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Session 1 -2 Executive Class Strategic Leadership

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1 Session 1 -2 Executive Class Strategic Leadership
Suhartono MBA., MA., PhD (cand) Contemporary Strategic Knowledge & Leadership Nature Source: Rainey (2010); Laljani (2009); Kaplan & Norton (2004); Yukl (2010).

2 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

3 X Makna Perencanaan Urgent Iseng Kebelet Important Perencanaan Krisis
Low High X Low Iseng Kebelet Important Perencanaan Krisis High

4 S T R A T E G I “Cara-cara yang harus dilakukan untuk lebih unggul ”
‘The Way We Create Competitiveness’

5 Missioning / Soothsaying
Strategy is Creating VISION Missioning / Soothsaying Values and Foresight Reflection Now Forecasting Past Performance is a baseline for deciding What we do for the future now Past Now Future

6 Strategic is Believing
VISION Missioning / Soothsaying Values and Foresight BELIEVING IS SEEING Reflection Now Forecasting SEEING IS BELIEVING Past Now Future

7 Perencanaan strategis : Perencanaan lain :
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

8 Kategori Perusahaan Empat Kategori Perusahaan Dalam Melihat Masa Depan Perusahaan yang sukses dimasa lalu dan mengagung-agungkan masa lalu. Perusahaan yang hidup di masa kini dan cukup sukses. Perusahaan yang mempersiapkan diri untuk masa depan dan mempromosikan diri mereka menghadapi waktu berbeda. Perusahaan yang menciptakan masa depan dengan merubah segala kemungkinan, peluang hasil yang bisa diproses, bahkan kondisi lingkungan (alam). (Harper C. Stephen) Forward-Focused Organization.

9 Theory of Strategy and Change Dynamics
Co-Existing Co-Operating Co-Learning Co-Producing Strategy is Competition Strategy is Exchange Opened System Competitor is the Enemy Competitor is my friend Strategy is Cycles of Age Strategy is Concensus (Dissatisfaction – Search – Envision – Implementation) Closed System Passive Active We shape the environment / industry

10 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.

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13 How we see the Man –Made wolrd How we see the Nature-world

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16 Strategy and Change Dynamics
What is the Nature-world behind Co-Existing Co-Operating Co-Learning Co-Producing Strategy is Cycles Strategy is Concensus Strategy is Competetion Strategy is Exchange Passive Active Close System Open System We shape the environment / industry What is the Man –Made world behind Competitors is the Enemy Competittors are our friends

17 Why ESM

18 Why ESM

19 Why ESM

20 Why ESM

21 Paradigm Shift of Value-Added (1) Investment vs Development
Building Production facilities = Building Transformation / transition Facilities Enterprise = not only firm, but initiatives for building value adding in live.

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

23 Paradigm Shift of Value Added (3) Operational

24 Secondary Value-Added
Externalities: Economics side effects => beban social atas tindakan bisnis

25 Value Equation ESM Knowledge = pengalaman pembelajaran yang akan kita dapat. Lagging = positive impact

26 ESM dan Strategic Planning
Deliberate = disengaja; dan Emergent = tidak disengaja. Prescriptive = Wacana; Descriptive = Implementasi By ESM, more Emergent and Descriptive variables get in the business designs

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28 Chiquita Lesson Learnt
Mission: solution for healthiness Resources: Natural Material (Farming) Production Facilities: Environmental Friendliness Working Climate: transformational, ethical, Values-Based Leadership

29 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 / masyarakat

30 Value Added Product Analysis
Produk Potensial Produk Augmentasi Produk ekspektasi Produk generik Benefit inti

31 BOP Bottom of Pyramid  Outer market space – pasar 5 milyar orang dibawah garis kemiskinan yg belum terlayani. Contoh ESM Unilever jual Pure-It.

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38 End of First Session

39 Strategic Management Above Average Return
Strategic Competitive Advantage Sustainable Competitiveness Hasil Laba diatas rata2, Adanya Keunggulan Kompetitive, Keunggulan yang berkelanjutan.

40 Alternative Models of Superior Returns Industrial Organization Model
Strategic Fit Strategic Stretch Industrial Organization Model Resource-Based 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 31

41 Alternative Models of Superior Returns 1
Industrial Organization Model (Market Focus) The External Environment An Attractive Industry Strategy Formulation Assets and Skills Strategy Implementation Superior Returns 31

42 Competing is Boxing

43 Bigfoot

44 Generic Strategy Successful Differentiation Cost Leadership
Stuck in the Middle Average Price in Industry Average Cost in Industry

45 Blue Ocean Strategy Fit dan Stretch

46 Blue Ocean vs. Red Ocean Strategy
Blue Ocean Strategy 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

47 Blue Ocean vs. Red Ocean Strategy
Blue Ocean Strategy 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

48 Value Innovation Logic
Two Strategic Logic Conventional Logic Value Innovation 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.

49 Blue Ocean Strategy Tools
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 Strategy Canvas

50 Four Action Framework Eliminate Raise Reduce Create

51 Eliminate Reduce Create Raise
Four Action Framework The Case of Cirque du Soleil (A Circus Company) Eliminate Reduce Star performers Animal shows Aisle concession sales Multiple show arenas Fun and humor Thrill and danger Create Raise Theme Refined environment Multiple productions Artistic music and dance Unique venue

52 Alternative Models of Superior Returns 2
Resource-Based Model Resources Capability Competitive Advantage An Attractive Industry Strategy Implementation Superior Returns 31

53 Competing is Racing

54 Core Competencies Core Competence Resources A strategic capability
Inputs to a firm’s production process YES Does the capability satisfy the criteria of sustainable competitive advantage? Capability Integration of a team of resources Synergi NO Resources yang banyak perlu, tetapi yang banyak tetapi tidak saling bersinergi adalah kurang berarti. Jumalah karyawan yang banyak tidak akan berarti apa2 utk perusahaan, kecuali jika team work mereka bagus. Resources yang besar bahkan suatu ketika hanya akan menjadi beban, jika tidak bisa bersinergi atau tidak bermutu. Resources akan menjadi capabiliti hanya jika saling bersinergi. Capabiliti jika tidak berbeda dari para pesaing bukan core competencies. Kapabiliti seperti itu adalah kapabiliti non strategic, mudah lenyap dan tidak berarti apa-apa. Capability A non-strategic team of resources

55 From Resources to Core Competencies
Competitive Advantage Sustained Competitive From Resources to Core Competencies Discovering Core Competencies Criteria of Sustainable Advantages Value Chain Analysis Resources * Tangible Intangible Capabilities Synergy of Core Competencies Valuable Rare Costly to Imitate Organized to be exploited Voice of Customers Voice of Engineering Voice of Competencies * Resources * Tangible Intangible * * * 8

56 A core competency is a capability that is:
Valuable Allows a firm to neutralize threats or exploit opportunities in its external environment. Rare Possessed by few, if any, current and potential competitors. Costly to Imitate When other firms either cannot obtain them or must obtain them at a much higher cost. $ Organized to be Exploited The firm must be organized appropriately to obtain full benefits of the resources in order to realize a competitive advantage. Dari iklan IKEA -> Valuable: Exploit opportunity masyarakat yang ingin barang2nya dipindah dg cepat, aman, tidak terjadi kecelakaan. Rare: punya keahlian packing, Imitate: Training keahlian yang cukup lama (mahal), Organized: Mempunyai organisasi pengembangan SDM, dan sistem baku metoda sejak order hingga pernyataan terima kasih kepada konsumen, dan R&D pengembangan Metoda Kerja packing, loading, stacking, dan unloading. Capabilities Teams of Resources Core Competencies * 34

57 Competitive Consequences Performance Implications
The VRIO Framework Valuable Rare Costly to Imitate Org. to be Exploited Competitive Consequences Performance Implications NO Below Average Returns Competitive Disadvantage YES NO Competitive Parity Average Returns YES NO Temporary Competitive Advantage Temp Above Average Returns Above Average Returns YES Sustainable Competitive Advantage 46

58 Opportunity rarely knocks on your door
Opportunity rarely knocks on your door. Knock rather on opportunity's door if you ardently wish to enter. – B. C. Forbes, , Scottish-born Financial Journalist and Author Ardently (full-heartedly, passionately) Peluang tidak akan datang tanpa alasan, dia akan datang pada pintu-pintu yang dipersiapkan. Pintu-pintu itu adalah pintu yang dengan sungguh-sungguh diupayakan (resourcesnya).

59 Toyota Human Touch

60 Bambegers

61 Fit to Stretch 2 ASPEK 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. Dinilai dengan cara yang sama untuk strategi Stretch saat ini. Boleh nilai 0 kalau tidak pernah dilakukan. Kualitas yang terjadi cari sebabnya. Berikan saran untuk memperbaiki.

62 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. Mengapa strat fit tetap penting? Karena tidak semua business sudah berpikir utk sustainable dengan orientasi entreprise-wide.

63 Film CEO Seven Eleven Lakukan analisis:
Sejauhmana CEO telah masuk dalam perspektif Man-Made World dan Nature-World? Dalam strategic Fit, CEO telah menggunakan Cost Leadership, Differentiation, Best Cost seperti apa? Dalam hal strategic Stretch (RBV) CEO membangun Core Competencies apa?


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