Strategic Frameworks & Strategic planning & Management:

Strategic Frameworks & Strategic planning & Management:

What Is the Strategic Framework?

A strategic framework is a structured tool or method used to define how a project or initiative supports the key objectives of an organization or business. Strategic frameworks are great for helping you to create and execute strategy.

A strategic framework is a tool that will assist you at a specific stage of the strategic management cycle, most commonly during the strategy formulation and evaluation stage. Usually, strategic frameworks will require you to categorize your goals into a series of groupings. The strategic framework that you choose should therefore reflect the overall outcomes that you want to achieve.

A strategic framework is an externally facing, visual outline of activities that make up an organization’s or departments main strategy. A framework serves as the foundation for internal and external messaging, organizing all priorities and initiatives into strategic drivers or pillars that ladder up to a high-level goal or purpose. A strong framework is aspirational, designed to inspire stakeholders and demonstrate how the organization is working towards their vision, purpose, or goals. If your strategy is a building a house, your framework is the design.

As a strategic tool, it provides you with clear and measurable goals. You can identify strengths and gaps in your product or service, learn from specific examples of personal experiences and gather information through opinions for improvement and gain insight into your planning.

Elements of Strategic Framework:

There are four components to a strategic framework.

• Business objective. What will the project or initiative achieve?

• Approach. How will that achievement be realized?

• Measurement. How will achievement be measured and reported?

• Target. What is the forecasted improvement that will define success?

The strategic framework must be based on the organization’s mission, vision, and goals.

Key Stakeholders of a Strategic Framework:

We need support from key stakeholders to ensure success. Who are the key stakeholders of a strategic framework?

• Teammates. The immediate group of people with whom you work.

• Organization. The business or company for whom you work.

• Customers. The people that buy or use the products or services produced by your organization.

A strategic framework should briefly discuss how each stakeholder group—teammates, organization, and customers—will benefit from the completion of the initiative.

The strategic framework is not a repeat of a project plan or a business case. A project plan is a detailed document that discusses the resource requirements and timeframes for accomplishing a series of tasks over a defined period. A business case is a formalized justification for a significant expenditure, which includes a discussion of risks, alternatives, and methodologies. The strategic framework balances both of these documents, and while it requires a little bit more effort to develop, your project or initiative will benefit.

Benefits of Developing a Strategic Framework:

 1. It allows organizations to be proactive rather than reactive.

 2. It sets up a sense of direction.

 3. It increases operational efficiency.

 4. It helps to increase market share and profitability.

 5. It can make a business more durable.

6. Strategic frameworks help in the formulation stage by giving you a ‘template’ for categorizing your goals.

Build Your Strategic Framework:

To build your strategic framework, first, review the organization’s mission, vision and goals. Identify how your great idea or project will help the organization achieve its goals.

 

Develop a high-level approach, detailed enough to demonstrate that you’ve thought through the sequence of activities and what resources are required.

Next, establish how progress will be measured and reported. Where are you now? What measures reflect where you are now? Identify measures that reflect and quantify progress toward achieving the organization’s goals.

 

Now that you know where you are now and how you’re going to measure progress, establish a target. How much progress within what timeframe would be considered a success?  Establishing measures and targets are critical steps; choose the wrong measures or set an unrealistic target and candidly, your project is ruined. Identify relevant, meaningful measures that will quantify the progress toward meeting your target, which in turn, helps your organization meet a goal.

What are the key messages for each stakeholder group—teammates, organization, and customers? What questions will each stakeholder group have about your initiative? What do you want each stakeholder group to know about your idea or initiative?

Now document what you’ve developed. You’ve defined a strategic framework!

Five Best Strategy Frameworks for your Organization:

There are hundreds of strategy frameworks out there, ranging from simple to extremely complicated. This can make choosing the best strategy frameworks for your organization very hard. We're going to talk through 5 of the best strategy frameworks, to help you decide which is right for you.

First things first though - let alone the best strategy frameworks, why do you even need a strategic framework? The main reason is to help keep you focused on your goals. There are 3 key steps in implementing a strategic framework. Each of these steps will help you to focus more deeply on your strategy:

Step 1: Choosing the right framework:

A key part of choosing the right framework is self-reflection about your organization. What are you trying to achieve? What are your main strengths and weaknesses? All these factors will play a vital role in your selection of the best strategy framework.

Step 2: Applying the framework to your goals:

While creating goals for your strategy, apply your strategic framework to the goals you've created. This process will force you into thinking deeply about alignment between your goals, strategic framework and overarching vision.

Step 3: Reviewing your plan against your framework:

Review your plan against your framework to fill the gaps and achieve your goals.

List of important Frameworks is given below:

1. McKinsey’s Strategic Horizons

2. McKinsey’s 7-S

3. The Stakeholder Theory

4. The Balanced Scorecard

5. The Ansoff Matrix

6. SWOT Analysis

7. PEST Analysis

8. Growth and Innovation 

9. Value Disciplines 

10. BCG Matrix

We will discuss above mentioned Strategic Frameworks ahead in detail.

Which are the best strategy frameworks for your organization?

If your vision statement is filled with concepts of growth and innovation - you might find that McKinsey's Strategic Horizons is the best strategy framework for you. Arguably The Ansoff's Matrix could work well also.

If your vision statement is more about solidarity and strength - then something like the Balanced Scorecard might be more appropriate.

How about if your vision statement is more focused on a particular aspect or niche? Value Disciplines is worth a look. 

And finally, if your vision statement is grand on a societal level and more focused on people - try out the Stakeholder Model.

Analyze your Organization:

Following frameworks are used for internal environment analysis.

1. PEST Analysis 

2. SWOT Analysis

3. Core Competencies

4. Critical Success Factors

5. Unique Selling Proposition

6. Internal Factor Evaluation Matrix 

7. Gap Analysis

Analyze your Environment: (Market)

Following frameworks are used for external environment analysis.

1. Porter's 5 Forces

2. Competitor Profile Matrix

3. External Factor Evaluation Matrix

4. Benchmarking 

5. Financial Ratios 

6. Scenarios Forecasting 

7. Market Segmentation 

8. Value Chain Analysis, 

9. VRIO Framework.

Analyze your Customer:

Following frameworks are used for customer analysis.

1. Stakeholder Analysis

2. Market Segmented

3. Marketing Mix

Analyze your Competitor:

Following frameworks are used for competitor analysis.

1. USP Analysis

2. Competitive Intelligence 

3. Add value 

4. Blue Ocean Strategy

Analyze & Assess your Progress:

1. The Balanced Scorecard

2. Boston Matrix

3. McKinsey's Three Horizons of Growth

4. The McKinsey 7-S Framework

5. Ansoff Matrix

6. Gantt Chart