Strategy Execution Life Cycle – Complete life cycle from definition through approval to execution
Background context – Global leading mining services company faced structural headwinds in the demand for its core products and services in its largest market segments (>30% of portfolio). High market share in a market forecast to have declining demand placed significant pressure on securing future growth.
Strategic Challenge – To develop and execute an adjacency strategy that enabled the company to manage the risk of a declining market in its core products and services and create high growth platforms to accelerate overall portfolio growth.
Strategic Activities – Extensive stakeholder syndication to create alignment around the shape and scale of the strategic challenge and the definition of the targets that defined success. Facilitation of stakeholder workshops (with mix of internal and external experts) that broadly explored opportunities for growth by seeking intersections between macro (society and industry) trends with the company’s distinctive capability platform. Analysed, refined and prioritised target growth adjacency market opportunities. Refine internal investment (technology) strategy to align with the prioritised targets. Assess, refine and prioritise acquisition alternatives that could accelerate skill acquisition and/market access in order to accelerate growth.
Outcomes – An adjacency strategy that required a mix of internal technology investment and external acquisitions was developed and endorsed by the Executive team and Board. Internal investment was focused on technology development in three key target areas of digital, automation and high precision measurement to expand product and service capability. Acquisition and integration of a market leading technology company (>60% market share in a high growth segment) in an adjacent downstream market created the platform for a new high growth Division within the portfolio with growth rates exceeding 40%.