Strategy is a word much used and much abused (and particularly abused in the context of those making poor attempts to claim strategic alignment when building business cases). However, let me lay aside my cynical and critical hat and share with you a process that really helps me whenever I have to address the creation of a strategic direction or the review of a strategy paper. Hopefully it will help you too. Firstly remember where strategy sits using MOST:
Mission - this should clearly and succinctly define the main purpose (e.g. of your organisation). A Mission is about “what” and a well known and succinct example comes from 3M:
“To solve unsolved problems innovatively.”
Objectives - have to be more measurable and are typically results or desired states along with a timescale (remember SMART: Specific, Measurable, Achievable, Realistic, Timed). Some people use the word Goal for the more nebulous description of where you are going, with Objectives being precise and measurable as described here. Objectives are about “what”.
Strategy - is the means to the ends defined above, a long term direction. Typically this looks at the strategic options available, selects from them and sets out the high level approach and plan. Strategy is about “how”.
Tactics - describe how to put the strategy into action. These are often small moves, gestures and actions that all add up to achieving the Objectives. Tactics are about “what”.
Focussing on the strategy, we recommend a fairly standardised approach that starts with a review of the Mission and Objectives. An analysis of the external environment is then carried out (e.g. PESTLE - Political, Economic, Social, Technological and Environmental factors; market conditions and competition) followed by an internal analysis of the organisation (e.g. capability and capacity, core competences and financial position). These are then summarised into a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis. A handy hint here is just use internal analysis for Strengths and Weaknesses and just the external analysis for Opportunities and Threats.
Remember that strategies can exist at several levels. For example you would expect a large organisation to have a Corporate Strategy, several Group Strategies under that and then Programme Strategies or Account Strategies or some other set of layers that reflect the business. There should be a “golden thread” running through each of these and linking them together, this is all too often lacking.
As an example I was advising somebody recently who had been beaten up for their lack of a well documented strategy. This was not corporate level stuff, so I suggested they go back to the internal audit team (those doing the beating) and ask for a copy of the Business Unit and higher level strategies, as clearly they should align to these. Needless to say the higher level strategies were neither readily available nor in great shape, so this took some of the heat off them while they put their house in order.
As the old saying goes “If you don’t know where you are going any road will get you there”. I believe that was Lewis Carroll. While I have heard this used against planning as you will still get “there” you have to remember that in this case “there” is actually “anywhere”. A good strategy will go a long way to help you get where you want.
Often more favoured in business circles is the Chinese general and renowned military strategist Sun Tzu. He wrote (back in the 6th Century BC) “Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.”
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