Session 1 -2

Executive Class Strategic Leadership

Suhartono MBA., MA., PhD (cand)

Contemporary Strategic Knowledge & Leadership NatureSource: Rainey (2010); Laljani (2009); Kaplan & Norton (2004); Yukl (2010).

Fenomena dengan Perubahan Lingkungan yg Cepat dan Tak Terduga

• Perencanaan sering berubah• Visi Misi jadi tidak jelas (sering diganti)• Pemimpin dianggap plin-plan• Pemimpin dianggap tidak punya strategi• Koordinasi sering tidak jelas• Lain-lain

Makna PerencanaanUrgent

Important

Low

Low

High

High

Iseng Kebelet

KrisisPerencanaan

X

S T R A T E G I “Cara-cara yang harus dilakukan untuk lebih unggul ”

‘The Way We Create Competitiveness’

ForecastingNow

Past Now Future

Values and

Foresight VISION

Missioning / Soothsaying

Refle

ction

Past Performance is a baseline for deciding What we do for the

future now

Strategy is Creating

SEEING IS

BELIEVING

BELIEVINGIS

SEEING

ForecastingNow

Past Now Future

Values and

Foresight VISION

Missioning / Soothsaying

Refle

ction

Strategic is

Believing

• Menciptakan masa datang.• Top-down -- Bottom-up• Membimbing perilaku

manajemen• Berfokus pada customer

eksternal lebih dulu• Efektivitas• Penekanan pada proses• Proaktif

• Memperpanjang masa kini (biasanya lebih pendek dp perencanaan strategis)

• Bottom-up / staff-generated• Tidak membimbing perilaku

manajemen• Berfokus pada customer

internal dulu• Efisiensi• Penekanan pada rencana • Reaktif

Perencanaan lain :

Perencanaan strategis :

Kategori Perusahaan

a. Perusahaan yang sukses dimasa lalu dan mengagung-agungkan masa lalu.

b. Perusahaan yang hidup di masa kini dan cukup sukses.c. Perusahaan yang mempersiapkan diri untuk masa

depan dan mempromosikan diri mereka menghadapi waktu berbeda.

d. Perusahaan yang menciptakan masa depan dengan merubah segala kemungkinan, peluang hasil yang bisa diproses, bahkan kondisi lingkungan (alam).

(Harper C. Stephen) Forward-Focused Organization.

Empat Kategori Perusahaan Dalam Melihat Masa Depan

Theory of Strategy and Change Dynamics

Strategy is Cycles of Age

Strategy is Concensus

(Dissatisfaction – Search – Envision – Implementation)

Strategy is Competition

Strategy is Exchange

Passive Active

Closed System

Opened System

We shape the environment / industry

Competitor is the Enemy

Competitor is my friend

• Co-Existing• Co-Operating• Co-Learning• Co-Producing

Enterprise-wide Strategic Management (ESM- Rainey, 2010)

• Business is not about winning the battles in the short term at the expense of destroying relationships in the long term or failing to sustain success.

• ESM focuses on finding unique opportunities and creating innovative solutions that are more attractive and enduring from business and market perspectives as well as economic, social, technological, and environmental ones

• It is about leading, creating, developing, integrating, building, deploying, and succeeding. It also involves the search, discovery, and cure of weaknesses, defects, problems, burdens, and negative impacts across the extended enterprise.

How we see the Man –Made

wolrd

How we see the Nature-

world

Why ESM

Why ESM

Why ESM

Why ESM

Paradigm Shift of Value-Added (1) Investment vs

Development

Paradigm Shift of Value-Added (2) Transformations / Transitions

Paradigm Shift of Value Added (3) Operational

Secondary Value-Added

Value Equation ESM

ESM dan Strategic Planning

By ESM, more Emergent and

Descriptive variables get in the business

designs

Chiquita Lesson Learnt

• Mission: solution for healthiness• Resources: Natural Material (Farming)• Production Facilities: Environmental

Friendliness• Working Climate: transformational, ethical,

Values-Based Leadership

Organizational Element Model (OEM)Value-Added system Analysis

Input Processes

Product

Output Outcome

Kulit Benang

Lem Mesin dan SDM

Sepatu Kelengkapan

berdandan

• Gengsi• Wibawa• Sehat

Dipakai untuk keperluan apa oleh konsumen / masyarakat?

Bermanfaat untuk

apa untuk konsumen

/ masyaraka

t

Produk Potensial

Produk Augmentasi

Produk ekspektasi

Produk generik

Value Added Product Analysis

Benefit inti

END OF FIRST SESSION

Strategic Management

• Above Average Return• Strategic Competitive Advantage• Sustainable Competitiveness

Alternative Models of Superior Returns

Resource-BasedModel

Industrial Organization Model

The External Environment

An Attractive Industry

Strategy Formulation

Assets and Skills

Strategy Implementation

Superior Returns

Resources

Capability

Competitive Advantage

An Attractive Industry

Strategy Implementation

Superior Returns

Strategic Fit

Strategic Stretch

Alternative Models of Superior Returns 1Industrial Organization Model (Market Focus)

The External Environment

An Attractive Industry

Strategy Formulation

Assets and Skills

Strategy Implementation

Superior Returns

Competing is Boxing

Bigfoot

Generic Strategy

Average Cost in

Industry

Average Price in Industry

Cost Leadership

Differentiation Successful

Stuck in the Middle

Blue Ocean Strategy Fit dan Stretch

Blue Ocean vs. Red Ocean Strategy

• Create uncontested market space

• Make the competition irrelevant

• Create and capture new demand

• Compete in existing market space

• Beat the competition

• Exploit existing demand

Blue Ocean Strategy Red Ocean Strategy

Blue Ocean vs. Red Ocean Strategy

• Break the value- cost trade off

• Align the whole system of a firm’s activities with its strategic choice of differentiation and low cost

• Make the value-cost trade off

• Align the whole system of a firm’s activities with its strategic choice of differentiation or low cost

Blue Ocean Strategy Red Ocean Strategy

Two Strategic Logic

• Industry Assumptions: Industry’s conditions are given

• Strategic Focus: A company should build competitive advantages. The aim is to beat the competition.

• Customers: A company should retain and expand its customer base through further segmentation and customization. It should focus on the differences in what customers value.

• Assets and Capabilities: A company should leverage its existing assets and capabilities.

• An Industry’s traditional boundaries determine the products and services a company offers. The goal is to maximize the value of those offerings.

• Industry’s conditions can be shape.

• Competition is not the benchmark. A company should pursue a quantum leap in value to dominate the market.

• A value innovator targets the mass of buyers and willingly lets some existing customer go. It focuses on the key commonalities in what customers value.

• A company must not be constrained by what it already has. It must ask, what would we do if we were starting anew?

• A value innovator thinks in terms of the total solution customer seek, even if that takes the company beyond its industry’s traditional offerings.

Conventional Logic Value Innovation Logic

Blue Ocean Strategy Tools

Strategy Canvas

• A diagnostic tool for building a compelling blue ocean strategy

• It captures the current state of play in the known market space

• Allow you to understand :• where the competition is currently investing• the factors the industry currently competes

on in product, service and delivery• what customers receive from existing

competitive offerings on the market

Four Action Framework

Eliminate

Reduce

Raise

Create

Four Action FrameworkThe Case of Cirque du Soleil (A Circus Company)

• Theme• Refined environment• Multiple productions• Artistic music and dance

Eliminate Reduce

RaiseCreate

• Star performers• Animal shows• Aisle concession sales• Multiple show arenas

• Fun and humor• Thrill and danger

• Unique venue

Alternative Models of Superior Returns 2

Resource-BasedModel

Resources

Capability

Competitive Advantage

An Attractive Industry

Strategy Implementation

Superior Returns

Competing is Racing

Core CompetenciesResources• Inputs to a firm’s production

process

Core Competence• A strategic capability

Synergi

Does the capability satisfy the criteria of sustainable competitive advantage? YES

NO

Capability• A non-strategic team of

resources

Capability• Integration of a team

of resources

Criteria ofSustainableAdvantages

ValueChain

Analysis

ValuableRareCostly to ImitateOrganized to be exploited

*

**

*

•Voice of Customers

•Voice of Engineering

• Voice of Competencies

From Resources to

Core Competencies

Resources* Tangible* Intangible

CapabilitiesSynergy of Resources

CoreCompetencies

DiscoveringCore

Competencies

CompetitiveAdvantage

Sustained CompetitiveAdvantage

Resources* Tangible* Intangible

A core competency is a capability that is:

Organized to be Exploited

The firm must be organized appropriately to obtain full benefits of the resources in order to realize a competitive advantage.

Rare Possessed by few, if any, current and potential competitors.

Valuable Allows a firm to neutralize threats or exploit opportunities in its external environment.

Costly toImitate

When other firms either cannot obtain them or must obtain them at a much higher cost.$

*

CapabilitiesTeams of Resources

CoreCompetencies

YES NO YESYESTemporary

CompetitiveAdvantage

Temp Above AverageReturns

YES NO NO YES CompetitiveParity

AverageReturns

NO NO NO NOBelow

AverageReturns

CompetitiveDisadvantage

AboveAverageReturns

YES YESYESSustainableCompetitiveAdvantage

YES

Valuable Rare Costly to Imitate

Org. to be Exploited

Competitive Consequences

Performance ImplicationsValuable

The VRIO Framework

• Opportunity rarely knocks on your door. Knock rather on opportunity's door if you ardently wish to enter.

– B. C. Forbes, 1880-1954, Scottish-born Financial Journalist and Author

Ardently (full-heartedly, passionately)

Toyota Human Touch

Bambegers

Fit to Stretch 2ASPEK FIT STRETCH

1 Bagaimana Perusahaan membangun COMPETITIVE ADVANTAGE

Mengoreksi Positioning Produk menghadapi perubahan-perubahan yang terjadi di pasar

???? Perbedaan Competency dibangun agar menciptakan sesuatu yang berbeda sehingga bisa tercipta kebutuhan baru di pasar

????

2 Bagaimana MEMPERTAHANKAN BAGIAN PASAR (MARKET SHARE)

Mencari celah pasar / pasar baru dan mempertahankannya.

???? Merubah cara / arti berbisnis (rule of the game) di pasar.

????

3 Bagaimana usaha-usaha yang dilakukan dalam MENGURANGI RESIKO?

Menambah porfolio produk / bisnis

???? Membangun portfolio Competencies

????

4 DUKUNGAN INVESTMENT yang diusahakan / yang sering disetujui

Investasi untuk bersaing di pasar yang berubah dan menambah divisi / subdivisi

???? Investasi untuk meningkatkan dan menambah Competencies.

????

Lesson Learnt• Every Business has it desires to achieve Best-Cost

position (Efficient but simultaniously Innovative), as soon as possible. Blue Ocean Strategy, with Value Innovation

thinking, over the solution.

• Sustaining the position it needs Outcome oriented Missions and Goals, with Enterprise-Wide Strategic

Management framework; not only is exploring at the level of Man-Made-World or Social Capital issues, but also is at the level of Nature World or Natural Capital or Values

Capital issues.

• Still, Strategic Fit for short-term oriented needed for now, while Strategic Stretch orientation is our way for

long-term sustaining our business.