In this article I try to answer too answer 2 questions I receive very often :
1. What are the benefits of implementing a strategic framework (like described in the e-paper Strategy into action) ?
2. Can you compare this with something more tangible?
I truly believe that implementing a strategic process or framework is not only valid for a larger company but every company benefits having it : large or small. Depending on the context, ambition or size it will consist of more or less building blocks but the 3 domains are required in my opinion (see later)
The benefits of implementing a strategic framework?
- Clarity of purpose and direction: it provides a clear understanding of the company's purpose and goals, which helps employees and stakeholders understand how their work fits into the overall mission of the organization.
- Improved decision-making: it provides a set of guidelines and objectives that can be used to make informed decisions. This can help to ensure that decisions are more aligned with the company's overall goals and mission.
- Increased alignment: it helps to ensure that all departments and stakeholders are working towards the same goals. This can lead to greater efficiency and effectiveness in achieving those goals. Having alignment is a basis for autonomy.
- Better communication: A strategic framework provides a clear and consistent way of communicating the company's goals and strategies to both internal and external stakeholders.
- Improved ability to track progress: A strategic framework provides a way to measure and track progress towards achieving the company's goals.
- Increased resilience and flexibility: A strategic framework should help to ensure that the company is prepared for change and can adapt to new circumstances or at least increase agility to them.
- Better ability to identify and capitalize on opportunities: it helps to ensure that the company is constantly looking for new opportunities to grow and improve (especially in the multi-year planning phase).
- Improved ability to identify and address risks: it can help to ensure that the company is aware of potential risks and can take steps to mitigate them.
- More efficient allocation of resources: it helps to ensure that the company's resources are being used in the most efficient and effective way possible.
- Greater ability to achieve long-term success: it can help to ensure that the company is focused on achieving long-term success rather than short-term gains. Planning is however one thing. Focus on execution is what makes it happen!
Can you compare this with something more tangible?
For the ones that are very ambitious one can compare it with a rocket . A more down to earth comparison would be a (sailing) boat).
The 3 stages of a rocket can be compared to a strategic framework in the following way:
Stage 1. Strategic foundations (Purpose, Mission and Corporate Values) can be compared to the first stage of the rocket. This stage is the foundation of the rocket, providing the overall direction and purpose for the launch. Similarly, the strategic foundations of an organization provide the overall direction and purpose for the organization.
Stage 2. Multi-year plan (What, Which Customer Segment, Ambition Level, Capability Plan) can be compared to the second stage of the rocket. This stage provides the direction and trajectory for the rocket, much like the multi-year plan provides direction and trajectory for the organization. The multi-year plan outlines the long-term goals, target customer segments, ambition level and capability plan for an organization
Stage 3. Annual Plan (Resources Allocation, OKR Framework and Business Targets) can be compared to the third stage of the rocket. This stage provides the final push towards achieving the desired outcome, much like the annual plan provides the final push towards achieving the organization's goals. The annual plan outlines the resources allocation, OKR framework and business targets for an organization.
In summary, just as a rocket has different stages that serve different purposes, a strategic framework also has different components that serve different purposes, but all of them work together to achieve the final goal.
The comparison with a (sailing) boat would be :
1. the keel which provides the overall direction and stability for the boat,
2. The sail plan which provides the direction and trajectory for the boat,
3. The navigational plan provides the final push towards achieving the desired outcome, and it assures that every member of the team knows exactly what she/he needs to do.
Hope you're a bit more convinced of the benefits ;-)