Transformative, innovative and adaptive strategic thinking
can originate from anywhere in the Strategic choices canvas.
In this section, you can find some different styles or patterns
for sequencing your strategic choice formulations and innovating
and enhancing your strategy for success.
In the aspirations' epicenter, you start at Aspirations
section of the canvas. In this section identify or redefine
what customer and stakeholder aspirations you have for the
business. Subsequently, work through your where to play and
how to succeed choices and sub-choices to ensure mutual support
between all the 3.
Update or define your business aspirations and then identify
the environments where those aspirations are best fulfilled and
how to succeed in those environments. Finally, ensure you have the
internal systems (policies, accountability, information and
activities) necessary to implement the strategy
Example
In their book Playing to Win: How Strategy really works, Roger Martin
and A.G. Lafely outline how they enhanced the vision of the line of business
for OLAY based upon market research to fight the 7 signs of aging along
with ensuring the sustainability and success of returns to stakeholders.
Essentially, the aspiration epicenter is a vision lead strategy.
In the resource or capability epicenter strategy evolution /
innovation roadmap, you look at the strengths of the business
in terms of how it is able to currently win / succeed.
This likely includes
resources (tools in the toolbox)
both tangible and intangible that it has and
capabilities
(how the business uses those tools) it has.
The resource epicenter then looks at how those resource or capabilities
could be applied to alternative customer needs, jobs to be done,
industry segments and other "Where to play" dimensions.
As the where to play feasibility is understood through experimentation
or assessment, then the aspiration for customers and stakeholders can
be defined.
Example
Prior to the iPoD and iPhone Apple was a niche player in the
personal computer market, but had resources in manufacturing
computing devices and capability in terms of effective marketing, product
design and retail sales distribution. It used these
How it succeeds resources and capabilities to solve
the music industry's music distribution problem and satisfy customers
demand for access to digital music.
Similarly, with that success, Apple added its resources in its
developer community to
create a hand-held computer with a phone and camera as
a superior mobile phone and an ecosystem for apps to solve a variety
of customer needs.
In the market responsive epicenter strategy evolution /
innovation roadmap, you look at continuously deepening understanding
of the needs in an existing market served by your business or
needs that can be satisifed by your business in an
alternative market with a similar or feasible how to win choice.
From a canvas perspective, you continuously deepen understanding
of customer needs and desires and have that influence
your how to win choice and subchoices. Choices are validated on the basis that they
will increase your target markets'
willingness to buy / pay for that enhanced value and your business
has the resources, partnerships and capability to resolve those needs.
Sub-choices affect may include, enhancing the unique value blend with
improvements in your offerings - improved product or service
(quality, functionality, range), adding / improving
support e.g. installation with a product.
Enhancing customer relationships,
increasing convenience through
improved channels e.g. digital and so forth. It is expanding your
"How to win choice(s)"in respone to recognizing market needs.
Example
There are numerous examples of Market responsive strategies. As
businesses embrace environmentally friendly production and products,
these address consumer needs to know their consumption is sustainable.
External assessments
A PESTEL analysis and industry assessment are crucial
components of any business strategy for
understanding of the external factors that can impact a business.
You can conduct an assessment, for Political,
Economic, Social, Technology, Environmental and Legal
influences
by
Arena (industry and geography) - see the Discover
opportunities and threats section. Use your PESTEL
assessment
to identify potential opportunities and threats, and
develop strategies to capitalize on emerging trends,
and mitigate risks.
PESTEL assessment to identify opportunities and threats
within an environment e.g. geographic
Internal assessments
An industry assessment is valuable to identify
the factors influencing industry competitive forces
and profitabilty. It is an important determinant
of decisions to enter, exit or how to compete
in different industry arenas.
You can conduct an assessment, for each of the Five forces
by
Arena (industry and geography) See the Assess Industry profitability
section of that page.
You can use the Five forces assessment tool
to identify potential industry based opportunities and threats, and
develop strategies to capitalize on emerging trends,
and mitigate risks.
Industry assessment to identify competitive opportunities and threats
within an industry environment e.g. geographic
Competitive assessments
You can identify opportunities and threats by
evaluating your value proposition, value blend or
capabilities and resources relative to your competitors.
This assessment is done within a strategy implementation
to identify where the strategy needs to focus to succeed
relative to the competition. This may influence goals
within the customer value or process or capability enablement
section your balanced scorecard.
See
the scorecards section of the StrategyCAD guide, for more information about
working with scorecards and assessment. See the
Assessment section
for more information about competitive, product and related assessments.
You can configure scorecards to assess different criteria
and maintain assessments
across multiple dimensions including time to track performance.
Competitive scorecard to identify competitive opportunities and threats
Consumption chain
assessments
You can identify opportunities and threats by
evaluating the consumption chains of your business and/or products.
A consumption is the series of steps a customer needs to go through
to become aware of, identify the desire for, purchase, acquire, setup, use,
acquire support, and eventually dispose of your product or service.
A consumption chain assessment allows you to assess how easy or difficult
your consumption chain is at different points and the identify opportunities
to be easier to find, or do business with.
This assessment is done within Customer assessment
section of a strategy implementation
to identify where the strategy needs to focus to succeed
relative to competition which will influence goals
within your balanced scorecard.
See
the scorecards section of the StrategyCAD guide, for more information about
working with scorecards and assessment. See the
Assessment section
for more information about competitive, product and related assessments.
You can configure scorecards to assess different criteria
and maintain assessments
across multiple dimensions including time to track performance.
Consumption scorecard to identify competitive opportunities and threats
related to how easy or difficult it is for customers to discover,
and exchange value with your business.
Preparing team alignment with the McKinsey 7S Model
McKinsey & Company, a management consulting firm,
created the 7-S model to help client companies successfully
implement their strategies.
It was later featured in the book In Search of Excellence,
by former McKinsey consultants Thomas J. Peters and Robert H. Waterman.
The model highlights 7 important elements of organizational design to
create the alignment necessary to implement the business strategy.
The 7 S’s are: Strategy, Structure, Systems, Skills, Staffing, Style
and Shared Values.
McKinsey 7S scorecard which can be used to assess and
then drive internal alignment and capability opportunities
and improvements.
See
the scorecards section of the StrategyCAD guide, for more information about
working with scorecards and assessment. See the
Assessment section - Internal assessment
for more information.
You can configure scorecards to assess different criteria
and maintain assessments
across multiple dimensions including time to track performance.
Preparing team alignment with the Galbraith Model
The Star model, like the McKinsey 7s Model
helps you and your team successfully implement your strategies.
The model highlights 5 important elements of organizational design
to create the alignment necessary to implement the business strategy.
The 5 elements are: Strategy, Structure, Processes, Rewards and People.
The Galbraith Model scorecard can be used to assess and
then drive internal alignment and capability opportunities
and improvements.
See
the scorecards section of the StrategyCAD guide, for more information about
working with scorecards and assessment. See the
Assessment section - Internal assessment
for more information.
You can configure scorecards to assess different criteria
and maintain assessments
across multiple dimensions including time to track performance.
Preparing your ecosystem to support strategy implementation
You can quantitatively assess your ecosystem
(suppliers / partners) capabilities and resources
using the ecosystem
assessment / scorecards for one or more of supply chain, partnerships or
free form (an assessment of your design).
The Ecosystem asessment and scorecard can be used to assess and
then drive internal alignment and capability opportunities
and improvements across your ecosystem.
See
the scorecards section of the StrategyCAD guide, for more information about
working with scorecards and assessment. See the
Assessment section - Internal assessment
for more information.
You can configure scorecards to assess different criteria
and maintain assessments
across multiple dimensions including time to track performance.
Preparing your focussed effective implementation
Your diagnosis is part of what might be called root cause analysis,
or the top of the 5 whys. Your diagnosis aims to create
leverage in your strategy implementation; that is, by
addressing the big rock opportunity or the big anchor constraint
then the business performance improves most substantially. Competitors
can play at doing 10, 20 or 100 different little or medium things, but
the diagnosis creates the opportunity to address the root issue.
Example in the 1990's Lou Gestner took over a very troubled IBM.
The technology industry was fragmenting and many experts indicated
the IBM needed to be broken up to align with the overall industry
fragmentation. Gestner, however made a different diagnosis.
His diagnosis was that IBM needed to become more integrated to be
prepared to provide customers with integrated solutions rather than
fragmented pieces of technology. That diagnosis set a completely different
policy and action plan than one of IBM needs to fragment.
To prepare for a focussed and leveraged Strategy implementation,
following your assessment of internal capabilities, customer,
competitors and ecosystem, you can make and record
one or more diganosis.
See
the diagnosis section of the StrategyCAD implementation guide, for more information.
Preparing your focussed effective implementation
Your guiding policy is part of your strategy kernel the heart of good strategy.
Your guiding policy in StrategyCAD can include
1. Your organizational chart to describe organizational / team
structure reporting and supporting lines.
2. Preconfigured and customized policies
Do more, sustain, do less and eliminate policy matrix
All policies are essentially of this structure.
What does the business need to do more of and sustain to deal with the
situation in the diagnosis and what does it need to do less or eliminate
doing to make the capacity and deal with the situation in the diagnosis
Ansoff Growth Matrix
Ansoff Growth Matrix is an enduring Matrix for providing a policy
for how a business is going to achieve growth and recognizes
the level of risk in the growth policy
Additionally, you can create and configure your own policy
structure.
3. Roadmaps - that define the sequence of outcomes and the role
of the internal alignment topics e.g. systems, people, skills,
shared values or any other attributes you wish to add.
The balanced scorecard is a strategic management framework that helps
translate strategic objectives into specific performance measures and targets.
The framework provides a balanced view of
performance across four perspectives:
financial, customer, internal processes, and learning and growth
(capability).
1. As you add objectives to your implementation action plan
you can add them to a layer of your balanced scorecard to verify
the feasibility of your action plan.
You can answer the question and demonstrate
to your team(s) and stakeholders that
based on the actions in the scorecard your business can achieve
the desired business outcomes, by achieving uour customer outcomes
and those customer outcomes can be achieved with the process
and people objectives that have been set.
StrategyCAD Balanced Scorecard for demonstrably feasible
strategy execution
SMART implementation
Every objective in StrategyCAD is specifically structure to support
the SMART Goal / objective format.
SMART goals ensure the clarity created in the strategy ripples
into the goals / objectives of implementation.
StrategyCAD supports SMART objectives (OKRs) for all
objectives.