Strategy process

Question 1

Strategy process: 5 steps

Answer 1

1. Planning & ramp Up
2. Analysis
3. Options & evaluation
4. Strategic ambition
5. Finalisation

Question 2

Planning & ramp-Up

Answer 2

− Formulate Questions &
hypotheses
− Alignment of premises
− Definition of time schedule
− Ramp up resources

Question 3

Planning & ramp-Up - Pro tip

Answer 3

Align with all relevant stakeholders –
do not take shortcuts

Question 4

Analysis (strategy process)

Answer 4

− Internal analysis
− External analysis
− SWOT
− Strategic challenges

Question 5

Analyis : pro tip

Answer 5

Don’t boil the ocean” –
work purposefully with
hypotheses

Question 6

Options & evaluation

Answer 6

− Strategic options
− Evaluation
− Recommendation

Question 7

Pro tip : Options & evaluation

Answer 7

Take a sequential approach – first evaluate long list of options top-down, only then move on to “high potentials” in detail

Question 8

Strategic Ambition (strategy process)

Answer 8

− Development of ambition/ target picture
− Derivation of strategic
financial plan
− Consolidation into
overarching strategy

Question 9

pro tip : Strategic Ambition

Answer 9

Allocate enough time for 2–3 loops – inconsistencies will become apparent when you piece the puzzle together

Question 10

Finalisation (strategy process)

Answer 10

Approval process

Question 11

Pro tip : Finalisation

Answer 11

Plan properly from the start with enough buffer–
in a large corporation, this can take 2–3 months (in a canton, it can take 1–2 years …)

Question 12

Planning and ramp-up: key elements

Answer 12

− Scoping with executive board
− Scoping with all divisions
− Select a consultant
− 1x1 project management

key result : project plan

Question 13

Planning and ramp-up: challenges

Answer 13

− Different stakeholders have different ideas
− Lack of resources in divisions
− Vacation periods, public holidays
− Finding the right consultant

Question 14

Analysis (Internal analysis) : key elements

Answer 14

− Historical development
− Current market positioning
− Interfaces & synergies

–> key result : strengths & weaknesses

Question 15

Analysis (Internal analysis) : challenges

Answer 15

− Ensuring consistent database
− Inconsistencies between analysis
structure vs. reporting structure
− First reality check: stakeholder
promises from the planning phase
may not always be fulfilled

Question 16

Analysis (External analysis) : key elements

Answer 16

− Market structure
− Competition
− Environment and risks

–> key result : opportunities & threats

Question 17

Analysis (External analysis) : Challenges

Answer 17

− “Boiling the ocean”
− Data availability
− Quantitative modelling of
drivers and developments

Question 18

Analysis (SWOT): key elements

Answer 18

− SWOT analysis
− Derive key strategic
challenges from SWOT analysis

–> key result : basis for defining strategic options

Question 19

Analysis (SWOT): challenges

Answer 19

− Unclear assignment into four areas (S-
W-O-T)
− Focus on key strategic challenges
(“Boiling the ocean”)

Question 20

Strategic options and evaluation: key elements

Answer 20

− Establish boundary conditions
− Define (valid) strategic options
− Add details to (develop) strategic
options
− Evaluate strategic options

–> key result : recommendations for strategic directions

Question 21

Strategic options and evaluation: challenges

Answer 21

− Define clear evaluation criteria
and apply them consistently – no “reverse engineering”
− High alignment need with multiple
stakeholders
− Courage to rule out options that are
not feasible - BUT: courage to discuss
new options
− Inertia within corporation

Question 22

Strategic Ambition: key elements

Answer 22

− For each option: develop financial and operations plan
− Consolidate overarching ambition/
target picture: quantitative objectives
and financial plan

–> key result : strategy inclusive quantitative and qualitative objectives

Question 23

Strategic Ambition: Challenges

Answer 23

− Allocate enough time for 2–3 loops
− “Manage the manager”: respect
wishes, but avoid chaos from too
many updates
− Distinction between top-down financial strategic ambition and bottom-up budget plan

Question 24

Finalisation: key elements

Answer 24

− Approval process with Executive Board
and Board of Directors
− Incorporating final inputs

–> Key result : finalised and approved
corporate strategy

Question 25

Finalisation: Challenges

Answer 25

− Plan approval meetings with enough lead time − Incorporate final inputs while watching-out for “hidden agendas” − Make final adjustments in clear cycles − “Editor’s blindness”: strict application of four-eye principle for final adjustments

Question 26

Conclusion – Strategy process

Answer 26

- A strategy can be developed in a week, or in a year Too little time → top-down strategy that may “miss” the business Too much time → the world has changed, before the strategy is finished - Establish clear responsibilities “Too many cooks spoil the broth” - Stakeholder management Engage Executive Board members early on and allocate enough time for alignment - “The plan is the plan” Developing a strategy is never a linear process!