“The pillars build

sequentially on Mission Purpose

one another, Why we exist
creating
an integrated and
transparent Values
framework” What matters to us

Vision
What do we want to be

Strategic Intent
How we will get there Strategy
Drivers
What we focus on

Enablers
What frameworks, skills, people we need

Targets & Initiatives

What we need to achieve Execution
KPIs
What performance indicators we need to measure

Strategy Map
How we test and communicate the strategy

The Strategy Pyramid was originally designed by Wendy

McGuinness and the McGuinness Institute. -Tim Vipond
 “Playing to Win: How Strategy Really Works” by A.G. Lafley and Roger L. Martin

5 critical strategic choices that need to be considered in a

cascading way to move ahead of competitors

• What does winning look like to our

What is our
customers?
1 winning
• Who are we competing against?
GOAL? • Based on people, not financials

• What geographies will we compete in?

Where will we
2 PLAY?
• What markets?
• What customer segments?

• What is our strategy going to be?

How will we • i.e. cost vs differentiation focus
3 WIN? • What is our competitive
advantage?

• What skills do we need on our

What
team?
4 CAPABILITIES
• What capabilities do we need?
do we need? • What is our people plan?

• What processes do we
What
need?
5 SYSTEMS do
• What structures?
we need? • What rules?
https://hbr.org/books/playing-to-win
Financial Create Enterprise
Perspective Value

Revenue Capital
Growth Efficiency
Margin
Expansion

Customer
Perspective

Price Quality Offering Brand

Internal
Perspective

Production Marketing & Distribution

Speed Reach
Cost Conversion
Efficiency Optimization

Learning &
Growth

Culture Leadership Learning Creativity

-Tim Vipond
 Tim Vipond

Top-Down Communication
aka The Pyramid Principle
Lead with your answer,
recommendation, or
key takeaway

Support your
answer or main Main
point with key Insight or
insights / Recommendation
arguments

Supporting Supporting Supporting

Argument Argument Argument

Supporting Data and

Facts

The McKinsey Pyramid Principle is a structured

Backup your communication framework that presents the main conclusion
supporting first, followed by key supporting arguments and detailed
arguments with evidence. This top-down approach ensures clarity, logical flow,
data and facts and efficiency, making it easier for decision-makers to quickly
grasp and act on key insights.
 A
Purpose & Vision

Must-Win Must-Win Must-Win

Battle Battle Battle
B

Strategic Strategic Strategic Strategic

Initiative Initiative Initiative Initiative
C

Enablers
D

Foundational Support – Team, Culture, etc

E

A – What is our reason for being and where do we want to be in 10 years?

B – Strategic choices and where we want to play and do vs not do
C – Specific initiatives that help us win our battles and achieve our vision
D – Capabilities we need to have in place to accomplish our strategic initiatives
E – The foundation of team and culture etc. we need to support everything

-Tim Vipond
 Financial “What do our investors think of us?”
❑ Revenue and Growth ❑ Capital Expenditures
❑ Expenses ❑ Cash Flow
❑ Margins ❑ Assets
❑ Profits ❑ Liabilities

Customer “What do our customers think of us?”

❑ Customer Satisfaction ❑ Refund Rate
❑ Net Promotor Score (NPS) ❑ Market Share
❑ Testimonials ❑ Brand Recognition

Process “What do we need to be good at?”

❑ Inventory ❑ Quality Control
❑ Orders ❑ Supply Chain Management
❑ Production Rate ❑ Procurement
❑ Resources Allocation ❑ Sales, Marketing

Innovation “How do we improve and perform better?”

❑ Employee Satisfaction ❑ Process Improvement
❑ Employee Retention ❑ Use of Technology
❑ New Product Development ❑ Education and Training

The Balanced Scorecard was first introduced by Robert Kaplan

-Tim Vipond
David Norton in a 1992 Harvard Business Review article.
 High market Size of bubble
demand, little indicates revenue
competition, etc opportunity

High Moonshots
DO
Project I
A C
E
OPPORTUNITY

F H

D
B
G

DON’T MAYBE
Low

Low High
Low market
CAPABILITY
demand, lots of Low internal
competition, etc High internal
capability and
capability and
resources to execute
resources to execute

-Tim Vipond
 Strengths Weaknesses
Internal
Internal; things good at Internal; things bad at

Opportunities Threats

External
External; thing to External; things to
pursue defend against

Purpose: To evaluate internal factors (strengths and weaknesses)

and external factors (opportunities and threats) that impact the
business

-Tim Vipond
 Strategic projects
and initiatives to
meet the annual
objectives

KPIs and
Annual targets to
objectives track
towards the progress
long-term goals Who is
responsible
for what

Use the dots

to connect
each goal,
3-5 Year objective,
Goals priority, and
KPI

-Tim Vipond
 • [Insert: organizational design]
• [Insert: mission, vision]
• [Insert: business unit organization]
• [Insert: strategic choices]
• [Insert: communication across units]
• [Insert: internal external analysis]
• [Insert: centralized vs decentralized]
• [Insert: competitive advantage]
• [Insert: strategic initiatives]
Structure

Strategy Systems
Hard S

Soft S

• [Insert: tools and technology]

• [Insert: management processes]
• [Insert: core competencies]
Shared • [Insert: methods of production]
• [Insert: skill gaps] Values • [Insert: service delivery]
• [Insert: employee training and
education]

Skills Style

Staff • [Insert: management style]

• [Insert: talent required] • [Insert: team communication]
• [Insert: insourced v. outsourced] • [Insert: working hours]
• [Insert: employees v. contractors] • [Insert: attitudes and norms]
• [Insert: performance
management and hiring]

-Tim Vipond
 Q1 Q2 Q3 Q4

Review prior
year and
Set
confirm Annual
Corporate
current year Budget
Strategy and
process and
set Targets
strategic
direction
Step

Conduct Develop
strategic Department Communicat
analysis – or Business e and
internal and Unit Level Implement
external Strategies the Strategy

Review last
Debate Create and
year’s
strategic finalize the
performance
alternatives Discussions corporate
and lessons
Complete and trade- between budget All-company
learned
strategic offs corporate communicat
frameworks and business Create and ion on
Confirm steps
and models Financial units finalize strategy
and timing for
modeling of department / sent out
Deliverable the upcoming
business unit
year’s strategic Evaluate different Business
internal scenarios units create budgets Dashboards
process
strengths and plans that and
weaknesses Deliver the map to Evaluate reporting for
Starting
strategic plan corporate staffing KPIs setup
dialogues
Competitive to the Board plan levels
among
business and industry KPIs or
analysis Iterate and Establish OKRs
leaders
align plans KPIs companywi
de

-Tim Vipond
-Tim Vipond
Catastrophic
Threatening 5 A
company’s existence D

Severe
Significant damage to 4 C J B
business

Material
Meaningful impact to 3 E I
the business

Moderate H
Some impact to the 2 G F
business

Minor
Minimal impact to the 1
business

1 2 3 4 5
Remote Low Medium High Extreme
<10% 10-20% 20-50% 50-80% >80%

Legend
Mitigation
A – [Risk Name] F – [Risk Name]
High – Regular action to address risk
B – [Risk Name] G – [Risk Name]

Medium – Occasional action to address risk C – [Risk Name] H – [Risk Name]

D – [Risk Name] I – [Risk Name]
Low – Little/no action to address risk
E – [Risk Name] J – [Risk Name]

-Tim Vipond
 New Business
Diversification
Creation
New
Product/Service

Existing
CORE Value Market Expansion
Maximization

Existing New

Industry/Market

-Tim Vipond
 Assess Growth Capabilities

Rank opportunities based on

probability of smooth execution
(not by business attractiveness)
CAPABILITY
READINESS
Chances of successful
execution

GROWTH
READINESS
STAKEHOLDER RISK
READINESS READINESS
Proof of strong Ability to
buy-in from key mitigate risks
parties

Determine Risk Advantage

Determine Risk Advantage Rank opportunities based on

ability to mitigate risks (not by
Anticipate and address hidden highlighting known risks)
resistance to new investment
priorities.
 ANALYSIS DESIGN PLAN APPROVE EXECUTE

External Conduct Develop Present Execute

Assess macro- strategy plans, strategies approved
environmental trends, workshops to allocate and budgets strategies
industry define key resources, to top and provide
fundamentals, and goals and set prioritize management, regular
stakeholder analysis targets. initiatives, the CEO, and feedback to
Activities and set the Board for the Board.
Internal budgets. final
Conduct internal approval.
performance
evaluations. Portfolio
reviews and financial
modeling.

Research, Fact-based Strategic Detailed Approved

screening, research, goals and strategic strategies,
benchmarking, strategic planning plans, budgets, and
Inputs and industry data. policies, and guidelines budgets, and implementatio
expert from the implementatio n plans.
forums. previous n
phase. frameworks.

A comprehensive Defined A structured Finalized Reports on

board deck and strategic implementatio strategy and performance
financial models aspirations, n strategy and budget and corrective
Outputs summarizing key objectives, finalized approvals. measures, if
findings. and budgets. needed.
guidelines for
planning.

The office of the Office of Office of Board Office of

CEO with support CEO, along CEO, members, CEO,
from finance, with consultants in executives, overseeing
Team corporate corporate collaboration and CEO, execution,
development, and consultants with senior supported by supported by
strategy and top executives. corporate top
leadership. strategy executives.
teams.

-Tim Vipond
 “Change” the “Run” the
Business Business

Approach Approach
❖ New vision ❖ Simplified, lower risk
❖ Continual strategy ❖ Based on existing vision
Trade-offs
development and strategy
❖ Timing driven by ❖ Existing processes
strategic issues, not by a ❖ Timing is calendar driven
calendar ❖ Set trajectory
❖ New capabilities required ❖ Incremental
❖ Use of strategy improvements
development frameworks ❖ Operational efficiency

Deliverables
Deliverables ❖ Updated annual plan
❖ Strategic insights ❖ 5-year forecast financials
❖ Strategic plan
❖ Capabilities build up

-Tim Vipond
 Low growth, high High growth, high
market share market share
Market Share

Low growth, low High growth, low

market share market share

Growth

Purpose: To evaluate the comparative strength of different

products or business units

-Tim Vipond
 Capitalizing on well Innovating to create a
known tactics in an new market with little
established market to no competition

Red Ocean: Blue Ocean:

❑ Proven/existing demand ❑ Speculative/unknown

❑ High competition demand
❑ Focus on outperformance ❑ No competition (yet)
❑ Existing and observable ❑ Focus on innovation
strategies can easily be ❑ Develop new products and
adopted services
❑ Focus on marginal ❑ Creating and capturing new
improvement value for customers
❑ Lower risk (market exists) ❑ Focus on R&D
❑ Focus on market share ❑ High risk / high reward
❑ Competitive pricing ❑ Future and growth oriented
❑ Present and short term
oriented

Red Ocean and Blue Ocean were introduced by W. Chan Kim and Renée
-Tim Vipond
Mauborgne professors at INSEAD in 2005.
 Maintain Grow Grow
Industry Attractiveness

Harvest Maintain Grow

Harvest Harvest Maintain

Competitive Strength

Purpose: To rank and evaluate investments in different business units, products or markets

-Tim Vipond
 Existing HOW TO USE
1 Customers ✓ Identify where your business
currently stands to determine
which degrees of freedom you
should focus on first
New Customers ✓ Analyze the market to
2 determine which growth
opportunities are available
✓ Prioritize your initiatives by
potential impact, risk, etc
New Products/Services ✓ Develop an action plan
3 including steps, timelines, and
metrics for measuring success

4 New Value Delivery Approaches NOTE: The seven

degrees of
freedom are not
mutually exclusive,
and companies
can use most of
5 New Markets & Geographies them to achieve
growth.

6 Partnerships, Mergers & Acquisitions

7 New Competitive Arenas and Industries

-Tim Vipond
 Threat of New
Entrants

Bargaining Bargaining
Industry
Power of Power of
Competition
Suppliers Customers

Threat of
Substitutes

Purpose: To analyze performance gaps and look at where you are

currently vs where you want to go

-Tim Vipond
 Where will we be active?
- Product categories
- Geographies
What’s our sequence of - Market segments
moves? - Channels
- Speed of development
- Order of strategies
- Sequencing
How will we generate
economic returns?
Arenas - Low cost: scale and
efficiency
- Premium price: product
features

Economic
Staging Vehicles
Logic

How will we get there?

Differentiators - Internal development
- Acquisitions
- Partnerships
- License/franchise
How will we win?
- Price
- Brand
- Performance
- Speed to market

Source: Adapted from Donald C. Hambrick and James W. Fredrickson,

“Are You Sure You Have a Strategy?,” Academy of Management -Tim Vipond
Executive 19, no. 4 (2005): 51–62.
 Size of bubble
Very Familiar / indicates
Lowest Risk revenue/earnings
opportunity

Project
Familiar A
C
Level of Familiarity/Risk

F
I

H
Unfamiliar
D
B
J
G

E K L
Uncertain

Time Horizon

Least Familiar / Short Medium Long

Highest Risk
Term Term Term

5+ years
0-1 Years

-Tim Vipond
 The “Ecosystem Economy”
Example: How Apple’s ecosystem
keeps customers locked in
“A complex connected
community of Unique products and
interacting services that
digital/physical goods & historically would have
services” been in segmented
industries

Physical Health &

Devices: Wellness:
iPhone, Mac, Apple Watch,
iPad, Apple Fitness+,
Watch, Health app
AirPods

Effortless
Entertainment: control Productivity &
Apple Music, Communication:
and
Apple TV+, Apple iMessage, email,
mastery calendar, phone,
Arcade, iCloud, over one’s
and Apple Pay contacts
digital life

External
Products &
Software
Service:
Platform:
Apple App
iOS
Store

“The Ecosystem Economy: Customer Need

How to Lead in the New Age of is at the center of
Sectors Without Borders” the ecosystem
by Venkat Atluri and Miklós Dietz Tim Vipond
 V Competitive
Disadvantage
Valuable No

Yes

R Competitive
Parity
Rare No

Yes

I Temporary Competitive
Advantage
Inimitable No

Yes

O Unexploited Competitive
Advantage
Organized No

Yes

Sustained Competitive
-Tim Vipond
Advantage
Framework developed by Jay Barney in 1991.
 Core Competencies
Unify the
Make company and
outsourcing, enhance
divestment and knowledge
partnering sharing across
decisions teams.

Create a
competitive Decide where
position and to allocate
strategies that resources
leverage
strengths
WHY
Core
Competencies
HOW Pursue
alliances,
Isolate key acquisitions
abilities and and licensing
hone them into strengthen
organization- core areas
wide strengths
Benchmark Create an
against peers organizational
to build skills roadmap that
to make unique sets goals for
capabilities competence
building
Core Competencies Criteria
1. Provide unique customer benefits
2. Be difficult to imitate
3. Enable market access

Tim Vipond
 Hypothesis Development Strategy Formation

Objective/Goal Strategy

Recomme Recomme
Driver Driver
ndation ndation

Hypotheses Findings

Questions Facts

Gather Data Complete Analysis

Top-Down Hypothesis Development: Bottom-Up Strategy Formation:

1. Start with an objective i.e. Increase revenue 50% 1. Complete analysis of data gathered i.e. Charts,
2. Identify key driers i.e. Price, volume, product mix graphs, frameworks
3. Generate hypotheses i.e. If we add more 2. Identify facts i.e. Competitor x is charging $y for z
features, our customers will be willing to pay feature
more 3. Generate findings i.e. It looks like customers are
4. List key questions to ask i.e. What features will willing to pay for z
our customers be willing to pay for? 4. Create recommendations i.e. We should build
5. Gather data i.e. Conduct customer interviews and feature z
industry analysis 5. Strategy formation i.e. Our strategy is to take both
market share and wallet share by build features x,
y and z, increase prices q% and increase volume
r%

-Tim Vipond
 Bain Operating Model Bridge

Strategy Bridge Execution

Operating Model
• Mission, Vision, Values • Planning calendar
• Where to play, how to • Roadmap
win • Reinforce key
Account-
Structure
• Specific strategy abilties behaviours
elements: • Performance
• Sources of growth management and
• Drivers of value feedback loops
Governanc Ways of
• Customer needs e Working • Mitigate risks
• Capabilities
• Strategic
initiatives
• Market position Capabilities
• Goals and KPIs

Source: Bain & Company Tim Vipond

 6 Pillar CEO Scorecard
1 2

6 3

5 4

Source: McKinsey

1. Vision, strategy, resource allocation 4. Composition, teamwork, rhythm

2. Relationships, capabilities, meetings 5. Purpose, interactions, crisis mgmt
3. Culture, org design, talent mgmt 6. Time/energy, leadership, perspective

Tim Vipond