The first stage of strategic planning is to see the opportunity, because the opportunity is the view of the future, and everyone has a different view of the future, so it will be "noisy". In the past, Huawei emphasized demand more, and has been demand-driven. Because the original customers are operators, they know what they want, so they will come up with what they want, and they have a clear plan. All Huawei needs to do is translate their requirements into its own strategic plan. Huawei provides customers with support according to their ideas.
But if in a new field, customer capabilities are weak, and demand drive doesn't work. In response to this situation, Huawei has also proposed technology-driven, that is, technological progress and customer demand. Technological progress refers to the ability to make judgments about the future and lead customers. The two drivers of customer demand and technological progress need to twist each other, and in reality it is a "quarrel".
First, do insight: "play mahjong" in the market
Market insights is the first part of BLM, with the goal of explaining what is happening in the market, with a focus on value transfer trends and what these changes mean for the company. Understand customer needs, competitor trends, technological developments, and market conditions to identify opportunities and respond to risks.
In layman's terms, market insight is like playing mahjongThe upper home is the industry trend, the next home is the market and customers, the opposite is the competitor, and the table ** is the opportunity. It is necessary to see clearly the cards played by the other three, but also to figure out the cards in their hands, to see the overall situation of the cards, to find the chance of winning, and then to realize.
1) Look at industry trends.
Let's look at the development of the tech industry. "It's the best of times and it's the worst of times. "Computers, the Internet, and communication technology have all industries under control, and we have the best tools, but no one can survive on their own. What's more, the lines between industries are becoming more and more blurred.
Internet to C businesses have a distinct advantage: they have a lot of user data at their disposal. For example, Tencent has the most complete data in China, and it has actions on WeChat every day. When a company can collect the most complete and authentic data on the market without much effort, it is already ahead of the curve in terms of industry insights. Data is like an inexhaustible gold mine that can be mined indefinitely. Another example is Hema Fresh, whose location is completely data-driven – based on all the online data to speculate that the store is located in ** is the most effective.
2) Look at the customer market.
The purpose of looking at customers is to better strengthen product positioning according to customers' purchase preferences. Taking Huawei as an example, in the past, Huawei only had three customers in China - China Mobile, China Unicom, and China Telecom - Huawei first figured out China Mobile's strategic plan, and then matched its own strategic plan with China Mobile's strategic plan. This is the easiest way, that is, to match the customer's strategy with your own strategy, and to match your own organization with the customer's organization, it is easy to meet customer needs.
3) Look at the opponent.
There are many ways to understand the strategic planning of competitors, and there are direct poaching of competitors' strategic planning teams, but they are only effective at the time and are not recommended. You can also learn a lot of information from ** merchants. One recommended way to do this is to find mutual customers and ask them about the strategic plans of competitors, which is a long-term way to gather information.
The key to insight into competitors is to do the work meticulously enough, and even know the competitors better than the old employees in the competitors, then there is no doubt about victory.
The framework for analyzing competitors includes 18 elements:Profits, market share and trends, product lines, product quality, new products, customer relationships, and costs, growth strategies, financial security, raw material vendors, production capacity, partners and alliances, strategic control points and business models, organizational structure, salary structures and metrics, employee characteristics and culture, mergers and investments, issues. In soccer and basketball, there are several indicators that depict various aspects of an athlete's athletic ability, which then form a radar chart. A company is like an athlete on the field, and we can also draw a radar chart of its competitiveness. Put the same kind of products from different businesses into one radar chart, and if your area of competence covers all your competitors, you're definitely an industry leader.
It is also important to build a moat. Huawei initially followed the path of "the countryside surrounds the city", and after entering the city, Huawei was worried that other competitors would copy its own back path, so it began to produce Honor phones. The Honor phone is specially designed to prevent opponents from "surrounding the city from the countryside". This mobile phone is not very profitable, the purpose is to block competitors, so that competitors of this grade can not make a lot of money, if they don't make money, they can't invest in research and development, and if they don't develop it, it's impossible to surround Huawei.
4) Look at yourself.
The most important thing is to see your strengths and weaknesses clearly. It is not easy to see yourself clearly, especially to see your core strengths. The core advantage has a temporal nature, although everything is possible in the long run, but the advantage established in the short term is the competitive significance.
5) Look at opportunities.
This refers to looking at niche opportunities. There are two main points.
First, the market segment should be large enough and sustainable. For the To B industry, the general market share to 30% or 40% is the ceiling, and it is difficult to break through;The to-c industry is likely to be a winner-takes-all and a monopoly, such as Tencent in the field of instant messaging, which can monopolize the vast majority of the domestic market share.
Second, to be the absolute first in a subdivision. It is difficult to achieve comprehensive leadership, most enterprises are vertically a business has not done a good job, began to expand horizontally, it seems that the business scope is relatively wide, in fact, the organizational ability has not kept up, there is no cadre and technical support, large but not strong. Enterprises should completely penetrate a point vertically, and then expand horizontally.
There are two advantages to vertical opening: one is to get the vast majority of profits in the subdivided field, and only by being the first can you get real profits. Second, the process of being the first will make the organizational ability improve by leaps and bounds, and the management system of the entire organization will be far better than that of the general company.
It will be easier for enterprises to expand into related fields after they have strong organizational capabilities.
Second, set goals.
Strategic intent is the second part of BLM. A company's strategic intent is found through market insights, including vision, strategic goals, and near-term goals. There are financial goals, non-financial goals, efficiency goals, and hill goals. There is only one piece of paper for strategic intent, the less the better, and it is enough to make clear one or two things that are most important. Enterprises should first penetrate a certain subdivision and achieve penetration by doing one or two things well.
Strategy is not about deciding what to do based on your current market position and capabilities, but what you want to do and what market position you want to achieve in five years' time. Strategy forces the organization to make changes, and the organizational structure must be optimized for the strategy.
There are four common questions about strategic intent:
The goal is too large, and due to his own insufficient capabilities, the actions of strategy implementation are deformed, and Yu Chengdong's "bragging" is based on his clear judgment of Huawei's capabilities
The goal is too small, I dare not invest, and I lose the opportunity;
There is no segmentation by product area, region, and customer, and the future growth point and difficult business goals are low, and it is difficult to complete the strategic transformation
I don't know how to arrange income and input, hesitate to invest, and don't know how to control risks.
First, the focus of innovation.
The focus of innovation leads the superior resources of enterprises to gather and help enterprises obtain strategic control points. This answers the question of why we should innovateFor strategic control point innovation,Rather than innovating on an extension of existing business logic. And don't think that innovation is only possible in R&D, and innovation can be possible in any field at any stageMake this known to the whole company. The innovation focus includes future business portfolios, innovation models, and resource utilization。In the different stages of "in the bowl", "in the pot" and "in the field", the focus of innovation is different.
There are two things that must be noted about innovation. First, innovation that does not align with customer needs is pseudo-innovation. Because customer needs are mobile and constantly changing, we are always looking at customer preferences and their trends in change and evolution. Second, "flowers are inserted in cow dung", relying on the existing core advantages to innovate. Innovation should not be separated from the core competence circle, innovation outside the core competence circle will not bring competitive advantage, it is better to directly purchase the right to use patents from the opponent. If you can imitate, don't innovate yourself, which can minimize the risk of innovation.
Second, business design.
The business design has six modules: Customer Selection, Value Proposition, Value Acquisition, Scope of Activities, Strategic Control Points, and Risk Management.
1) Customer Choice – Who are your customers?The customer choice is the market choice, and you choose which market to fight in.
2) Value Proposition – Why do customers choose me?The company's products and services, compared with competitors, bring what kind of unique value to customers?It depends on whether the needs of customers are met, and whether our products and services are guided by the final needs of customers.
3) Value Acquisition – refers to the business model. How do I sell my product?How to make money?Are there other profit models?How do we calculate our revenue, profit, and market share?What do we rely on to attract customers and make a profit?Selling expensive services on a one-off basis and selling cheap services on a continuous basis are two different business models.
4) Scope of activities – position in the value chain and collaboration with partners. The 4P in the traditional 4P theory refers to the product, price, place and promotion, the purpose of analyzing and integrating these elements is to give full play to the core competence of the enterprise, the premise is to see clearly their core competence and shortcomings, and the deficiencies are made up by finding partners.
5) Strategic control point - how to ensure that you continue to have value in the value chain?What are the core competencies and strategic control points?Is it on the right track to shift customer demand?How to protect profits?Qualcomm and ARM's strategic control points are owned by standard;Apple and Microsoft's strategic control point is industrial chain controlThe strategic control point of Tencent (QQ, WeChat) and Amazon (cloud computing) is absolute market share;When it comes to buying air conditioners, I think of Gree, quality is Gree's strategic control point, "good air conditioning, made by Gree";Google is far ahead in the field of software, far ahead in the field of artificial intelligence, basically no enterprise can catch up in a short period of time, and technological leadership is Google's strategic control point;Huawei's products in the field of communications have the world's highest hardware level, which is Huawei's strategic control point.
6) Risk management – avoid, take, utilize, reduce and share. In the product development and manufacturing phases, Huawei attaches great importance to the management and control of possible unexpected risks, which is also known as business continuity management (BCM) within Huawei. The object of risk management includes both external and internal risks, and wars and natural disasters are not considered here. External risks include policy risks, industrial risks, customer change risks, demand change risks, interruption risks, steep decline risks and exchange rate risksInternal risks include technology realization risk, brain drain risk, product schedule lag risk, cost exceeding expected risk, key material shortage risk and insufficient production capacity risk. Risk management is only when there is a response strategy after identifying the risk and decomposing and implementing it. Risk management measures include avoidance, acceptance, utilization, reduction and sharing.
First, the key to implementation is authorization.
Many companies have problems with strategy execution, and it's not a matter of monitoring, it's a matter of delegation. Only when the problems are solved in terms of strategic consensus, resource allocation, capacity building, and the priority handling of the entire contradiction can the strategy be implemented. Otherwise, if everyone only agrees verbally, there will be many problems when it is actually done, the entire incentive and reward system will not be changed, and the strategic plan will not be able to be implemented.
Second, enterprises should form their own style.
What is the strategy?If the environment of a place is suitable for sheep to survive, sheep can survive. If there are a bunch of tigers and wolves in this place, the average sheep will not survive. If the place were a body of water, the fish would survive, but the land animals would not. Strategic planning is to build the ability of the enterprise, match the characteristics of the market, match the enterprise to survive, do not match the enterprise can not survive.
Enterprises should form their own style and find the characteristics that are suitable for the industry. In some industries, where technology changes slowly and for decades, scale, cost, quality and delivery play a key role and companies need to build a competitive advantage. If the problem of survival and food and clothing are solved, it is necessary to build competitiveness around the experience, so Apple came out, whether it is iPod, iMac or iPhone, Apple has always advocated experience, and would rather close the system than do a good job in customer experience, so the value is very high. The essence of the company is to adapt to the characteristics of the market, give full play to the ability, and constantly gain competitive advantages. This is the style of a business or organization.
Huawei's chosen style is to win by meeting customer needs and technology in areas where technology is changing rapidly, and to use next-generation technology to win over competitors in technological transformation. The strategy is to build capabilities for a certain point, and insist on building this capability, and do the business within the scope of the capability, and do not do the business beyond the scope of the capability. The specific competition tactics are also matched with this, and the way of thinking, process system, and incentive system are also matched accordingly.
Third, the four key elements of strategy implementation.
There are four key elements of strategy execution: key tasks and dependencies, formal organization, talent, atmosphere, and culture.
Critical tasks and dependencies: Necessary for business design and value proposition, the organization needs to know which tasks need to be done by itself and which can be done by partners. Interdependencies between organizations are the foundation of effective business design.
It's the organization: To ensure that critical tasks and processes are executed effectively, there is a need to establish appropriate organizational structures, management and assessment criteria, including roles of people, management and evaluation, rewards and incentives, career planning, and the physical location of people and activities. It allows managers to guide, control and motivate individuals and collectives to accomplish important tasks for the team.
Talent: refers to the characteristics, ability and competitiveness of human resources. For a strategy to be executed effectively, employees must have the capacity, motivation, and actions to implement critical tasks.
Atmosphere & Culture: Creates a good work environment that motivates employees to accomplish critical tasks. A positive atmosphere inspires people to do great things, they work harder, and they can be inspired to tolerate failure in times of crisis.
Fourth, strategic physical examination.
A strategic physical examination is an assessment of strategic and operational alignment.
We're going to ask in the dimension of critical tasks and dependenciesBased on the business design, do we have a clear idea of what key tasks are to be accomplished?What are some of the things we need to execute well in order to provide business design?
We're going to ask in the formal organization of this latitude:Does the organizational structure support the implementation of key activities?Do we need to redesign the organization to accomplish mission-critical tasksIs the evaluation system consistent with the strategy?
We want to ask from the perspective of talent:Do we have the skills we need to get the job done?Do we have the necessary training for business design?Do we have the ability or do we need to find outside resources?
We have to ask in the latitude of atmosphere and culture:Does value support business direction?What kind of culture do we need to cultivate?
When we keep asking these questions, we are doing a strategic physical examination, which is also a process of continuous strategic alignmentFrom market insight to forming strategic intent, to innovation, to next-generation business design, generating key strategic control points, then breaking down to key tasks, and allocating resources such as people, money, and IT to support key tasks, this process achieves strategic decoding from customers to resources. To build the strategy on the process of the organization is to make it all the documents decoded by the above strategy and embed them in every aspect of management.
Only by using the process to restrain people's behavior can the strategy be implemented. If the process of decoding the above series of strategies is correct, the next step is to initiate the project, pass the review and implementation.
The company's strategy is not something that can be done well by listening to it, but needs to participate in in-depth Xi and simulation training, try and explore in practice, and finally form a unique strategic management system for each enterprise.