The Strategenics Strategy Lifecycle
Congratulations! You have discovered a great secret to successful business strategy. Strategenics is publicly releasing some of our valuable intellectual property on strategy. We are doing this because we believe in sharing our 5 principal values:
- Smarter through research and learning – We value lifelong learning, education, knowledge and insight. We believe it is our responsibility to help build the shared knowledge of our community.
- Faster through efficiency and agility – We understand the value of time and we actively enhance the speed, agility and flexibility of people, businesses and families.
- Better through ethics and effectiveness – We value ethical practices and we continue to improve the quality and effectiveness of everything we do.
- Together through trusted partnerships – We value long term trusted partnership with our clients, customers, suppliers, partners and employees and we plan for their success.
- Everything we do is driven towards a goal and overall purpose, aligned with Strategic intent.
The Strategenics Strategy Lifecycle™
Strategenics has collected and developed a substantial body of knowledge to improve the success rate of business strategy and business transformation programs. Our approach is summarised by the Strategenics Strategy Lifecycle™ as depicted in Figure 1 below.
The Strategenics Strategy Lifecyle™ connects the dots between strategic intent; business, service and product architecture, strategic roadmap development, implementation and strategic review. At any point in time, your organisation may reside in one of the stages of the lifecycle. In fact, each business product, service, or transformation program may be positioned within different stages of the strategy cycle at the same time.
Without clear linkages between each stage of the strategy lifecycle, the overall strategic intent can be lost. The changing business environment may be perceived as a distracting hindrance during implementation rather than an opportunity.
Product or service implementations could be running full steam ahead but the organisational context and direction may be shifting.
Without management of the strategic lifecycle, project implementations often incur overruns in cost and time and may never achieve the benefits stated in the original business case. Or worse. A project may successfully meet its stated objectives only to realise the business context has changed and the project deliverables and outcomes have no value in the new environment. What a waste of time and money! What an embarrassment!
The first critical stage of the lifecycle is developing the strategic intent. Through an evidence-based approach of market analysis, economic analysis, and SWOT, the strategic opportunity and/or problem statement is defined.
The strategic objectives capture the business response to the market environment.
Business, Service & Product Architecture
The second stage of the lifecycle builds a detailed understanding of the desired TO-BE architecture. Business requirements are developed as a basis for a revised business model, and/or service or product design as appropriate for the type of strategy. Economic models and enterprise architecture artefacts provide an interconnected architecture from a variety of perspectives.
The difference between the desired TO-BE architecture and the current AS-IS state creates a gap analysis highlighting the necessary outcomes required for success. The desired outcomes form a chain which describes the intermediate outcomes and linkages required to achieve the strategic objectives and architecture targets and quality metrics.
The outcomes chain forms the framework for the linked roadmap of desired outcomes, costed initiatives and risk mitigation activities. This model provides the strategic context for every initiative. If the context changes, the impact upon linked initiatives is easy to identify.
During implementation, strategic and architecture review is necessary to ensure efficient progress is made on strategic objectives, architecture targets and quality metrics, and program outcomes. Depending upon progress, implementation activities may be revised, paused, or cancelled and other activities may occur in their place.
Always start with the end in mind. If you want to know if your strategy was successful then you need a method for measuring success or failure.
With that in mind, the Strategenics Strategy LifecycleTM embeds measurement at every stage of the strategic lifecycle. Metrics are interconnected across strategic intent, architecture targets, quality metrics, and the linked roadmap outcomes providing a nerve centre of progress and agility. The Strategenics Strategy LifecycleTM framework allows you to identify corrective action earlier in the cycle and at lower cost than the typical post implementation review. It just makes sense!