Navigating strategy takes strategy and asking the right sets
of strategic questions as well, as business becomes more dynamic than ever,
strategy making shouldn't be just annual event, business executives need to continue
review and revise strategy accordingly.
1. Three ‘W” Questions to Define Fundamentals of Corporate Strategy
1) Who is the Target Customer?
2).What is the Value Proposition to that Customer?
3).What are the essential Capabilities needed to deliver that Value Proposition?
2. Set of Questions to Score Corporate Strategy
1). Will your Strategy beat the Market?
2). Does your Strategy tap a true source of advantage?
3). Is your Strategy granular about where to compete?
4). Does your Strategy put you ahead of trends?
5). Does your Strategy rest on privileged insights?
6). Does your Strategy embrace uncertainty?
7). Does your Strategy balance commitment and flexibility?
8). Is your Strategy contaminated by bias?
9). Is there conviction to act on your Strategy?
10). Have you translated your Strategy into an action plan?
3. Checklist of Scenario upon How to Make Strategic Decision
1: Step 1: Where Are We? Develop an External Environment Profile
Key focal point: What are the key factors in our external environment and how much can we control them?
Key focal point: Build detailed snapshots of your business activities as they are at present.
Key focal point: What are our strengths and needs? How are we doing in our key results and activities areas?
Key focal point: Build assumptions, potentials, etc. Do not build predictions or forecasts! Assess what the future business situation might look like.
Key focal point: Create a pyramid of objectives; redefine your business; set functional objectives.
Key focal point: What will be the effect of new external forces? What assumptions can we make about future changes to our environment?
Key focal point: Act to fill the gaps. Conduct an opportunity-problem feasibility analysis; risk analysis assessment; resource-requirements assessment. Build action program proposals.
Key focal point: Classify strategy and program objectives; make explicit commitments; adjust objectives.
Key focal point: Evaluate the impact of new programs.
Key focal point: Monitor external environment. Analyze fiscal and physical variances. Conduct an overall assessment.
Key focal point: Revise strategy and program objectives as needed; revise explicit commitments as needed; adjust objectives as needed.
4. 5W+1H to Navigate Strategy
2).HOW does the business make profit? What are the transactions that generate cash flow and margin for the business?
3).What is our specific objective?
4).What is our scope?
5).What is our competitive advantage? (How are we better, cheaper, or different than the alternatives?)
6).What is our strategic sweet spot?
7).What is the relevant products in the market and their geographic coverage?
8).Who are the buyers, suppliers, competitors, substitutes, and potential entrants?
9).What forces control profitability? (see diagram)