Strategic Sufficiency
The first blog of this series identified that to achieve a strategy an organisation must first have one that is current and relevant. This entry looks at a pragmatic approach to assess and validate a strategy.
We’ve talked about having a strategy that is current and relevant. This entry, as we return from holidays and a new year kicks off, aims to set out elements of “strategic sufficiency” and how this can be achieved. We think sufficiency is determined based on a strategy’s ability to get the organisation moving in a coordinated and efficient manner towards a defined destination.
We’ve read more than a few strategy documents over the years. Often a lot of energy goes into conceiving ideas without producing something that harnesses the capacity of an organisation. A few traits to look for:
Not too generic.
- Generic strategies can be hard to argue against as they promote attractive themes like “growth” and “simplification” however they often leave important questions unanswered.
- We have seen debates around exactly which metric should grow, and what simplification is meant to achieve.
- As a result of these uncertainties the effort the organisation makes to move in these directions is neither coordinated nor efficient.
But not too specific either.
- Highly specific strategies tend towards mapping the journey as well as the destination.
- They include detailed objectives, process flows, performance measures, milestones, and the like.
- While resolving ambiguity, these strategies stymie the imagination, enterprise and innovation of a workforce – and ultimately restrict productivity.
Interpretable across the business.
- If a strategy is meant to coordinate, then it must be clear to those working in the business what it means for them.
- This means that in its articulation the audience and the mechanism for communication should be kept front-of-mind.
Proactively exclude options.
- During the strategy formulation stage there should be lots of alternatives considered.
- One risk, exacerbated by generic articulations of strategies, is that these alternatives are not clearly enough excluded, and thus remain as a potential part of the agenda which provides distraction.
- It should be clear from the strategy what an organisation is not doing, or at least what it is not doing now.
One effective analogy for the role a strategy plays is that of a ship on a journey across the ocean. The strategy outlines the destination but not the specifics of the route. It provides an outcome against which progress can be measured without limiting the organisation contributing to that journey from seeking smart navigation options through the obstacles that are most relevant.
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