1. AMD Commercial Strategy and
the Prometheus Process
March, 2006
confidential

2. Table of Contents
• AMD Commercial Strategy
• Prometheus process
• AMD Commercial Future Picture
• Systems’ characteristics
• Centers of Gravity
•
•
Desired effects
Impact plans
Building
• Action plans the future of
AMD Commercial
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3. The Essence Of Strategy
Strategy involves answering key questions
How do you decide it’s time to exit a
Exit
business or strategy?
How are you going to apply your
How
resources?
What do you need to change to make
What
that Future Picture a reality?
Where Where do you want to be in the future?
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4. AMD Commercial and the
Prometheus Process
• The Prometheus Process is a
systematic approach to strategy
development
• The process is also designed to
translate strategy into actionable
steps with measurable results
• The AMD Commercial Leadership
team used the Prometheus Process
to develop concrete action steps
enabling us to execute on the
strategy
• Glossary of Prometheus terminology
Winning in FastTime: Harness the Competitive Advantage of Prometheus in Business and Life
by John A., III Warden, Leland Russell
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confidential

5. AMD Commercial strategy process
based on Prometheus Process from Venturist
Step 4: Assemble
The Prometheus campaign teams, develop
leads to great outcome
Good strategy process
Execute
process enables action plans, execute in
AMD Commercial parallel
to translate
long term Step 3: Create an impact plan
strategy into that includes a desired effect,
How
timeframe and measure for each
action by
selected COG
following
these
steps Step 2: Identify External and Internal
What Centers of Gravity (COGs) & select target
COGs for each phase
Step 1: Create a Future Picture for end of period
Where (5 years); define phases of milestones to
achieve Future Picture
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6. 1 AMD Commercial Future Picture
ep
St
2009-2010: AMD XXXXXXXX
• Preeminent in market 1
• #1 in market 2
• A player in market 3
• >XX% revenue & unit share
• Expanded technology 1 capabilities
• Significantly expanded ability 2
• XXXXXXXXX
• Expanded XXXXX capabilities
• Fast, innovative commercial culture
Where Step 1: Create a Future Picture for end of period (5 years); define
phases of milestones to achieve Future Picture
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7. 1 AMD Commercial Future Plan Phase milestones
ep
St
“Work back from the future – not forward from the present”
2006 2007-2008 2009-2010
Phase 1 name Phase 2 name Phase 3 name
Plan: Future Picture: Future Picture:
• XXXXXXX • XXXXXX based on merit • Preeminent in the
• XXXXXXXX and momentum market 1
• XXXXXXX • XXXX expands without
• #1 in market 2
• Define new XXXXX & XXXXXXX
External
XXXXXXX • XXXXX expands • A player in market 3
• Define new XXXXXXX profitably • >XX% revenue & unit share
XXXXXX • XXXXX launched with • Expanded technology 1
• Invest in XXXXXXXXX partners and embraced capabilities
XXXXXXX by customers • Significantly expanded ability 2
• Create acceptance for • XXXXXXX accepted by • XXXXXXX
XXXXXXXX XXXXX XXXXX • Expanded XXXXX capabilities
• Take control of XXXXXXX • Technology 1 appear
• Commercial organization • Commercial organization • Fast, innovative commercial
Internal
aligned to opportunity focuses on culture
XXXXXXXXXXX
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8. Future Picture Defines Strategy:
Best Use of
Resources
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9. Future Picture Defines Strategy:
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10. Future Picture Defines Strategy:
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11. 2 Systems’ Characteristics
ep
St
In order to decide what you need to change to achieve
your stated Future Picture it is important to first
understand some characteristics of a system
• All actions take place within a system
• There are internal systems and external systems
• Organizations are systems, as are the environments in
which they operate
• The system is greater than the sum of its parts
• The performance of the whole and the parts are
interdependent
• Systems vigorously resist change, strive for
equilibrium, and quickly return to status quo if change
efforts do not stretch a system beyond its limits
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12. 2 COGs: Centers of Gravity
ep
St
• COGS are leverage points within the system
• Hubs of power and influence
• Example: In a city, potential COGs are the government,
electrical grid, highway infrastructure, citizens, or schools
• Every system (internal and external) has multiple COGs
• Success requires movement of many COGs in the desired
direction, the more that are moved in the shortest amount
of time, the higher the likelihood of success
• Attacking multiple COGs in parallel results in faster change
and prevents single point failures from becoming
showstoppers
What Step 2: Identify Internal and External Centers of
Gravity (COGs) & select target COGs for each phase
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13. 2 The Five Rings model of systems
ep
St
Action Units
Population
Infrastructure
Processes
Leadership
Once a system is viewed
using the 5 Rings model, it
becomes relatively easy to
prioritize and categorize
COGs within each ring
COGs closer to the center of the rings usually
All systems havesimilar components that can be classified
have greater systemic impact
according to the 5 Rings model
What Step 2: Identify Internal and External Centers of
Gravity (COGs) & select target COGs for each phase
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14. 2 Example: Internal and External Centers of Gravity
ep
St
Note that not all COGs are directly under Population
Leadership Processes Infrastructure Action Units
the control of the Commercial group,
however they are critical in making the
External
Commercial strategy a success. People
from all parts of AMD will be asked to
help the Commercial team shift COGs in
desired directions.
Internal
What Step 2: Identify External and Internal Centers of
Gravity (COGs) & select target COGs for each phase
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15. Moving from strategy to action
Impact plans are
developed for Step 4: Assemble campaign
each identified Execute
teams develop action plans,
COG. Impact execute in parallel
plans contain the
specific desired
effects you want How Step 3: Create an impact plan
to have on the
COG, a
timeframe for
success, and a What Step 2: Identify COGs
measurable
outcome
Where Step 1: Create a Future Picture
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16. Sample COG Impact Plan: dlxfjgdfl.jg.xkd
3
2
ep
St
Leadership Processes Infrastructure Population Action Units
Leadership Processes Infrastructure Population Action Units
COG Impact Plan
Desired Effect
Name
Desired Effect Lzkgmr.g,ze.rgkmzag
Desired Effect
Measures Jzsgn,rjgz,jgr.kgz
(example) Zkrgjnrkgnzrk.g
Z,sjg,sgjz,s.jg.,
Timeframe
Timeframe zergregtrez
Strategic
Future Picture
Measurement zfgzdfgzergz
Assessment
Step 2: Identify External (Market) effect, timeframe and
How
Step 3: Create a desired and Internal (AMD) Centers
of Gravityfor each & select target COGs for each phase
measure (COGs) selected COG
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17. Moving from strategy to action
The creation Step 4: Assemble campaign
Execute teams, develop action plans,
of campaign execute in parallel
teams and
action plans is
where the How Step 3: Create an impact plan
rubber meets
the road –
where
strategy is What Step 2: Identify COGs
turned into
concrete steps
and specific
tactics Where Step 1: Create a Future Picture
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18. Sample COG: Key OS Companies
4 Campaign Teams Plan: Action Plans
Sample Impact and fdsgszrjhgtsre,kghzels
ep
COG
St
Impact
Plan
Desired
Effect
• Campaigns:
Name
Desired
Effect
Strateg
ic
– Are the vehicle for plan execution
Measur
ement
Timefra
me
Action
Plan
– Orchestrate resources for parallel action
– Are strategically aligning
– Change systems in the direction desired
Sample Action Plan
• Campaign team activities
• K,sjgzas,jkg
– Develop and execute action plans
• Azkrhrkgjerzg
– Escalate issues
• Zskdhgsk,gjz,gr
• Zskjghz,msrg
• Zskdgj,sJG
• szklghskrjg
Execute Step 4: Assemble campaign teams, develop action
plans, execute in parallel
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19. Next steps and 2006 priorities
• Broadly communicate AMD Commercial strategy
– VP Forum (April)
– Division Communication Meetings
– Go-To-Market Organization
• Execute Phase 1 COG impact plans
• Begin identifying Phase 2 COGs and create impact plans
• Continue to expand participation in Campaign Teams
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20. The Prometheus Process©
Winning in FastTime: Harness the
Competitive Advantage of Prometheus in
Business and Life
by John A., III Warden, Leland Russell
If you are part of the commercial
business and would like a copy of
Winning in FastTime, please
contact gxhgfht.
Questions? Comments?
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confidential