- Written by Ronald van Haaften
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Strategy development process.
Over the last 50 years many strategy models have been designed for all sorts of markets and segments. I have studied several books full of models, and honestly I still do. Each model gives you a the benefit of understanding what is happening in your playing field. Some models cover a single strategy element and some cover a full process. One of my favourite models is the model I have constructed, tested and used over the last 7 years. And it still hold stand! Lets be honest, most of the models are look-a-likes, constructed around the same core elements, concept, idea and/or theory only presented in a different model. The same counts for the model I have made!
Having said that, within the individual building blocks I use all sorts of intermediate models like the EFQM, Boston Consultancy Matrix, Balance Score Card, MaBa (Ge Matrix), Steering and Control model (Berenschot), Four Phase model (Hardjrono), Value Discipline model (Tracey & Wiersema), IR grid, 5-forces (Porter), Value Chain, Growth matrix (Anshoff).....don't be scared, we start with the basic concepts and will cover all we need during our strategy journey.
What is so good about this model?
Simpel answer: it works and althought it might look complicated, it is a very simpel model covering all strategy building blocks and elements you need to construct a state of the art pragmatic business plan. Next to that the model integrates four business development levels:
- Policy (Raison d'être process)
- Strategy (Targeting & strategy process)
- Tactics (arrange processes)
- Operationalization (transformation)
So what is it all about?
My model is a rational and structured top down model constructed around a basic strategy development process. The strategy design lens, so called paradigm, mainly influences the process behind each and every strategy plan. It is a logical process, in which forces and constraints are evaluated to develop new strategic insights and the best suitable value discipline. See figure below.
Nevertheless, there is a substantial influence of your individual experience, organisational culture and business development ideas, which all could lead to emergent strategies. These new strategies emerge without prior planning due to the unpredictability of the environment. Therefore, this model/process intends to deliver a living and dynamic strategy plan which should be updated as circumstances change.
Although we start with a logical process, see figure below, it is not the process it self that make your new strategy work. The process is more or a less a roadmap and a guideline. Continuous adoption and execution of the strategy plan by your team members is the key to (your) success!
Figure: Rovaha strategy model.
How does the model work?
- Raison d'être process
- Determine the overriding purpose. > Vision.
- Determine the desired future mission statement. > Mission.
- Indentify the core reason or justification for existence. > business definition.
- Select and quantify the goal and objectives. > Goal & Objectives.
- Determine critical success factors. > CSF's
- Determine of set of strategic key performance indicators - BSC indicators. > KPI
- Strategy development process:
- Analyse the external (macro) environment External
- Analyse the internal operating environment Internal
- Determine the opportunities and threats. > O&T
- Determine the strength and weakness. > S&W
- Build up the SWOT analyse. > SWOT
- Identify and evaluate possible strategies to be implemented
- Determine critical processes. > CP
- Determine a set of operational key performance indicators. > KPI
Once you have set the strategic-marketing direction you can derive the overall targets, structure, process and performance in place to achieve the targets actions. The "Feedback Action learning loop" indicates that the strategic process is an ongoing process and virtually it never stops. This model intends to be a living and dynamic strategy-marketing model.
Having said that, I shall write the specific steps within each and every process step. ...to be continued my friends!