This is a workshop I did for 2nd stage entrepreneurs at a workshop hosted by the National Black MBA & The Disney Entrepreneurship Center

1. 2010 ECONOMIC EMPOWERMENT SERIES
MOVING BEYOND THE START UP:
TAKING BUSINESS TO THE NEXT LEVEL
Part 1: Clear Strategies for Success
Saturday, April 24, 2010

2. 2010 ECONOMIC EMPOWERMENT SERIES
MOVING BEYOND THE START UP: TAKING BUSINESS TO THE NEXT LEVEL
Part 1: Clear Strategies for Success
Dwight Calbert
President
Aphelion Consulting LLC

3. 2010 ECONOMIC EMPOWERMENT SERIES
MOVING BEYOND THE START UP: TAKING BUSINESS TO THE NEXT LEVEL
Part 1: Clear Strategies for Success
Workshop 1:
Strategic Aspirations

4. Product/Market Life-Cycle
Launch Growth Maturity Saturation Decline
Sales
Time

5. 1) Challenges of
Growth

7. 75% of growth initiatives fail
Less than 12% of publicly traded companies achieve
double-digit growth over a 10 year period
29% of managers in major corporation feel confident
that they can reach their organic growth target
90% of executives rate innovation as a strategic
priority in relation to growth;
over half are dissatisfied with their ROI on innovation

8. The
Relative
Value
Growth

9. Organic
Growth
vs.
Margin
Improvements

10. Exploitation
vs.
Exploration

11. Creative
Destruction

12. Cannibalism
Dilute the Brand
Inconsistent
Strategic Intent

13. Proactive Exit Strategies
Reinvigorates Growth

14. The #1 Strategic Problem for Companies
GROWTH
GROWTH
GROWTH
GROWTH

15. 2) Define
Strategy

16. How do you strategically
think about growth?

17. Strategy Defined
Strategy is:
1) an overarching plan that defines how you will
attain & evolve a unique, differentiated
competitive position that provides a clear
advantage
2) a guideline for the focused use of resources to
exploit opportunity and profit

18. Components of Strategic Aspiration
Differentiated
Advantage
Sustainable
Greatness

19. “These ideas are not for those
whose ambition in life
is to get by or merely to survive”
from Blue Ocean Strategy

20. Philosophical
Tenet
“An organization can outperform rivals
only if it can establish a difference that
it can preserve”

21. Successful Strategy requires
Vision, Commitment, Focus, Bold Leadership
& Decisive Action
“Strategy is a Paradox”
Commitment to an Unknown Future

22. 3) Strategic
Thinking Tenets

23. Foundations of
Strategic Thinking

24. Challenge
Conventional Wisdom
Nothing is True -
Everything is Permitted

25. Framing Science

26. High Altitude Holistic View
BIG PICTURE
Long-Term Perspective

27. Signaling
The strategic use of misdirection to
confuse the competition
Carefully manage signaling
effort because it gives notice
of innovation growth initiatives

28. 4) Example
Growth Strategy

29. Innovation Spurred
Path to Growth Model
New
Degree of Change & Innovation Create
Develop New
Capabilities
Revolutionary Exploration
Change
Organizational
Capabilities
3
1S 4
2
Exploit
Improve Core
Businesses
Strategic Exploitation
Advantages
Existing
Degree of Change & Innovation
Adapted from “Incubating Innovation”
Limited Strategic Scope Unlimited Journal of Business Strategy
by Hickman & Raia (200)

30. Illustrative Growth Strategy
Increased Capacity for Reinvestment
1
Capacity & Willingness to Change
Identify & Shape New Markets
2
Innovation
Reduce Missed Opportunity Cost
3
De-Risking Opportunities

31. Product/Market Life-Cycle
Launch Growth Maturity Saturation Decline
Sales
Time

32. Growth Strategy
Increased Capacity for Reinvestment
1
Capacity & Willingness to Change

33. COMPETE on Your
Ability to Generate
Excess Cash

34. Innovation is a core strain in the
DNA of Growth

35. 1) Change the ratio to optimize cost savings &
productivity gains
Cost
Assumptions
Knowledge Cost
2) Create organizational knowledge &
capabilities that are valuable intangible assets

36. 10% Savings =
$1 Million in Growth

37. A Key Source of Differentiation:
What are the capabilities that drive competitive advantage given our
strategic focus?
Within those capabilities what are the positions that really make a
difference?
Who are the people in those positions & what are their skill-sets?
Are the best people & skills in the most important strategic roles?

38. Growth Strategy
1a
Building the Organizational Capability
Capacity & Willingness to Change

39. Compete on
Speed &
Agility &
Time

40. Organizational Growth Phase Model
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6
Creativity Direction Delegation Co-ordination Collaboration Alliance
Organization Size
Growth
Crisis
Red Tape
Crisis
Control
Crisis
Autonomy
Crisis
Leadership
Crisis
Time

41. UPS Marketing Tag-line
“Moving @ the Speed of Business”

42. UPS Marketing Tag-line
“Moving @ the Speed of Business”
Past Competitive Today’s Competitive
Environment Environment
High High
Fundamental
Risk
Risk
Market
Changes
Low Low
Short Long Short Long
Decision Decision
Making Window Making Window

43. Product/Market Life-Cycle
Launch Growth Maturity Saturation Decline
Sales
Time

44. Growth Strategy
Identify & Shape New Markets
2
Innovation

45. COMPETE on Vision

46. “People who get on in this world get up
and look for circumstances they want;
if they don’t find them, they create them”
~ George Bernard Shaw

47. Low Hanging Fruit

48. Low Hanging Fruit
Adjacencies
Franchising
Channel Expansion
Geographic Expansion
Growth with Partnerships & Alliances
Growth through Mergers & Acquisitions

49. Money In
Growth Requires
Investment
Money Out

50. Converting Ideas

51. Innovation Portfolio

52. Portfolio Dimensions
Innovation Timeframe Portfolio
Exploration vs. Exploitation
Evolutionary vs. Revolutionary
External & Globally Sourced
Concept Diversification
Strategic Diversification
Unorthodox Experiments
Master the Art of Creative Destruction

53. Growth Strategy
2a
Building the Organizational Capability
Innovation

54. COMPETE on
Ideas
“from possibility to profit”

55. Innovation Defined
the art of converting new ideas,
discoveries or a vision into societal
progress or commercial success
faster and more effectively than
competitors who have equal access to
knowledge and technology

56. Philosophical
Tenet
“Technological breakthroughs and new
products are not enough to generate
growth from innovation”

57. Areas of Innovation
{
Strategic
Value
Creating
Potential
Creativity Product Development Process / Capability Strategic
~ how to discover more ~ how to create an open- ~ how to create the core ~ how to create strategic
innovations that drives
Challenge and better ideas that lead sourced, collaborative capability of innovation in
to innovation system of development all company activities adaptive competitive
advantage
~ creating & coordinating ~ performance metrics, ~ exploiting environmental
~ creativity & innovation in
Objective synergies across the processes, systems & change to shape and
organizational teams global community human capabilities create new markets
Opportunity Creation Engines Innovation Integrators Innovation Infrastructure Strategic Renewal

58. Growth Strategy
Reduce Missed Opportunity Cost
3
De-Risking Opportunities

59. Always Compete for New Opportunities

61. Growth Strategy
3a
Building the Organizational Capability
De-Risking Opportunities

62. Compete on our
Decision Making Ability

63. Risk is an Inherent
Part of Innovation
& Growth

64. Remove the perception of
risk (career risk) from
the innovation process

65. Different is not Deficient

66. 2010 ECONOMIC EMPOWERMENT SERIES
MOVING BEYOND THE START UP: TAKING BUSINESS TO THE NEXT LEVEL
Part 1: Clear Strategies for Success
Thank You

67. Dwight Calbert
President
Aphelion Consulting LLC
(650) 641-2095 Office
(866) 202-1086 Toll-Free
(312) 498-7741 Cell
www.Aphelion-Consulting.com
Infinitely Innovative