Strategy Formulation &

Implementation at
Hewlett - Packard
Presented to:

Prof. Muqbil Burhan
Presented by:

Saloni Mohan (221127)
Ashish Dev Thakur (221129)
Supriya Sharma (221153)
Vaibhav Ahuja (221160)
Vigneshwar Shankar (221166)
Vishnu Baheti (221182)

Strategy Formulation
Strategy Formulation: Challenges
Competitive environment changing at an accelerating rate
Critical Success Factors being challenged
Shift to a Dynamic Approach
Strategy Formulation & Implementation carried
simultaneously
Dispersing ownership of strategy formulation throughout
the organization
Focus on increasing communication and coordination
levels supported by a flexible structure and culture


An Overview of Hewlett- Packard
Founded in 1939, employs 92000 people in
110 countries
2
nd
largest computer manufacturer in the US
Ranked as most admired computer
manufacturer for 3 subsequent years
Devoted 10% of its annual revenues to R&D
consistently


Hewlett Packard
A Useful Benchmark for Strategy Formulation
Transfer of strategy ownership to every
individual
Supported by a structured framework to
ensure strategies are constantly reviewed,
changed and aligned
Developed a coherent corporate strategy
Cross-functional process oriented teams
Organizational culture promotes continuous
learning environment



Hewlett Packard
A Useful Benchmark for Strategy Formulation
But how?

Overall Approach
Embraced Total Quality in key areas employee
participation, customer focus, improvement cycles
& process management

Core Strategy
Adopted standardized method: Hoshin-Kanri


Hewlett Packard
A Useful Benchmark for Strategy Formulation
Hoshin-Kanri

Chinese expression; it means providing direction
Systematic process of defining key issues at each
level: Corporate, Business, Division and Unit
Each unit becomes a strategy owner
Generation of objectives using Hoshin templates
Ensures that everyone is working towards the same
objectives



Hewlett Packard
Dynamic strategy formulation & implementation
Hoshin
Kanri
Strategic
Objectives
Process of
Management
Tools &
Framework
















Strategic
Objectives
Breakthrough
Business
Fundamental
Aimed at radical
innovation
Higher levels focus
on breakthrough
strategies
Aimed at
incremental
innovation
Lower levels focus
on these strategies
Hewlett Packard
Dynamic strategy formulation & implementation
Hewlett Packard
Dynamic strategy formulation & implementation
Tools &
Framework
Envisioning
Breakthrough
Objectives
Strategy
Formulation
Teams and
Leadership
Business
Strategy
Reviews
Evaluation
Hewlett Packard
Process of Management
Establishing
Purpose
Building
shared Vision
Leading the
action
Evaluation
results &
processes

Tools for each stage and
overall framework

Alignment of each unit
with the overall
framework

Shared vision in the
form of 5 year objectives

Leading the action
phase review, reward
and recognition



Thank You