An All Inclusive Strategy Development Approach

Should strategies be developed within the four walls of a boardroom or should they be discussed with key players of the organization? Should they be imposed to all levels of the organization or should they be shared equally throughout the organization? Is there a better way of doing it? It is difficult to believe that strategies should be developed by a few whom, rightfully so, are in charge of the organization. The formulation of strategies needed to take the firm to where it intends to go, should be an all inclusive exercise, especially in mid-size organizations where the process of developing strategies can easily involve most of the organization's human resources.

When developing strategies for the organization, the owner(s) or senior leadership should consider the following steps, which somewhat mirror what Norton and Kaplan suggest in their popular BSC (Balanced Scorecard) method (previously addressed within this blog).

 1. Interview senior managers as well as operational key players. Ask them “what is going on right now” and where they see the organization headed, and why they feel that way. Needless to say, the “operator” (be it the customer service representative or the sales person) often knows much more about what goes on at the operational level than the owner of the organization.

2. List all similarities discovered in the process. Is there a common theme in the employees’ answers? Is there a common issue? Does what you hear from the shop floor align with what senior management have in mind for the organization?

3. Focus on a few critical performance indicators that are in fact aligned with the overall goals of the organization. You can use these indicators as the basis for your strategic plan.

4. Brainstorm with those who have provided you with input. Why the similarities? Why the discrepancies?

5. Reflect on whether or not what you had in mind for your main strategy (or strategies) is actually doable, reasonable, and more importantly, what your customers expect of your organization. For one reason or another, you may be taking the organization to a completely different destination when compared to what your employees and the market are seeing it going.

The exercise of involving various key players in the strategy formulation will serve you with, at least, a good picture of what’s intended by leadership and what’s perceived by the employees throughout the entire organization when it comes to its direction (the firm's strategies.) Involving other levels (rather than senior management only) in the strategy formulation process can be a powerful tool for alignment and understanding. Think of a soccer team that has been told what to do in the field but yet have no idea about what the rewards (and roadblocks) involved in the task are. The team can still get the job done, but it would be much easier and rewarding for all if the team players have a common purpose in mind.

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