low cost, but the activity adds much of the value to the end product, since a rough diamond

Strategic Management

Case Study

is significantly less valuable than a cut diamond. ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

- 76 -

Va l u e A d d e d C h a i n ď&#x192;&#x; S W OT

Primary Activities

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Important Action Items

Lecture 2013

Partial Strategy

Strategic Management

Case Study

- 77 -

Va l u e A d d e d C h a i n ď&#x192;&#x; S W OT

Support Activities

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Important Action Items

Lecture 2013

Partial Strategy

Strategic Management

Case Study

- 78 -

Step 4: Matching and Converting

TOWS- Analysis

Matching is used to find competitive advantages by matching the strengths to opportunities, threats and so forth. Converting is to apply conversion strategies to convert threats or weaknesses into strengths or opportunities.

1. 2. 3. 4.

SO- strategy: ST- strategy: WT- strategy: WO- strategy:

How can we use on each strength How can we use on each strength How can we improve each weakness How can we improve each weakness

Completion pages 54, 55

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

to benefit from each opportunity to mitigate each threat to benefit from each opportunity to mitigate each threat

Lecture 2013

Strategic Management

Case Study

- 79 -

TO W S - A n a l y s i s

W [1,10]

Opportunities 1. 2. 3. 4.

W [1,10]

Threats 1. 2. 3. 4.

Strength 1. 2. 3. 4.

SO- Strategy • •

ST- Strategy • •

Weakness 1. 2. 3. 4.

WO- Strategy • •

WT- Strategy • •

Lecture 2013

W [1,10]

Strategic Management

Case Study

- 80 -

Va l u e A d d e d C h a i n ď&#x192;&#x; TO W S

Support Activities

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Important Action Items

Lecture 2013

Partial Strategy

Strategic Management

Case Study

- 81 -

Va l u e A d d e d C h a i n ď&#x192;&#x; TO W S

Primary Activities

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Important Action Items

Lecture 2013

Partial Strategy

Strategic Management

Case Study

- 82 -

Step 5: Strategies (Partial/ Corporate)

Strategic Management

Case Study

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

- 83 -

Balanced Scorecard: From vision to action

Strategic Management

Case Study

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

- 84 -

Fa i r y Ta l e

Strategic Management

Case Study

birthday

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

- 85 -

History of the Balanced Scorecard Case Study

The BSC was developed in the early 1990â&#x20AC;&#x2122;s by Dr

Kaplan and Norton describe the innovation of the

Robert Kaplan (Harvard Business School) and Dr

balanced scorecard as follows:

David Norton (Balanced Scorecard Collaboration)

"The balanced scorecard retains traditional

The balanced scorecard approach was designed to

financial measures. But financial measures tell the

provide a clear prescription as to what companies

story of past events, an adequate story for

should measure in order to 'balance' the financial

industrial age companies for which investments in

perspective.

long-term capabilities and customer relationships

The balanced scorecard is a management system (not

were not critical for success.

only a measurement system) that enables

These financial measures are inadequate,

organizations to clarify their vision and strategy and

however, for guiding and evaluating the journey

translate them into action. It provides feedback

that information age companies must make to

around both the internal business processes and

create future value through investment in

external outcomes in order to continuously improve

customers, suppliers, employees, processes,

strategic performance and results

technology, and innovation."

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

Strategic Management

The BSC was introduced in its current form in 1992

- 86 -

Why the Balanced Scorecard?

Traditional accounting measures at best report historical results

Balanced

Accounting Based Measures

Scorecard Finance

Corporate wide perspective

    

Traditional financial accounting measures tend not to take into account the intangible assets of the company  new product pipeline  process capabilities  employee skills  customer loyalty  information assets  technology

Shareholder value perspective

Economic Value Added Cash Flow Return on Investment Total shareholder return

Capital Gain

Net Cash Flows

Customer

    

         

Process

Learning

Information based tool to enhance management decision making and business effectiveness

Traditional accounting systems do not measure what is critical to be successful in today’s and tomorrow’s competitive environment.

New broader management system based on the relevant company metrics is required. The Balanced Scorecard complements the financial measures of past performance with measures of the drivers of future performance. Lecture 2013

Strategic Management

Case Study

- 87 -

Why Balanced? Why Scorecard? Balanced Across Multiple Dimensions External measures for shareholders and customers

Outcome measures, results of past performance

Objective quantifiable outcomes

Communications, informing and learning system, not a controlling system

All directed to achieving an integrated business strategy ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

Internal measures of critical business processes, innovation, learning and growth

Measures that drive future performance Subjective, judgmental performance drivers of the outcome measures

Strategic Management

Case Study

- 88 -

Translating Strategy into Operational Terms The Balanced Scorecard is management and communications tool How do our customers see us?

Financial perspective

Goals

Measures

Internal Business perspective

Customer perspective

Goals

Measures

How do we look to our shareholders?

Vision & Strategy

Goals

Measures

Learning and Growth perspective

How do we continue to improve and create value?

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Goals

Measures

Lecture 2013

What business processes must we excel at?

Strategic Management

Case Study

- 89 -

BSC – A Management Tool Case Study

Clarifying and translating the vision and strategy  clarify the vision  gaining consensus

Strategic feedback and learning Communicating and linking  Communications and education  Setting goals  Linking rewards to performance

Balanced Scorecard

Planning and target setting  setting targets  aligning strategic initiatives  allocating resources  establishing milestones

Lecture 2013

 articulating the shared vision  supplying strategic feedback  facilitating strategy reviews

Strategic Management

The emphasis is on fact based business management

- 90 -

BSC – Dashboard

The Dashboard consist of 20 – 25 measures and provides a high level over-view of how the organization is performing.

Lecture 2013

Strategic Management

Case Study

- 91 -

Benefits of the Balanced Scorecard BSC is more than just a measurement system  clarifies and gains consensus on business direction  identifies and aligns strategic initiatives  communicates the strategy throughout the organization  aligns departmental and personal goals with the strategy  links strategic objectives to long-term targets and annual budgets  prioritizes resource allocation for key strategic initiatives  integrates the business cross-functionally

 provides periodic and systematic strategic reviews  improves depth and breadth of performance metrics  obtains feedback to learn about and improve strategy  drives both process and organizational improvement

Lecture 2013

Strategic Management

Case Study

- 92 -

Knock-Out Criteria Case Study

 BSC is an “Open Book Philosophy”- approach  open communication policy in the whole organisational structure is necessary  Commitment of the top management

 Small number of significant “Key Performance Indicators”  Professional project team (architect, communicator)  Convincing benefit-analysis for the whole company – project makes life easier  Necessary to have lot of staying power ( > 3 years)  Convincing strategic analysis  Solution – easy to handle

Lecture 2013

Strategic Management

Have to be fullfilled

- 93 -

Strategy Map

Process: Production- and Logistic Management Subject: Turnaround on ground

Profits and RONA

Finance Increase of Turnover

Less Aeroplanes

Attract more Customers

Customer Service on Time

Fast Ground Turnaround

Internal Process Learning & Growth

Bottom Prices

Strategic System: Manpower Planning

Strategic Job: „Flugabfertiger“

Training Ground Staff

Strategic Objectives

• Cost effectiveness • Increasing gross profit • Less aeroplanes

• Attract more customers • Stronger commitment of customers to our comp. • Service on time • Ranking of customers

• Faster turnaround on ground • Develop important skills • Develop support systems • Focus staff concerning strategy Lecture 2013

Strategic Management

Case Study

- 94 -

The Four Perspectives There are four perspectives of the business strategy based on a defined hierarchy Balanced Scorecard Perspectives Satisfied and loyal customers lead

Financial

to increased revenues and profitability Improved processes lead to improved products and services

Customer

for customers Skilled, creative employees question

Business Process

the status quo and improve the business processes Learning and growth of employees

Learning and Growth

is the foundation for innovation and creativity

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

Strategic Management

Case Study III

- 95 -

Financial Perspective The financial perspective provides focus for the objectives and measures in the other scorecard perspectives Overall Goals

Asset Utilization/Investment Strategy  working capital reduction

Overall objectives and measures focus on  return on capital employed

 greater utilization of asset base

 economic value added

 using spare capacity profitably

 sales revenue and growth

 using scarce resources more efficiently

 net cash flow

 disposing of assets with inadequate returns on their value

Specific areas of focus include: Revenue and Growth Mix  expanding product and service offerings

Risk management

 reaching new customers and markets  changing the product and service mix to higher-value-added offerings

Risk management usually included if it is core to the business I.e. a financial institution.

 re-pricing products and services Cost Reduction/Productivity Improvement  lower direct costs of products and services

Alternatively risk is addressed as one of the business strategies if it applies to the overall business operations

 reduce indirect costs  share common resources across business units

Lecture 2013

Strategic Management

Case Study

- 96 -

Customer Perspective The customer perspective provides the external market view Consideration of the customer perspective follows the steps below:

Core Customer Strategies

1. Identify and define the market segments and customers in which the organization intends to compete

Market Share

2. Choose what to do, choose what not to do 3. Once the segment has been selected decide the objectives and measures for the target segments. Objectives typically involve:  gaining market share/account share  customer acquisition  customer retention  customer satisfaction  customer profitability

Customer Acquisition

Customer Satisfaction

4. Consider performance measures for each component of the customer value equation:

Customer = Product/service attributes value Functionality Quality

Price

Customer Profitability

+ Image + Relationship

Strategic Management

Case Study

Customer Retention

Time Lecture 2013

- 97 -

Business Process Perspective The business process perspective is a measure of internal efficiency and effectiveness Consideration of the internal business process perspective follows the steps below:

1.Define the business processes within the three aspects of the business operations:  bringing new products and services to market  the efficient consistent and timely delivery of existing products and services to customers  post sales services including warranty, maintenance and repair services, treatment of defects and returns 2.Identify the critical business process that will make the difference for achieving the strategy specifically enable the organization to:  deliver the value propositions that will attract and retain customers in targeted market segments  satisfy shareholder expectations of excellent financial returns

Business Process Value Equation

Value Created

3. Identify those strategic initiatives that will significantly enhance business performance 4. Identify performance measurements for cross-functional business processes that support the strategic initiatives © Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

Quality

Service

Time

Cost

Strategic Management

Case Study

- 98 -

Learning & growth perspective Learning a growth concentrates on an organizations’ ability to remain competitive

Learning and Growth Measurement Framework

The learning and growth strategies and measures relate to those activities that must be performed to enable the organization to continually renew its operations. Activities would include:  enhancing the skills and capabilities of the employees  using IT as an enabling technology to support business initiatives in the other three perspectives  the creation on an environment that promotes a culture of continuous improvement  the maintenance of an infrastructure to support long term growth and improvement initiatives

Results

Employee Retention

Employee Productivity

The strategies and performance measures concentrate on the following areas:

Employee Satisfaction

 people  information systems  motivation, empowerment and alignment For an organization just to maintain its existing relative performance it must continually improve. One way of achieving this is to foster knowledge management initiatives.

Staff Competencies

Lecture 2013

Strategic Management

Case Study

Technology Infrastructure

Climate for Action

- 99 -

Strategy Map



BSC

Process: Production- and Logistic Management Subject: Turnaround on ground

Profits and RONA

Finance Increase of Turnover

Less Aeroplanes

Attract more Customers

Customer Service on Time

Internal Process Learning & Growth

Bottom Prices

Fast Ground Turnaround

Strategic System: Manpower Planning

Strategic Job: „Flugabfertiger“

Strategic Objectives

• Cost effectiveness • Increasing gross profit • Less aeroplanes

• Attract more customers • Stronger commitment of customers to our comp. • Service on time • Ranking of customers

• Faster turnaround on ground • Develop important skills • Develop support systems • Focus staff concerning strategy Lecture 2013

Strategic Management

Case Study Performance Indicator (p. 101)

- 100 -

ď&#x192;

Strategy Map

BSC

Internal Process Learning & Growth ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

Process 4

Precribed by Law

Process 3

: Customer Relations

Process 2

Innovation

Customer

Process 1

Production- and Logistic

Financial

Strategic Management

Case Study

- 101 -



Strategy Map

BSC Case Study

Profits and RONA

Finance Increase of Turnover

Service on Time

Internal Process Learning & Growth

Figure

• Equity • Turnover/ seat • Leasing costs/ aeroplane

• 30 % • 20 % •5%

• Regular customers • Number of customers • FAA-rating for arrival on time • Ranking of customers

• 70 % • 12 p.a. • Nr.1

• Time on ground • Departure on time

• 30 minutes • 90 %

• Strategic „Stand-By“ • Availability support systems • % of staff as shareholders

• 1-70% first year • 100 % • 100 %

Less Aeroplanes

Attract more Customers

Customer

Performance Indicator

Bottom Prices

Fast Ground Turnaround

Strategic System: Manpower Planning

Strategic Job: „Flugabfertiger“

Training Ground Staff

Strategic Management

Process:

Lecture 2013

• Nr.1

- 102 -

Strategy Map

BSC

Plan: Measure Case Study

Planned Figure

Financial

• Equity • Turnover/ seat • Leasing costs/ aeroplane

• 30 % • 20 % •5%

Customer

• Regular customers • Number of customers • FAA-rating for arrival on time • Ranking of customers

• 70 % • 12 p.a. • Nr.1

• Time on ground Internal Process• Departure on time

Learning & Growth

• Strategic „Stand-By“ • Availability support systems • % of staff as shareholders

Initiative

• Nr.1

• Implement CRM System • QM • Customer Loyalty Program

• 30 minutes • 90 %

• Optimisation Time Process

• 1-70% first year • 100 % • 100 %

• Training Personnal • System for Planning Employment/ Deployment

Lecture 2013

Budget M€

Strategic Management

Performance Indicator

- 103 -

BSC – Dashboard

The Dashboard consist of 20 – 25 measures and provides a high level over-view of how the organization is performing. © Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

Strategic Management

Case Study

- 104 -

B S C D e t a i l s - Tr e n d i n d i c a t o r s

Strategic Management

Case Study

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

- 105 -

B S C â&#x20AC;&#x201C; S c o r e , S t a t u s a n d Tr e n d ( e . g . )

Formula

A-B

Result/Score

X 100 = Result

Trend: Score change

ÂŠ Dr. Hartwig Maly, DHBW Mannheim, International Office

Lecture 2013

Score/Status

Strategic Management

Case Study

- 106 -

Strategy Management:

Org. Integration Case Study

Risk Management

Value Driver Tree

Value Based Management

• Strategy visualization • Strategy visualization • Connection of Strategies to •Objectives, Connection of Strategies KPIs, and Initiatives to Objectives, and Initiatives • Detailed StrategyKPIs, Analysis • •SEM BusinessStrategy Content Analysis Detailed

Supporting the Risk Management Process: • Identification • Analysis and Assessment • Risk Handling • Risk Controlling • Evaluation of impacts on a system of strategic objectives like the BSC

• Visualization of Value Drivers

• Identification of Value Drivers • Management of external expectations • Management of internal value creation

• SEM Business Content

Strategy Management     

Balanced Scorecard Risk Management Strategy Templates Value Driver Trees Value Based Management

Performance Measurement    

Management Cockpit Measure Builder Measure Catalogs Benchmarking

• Value Driver Management • Analysis of Impact and Influence • Simuation

Business Consolidation Legal Consolidation Management Consolidation

Business Planning    

Modelling Planning Framework Planning-Applications Simulation

Stakeholder Relationship Management 



Lecture 2013

Strategic Management

Balanced Scorecard Balanced Scorecard

Integration of Stakeholders into the Strategic Management Process Investor Portal

- 107 -

Strategic Management

Question

Strategic Controlling (15/ 100 pt) Your company seems to be back on track until your ‚Balanced Scorecard‘ looks confusing. i.

Why? Tell your story. Remember the hierarchy of the scorecards (5)

ii.

Explain BSC‘ s underlying philosophy. (5)

iii.

Mention some strenth and weaknesses of BSC. (5)

Lecture 2013

- 108 -

Strategic Management

D r. H a r t w i g M a l y

15 Jahre Manager in internationalen Konzernen Seit 10 Jahren selbständig als Trainer mit Schwerpunkten Führungskräfte-Nachwuchs Kommunikation/ Konfliktmanagement Projektmanagement Strategisches Management

Seminare im öffentlichen Dienst Stadt Mannheim (STIRN): Projektmanagement/ Change/ Coaching Führungskräfte, seit 2006 Stadt Offenburg: Projektmanagement ab 2009 Regierungspräsidium Neustadt: Coaching, 2010

Vorlesungen zu Management-/ Führungsthemen Duale Hochschule Baden-Württemberg seit 2004 Blog: www.shapingALPHApower.wordpress.com Artikel zu Führungsthemen Website: www.maly-seminare.de Seminare, Vorlesungen Facebook : Shaping Alpha Power – Coaching für die Top- Talente Links zu interessanten Artikeln für Führungskräfte

Lecture 2013

- 109 -