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Strategy Dynamics - Class 1 – Performance through time

This class explains why the over-riding purpose for strategy is to help management improve performance over time, rather than to hit ratio targets.

  • For whole-business cases, this often means driving growth in cash-flow, whether through an overall business plan sustained for long periods or taking on opportunities or challenges that arise at particular times.
  • Departments, teams and functions also aim to improve performance over time, on a wide range of possible indicators.

examples of trajectories

The aim of improving performance over time also applies to public-services and non-commercial cases, though the main purpose may not be financial.

This dynamic view of performance exposes three fundamental questions:

  • Why has performance followed the path that it has up to today?
  • Where is performance likely to go into the future?
  • How can management act to improve that trajectory, strongly and sustainably?

Issues addressed

  • Why performance-over-time is the issue management needs to address.
  • Understanding why performance has developed up to now, where it may go in future, and how to improve it.
  • Distinct purposes of strategy: (a) a sustained Plan for the future (b) dealing with specific issues.
  • The different levels of strategy: (a) for the whole organisation (b) for a department, team or function.
  • The vital need to quantify objectives and the time-scale for achieving them.
  • Exploiting potential opportunity, whilst being realistic and avoiding bad consequences.
  • How strategic performance leads to value for investors or business owners.

Lecture segments associated with this class are:

Class 1.0 - Summary - (17 min)
The Summary class explains how to specify the aims of a strategy or initiative clearly, to make it easier to design the path to a solution. The class offers real-world examples of both whole-business cases and issues facing specific parts of an organisation.
Class 1.1 - Setting appropriate objectives - (25 min)
How to set appropriate objectives that fully exploit potential opportunities, whilst being realistically achievable and not exposing the organisation to dangerous consequences.
Class 1.2 - Strategy and business value - (17 min).
The link between strategy and business value, recognising that business owners or investors seek growth in the cash flows
This course is supported by a series of worksheets provided in both PDF format and as Sysdea online models. This course is concerned primarily with the Strategy Dynamics frameworks. To learn how to use Sysdea effectively we suggest taking our online Business Modeling course.
There are no additional exercises for this class.

free access for teachers - login or register Additional materials are available to registered teachers as well as free access to the complete course. Login here or register here for more information.

Other Resources

Books

Robert M Grant, Contemporary Strategy Analysis, 7th Edition, (2009), Blackwell: Oxford
Amazon.com   Amazon UK   Amazon Canada

Tim Koller, Marc Goedhart and David Wessels, Valuation – Measuring and Managing the Value of Companies, 5th Edition, (2010), Wiley: Chichester
Amazon.com   Amazon UK   Amazon Canada

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