Alignment of Elements in Strategy _ The Leadership Challenge.pptx

Discusses issues in taking charge and leading strategy

1. Aligning and Sustaining the Elements of Strategy in a changing Environment: The Leader’s Challenge Prof. Mukund R Dixit [email protected]

2. Articulating the leader’s Challenge Leader with his/her Accumulated KASH Personal Aspirations Moments of Highs and Lows Surprises and Shocks Lessons from Extreme Situations Network of formal and Informal relationships And the Organization’s inheritance, Core Competencies and constraints Is Challenged to Stretch and Leverage Innovate Articulate A strategic Intent and Formulate a C’ Compliant Strategy with elements of the diamond In a Dynamically Competitive Context and Execute to succeed, monitor the success and endure it over a long period of time, irrespective of whether the company is a entrant or a pioneer.

3. Leader’s Roles in accepting and responding to the challenges Dreamer Entrepreneur Innovator Streamliner Controller Policy Citizen Social Citizen Professor Master Weaver

4. Reinforcing ROI concept Net Profits = Sales*Price – Fixed Costs – Variable Costs Investment = Fixed Investment + Working Capital Investment Resource Support for Investment ROI = Net Profits/Investment

5. When do you succeed in realising your ROI aspirations? Value you provide is demanded by the target stakeholders The key processes in delivering value are in place Resource support for executing the key processes are mobilised, utilised as per the processes and assured Value you demand from the stakeholders directly or indirectly is provided by them All the choices are aligned together

6. Elements of Strategy Aspirations Arena Axis of Competitive Advantage Alone or Alliance or Acquisition Arrival time and Acceleration Alignment for realizing aspirations If aspiration is only monetary ROI, then Economic Logic Does alignment happen on its own? Needs conscious thinking through and thinking across Responding to the mutuality of demand and supply of success factors

7. Challenges to the Aligned Strategy Aggression of existing players Dramatic Change of Customer demands Disruption by New Entrants Dramatic Changes in Supplier Demands Active Promotion by Existing Substitute Manufacturers or Emergence of New Substitutes

8. Challenges to Alignment Internal Depleting Management Bandwidth Employee burnout Employee demands and IR Employee turnover Resource Obsolescence

9. Overcoming Challenges Competence Assessment and New Competence Building Learning, Learning and Learning Listen to the messages of the Parables Succession Planning Research and Development Alliances and Acquisitions Challenging the sources of success and Experimenting When we still have time – ‘Only the Paranoid survive and succeed’

10. Questions?

11. Next Session May 17, 2024 Case: Havells Readings: Relate to Acquisition as a Strategy

12. Interim An assignment