This document outlines an agenda for a fundamentals of strategy course. The course will cover estimating the future, stress testing assumptions, making choices under uncertainty, and providing advice to executive management. Key topics that will be discussed include customer willingness to pay, strategy, cost of delivering value to customers, sources of threats and opportunities, assessing the future, assumptions made in strategies, and priorities for achieving excellence. The document emphasizes choosing a future and enabling others to achieve excellence.

1. Fundamentals of Strategy Building the Future Douglas Reid dreid@business.queensu.ca @douglasreid

2. Recap Estimating the future Break Stress testing assumptions Making choices under uncertainty Lunch Your advice to Executive Mgmt. Conclusion What to read

3. Repetition Repetition Repetition Repetition Repetition Repetition Repetition Repetition Repetition Repetition Repetition Repetition Repetition Repetition Repetition Repetition Repetition

4. Customer willingness to pay Strategy Cost of delivering what the customer buys

5. Implementation happen primarily by changing the allocation of resources consistent with objectives

6. Money Brands, equipment, IP, licenses, machinery, information, etc. Any non-human asset of an organization that a manager can deploy

7. People Skills

8. Time Duration, sequence and project choices to which you apply the money and people that you have

9. Misalignment

11. Leadership

12. To become a more effective leader, I will… Do more of… ___________________ ___________________ ___________________ ___________________ ___________________ Do less of… ___________________ ___________________ ___________________ ___________________ ___________________ Start doing… ___________________ ___________________ ___________________ ___________________ ___________________ Stop doing… ___________________ ___________________ ___________________ ___________________ ___________________

13. Customer willingness to pay Strategy Cost of delivering what the customer buys

14. Is your strategy “good enough” for the future?

15. Why this matters No clear future Range of futures Discrete possible futures Predictable Source: Courtney, Kirkland and Viguerie, 1997

17. Competitor actions

18. Economic conditions

19. Social trends / changes

20. Political / legal

21. Technological advances

22. More or less globalizationBefore After

24. Overall threat assessment: 6 1 2 4 5 3 No clear future Range of futures Discrete possible futures 1 2 3 4 5 Overall opportunity assessment: 6 Predictable

25. What if…?

26. What assumptions have you made?

27. Now what?

28. Postures Shape the future Adapt to the future Reserve the right to play ____________________ Tactics Scenario planning Option-based decisions “Plan B” Measurement

29. Customer willingness to pay Strategy Cost of delivering what the customer buys

30. Priorities for our bank Advice to FCMB executive management

31. To achieve excellence as a bank, we recommend that FCMB must… Do more of… 1. ___________________ _____________________ 2. ___________________ _____________________ 3. ___________________ _____________________ Do less of… 1. ___________________ _____________________ 2. ___________________ _____________________ 3. ___________________ _____________________ Start doing… 1. ___________________ _____________________ 2. ___________________ _____________________ 3. ___________________ _____________________ Stop doing… 1. ___________________ _____________________ 2. ___________________ _____________________ 3. ___________________ _____________________

32. Let’s sum up…

33. You always have choices about building your future

34. The most important choice is to begin.

35. For your staff, only you can create conditions where their desire for excellence can flourish.

36. Structural and cultural elements… that enables an organization to: detect discontinuous change early, interpret the consequences, and formulate effective responses. Rene Rohrbeck, 2010

37. 1. Operational Decision Making 2. Coaching and Developing Others 3. Empowerment/Delegation 4. Establishing Strategic Direction 5. Influence 6. Financial Acumen 7. Driving Execution 8. Customer Focus

38. Customer willingness to pay Strategy Cost of delivering what the customer buys

39. What kind of future awaits? No clear future Range of futures Discrete possible futures Predictable Source: Courtney, Kirkland and Viguerie, 1997

40. Leaders influence

41. Be clear about your values What will you NOT tolerate?

42. Choose action

43. Seekand embrace responsibility

44. Enable cooperation

45. Develop others

46. To become a more effective leader, I will… Do more of… ___________________ ___________________ ___________________ ___________________ ___________________ Do less of… ___________________ ___________________ ___________________ ___________________ ___________________ Start doing… ___________________ ___________________ ___________________ ___________________ ___________________ Stop doing… ___________________ ___________________ ___________________ ___________________ ___________________

47. What to read Managing, Mintzberg, 2009 Execute, Bossidy and Charan, 2002 What Management Is, Magretta, 2002 The Human Equation, Pfeffer, 1998

48. Next step: operational excellence

49. Thank you!