Editor's Note: Take a look at our featured best practice, Complete Guide to Business Strategy Design (51-slide PowerPoint presentation). Summary: This document provides a framework to design your business strategy.
A key question that every business needs to able to answer is "What is our strategy?"
'Strategy' is part of everyday business language and is often used in the wrong context (e.g. 'Operational Excellence' is not [read more]
Also, if you are interested in becoming an expert on Strategy Development, take a look at Flevy's Strategy Development Frameworks offering here. This is a curated collection of best practice frameworks based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. By learning and applying these concepts, you can you stay ahead of the curve. Full details here.
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There are literally 100s of Strategy frameworks. In our Strategy Development Stream alone, we have 60+ frameworks available.
With so many tools available, it can be difficult to determine what the right approach is for our organization. When selecting the appropriate strategic approach, there are numerous important considerations for us to evaluate, including Corporate Culture, Organizational Structure, Leadership Style, Competitive Positioning, and Core Competencies, to name a few.
To help us with this process of Strategy framework selection, let’s take a look at the Strategy Framework Canvas (SFC). The SFC is a unifying choice framework that guides us in selecting the appropriate strategy for the circumstances at hand and execute it effectively. This model is particularly useful for large organizations that are now stretched across a more diverse and faster-changing range of business situations.
SFC identifies 5 distinct archetypal approaches to strategy:
- Classic
- Adaptive
- Visionary
- Leader
- Renewal
Classic Strategy
The Classic approach is the most common approach. In this situation, the market is predictable, basis of competition is stable, and strategy is sustainable.
Classic strategy is achieved through sustainable Competitive Advantage by positioning our organization optimally in an attractive market. Since the basis of Competitive Advantage within these environments is known and non-malleable, advantage can be based on superior scale, differentiation (or, equivalently, scale within a narrower market segment), or superior capabilities.
The most well-known Strategy frameworks are the Classics, such as:
Adaptive Strategy
We use the Adaptive approach when the environment is neither predictable nor malleable. There is continuous disruption in the market.
Unlike the Classic approach of sustainable Competitive Advantage, the foundation to the Adaptive approach to strategy is the notion of serial temporary advantage. Within unpredictable and non-malleable environments, the emphasis is on continuous experimentation and real-time adjustment—as opposed to long-term analysis and planning. Because advantage is temporary, we focus on means and not ends.
Examples of Adaptive frameworks include:
- Time-based Competition
- Temporary Advantage
- Adaptive Advantage
Visionary Strategy
We take the Visionary approach when we can reliably create or re-create an environment by some degree of predictability by seeing an opportunity and pursuing it single-mindedly.
Visionary approaches are most frequently associated with entrepreneurial start-ups. However, large organizations increasingly need to adopt this approach for themselves, as well.
Examples here include:
Leader Strategy
The Leader Approach is used when the environment is unpredictable, but malleable. We can shape or re-shape the whole industry.
A Leader approach both permits and requires an organization to collaborate with others in a diverse ecosystem that distributes risk, supplies complementary capabilities and resources, and builds the market quickly through strength in numbers.
Examples of Leader frameworks include:
- Networks
- Ecosystems
- Platforms
Renewal Strategy
Lastly, the Renewal strategy approach is used when the environment is harsh. This type of strategy aims to restore the vitality and competitiveness of the organization.
In such a harsh environment, the existing circumstances prevent the current way of doing business from being sustainable. The first step is to change course to preserve and free up resources.
Examples here include any type of the following:
Once we determine the type of Strategy approach to take, the next step is to adopt a Strategy Development framework most befitting our organization.
Interested in learning more about the SFC? Take a look at our primer on the Strategy Framework Primer. This primer is also part of the Strategy Development Stream, a collection of 35+ strategy frameworks.
153-slide PowerPoint presentation
[NOTE: Our Hoshin Kanri presentation has been trusted by an array of prestigious organizations, including industry leaders such as Apple, Facebook, Boeing, Shell, Goodyear, Cummins, Johnson Controls, Hanes, Telefónica, Chubb, Discover, Stryker, Thales, Saint-Gobain, AGCO, to name just a
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"Strategy without Tactics is the slowest route to victory. Tactics without Strategy is the noise before defeat." - Sun Tzu
For effective Strategy Development and Strategic Planning, we must master both Strategy and Tactics. Our frameworks cover all phases of Strategy, from Strategy Design and Formulation to Strategy Deployment and Execution; as well as all levels of Strategy, from Corporate Strategy to Business Strategy to "Tactical" Strategy. Many of these methodologies are authored by global strategy consulting firms and have been successfully implemented at their Fortune 100 client organizations.
These frameworks include Porter's Five Forces, BCG Growth-Share Matrix, Greiner's Growth Model, Capabilities-driven Strategy (CDS), Business Model Innovation (BMI), Value Chain Analysis (VCA), Endgame Niche Strategies, Value Patterns, Integrated Strategy Model for Value Creation, Scenario Planning, to name a few.
Learn about our Strategy Development Best Practice Frameworks here.
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