Business Concepts for Biomedical Scientists: Strategic Toolkits

Part 1: Environmental Assessment Toolkit

00:00:13:06 - Welcome back to Business Strategy as a Scientific Skill.
00:00:15:24 My name is Deborah Dauber,
00:00:16:28 and in this lecture, I'll be walking you
00:00:18:10 through the environmental assessment toolkit.
00:00:21:07 By the end of this class, you will be able to describe
00:00:23:28 commonly used tools for environmental assessments,
00:00:27:03 understand benefits of doing the analysis,
00:00:29:13 identify which tool applies best in a given setting,
00:00:32:11 and finally, use one or more of these tools
00:00:34:10 to describe the operating environment
00:00:36:00 of a scientific enterprise.
00:00:38:04 Let's start by revisiting the definition of strategy.
00:00:41:05 In an earlier lecture, we defined strategy
00:00:43:17 as being how a scientific enterprise
00:00:45:14 plans to conduct activities in order to achieve
00:00:48:03 a set of overarching goals.
00:00:49:19 Here's how this breaks out when an enterprise
00:00:51:18 is actually developing a strategy.
00:00:53:14 They'll start by thinking about their current state.
00:00:56:03 What are their mission and values?
00:00:58:00 They'll do a little internal assessment
00:00:59:17 and think about what their strengths are,
00:01:01:04 what their weaknesses are, what their core capabilities are.
00:01:03:25 And of course they'll also do an environmental assessment,
00:01:06:13 where they think about their operating environment,
00:01:08:13 whether that be a market or a research environment,
00:01:11:00 anywhere where they plan to operate and achieve their goals.
00:01:14:20 Then they'll think about their desired state.
00:01:16:23 What's their vision and what are their long-term objectives?
00:01:19:08 Or put another way, where do they want to be
00:01:21:09 at the end of the strategy period?
00:01:23:03 The strategy is then simply a set of objectives
00:01:26:03 that are prioritized and written in detailed form
00:01:28:26 that tell the enterprise how to get from their current state
00:01:31:22 to their desired state.
00:01:33:26 Today, we're gonna focus in on tools
00:01:36:00 that help with that environmental assessment.
00:01:39:03 So why do we need tools to evaluate the environment?
00:01:41:19 It turns out, environmental assessments
00:01:43:06 are incredibly complex.
00:01:44:25 Let's take this enterprise that wants to sell this product.
00:01:48:10 Well, of course, first they're gonna think
00:01:49:19 about their customers.
00:01:50:27 Customers can be an incredibly simple group
00:01:52:29 but they can also be very complex.
00:01:55:03 In the pharmaceutical industry,
00:01:56:16 customers include patients, doctors,
00:01:59:11 hospitals, public payers, private payers,
00:02:02:18 and any one or more of these can combine together
00:02:05:13 to make a decision about how a patient is treated.
00:02:07:20 So the customer set is incredibly complex.
00:02:11:04 The next set of stakeholders a company
00:02:12:24 might think about is the distributors.
00:02:15:02 How do you get your product to your customers?
00:02:17:17 This could be as simple as the click of a button
00:02:19:12 if you're selling software or it may involve shipping,
00:02:22:20 storage, distribution, resellers, and any one or more
00:02:26:15 of those stakeholders could be critical to your strategy.
00:02:30:17 You also have to think about suppliers.
00:02:32:28 Are your suppliers consistent or inconsistent?
00:02:35:20 Is there a seasonality to your supply?
00:02:38:02 Do you need to think through the supply
00:02:40:02 and how you get your supplies in order to make your product?
00:02:44:11 Competition.
00:02:45:15 Of course there are direct competitors,
00:02:47:05 especially if you're in a commercial industry.
00:02:49:17 Other companies trying to sell products
00:02:51:16 to meet the same need you're trying to meet.
00:02:53:23 But also competitors can be a little more indirect
00:02:56:10 than that, it could be any option out there
00:02:58:23 that your customers may choose instead of your product
00:03:01:14 in order to meet their needs.
00:03:02:29 So competition is, of course, a really critical piece
00:03:05:11 to think through in developing your strategic plan.
00:03:08:14 And then there are a series of forces
00:03:10:22 that are indirect, not necessarily tied
00:03:12:21 to any one stakeholder but nonetheless
00:03:14:15 affect your operating environment.
00:03:16:06 This could include regulatory agencies,
00:03:18:13 economic trends, technology trends,
00:03:20:21 anything that affects your ability to achieve your goals.
00:03:24:00 So as you can see, there are a lot of things
00:03:26:07 to think about in an environmental assessment.
00:03:28:10 And this is where the tools come in.
00:03:30:07 Assessment tools are a framework.
00:03:31:28 They help you to facilitate conversations,
00:03:34:10 organize your knowledge and maintain focus
00:03:37:06 as you think through your environment.
00:03:39:25 Today, we're gonna talk about three different tools
00:03:42:10 used in environmental assessments.
00:03:44:00 The SWOT, the PEST, and the Four Corners.
00:03:47:06 Let's start with the ubiquitous SWOT.
00:03:50:04 SWOT stands for Strengths, Weaknesses,
00:03:53:12 Opportunities, and Threats.
00:03:55:11 And they're arranged in a grid and as you can see,
00:03:58:03 the columns refer to whether an attribute
00:04:00:17 is positive or negative.
00:04:02:11 And the rows refer to whether it's internal or external.
00:04:06:11 Let's take an example SWOT.
00:04:07:28 Let's say I'm a pharmaceutical company
00:04:09:29 and I wanna sell product X.
00:04:11:26 I'm gonna think through my own attributes for this SWOT.
00:04:15:00 What are my strengths?
00:04:16:05 Well, my product is very convenient.
00:04:17:26 I'm please with this.
00:04:18:22 The patient can choose between oral
00:04:20:20 or subcutaneous formulations, whichever works best for them.
00:04:23:28 We were also the first to market,
00:04:25:28 and we have broad approvals.
00:04:27:12 And because of that we have a lot of market share,
00:04:29:21 and very high awareness.
00:04:31:02 These are all attributes we can take advantage of
00:04:33:03 in our plan.
00:04:34:16 We have some weaknesses, though.
00:04:36:09 Our efficacy is perceived by our customers
00:04:38:16 to be weaker than that of the competition.
00:04:40:19 And we're also missing data in a key patient set.
00:04:43:03 And those two weaknesses are attributes
00:04:45:04 we have to think about compensating for in our plan.
00:04:47:26 Also our product requires fasting
00:04:49:17 before administration, which makes it
00:04:51:13 a little less convenient than we'd like it to be.
00:04:54:17 We also have some opportunities.
00:04:56:14 We've been working in our labs
00:04:57:24 and we have a new, more convenient formulation
00:05:00:16 that will help patients to have to dose less often.
00:05:03:09 We can take advantage of that launch
00:05:05:00 to help talk to patients about something new.
00:05:07:18 We also, because we've been out in the market
00:05:09:16 for such a long time, and we have such a large share,
00:05:11:23 we have fantastic relationships with our distributors.
00:05:14:11 And we may choose to leverage those
00:05:16:01 to try to get better deals, better contracts in place.
00:05:19:10 And finally, we've been thinking about doing a DTC,
00:05:22:11 or direct-to-consumer campaign,
00:05:24:07 that would allow us to capture new patients.
00:05:27:12 Finally, let's think about the threats.
00:05:29:13 Well, unfortunately, our competitor
00:05:30:24 has also been hard at work and they
00:05:32:18 are getting ready to launch a new product of their own
00:05:35:07 that will be more efficacious and more convenient than ours.
00:05:38:13 So that will be a threat to our market share
00:05:39:28 when they do that launch.
00:05:41:11 Also, our customers have been increasingly dissatisfied
00:05:44:00 with our price increases, and finally,
00:05:46:07 and perhaps most importantly, in three years
00:05:48:17 our patent is gonna expire and we need
00:05:50:10 to start thinking about how much money
00:05:52:16 we wanna invest in this program,
00:05:54:00 and when is the right time to just kinda let it go
00:05:56:14 until the generic erosion hits us
00:05:58:11 and we lose those revenues.
00:06:00:06 So as you can see as I work through the SWOT,
00:06:02:17 even now I'm starting to think about ideas
00:06:04:19 for where my strategy needs to go.
00:06:07:17 When do you use a SWOT?
00:06:09:00 Well, the benefits of the SWOT
00:06:10:05 are that it's widely applicable and well understood.
00:06:12:19 It's a fantastic tool if you wanna walk into a meeting
00:06:15:21 and start getting your whole team
00:06:17:00 onto the same page quickly.
00:06:19:04 Drawbacks?
00:06:19:29 It's a little bit less comprehensive than a dynamic market.
00:06:22:22 There's nothing to say you can't consider trends
00:06:24:27 in regulatory or economic factors when you're doing
00:06:28:28 your SWOT, but it doesn't explicitly call for them
00:06:31:12 and you really have to think that through
00:06:32:22 if you're using the SWOT.
00:06:34:09 The ideal setting is in stable markets
00:06:36:11 where competition is the most important
00:06:38:07 environmental driver, and in fact,
00:06:40:01 SWOTS are used quite commonly
00:06:41:18 in the pharmaceutical industry.
00:06:43:06 Before I leave the SWOT I wanna also point out,
00:06:45:06 not only is this an environmental assessment tool,
00:06:47:19 it's also fairly commonly used
00:06:49:03 for internal assessment, as well.
00:06:52:03 Our second tool we're gonna talk about today
00:06:53:23 is the PEST.
00:06:54:28 PESTs are really useful for validating
00:06:56:26 environmental forces, and for PEST,
00:06:59:00 I'm gonna take a more academic approach
00:07:00:24 to describing each of these forces.
00:07:02:22 The forces we're looking at are political,
00:07:04:28 economic, social, and technological.
00:07:08:03 Let's think through what this might mean for a lab,
00:07:10:01 particularly a lab doing some cutting edge research.
00:07:12:18 For political, what's the regulatory environment,
00:07:14:19 and what are the trends?
00:07:16:01 Who are the congressional advocates or detractors?
00:07:18:08 This might be particularly important if you're, say,
00:07:20:07 doing stem-cell research and you wanna know
00:07:23:02 if you're gonna be able to continue to operate
00:07:25:06 in an increasingly conservative environment.
00:07:28:01 Economic trends.
00:07:29:06 What are the budgets of your funder or funders,
00:07:31:05 and are those budgets likely to increase
00:07:32:26 or decrease over the coming years?
00:07:34:18 Also, what are the institutional finances
00:07:37:00 of the institution in which your lab is based?
00:07:39:17 What kind of constraints do those finances
00:07:41:15 put on your lab?
00:07:43:10 Social.
00:07:44:05 What are the public perceptions of your technology,
00:07:46:14 not just the overall general public,
00:07:48:16 but also your scientific community?
00:07:50:14 What are the hot research areas
00:07:51:27 and what kind of articles would make your peers
00:07:54:09 and your colleagues most excited to see published?
00:07:57:09 And finally, technological trends.
00:07:59:15 What kind of available research tools
00:08:01:03 and supporting science is there
00:08:02:11 that you can build upon?
00:08:03:19 And also, what are competing technologies
00:08:05:13 in some of the competing labs that you need to stay aware of
00:08:08:01 as you embark upon your research program?
00:08:12:00 When would you use the PEST?
00:08:13:14 Well, clearly the PEST gives a very nuanced consideration
00:08:15:29 of influences from indirect stakeholders
00:08:18:08 and it can capture unknowns in a changing landscape.
00:08:22:01 Drawbacks.
00:08:22:26 There is somewhat less familiarity,
00:08:24:06 so if you bring it out in a group,
00:08:25:18 you might need to take some time
00:08:26:25 to explain it to them and talk them through it.
00:08:29:08 It's also unhelpful when the PEST forces themselves
00:08:31:24 are constant and the same for all competitors.
00:08:33:29 You'll spend a lot of time turning
00:08:35:11 and not really creating anything useful.
00:08:37:26 So the ideal setting for the PEST tool
00:08:40:05 is when there is new technology
00:08:41:18 or technology pushing social norms.
00:08:43:29 When there's an unknown or untested regulatory environment.
00:08:47:03 And here we have a couple headlines, for instance,
00:08:50:02 CRISPR work, or growing human replacement organs in animals.
00:08:54:20 These are areas where these scientists,
00:08:57:06 whether explicitly or informally,
00:08:59:03 have probably thought through some of these forces
00:09:00:21 before they started in on their research.
00:09:04:01 Our third and final tool that we're gonna talk about
00:09:06:05 in this course is the Four Corners tool.
00:09:08:04 And Four Corners is really useful
00:09:09:24 for getting inside of the head
00:09:11:05 of a competitor or a stakeholder.
00:09:13:08 Using the Four Corners tool, you think through
00:09:15:04 a stakeholder using four different parameters.
00:09:17:14 The drivers, the strategy, their assumptions,
00:09:20:20 and their capabilities.
00:09:21:27 Let's walk through each of those.
00:09:23:10 Drivers.
00:09:24:13 What is this enterprise's goals and values?
00:09:26:29 What is their culture?
00:09:28:02 How are they organized?
00:09:29:08 What's their philosophy?
00:09:30:18 Basically, how do they make decisions
00:09:32:06 and what's important to them?
00:09:33:29 Second, their strategy.
00:09:35:16 How have they described their strategy?
00:09:37:21 What kind of investments have they made?
00:09:39:10 What kind of relationships do they have?
00:09:41:07 How successful have they been?
00:09:42:17 Are they likely to continue on
00:09:44:00 with this same course of strategy
00:09:45:21 or are they likely to think about changing it?
00:09:48:15 Assumptions.
00:09:49:17 What do they assess their own strengths
00:09:51:15 and weaknesses as?
00:09:52:22 How do they assess the market?
00:09:54:15 Do they think they're strong in a strong market
00:09:56:24 or weak in a strong market?
00:09:58:16 How might that affect their strategy?
00:10:01:06 And finally, their capabilities.
00:10:02:27 What kind of assets and competencies
00:10:04:25 does this company have?
00:10:05:24 How adept are they to make changes
00:10:08:03 if they need to in their strategy?
00:10:09:19 How might this affect their ability
00:10:11:07 to be nimble in the market?
00:10:14:05 So clearly, as you've seen, the Four Corners
00:10:16:03 is a really useful tool for creating
00:10:17:22 an in-depth profile of another stakeholder,
00:10:20:05 and really anticipating their strategies.
00:10:22:26 Some drawbacks are that it is a lot of work
00:10:25:03 and it captures only one competitor at a time,
00:10:27:03 or one stakeholder at a time, so if you're interested
00:10:29:04 in multiple stakeholders you do have to do the work
00:10:31:00 for each one separately.
00:10:32:27 The ideal setting for Four Corners
00:10:34:26 is anticipating competitive strategy
00:10:36:21 particularly in the absence of data.
00:10:38:16 Really getting in the headset of these other stakeholders.
00:10:41:15 An added little bonus is if you're looking for a job,
00:10:44:00 you can use Four Corners to evaluate
00:10:45:20 a potential employer and really think through
00:10:47:27 where you think their strategies are gonna go
00:10:49:29 and how you feel about that.
00:10:52:07 So let's revisit now the structure of strategy.
00:10:55:02 In this lecture, we've been exploring several tools
00:10:57:13 that help with the environmental assessment
00:10:59:06 for an enterprise.
00:11:00:04 And to some extent, the internal assessment as well.
00:11:03:04 These tools are used all the time
00:11:04:17 in a corporate setting, by commercial groups,
00:11:07:00 strategy groups, corporate development groups,
00:11:09:15 and can also be applied very well in a lab setting
00:11:12:02 by leaders of the lab group or groups.
00:11:14:22 I wanna also point out that these tools
00:11:16:15 are really useful for you personally
00:11:18:14 as you plan your career or your research plan
00:11:20:26 to think through what your own personal strategy is.
00:11:24:15 And that brings us to the completion of this lecture
00:11:26:22 on environmental assessment toolkit.
00:11:28:24 At this point you should now be able to describe
00:11:31:02 commonly used tools for environmental assessments,
00:11:33:24 understand benefits of doing the analysis,
00:11:36:02 identify which tool applies best in a given setting,
00:11:38:23 and use one or more tools to describe
00:11:40:14 the operating environment of a scientific enterprise.
00:11:42:26 Thanks for joining me today.

Part 2: Toolkit for Developing Strategy

00:00:13:07 - Welcome back to Business Strategy
00:00:14:19 as a Scientific Skill.
00:00:16:03 I'm Deborah Dauber and in this lecture
00:00:17:18 I'll be walking you through a toolkit
00:00:19:02 for developing strategy.
00:00:21:06 By the end of this class you should
00:00:22:18 be able to describe the key elements
00:00:24:06 of an enterprise's strategy,
00:00:25:27 understand a few common tools used
00:00:27:18 to facilitate strategy development and when to use them,
00:00:30:23 be able to draft SMART objectives,
00:00:32:23 and understand the value of monitoring
00:00:34:09 progress towards goals.
00:00:36:24 So let's revisit the structure of strategy.
00:00:39:10 As we discussed in the prior course,
00:00:40:27 the general process for an enterprise
00:00:42:19 to develop a strategy involves
00:00:44:15 first assessing their current state
00:00:46:15 and setting what their desired state is,
00:00:48:23 and then the development of strategy
00:00:50:05 is simply a matter of developing
00:00:51:19 a list of prioritized specific objectives
00:00:54:11 to follow in order to get from
00:00:56:12 the current state to the desired state.
00:00:58:08 In this course today we're gonna talk
00:00:59:25 in a little bit more detail about tools
00:01:01:14 that help in the development of the strategy itself.
00:01:04:10 It's actually a very simple process.
00:01:06:15 First, generate as many ideas as possible.
00:01:09:07 Second, prioritize those five or ten
00:01:11:23 most critical ideas that have to happen
00:01:14:10 in order for the enterprise to achieve their goals.
00:01:16:15 And finally, get specific on those high priority objectives.
00:01:20:11 For each of these I'm gonna walk through
00:01:22:01 the goal, the step, and also some tools
00:01:24:19 that will help in getting there.
00:01:26:13 First, generation of ideas.
00:01:28:20 What are some ways you can generate ideas?
00:01:30:15 Well first off on here, this slide,
00:01:32:13 we have the tried and true facilitated brainstorm.
00:01:35:04 Many of you have probably experienced this
00:01:36:28 in your own off-sites or retreats yourself.
00:01:39:10 It involves a team of people, usually a couple stacks
00:01:41:29 of sticky notes, and you generate as many ideas
00:01:44:16 as possible and literally just post them
00:01:46:04 up on a whiteboard to think about.
00:01:48:06 This is also something an individual
00:01:49:23 can do on their own, I recommend finding
00:01:51:17 as creative a spot as you can and then
00:01:53:24 just generate as many ideas as you can.
00:01:56:18 Sometimes in a corporate setting
00:01:58:19 we'll choose to generate ideas using
00:02:00:09 a little bit more of a structured approach.
00:02:02:06 One example of this is war games.
00:02:04:17 War games is the only tool I'm gonna
00:02:06:08 be talking about in this lecture
00:02:07:16 that really requires a team, and that's because
00:02:09:29 in war games you take your team
00:02:11:17 and you break yourself up in to smaller groups.
00:02:14:02 Each group represents a company,
00:02:15:27 whether that be your regular employer,
00:02:17:21 or one of your competitors, and you go through
00:02:19:29 a series of breakouts in which each group
00:02:21:21 goes off and thinks through what are the
00:02:23:23 most likely strategies that that company
00:02:26:07 they're representing in the exercise
00:02:28:03 is gonna develop in response to the market conditions.
00:02:31:15 After the breakout everyone comes back together
00:02:33:17 and talks about all the strategies
00:02:35:02 that have been developed and specifically
00:02:36:29 thinks about what that means for
00:02:38:10 your main company, and what kind of strategies
00:02:40:29 you need to develop to be ready
00:02:42:14 for each of those competitive plans.
00:02:44:16 It's a little bit of a convoluted process
00:02:46:08 but it's great for generating ideas
00:02:47:26 that are really robust in a competitive market.
00:02:51:02 And finally, there are some checklists
00:02:53:05 that are available to help make sure
00:02:54:15 you're thinking about every aspect
00:02:56:04 of your strategy as you develop it.
00:02:58:08 The checklist I have shown here
00:02:59:18 is called the four Ps, and it's used
00:03:01:02 really commonly by marketing groups
00:03:03:02 to think through each aspect of
00:03:04:17 a marketing plan that's really critical.
00:03:06:15 In this case, it's product, price,
00:03:09:16 placement, and promotion, and a good strong
00:03:12:06 marketing plan will incorporate
00:03:13:28 aspects of each of these pieces
00:03:15:21 into their final marketing plan.
00:03:17:22 Whatever strategy you use, facilitated brainstorm,
00:03:20:24 a more structured approach or a checklist,
00:03:23:25 the goal of this first part of strategy development
00:03:26:03 is just to get as many ideas on the table as you can.
00:03:29:10 The second step is to prioritize them.
00:03:33:24 Our first option on prioritizing
00:03:35:15 is again a tool you've probably used before,
00:03:37:28 either voting or forced ranking within a group,
00:03:40:16 just to pick what are the top three
00:03:42:12 or five or ten, whatever's a manageable amount,
00:03:45:09 number of objectives to include in your strategy plan.
00:03:49:28 Sometimes, if a company or a lab
00:03:52:01 has a bunch of projects going on
00:03:53:24 it can be a little bit difficult
00:03:55:05 to figure out relative priorities of different projects.
00:03:57:25 And for that there's a whole set of tools
00:03:59:25 that we'll talk about as two-factor matrices.
00:04:02:26 A two-factor matrix is really just
00:04:04:21 a simple data visualization tool
00:04:06:26 that helps to compare programs.
00:04:08:22 Typically the axes represent program strength
00:04:11:18 and program desirability and then you map
00:04:13:28 the programs on to your axes and the size
00:04:16:22 of the bubble or sometimes the formatting
00:04:18:09 of the bubble reflects program costs,
00:04:20:27 program revenues, growth trajectory, etc,
00:04:23:20 any factor that seems relevant in your prioritization
00:04:26:19 and your strategy development.
00:04:28:15 And this then completed matrix allows
00:04:30:19 you to compare cost-benefit of each program
00:04:32:25 and determine some high-level strategy.
00:04:35:01 I'm gonna now walk you through three
00:04:36:11 different examples of a two-factor matrix,
00:04:38:22 but I want you to keep in mind that
00:04:40:16 there are many different variations
00:04:42:01 you could choose from and in developing
00:04:43:20 a strategy it's best to pick those
00:04:45:23 factors that are most critical for your setting.
00:04:49:05 Here's the first example.
00:04:50:16 This is a growth-share matrix.
00:04:52:13 On this matrix the x-axis, which I'm gonna
00:04:54:24 point out increases counter-intuitively
00:04:57:03 to the left, is market share
00:04:59:18 and the y-axis represents market growth.
00:05:01:29 Depending on where each program hits this matrix
00:05:05:02 tells you a little bit about what
00:05:06:13 kind of strategies you want to be considering.
00:05:08:23 In the upper left quadrant you have programs
00:05:10:26 that have both high-market share
00:05:12:13 and are in high-growth markets.
00:05:14:08 These are great programs, they're the stars.
00:05:16:16 A company will invest in these programs
00:05:18:11 because they're producing lots of revenues
00:05:20:14 and it's basically all system go,
00:05:22:03 you really want all your programs
00:05:23:16 to be in this upper left quadrant.
00:05:26:11 In the lower left quadrant you have programs
00:05:28:13 that are high in shares still but maybe
00:05:30:14 in a small growing market or even a shrinking market.
00:05:33:24 These are the cash cows.
00:05:35:09 These programs make a lot of money
00:05:36:28 and so the company is gonna keep them around,
00:05:38:23 but they may or may not invest
00:05:40:08 any new money in because market
00:05:42:15 is not growing as much as it could be.
00:05:44:16 Now if the company feels they can invest
00:05:46:10 in a cash cow and move it upwards
00:05:48:02 in to that star category, it will,
00:05:49:28 otherwise it's probably not worth investing in a cash cow.
00:05:53:27 In the lower right we have programs
00:05:55:29 that have a low share and are in a low-growing
00:05:58:09 or even shrinking market, these are the dogs.
00:06:01:06 Typically the guidance on a dog is to divest.
00:06:03:26 You wanna get rid of that program because
00:06:05:22 it's just not worth it for the company.
00:06:07:26 Now I wanna make the point that
00:06:09:04 dog is a relative term.
00:06:10:27 For a big pharma company who wants
00:06:12:16 a blockbuster drug, that's a drug that nets
00:06:15:03 a million, a billion dollars per year,
00:06:17:11 a fifty million dollar product is a dog,
00:06:19:18 it's really not worth it for them to invest in it.
00:06:22:03 However, for a young biotech company
00:06:24:09 that just wants to get some revenues
00:06:25:27 or maybe wants to get some experience
00:06:27:13 selling drug that same fifty million dollar drug
00:06:30:25 is a huge boon, it's a star for them.
00:06:33:10 And so typically that's why you see
00:06:34:26 dogs are divested rather than killed
00:06:37:02 because that program still has value
00:06:39:07 for some company out there.
00:06:41:11 And finally we have the upper right quadrant.
00:06:43:27 This is a quadrant where your share is low
00:06:45:19 but you're in a growing market
00:06:47:03 and you have to think a little bit more
00:06:48:18 about the strategy for this program.
00:06:51:07 Clearly if you can invest and move that over
00:06:53:18 into high-share high-growing market,
00:06:56:00 make it a star, that's what the company is gonna do.
00:06:58:16 Sometimes you just can't move the share
00:07:00:04 or for whatever reason it doesn't make sense
00:07:02:01 to invest so a company may do a variety
00:07:04:03 of different things with the program in that matrix.
00:07:06:19 Whatever it be, wherever the program is,
00:07:08:11 you can see that these matrices already start
00:07:10:05 to give the company a sense of prioritization,
00:07:12:25 where to put resources, where to invest,
00:07:15:12 and where maybe to divest some programs.
00:07:18:25 Another variation on the two-factor matrix
00:07:21:01 is the attractiveness-strength matrix.
00:07:23:03 In this case the x-axis represents
00:07:25:04 program strength which may include
00:07:26:25 market share but also might include
00:07:28:13 other factors such as marketing ability,
00:07:30:16 and on the y-axis we have market attractiveness
00:07:33:07 which again will involve market growth
00:07:35:07 but may also involve market size
00:07:37:01 or other factors that make the market
00:07:38:26 particularly attractive to your enterprise.
00:07:42:12 This matrix is interpreted very similarly
00:07:44:22 to the prior one in that the closer
00:07:46:06 you get to the upper left the more the companies
00:07:48:17 like to invest and really try to milk as much
00:07:51:06 as they can out of that program.
00:07:52:25 The more you're in the lower right
00:07:54:18 the more the company is gonna think about
00:07:57:07 divesting and maybe getting rid of that asset.
00:07:59:26 The yellow ones kind of in the middle,
00:08:01:18 if the company feels like they can invest
00:08:03:13 and push it in to the upper left quadrant they will,
00:08:05:28 but there may be other factors at play for those programs.
00:08:10:29 I wanna now walk you through an example
00:08:12:17 of a two-factor matrix that's used
00:08:15:02 more commonly in the non-profit world.
00:08:17:06 In this case the x-axis, now increasing to the right,
00:08:21:08 is profitability of a program,
00:08:23:11 and the y-axis is impact.
00:08:25:11 Now a non-profit program, a non-profit organization
00:08:28:13 doesn't care as much about profits
00:08:30:18 as they do their mission, so in this case
00:08:32:28 impact involves alignment with the mission,
00:08:35:20 it involves scale and depth of engagement,
00:08:38:00 and it involves availability of alternatives.
00:08:40:20 So if I'm running a non-profit organization
00:08:42:23 that's providing job services and I offer
00:08:46:00 a career training session but so does everyone else
00:08:48:14 and my clients have many options,
00:08:50:03 that's gonna have less impact than if I'm in an area
00:08:52:09 where there really is a lack of career training services
00:08:55:10 in my area and I'm the only game in town.
00:08:58:11 When you map the programs on to the two-factor matrix
00:09:01:18 the size of the bubble in this case
00:09:03:04 reflects the annual budget of the program,
00:09:05:02 which often is far more impactful to the non-profit
00:09:07:24 than the profitability of the program.
00:09:10:00 So for example if I'm looking at this
00:09:11:22 now as a non-profit and I'm trying to figure out
00:09:13:22 my relative strategies, this career workshop
00:09:16:16 program here is really nice, I like it,
00:09:18:27 it's very high-impact, it loses a little money
00:09:21:21 but not too much, as a non-profit
00:09:23:12 I'm very excited about that program.
00:09:25:17 My online resources on the other hand,
00:09:27:08 they're not so impactful and I'm not losing
00:09:29:17 a lot of money but if they start losing more money
00:09:32:18 I might start thinking about removing
00:09:34:05 those online resources, or at least not investing
00:09:36:18 in them because it's not the biggest impact,
00:09:39:05 as a non-profit I wanna make a lot of impact.
00:09:42:11 Now this is for non-profits, but if you wanted
00:09:44:23 to then continue to convert this matrix
00:09:46:21 towards an academic setting you might
00:09:48:14 replace profitability with productivity.
00:09:50:21 So you have a two by two matrix now
00:09:52:27 where you're looking at productivity
00:09:54:06 of your programs on one side and impact on the other,
00:09:57:09 and maybe budget is the size of the circle
00:09:59:15 and you can see how that already starts
00:10:01:00 to get you thinking about which research
00:10:03:03 programs you wanna continue in your lab.
00:10:06:26 So now in this process we've developed
00:10:09:11 a long list of options and we've prioritized,
00:10:11:21 now it's time to make our most critical objectives
00:10:14:18 as specific as possible, and specifically
00:10:17:01 we're gonna get SMART by writing
00:10:18:21 the objectives in SMART format.
00:10:20:23 Many of you may have used this yourself
00:10:23:04 and you'll be happy to hear it's a good
00:10:24:12 career skill because SMART objectives
00:10:26:15 are used everywhere throughout the industry.
00:10:29:07 So SMART stands for specific, measurable,
00:10:32:20 depending on who's trained you
00:10:34:12 either actionable or attainable,
00:10:36:18 relevant or realistic, and time-based.
00:10:39:07 The critical thing about SMART goals
00:10:40:27 is that they're very specific,
00:10:42:05 they're very time-based and it's something
00:10:43:24 you can actively monitor over the course of time.
00:10:47:14 Here's some examples of some not-so-SMART goals
00:10:49:19 and then the SMART iteration of them.
00:10:51:20 Not-so-SMART goal might be grow market share.
00:10:54:13 It doesn't really mean a lot in
00:10:55:28 the absence of any other context or data.
00:10:58:25 The SMART version might look like grow from five
00:11:01:09 to fifteen percent market share by the end of the year.
00:11:04:04 It's time-based, it's specific,
00:11:06:06 you know what you have to do.
00:11:07:29 Here's another example from a research lab,
00:11:10:00 I wanna publish.
00:11:11:06 That's not really very helpful to track, is it?
00:11:13:19 The SMART version might be publish three
00:11:16:03 first-author manuscripts in either
00:11:17:19 Tier one or two journals in 2018.
00:11:20:08 It's very specific and it's very clear
00:11:22:04 if you're gonna achieve that goal or not.
00:11:25:00 If you're a young company you might
00:11:26:07 wanna partner, well again, partner is pretty vague.
00:11:29:06 This one I broke in to two separate objectives.
00:11:32:13 In this case step one is to develop
00:11:34:12 a roadshow presentation for potential partners
00:11:37:07 by the end of Q1, and step two is then to meet
00:11:39:28 with at least three of those partners in Q2.
00:11:42:12 So now you can see we've gone from some
00:11:44:05 pretty vague, not very helpful, semi-directional
00:11:47:20 not-so-SMART goals to a really concrete plan
00:11:50:16 that's easy and clear to follow
00:11:52:10 over the course of time with the SMART goals.
00:11:55:25 The beauty of SMART goals is you can then track them.
00:11:58:16 And so here on this side we have
00:12:00:02 what's called a balanced scorecard in which
00:12:01:24 all we're doing is just looking
00:12:03:06 each quarter at how we're doing against the goals.
00:12:05:20 So goal one, grow from five to fifteen percent
00:12:08:04 market share by the end of the year.
00:12:09:21 Well it looks like Q1 was a little iffy
00:12:12:07 but then we got on our feet and as of the end
00:12:14:23 of Q3 I'm feeling very good about
00:12:16:18 our ability to meet this goal by the end of the year.
00:12:18:08 We're all systems go on this one.
00:12:20:02 Publication, uh-oh, not doing so well.
00:12:22:21 As of the end of Q3 we're still
00:12:24:14 very much in the red, so this tells me either
00:12:26:19 we've set a poor goal, an unrealistic goal,
00:12:29:18 or we hit a block in the road or we need
00:12:32:09 to change our resources around somehow,
00:12:34:24 something, some action needs to be taken
00:12:36:21 or we're not gonna meet this goal.
00:12:38:10 This is an area that, as a leader,
00:12:40:01 I'm gonna pay very close attention to.
00:12:41:29 Not necessarily punitively, more just to get myself
00:12:44:17 and my enterprise back on track.
00:12:47:10 And as you can see then you step through
00:12:48:18 all the goals and fill it in and as a leadership group,
00:12:51:17 or even as an individual, you can look at this and see
00:12:54:10 what are the trouble areas, what are the safe areas,
00:12:56:20 where do I really need to be paying the most attention.
00:12:59:12 The balance scorecard helps you maintain focus
00:13:01:19 on your strategy, it helps you track the progress,
00:13:04:10 and it gives you early warning in case you need
00:13:06:10 to make changes to address problem spots.
00:13:09:20 And this brings us back again to the structure of strategy.
00:13:12:15 We've now talked through how to develop a strategy,
00:13:15:04 through the generation of objectives,
00:13:17:00 setting priorities on these objectives,
00:13:19:00 and getting smart, and in fact really specific,
00:13:21:18 with those objectives.
00:13:23:07 And that brings us to the end of this
00:13:24:25 particular lecture on developing
00:13:26:20 the Developing Strategy Toolkit.
00:13:28:22 You should now at this point be able to describe
00:13:30:25 the key elements of an enterprise's strategy,
00:13:33:03 understand a few common tools used
00:13:34:23 to facilitate strategy development and when to use them,
00:13:37:25 be able to draft SMART objectives,
00:13:39:25 and understand the value of monitoring
00:13:41:13 progress towards goals.
00:13:42:24 Thank you very much for listening.

Videos in this Talk

Part 1: Environmental Assessment Toolkit
Audience:
- Educators of H. School / Intro Undergrad
- Educators of Adv. Undergrad / Grad
Part 2: Toolkit for Developing Strategy
Audience:
- Educators of H. School / Intro Undergrad
- Educators of Adv. Undergrad / Grad

Speaker: Deborah Dauber

Total Duration: 0:26:06

Recorded: February 2017

All Talks in Professional Development

Talk Overview

This video series is designed to provide an overview of tools used to develop and assess strategy, and use examples to illustrate the concepts. Participants will learn and apply frameworks such as SWOT or PEST analyses to evaluate an operating environment including competitors, stakeholders, supplies, and economic, regulatory or technology trends. Participants will also learn about tools to help set, generate, and prioritize an enterprise’s goals.

These videos are part of the Business Concepts for Biomedical Scientists course.