This PPT slide, part of the 35-slide Strategy Development Methodology PowerPoint presentation, presents Bower's framework for strategy development, emphasizing the resource allocation process as central to effective strategic planning. It outlines several key components that interact to shape the realized strategy of an organization.

At the top, "Strategic intent" signifies the overarching goals and objectives that guide the organization. This intent is influenced by how the strategy is perceived and communicated within the company. Below that, the "Organizational context" includes elements such as governance structures, performance measures, and the cognitive frameworks of managers, all of which affect decision-making and resource distribution.

The slide also highlights the "Market context," which focuses on the demands of existing customers and technological advancements that can impact revenue streams. The "Capital market context" addresses the expectations and influences of capital providers, indicating that financial considerations are critical in the strategic planning process.

Central to the framework is "Resource allocation," which is described as a bottom-up approach to strategy planning and budgeting. This process involves defining and selecting projects and initiatives that align with the strategic intent and organizational context. The "Operating System" is also mentioned, suggesting that the internal processes and systems must support the execution of the strategy.

Ultimately, the slide illustrates that the interplay of these elements leads to the "Realized strategy," which reflects the actual outcomes of the strategic planning efforts. This framework serves as a guide for organizations aiming to align their resources effectively with strategic goals, ensuring that all components work in harmony to achieve desired results.

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Henry Mintzberg Strategy Development Chief Strategy Officer Strategic Planning Governance