Strategy Is A Creative Design Process

What happens when you look into a crystal ball?

You see a warped image of the world reflected right back at you.

Strategy creation is a bit like this.

It is a process of leveraging what you already know (which is limited and filtered based on your own values and beliefs) and projecting it into the future; an unpredictable space.

No one can see into the future. The best we can do is imagine our best future and make best guesses about how to get there, based on existing facts trends in data.

So why bother? Why not just put a single statement at the top of your business plan…?

Use common sense!

The strategy creation process is just as important as the plan itself. A large part of strategy creation is the facilitation of the coming together of multiple viewpoints. It’s about finding common ground, testing that we are all talking about the same thing, and agreeing on how we are going to work together to get there.

As we near the end of the financial year and the beginning of a new one – many businesses are engaging in their annual process of planning and budgeting for the year ahead. Given the complexities of the current circumstances, how can you maximise your chances of creating a strategic plan that not only keeps your business safe, but aligns the whole team?

To support your strategy creation process – get two things right.

1. Get the right data in the room so you are basing your best guess on facts, not feelings.   Ask your finance people to pull together an analysis that answers these questions:
   

• • • What is our current rate of growth? How is this rate different to pre-COVID times?
    • What is our current profit (Gross and NET)? How is this different to pre-COVID times?
    • What is the 80/20 in our business? What 20% of sales generates 80% of revenue?
    • What are the high vs low profit generating activities? What is the strategic value of our low profit activities? (is there any?)
    • What are our strongest performing products / services? Why?
    • What are our weakest performing products / services? Why?
    • What are our growth expectations? What is the best case / worst case scenario?
    • What cost base do we need to service the best case / worst case scenario?
    • What risks can we afford to take? What risks can’t we afford to take?

 

2. Get the right people in the room – people who represent diverse viewpoints (who may or may not be members of your senior team) and create the space where diversity is welcomed and accepted. Ask these educated & wise people these questions:

• • • What is our purpose?
    • What is our Big Hairy Audacious Goal?  What can we be the best at?
    • What are our pillars of success?
    • What are our goals, measures and targets for each of these pillars?
    • What are the priorities / projects within each pillar that give us the best chances of achieving our targets?
    • Who leads which project and how will you track and report on it?

 

Strategy creation is a process of listening to all these different view points and extracting the simple truths that everyone is willing to agree on.

All of that can then be consolidated onto a 1-page plan (perhaps 2 sides of one page!) from which all departmental and individual goals cascade.

If you need help facilitating an effective strategy creation process this financial year, I can help.