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]
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Corporate Strategy is the long-term plan of action for an organization to achieve its goals and objectives in a competitive market. Traditional Strategic Frameworks often focused on fixed, static plans, such as extensive roadmaps or top-down directives. These plans, grounded in historical trends and long-term projections, are quickly losing relevance in today’s fast-paced, volatile business environment. The ever-changing nature of modern markets, driven by factors like technological innovation, regulatory shifts, and global disruptions, calls for a new, more adaptable approach to Strategy.
The traditional methods, such as SWOT analysis, fail to account for the unpredictability and rapid shifts that organizations now face. In this context, strategic tools need to be dynamic, enabling businesses to respond in real time to these challenges. This is where Strategy Mapping comes into play, offering a way for companies to visualize, adapt, and execute strategy with greater agility.
Among the most effective of these modern tools is Wardley Mapping—a framework that transforms Strategy from a static, reactive document into a dynamic, living process. By mapping out an organization’s strategy, its key components, and their evolutionary stages, Wardley Mapping provides clarity, foresight, and actionable insights.
Wardley Mapping Dimensions
Wardley Mapping, developed by Simon Wardley in 2005, is a visual tool that helps organizations navigate complexity and competition in evolving markets. It provides an intuitive way to map out the value chain of an organization and visualize how its various components evolve over time. This framework allows leaders to make better-informed decisions by showing them where to innovate, where to outsource, and where to build resilience.
The Wardley Map is based on 2 key dimensions:
Value Chain (Y-axis): This represents the visibility of various components to the end user. The more customer-facing an element is, the higher up the map it is placed. This dimension shows how different components contribute to customer value.
Evolution (X-axis): This axis tracks the maturity of these components over time, ranging from Genesis (novel and experimental) to Commodity (standardized and ubiquitous). Understanding where each component falls on this evolution scale is essential for informed decision-making.
Wardley Mapping Foundations
To successfully implement Wardley Mapping, leaders must grasp 4 foundational elements:
Defined Goal: Establish clear objectives for the map and the strategy it supports.
Competitive Landscape: Understand your position relative to rivals and external forces.
Patterns of Change (Climate): Recognize predictable industry shifts that influence strategy.
Universally Useful Patterns (Doctrines): Apply guiding principles that ensure consistency across different contexts.
Wardley Mapping Implementation
Implementing Wardley Mapping involves 10 key steps that guide businesses through creating a comprehensive and actionable strategic map:
Determine User Needs
Create a Value Chain
Map Value Chain on the Evolution Axis
Challenge Issues in Aggregate Maps
Adjust Maps with Metrics
Determine Your Strategic Play
Identify Methods
Organize and Deploy Teams
Evaluate and Refine with SWOT or BMC
Act
Let’s discuss the first few steps in detail, for now.
Step 1: Determine User Needs
The foundation of any effective Wardley Map is a clear understanding of user needs. In this first step, it is crucial to identify who the user is and what they require. This should not be a vague or generic need, but a concrete, well-articulated requirement backed by evidence. For example, for an online grocery business, the need might be for “accurate delivery windows,” a request that is precise, measurable, and quantifiable.
Once the user need is defined, it is essential to establish metrics for evaluating its success, such as “90% of deliveries within a 1-hour window” or “notification of delivery shifts within 30 minutes.” This step is about ensuring that every part of the map is anchored on user value, eliminating unnecessary assumptions and ensuring alignment across the organization.
Step 2: Create a Value Chain
After defining user needs, the next step is to break down the components that deliver value to the customer, known as the value chain. This step maps out not just the customer-facing elements but also the behind-the-scenes activities, such as data, infrastructure, and processes that enable the business to meet those needs.
For example, in the case of the grocery delivery service, the visible components might include the delivery slot display and order confirmation screens, while supporting components might involve inventory tracking, route optimization, and forecasting engines. Invisible components, like GPS feeds and payment systems, form the backbone of the service but are not directly visible to the end user.
Step 3: Map the Value Chain on the Evolution Axis
Once the value chain is mapped, the next step is to understand how each component is evolving. Is it in its early genesis stage, or is it a mature commodity? This evolution axis helps determine which components are differentiators and which have become standardized. For example, forecasting engines for grocery delivery might still be custom-built and highly differentiated, whereas cloud-based payment gateways have long since become commodities.
Mapping components along the evolution axis also helps identify areas where resources should be focused—whether to invest in innovation or streamline operations.
Case Study
A telecommunications provider was looking to navigate a rapidly evolving market with increasing competition. By employing Wardley Mapping, the company was able to map out its value chain, including customer-facing services like 5G mobile plans, as well as underlying components like network infrastructure and customer support systems.
The company discovered that while its network infrastructure was still a significant differentiator, it was rapidly becoming commoditized. Using the insights from the Wardley Map, it made strategic decisions to outsource its network maintenance while focusing on developing new customer-facing services, such as enhanced mobile apps and personalized customer support.
By applying Wardley Mapping, the company ensured that its resources were being invested where they could truly differentiate and avoid wasting money on areas that no longer provided a competitive edge.
FAQs
How often should I update a Wardley Map?
Wardley Maps should be updated regularly, especially in industries characterized by rapid change. The map is dynamic, and as components evolve, the map must reflect those shifts to remain useful.
Can Wardley Mapping replace traditional strategic frameworks like SWOT?
No, Wardley Mapping complements traditional tools. It provides a dynamic, visual representation of strategy, while frameworks like SWOT can be used to evaluate and refine the strategic options identified through mapping.
How do I get started with Wardley Mapping?
Begin by determining the user need, followed by mapping the value chain. As you build familiarity with the tool, you can move to more advanced steps like creating strategic plays and organizing teams.
Closing Thoughts
In today’s business world, static strategies are no longer effective. To thrive in an environment marked by uncertainty and rapid change, organizations need tools that allow them to visualize, adapt, and execute their strategy in real time. Wardley Mapping offers a powerful framework for creating a dynamic and actionable strategy that evolves with the business landscape. By focusing on user needs, mapping the value chain, and understanding the evolution of business components, Wardley Mapping helps businesses stay agile, competitive, and ready for the challenges of the future.
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