Strategy Development &
Leadership in high tech firms
John Schneider
Hi
Professional Background: John Schneider
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Educational Background
– MBA: Santa Clara University, 2006
– Business Administration: Cal Poly SLO, 1999
• Concentration in M.I.S.
• Minor in French from Aix-Marseille III University
Career Highlights
– Present:
• Sr. Director, Product Marketing at Jive Software
– Past:
• Director, Strategy at eBay Enterprise (2011 – 2014)
• Santa Clara University Adjunct Faculty, Leavey School of Business (2007 – 2013)
• Account Director, LEVEL Studios (2007 – 2011)
• Program Manager at Seagate Technology (2001-2007)
• Consultant at Vigilance (2000)
• Systems Analyst for Deloitte Consulting (1999)
Blog: http://mgmtclarity.com
Twitter: schneider_j
Career Choices
Go…
Corporate
Start-up
Or?
Professional Services
Mad Men
1+1=3
1+1=3
Detectives make the best leaders
How would you approach the problem?
Cougars Common
Cougars Rare
Is doing things really well a strategy?
Operational effectiveness is not a strategy.
 operational effectiveness = performing similar activities better than
rivals  running the same race faster
 But, the best practices underlying operational effectiveness are
often easily imitated.
 As all rivals adopt the same best practices, everyone improves and
the more indistinguishable firms become  competitive
convergence
Productivity Frontier: State of Best
Practices
futur
e
high
today
Non price
buyer
value
delivered
low
Relative cost position
The maximum value that a
company delivering a
particular product or
service can create at a given
cost, using the best
available technologies,
skills, management
techniques, and purchased
inputs.
high
Operational improvements rarely lead to a sustained profitability, unless
they are accompanied by a sound strategy. You can’t succeed without
operational effectiveness, but superior performance requires strategy.
What makes a good strategy?
Value Creation
Why do some firms create and capture more value than others?
Solution: Focus on Strategic positioning
 Achieve sustainable position by preserving what is distinctive about
a firm  running a different race
 perform different activities from rivals
 perform similar activities in different ways
Unique Value
Creation & Capture
3 principles underlying strategic
positioning
Variety
Do not rely on
customer differences
Access
Needs
Principle #1: 3 sources of strategic positions.
Principle #2:
Strategy involves creating a “fit” among a
firm’s activities.
 When activities mutually reinforce each other,
competitors cannot easily imitate them.
Strategy involves creating fit among activities
Principle #3:
Strategy requires making trade-offs 
what to do and what not to do
Some competitive activities are incompatible;
thus, gains in one area can be achieved only at
the expense of the other.
A unique position can be copied.
Challenges:
• Inconsistencies in image and reputation
• Differences in activities
Strategy is the creation of a unique
and valuable position (competitive
position), involving a different set of
activities.
One man band
Porter’s Generic Strategies
Porter’s Generic (Business Level) Strategies
LOW COST
UNIQUENESS PERCEIVED
BY CUSTOMER
MASS MARKET
NARROW
SEGMENT
(NICHE, FEW
MARKET
SEGMENTS)
COST
LEADERSHIP
BROAD
DIFFERENTIATION
HYBRID OR
STUCK IN THE MIDDLE
FOCUSED
LOW COST
FOCUSED
DIFFERENTIATION
What does one look like?
Solution Focus
Business
Requirements
Good Strategy
Customer
Needs
Technology
Considerations
In closing… let’s talk leadership
This is what you are inheriting…
14%
65%
of organizations have
an agreed-upon
strategy.
of employees
understand the
organization’s
strategy.
* Source: Forbes.com, “Strategy 101: It’s All About Alignment”
10%
of organizations
successfully execute
the strategy.
“Leadership appears to be the art
of getting others to want to do
something that you are convinced
should be done.”
- Vance Packard
Change for long-term success
Improve existing business now
Thank you
John Schneider
([email protected])