OK. Lets summarize.
Strategy should achieve a change in customer experience, to deliver a financial result. To achieve this, most organizations are faced with a fundamental re- architecting of their business & operating model. From marketing through sales, origination, service & fulfillment, and closure, most organizations are architected with a product strategy in mind. Siloed functions, departments & lines-of-business, are not structured for customer oriented transaction. Little wonder then, when strategy fails.
Strategy design is the re-engineering of strategy to achieve a certain measurable objective. It answers the questions: why do what we do (authenticity & purpose), how should we do it (where should we play to win), what do we do (the service/ product offering), and when will we know we are succeeding (metrics). If the answers to these questions are not compelling, agreed and communicated at every level, you are still at the design board (not the execution).
From strategy design, organizations move to designing, hypothesizing & validating the target operating model (T.O.M.) needed to achieve a strategy. The T.O.M. indicates how to fundamental change the company’s organization (people), operating (process) & technology (tools), by providing an end goal (we should look and operate like this), which when compared to the “as-is” state (where we are today), generates a gap- analysis in the necessary capabilities to get you there.
Once a T.O.M. is architected and agreed, and a gap- analysis conducted, a portfolio of projects can be constructed, that are directly tied to the T.O.M., and as such the strategy.
Nice & simple right? Yes. But only if a number of complex parts are kept in mind…
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