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Principles of Strategy

1) The document provides an overview of business strategy concepts including defining strategy, the structure of business organizations, and developing a strategic thought process. 2) Key aspects of strategy are outlined such as having quantifiable objectives, a clear vision, and directions to differentiate and grow. Strategy is distinguished from tactics which are the execution plans. 3) Tips are provided for pitching a strategy to potential investors, including treating them as investors, doing a sniff test to evaluate if you would invest in your own strategy, and tailoring the pitch based on the audience.

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153 views15 pages

Principles of Strategy

1) The document provides an overview of business strategy concepts including defining strategy, the structure of business organizations, and developing a strategic thought process. 2) Key aspects of strategy are outlined such as having quantifiable objectives, a clear vision, and directions to differentiate and grow. Strategy is distinguished from tactics which are the execution plans. 3) Tips are provided for pitching a strategy to potential investors, including treating them as investors, doing a sniff test to evaluate if you would invest in your own strategy, and tailoring the pitch based on the audience.

Uploaded by

sanazh
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Who is Arash Haidari?

Leader, Strategic Marketing Engineer

Oct. 2000
2008 My 1st BB 2006 2003 My 1st Cell phone 2004

Jul. 2011

Product Applications Validation Eng. Eng. SerDes

Marketing & Applications SerDes

Marketing WRLS BTS

Marketing WRLS Backhaul

Marketing Carrier Ethernet

WHAT IS A BUSINESS STRATEGY?


" People should not be unfamiliar with strategy, Those who understand it will survive, Those who do not understand it will perish
The Art of War by Sun Tzu, 600 B.C.

Arash Haidari, September 2011

Structure of a Typical Business Organization


CEO GM GM GM BU GM = General Manager

= Business Unit
Develops products Earns revenue Pays for horizontal groups (in allocation)

BU

BU

BU

Technology Advisors Sales, Finance, etc. Operations, IT, etc.

CTO VP COO BU is a Mini Company within a Company

Example: PMC-Sierra
CEO = Greg Lang
GM = Daryn Lau GM = Tom Sun GM = Kobi Ben-Zvi GM = Travis Karr

Communications Product Division (CPD)

Broadband Wireless Division (BWD)

Wireless Infrastructure Networking (WIN)

Enterprise & Storage Division (ESD)

Technology Advisors Regional Sales, Field Application Engineers Finance, Treasury Operations, IT, Mixed Signal Design, Layout,

CTO = Tom Snodgrass

VP of Sales = Rob Liszt

CFO = Mike Zellner

COO = Colin Harris

Structure of a Typical Business Organization


Marketing owns BUs revenue/profit & Strategy for its growth
Mgmt/Sr. Staff Strategy definition & planning New product definition, execution management, & take to market Interm. Staff Take to market new products GM Junior Staff Sales of existing products VP VP

Principle #1:
Every decision, action, priority call, etc. MUST result in revenue/profit growth
Applications = Customer Technical Support

Why does my Organization Need a Strategy?


Growth is the critical objective of a business!
Your bias as a leader cant be for stability, predictability, for policy conformance. The passion of leadership has to be to grow a business. You just have to wake up every day thinking about how you are going to grow it. - Dan Burnham, CEO Allied Signal Aerospace

The Essence of Strategy (Professor Burgelman)


Gaining and maintaining control of destiny Identifying the forces that affect destiny Dependence/influence & Ecosystem Changing and/or using the forces to create degrees of freedom to act Defines how the organization will win Defines how the organization will grow Defines how the organization will differentiate itself from the competition

Principle #2:
If your CEO cannot articulate your strategy, start writing up your resume!!!

Lets Learn how to Spell Strategy!


Best practice improvement Aspirations or goals A vision Price Learning Agility Flexibility Innovation Any technology Restructuring Mergers / Consolidation Alliances / Partnering

Is Not a Strategy

Source: Michael Porter (Godfather of Strategy), 2004, Burgelman

Principle #3:
Strategy defines how the organization will differentiate, win and grow.
A unique value proposition versus competitors A differentiated, tailored value chain Clear tradeoffs, and choosing what not to do

Is a Strategy

Three Poles in Defining a Strategy


1) Quantifiable Objective:
Earn Minimum $1M+/yr by the time he is 35
support a family own a home afford a car go on vacation twice a year

Your Objective Frames the World for your Strategy

2) Vision:
Professional Tennis player (Mom) Professional Hockey player (Dad) Professional Soccer player (uncle) Doctor/Surgeon Lawyer

Bourna (my nephew)


January 14, 2011

3) Direction:
Differentiated education plan

Lets Get Technical


Remote RadioHead (RRH) is the radio of a Basestation (BTS), talking wirelessly over the air to your cell phones

Principle #4:
Objective of a Strategy MUST be
1.Financially Quantifiable 2.Time Restricted 3.Framed to a Market

Example:
Grow my BU to $50M/yr by 2015 My gross margin target is 80% I will invest in Remote RadioHead Market I must win 30% Market share

Principle #5:
Vision is your Market Offering
Stay high-level Vision doesn'tt have to be a product

Example:
I will offer a 3-chip product family that:
1. 2. 3. Is developed in 65nm CMOS (low power) Implements a full RRH (low cost) Can be configured for all air interfaces

Example: Principle #6:


Direction is your Path to Victory
Must show winning Must show sustainable value proposition
RRH today use 10+ BiCMOS chips
Too costly & very power hungry Customer RRH is customized to air I/F 1/3 the cost & power of competition Customer designs ONE universal RRH Competition must switch to CMOS to compete

Chips used today are single band I enable a 3-chip CMOS RRH for all bands

Strategy vs. Tactics


" Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.
The Art of War by Sun Tzu, 600 B.C

Principle #7:
While Strategy & Tactics go hand in hand, your Simplest & Biggest Mistake is to Confuse them!!!
" All men can see these tactics whereby I conquer, but what none can see is the strategy out of which victory is evolved.
The Art of War by Sun Tzu, 600 B.C

Principle #8:
Tactics is your Execution Plan

Example (from previous slide):


Resource, Development, Take to Market Plans for bringing the products to the market

Developing a Strategic Thought Process


Expand Knowledge base through Education

Business Experience

Soft Skills Your Principles


Sit back and look at things from 10,000 feet Be logical Dont be emotional Learn to read people Influence their thinking Think three steps ahead Be diplomatic and maneuver in a political environment Learn to present Learn to fail and to recover from failure AND many many more ..

You must develop a thick skin for strategic planning. Take the time to do so!

Pitching a Strategy
You need money (investment) to launch a strategy

Principle #9:
Treat your Audience as Investors

Principle #10:
Sniff Test: Would you Invest your own Money in your own Strategy?

If not, then why are you standing here and talking to me?

Principle #11:
Know your Audience. Different Investors, need to Hear Different Pitches

CEOs, VCs, Angel investors, family & friends are different investors
Require different level of details Require different focus areas

Presenting a Strategy
1. Show me the Money Get my attention
i. ii. iii. Identify your target market & show me how big it is! What piece of the pie are you going after? Who is your main target customers, and why are they a target? Disruptive economic forces in your target market Key market Trends Market Opportunity & window of opportunity

2.

Show me the opportunity Convince me I can make money


i. ii. iii.

3.

Show me whats going on!!! What are the Challenges/Requirements?


i. ii. iii. iv. Customer chain challenges / Key requirements / Strategy Ecosystem challenges / Key requirements / Strategy Competition challenges / Strategy Your Challenges/Barriers to entry Statement of Strategy Direction to Enter & Win Solution/Roadmap strategy Target Customers & Key Platforms & Requirements Sustainable Value Proposition Competitive Analysis (your strategy vs. theirs) Key architectural requirements/innovations Critical core competencies & gaps to fill Take to Market plan Risk mitigation

4.

How do we enter, win, and stay competitive?


i. ii. iii. iv. v.

5.

Whats your execution plan?


i. ii. iii. iv.

Books to Read

ISBN-10: 1613820844 ISBN-13: 978-1613820841

ISBN-10: 1591840562 ISBN-13: 978-1591840565

THANK YOU!
[email protected]

Arash Haidari, September 2011

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