28/11/2008 by Stephen Coe.

 Differentiation is key for any company, if it wishes to avoid competing on price and the inevitable reduction in margins that comes with it.

At Balmoral Strategy Development we dedicate a significant amount of time in our strategy processes considering ways to differentiate. We utilise many tools in our analysis. Today I would like to draw your attention to ‘The Value Curve’

Put simply a Value curve provides understanding of where the competition is currently investing, what factors the industry currently competes on and the products and services that customers receive from the offerings to the market. Analysis of the value curve can provide insight not only under-served needs, but also over-served needs. 

Thus the benefits of such an analysis are two fold:

1. Reduction of costs by eliminating non value added activity
2. Closer alignment of value proposition with customer needs and the associated differentiation that this brings.

 As usual all comments are welcomed - Stephen Coe, Director, Balmoral Strategy Development Limited.

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26/11/2008 by Stephen Coe.

So you have your new strategy and are ready to go and implement?

Stop! Have you carried out a risk assessment?

Before any implementation we believe a company should carefully consider internal and external elements associated with the strategy.

For example:

1. Consider all the internal elements associated with bringing a new product to market and the consequences of failure, i.e. time and cost overuns.
2. Consider the reactions of the customers and competitors and their possible possible impact, i.e. disinterest from customers or price campaigns by your competitors

At Balmoral Strategy Development Limited we consider a thorough risk assessment essential before moving to the implementation stage, which is why we include a risk assessment module in all our strategy development processes.

As usual all comments welcome - Stephen Coe, Director Balmoral Strategy Development Limited

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24/11/2008 by Stephen Coe.

Every company collects information on its customers in one way or another. Many use very sophistication CRM packages and build up large databases of all number of facts and figures. They can tell you almost in an instant the last time Customer ‘A’ purchased Product ‘X’.  all very useful in the right context, but when it comes to developing a company strategy, then such data becomes much less relevant.

At Balmoral Strategy Development we believe that data should lead to intelligence and by that we mean ‘Insight’. Insight into pain points and unmet needs.  Insights, which point the way to new innovative and differentiating value propositions.

We recommend a process similar to that below, provides significant benefits and provides competitive advantage. 

Data gathering (CRM) -  Data synthesis (formalised, workshop based) - Intelligence and Insight - New Value Proposition.

As part of all strategy development processes at Balmoral Strategy Development we advocate the embedment of a such a process as a key enabling strategy.

As usual all comments welcome - Stephen Coe , Director Balmoral Strategy Development Limited 

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21/11/2008 by Stephen Coe.

In challenging times, it is all too easy to adopt a siege mentality. The focus on the here and now and ‘how we are going to survive the next 6 months’ mean that longer term initiatives lose most of their relevance. As a result in hard times it is Marketing and R&D budgets that are usually the first affected. 

At Balmoral Strategy Development we believe that in hard times quite the opposite should happen. In every downturn there lies opportunity and history clearly shows that it was the companies that recognised this and who continued to innovate that emerged the stronger, which is why innovation is at the core of all of our strategy development processes.

 Below is a 3 point action plan that we encouraged all to consider:

1. Take a look at your industry battleground now, the key players in each element of the value chain. 
2. Develop scenario modelling, based on emerging trends and customer needs and relative competitive strength.
3. Develop a customer value proposition, recreate the battleground and implement.

As usual all comments welcomed - Stephen Coe, Director Balmoral strategy Development Limited

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19/11/2008 by Stephen Coe.

Before beginning any strategy process very careful consideration should be given to team make-up and dynamics.

Strategy development is intense, discourse is good, but it is not unusual for friction to set in amongst the team. This can be minimised through good facilitation, but good team selection is vitally important. 

Team make-up - Consider the skill sets required, team leader, business development, finance, specialist, researcher. Also consider personality types. Developing a robust business strategy is vitally important so beware of people who are readily volunteered. The team should be made up of the best minds within the company not those who just happen to be available.

At Balmoral Strategy Development we prefer to interview ‘team’ candidates, we compile a list of skills required together with a personality matrix. During the interview we ask 

i.    Rationale for joining the team, expectations

ii.    Competence, what they bring to the role

iii.    Level of commitment their concerns at to what  will happen to their old role?

We also ask the candidates complete personality analysis and find the tests available from http://www.belbin.com/rte.asp?id=8 quick and easy. To recap, finding the right balance within the team is key. We believe that by following the process above you will go a long way towards ensuring that balance.

As usual all comments welcome Stephen Coe director Balmoral Strategy Development Ltd

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17/11/2008 by Stephen Coe.

When considering any form of strategic review, it is extremely important to generate a common understanding within the executive group and the strategy team of the scope of the project. Failure to reach this understanding can result in many weeks or even months of wasted effort and even worse a strategy that is totally out of whack with executive expectations.

The scope of any strategic exercise is unique to the company and the moment in time, however there are common factors that need consideration in every process.

First and foremost, what the executive expectations? At Balmoral Strategy Development Ltd, we find that initial canvassing of the executive group in the form of a questionnaire, followed by scoping workshop, facilitates consensus on scope within the group.

The scope should clearly state:

• Expectations, increase in turnover, profit, market share etc
• The timeline, key review points, final strategy delivery?
• The resources available , human , financial
• The amount of time (relative ) spent on ‘core’ products/services versus ‘new’ products/services?
• Specific areas of interest
• Specific areas not to be considered

Having gained consensus amongst the executive group it is equally important to gain common understanding between the leadership group and the strategic team. Once again we advocate a workshop approach. This provides a forum for discussion, fine tuning of the scope and consensus.

A contract between the executive group and the strategic team in the form of a terms of reference formalises the details and provides a base point against which deliverables can later be measured. 

As usual all comments welcome - Stephen Coe, Director Balmoral Strategy Development Ltd
 

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12/11/2008 by Stephen Coe.

Before the start of any strategy process it is important to spend some time considering the reactions of the workforce and the effects that the exercise will have on them. It is an old adage, but it remains true. More strategies fail through lack of workforce buy-in than because they were bad strategies.

At Balmoral Strategy Development we have found that time spent communicating expectations at the initial scoping stage pays off handsomely when it comes to implementation. Early communication secures co operation and worker participation. This is particularly important if significant changes in strategic direction are being considered.

Consider the steps below

Workforce Alignement  ———— Intellectual Engagement ———— Trust/Participation ————— Cooperation in implementation

Alternatively

Non aligned workforce ————- Disinterest ————- Distrust/Resentment —————- Refusal to cooperate/implement strategy

Secure in the belief that good ideas can come from anyone, at Balmoral Strategy Development, we encourage participation at all levels of the company; as part of the strategy team and in interactive workshops.

We have found that this approach provides the workforce with a sense of ownership, which ensures buy-in and cooperation at the implementation stage.

As usual all comments welcome - Stephen Coe, Director Balmoral strategy Development Ltd

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10/11/2008 by Stephen Coe.

The internet has provided access to an almost limitless stream of information. With the right search tools it is possible to research and develop intelligence on a person, company or market from your desktop PC.

If there is a downside to this, it is that at times we probably have too much information. A new idea can quickly lose it lustre, when 30 minutes of desktop research reveal that there are already several companies working on something similar. Ideas can all too easily be ’squashed’ as  being too risky before they can fully form and develop. In the current economic downturn, it is only natural that we are seeing a more risk averseness approach.

So how do we avoid the stagnation in new thinking and product innovation that are the harbingers of recession? In one word ‘Alliances’. Innovate or die, partner to survive could be the mantra for the times

The benefits are obvious, access to competencies, quicker time to markets, economies in purchasing, manufacture and distribution and risk mitigation. Equally the negatives are well known, by seeking strategic partners we are exposing our weaknessess to competitors. Without a doubt , an hastily put together alliance will quickly be exposed and leave the participants in a vulnerable position. That is why before entering into any alliance activity a company should fully understand its goals and the associated risks.

At Balmoral Strategy Development, we believe the every company should consider developing an ‘Alliance’ strategy, to this end we have developed a workshop based process and proprietary tools aimed at identifying possible partners and structuring alliance opportunities.

Every partnership or alliance involves giving up some element of control and this is not easy, but we believe that if properly structured the benefits far outweigh the perceived drawbacks.

As usual all comments are welcomed - Stephen Coe, Diector Balmoral Strategy Development Ltd

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07/11/2008 by Stephen Coe.

If we believe what we see on the TV and read in read in the newspapers, we are in for a deep and long recession. The question is how will this event effect the psyche of the average consumer?

Will confidence be shaken to the point where we ditch the credit cards, the foreign holidays and become more frugal for perhaps a generation?  The parellels are there from the 1930’s.

Alternatively are we so hooked on our ‘must have it now lifestyles’ that the latest round of interest rate cuts if passed on by the high street banks, will have us all on the ‘buy it now wagon’ again, in time for Christmas?

The Christmas period is always a key indicator and this year more so than ever. Analysis of selling prices on online auction sites can also be illuminating. By February we should have a clearer idea as to how deep the recession will be, however many businesses cannot afford to wait.

I have always subscribed to the view that in any crisis, there lies opportunity. Successful companies recognise that fact and develop strategies that enable them to sieze those opportunities.

A key part in any strategy process is the analysis of Trends. If done well the exercise can provide great insight into emerging  and unmet customer needs. It allows early realignment and offers the potential for Competitive Advantage.

At Balmoral Strategy Development, we have a strategy module dedicated to the identification and analysis of emerging Trends ; their effects on the business, the threats and the opportunities that they present.

As usual all comments are welcome - Stephen Coe -Director Balmoral Strategy Development Ltd

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04/11/2008 by admin.

A fundamental question every company CEO needs to ask itself is; “do we have the competencies necessary to meet our expections”. A surprisingly large number would probably answer no.

‘Surely not’ I hear you say, every company knows the importance of training it people. Yes that it true, and there is the rub. Personnel training although an element of, is not competency development. As well as developing personnel skills; a company must invest in and develop new technologies, it will also need to develop its business systems and processes.

It is only when these elements are combined that true competency building occurs. At Balmoral Strategy Development we believe that a fundamental part of any strategy is competency building. That is why we place the identification and development of competencies front and centre of our strategy processess.

We advocate a 3 stage approach

1. Identify current competency strengths
2. Identify competencies needed to move forward
3. Formalise a competency development program.

As usual all comments welcome

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