Strategy Model & Framework:
Designed to Deliver Results
Designed to Deliver Results
Our dynamic global business environment is continually wrought by perpetual transformations, competitive pressures, technological disruptions, and geopolitical realities. Be it a local corporation, multinational company, or an international conglomerate, every business organization faces significant challenges in navigating their strategic options to forge a well-crafted strategy that spans from overarching corporate goals to specific business unit objectives, ensuring alignment across all functional levels in their action plans and tactics.
To craft strategies at multiple organizational levels, unveiling the Strategic Decision Model (SDM) and the Delta Wing Strategy Framework, two innovative approaches designed to facilitate top-down strategic alignment throughout an organization.
Together, SDM and the Delta Wing empower an organization aiming to drive strategic initiatives, synchronize efforts, unlock efficiency potential, and establish strategic focus across all functional area of the organization.
What are the benefits of SDM and Delta Wing Strategy Framework?
Takes out the guess work in strategy crafting at every level of your organization
Lays down all strategic options very clearly for all levels of the organization to view, finalize and challenge/change.
Builds strategic alignment top to down (corporate, business units, to the functional levels of marketing, operations and finance)
Is highly logical and intuitive, enabling both business and non-business/technical leads to align easily for effective collaboration
How does Strategic Decision Model operate? It takes into consideration internal competencies, market opportunities, externalities, and external factors to generate a dynamic set of strategic options that would be foundational parameter to crafting a strategy. This model enables organizations to analyze & adapt swiftly to market changes and maintain a competitive edge.
How does 'Delta Wing' Strategy Framework serve an organization? It provides a structured method for identifying key functions within an organization that are essential for delivering business unit objectives and corporate goals. Delta Wing drives strategic coherence through the core functions of Finance, Operations, and Marketing down to their respective sub-functions critical to the organization's success. The core functions define how a business manages its liabilities, produces quality products, and ultimately delivers on the promises made to customers/clients. Everything south of this top layer of core functions drills-down into further mission-critical functional areas, may it be cash flow, risk and liabilities management; manufacturing, R&D/technology, and supply chain; and product, pricing, placement and promotion.
Before we dive any further, wouldn't it be prudent to align on what 'Strategy' really entails? It's a foundational concept that will steer your organization towards long-term success.
What is Strategy, really?
"Strategy is an idea that employs the most relevant and effective parameters of change which, when brought into effect, can produce the desired outcome. In other words, given certain parameters with the potential to affect change that one can leverage or engage in a business environment, strategy is an idea that makes use of these parameters to bring about a desired outcome."
Above is the very definition of what strategy is. To help let this definition sink in with all the other notions of what you thought strategy was, let’s dissect the definition down to its atomic structure.
So let’s try to understand it this way, every human endeavor is constrained by limitations - say a set boundary of possible changes you can make or actions you can take is imposed by the environment itself within which this venture/enterprise is being undertaken. A subset of such limitations that a business decides to engage in or say have the capacity to affect change in, is what is defined as the parameters of the endeavor. A strategist must adeptly maneuver and leverage these identified parameters to achieve desired outcomes or goals.
A strategy, being an idea that leverages parameters, can be good or bad, effective or ineffective, depending on how aptly it was identified and incorporated into practice. By understanding and effectively managing these parameters, a strategist can optimize the efforts and increase the chances of success despite the inherent limitations of the environment.
Strategic Decision Model (SDM)
To formulate a solid strategy, 'Strategic Decision Model' (SDM) is a powerful tool that enables strategists at corporate, business unit, and functional levels to remove all guesswork and build concrete rationale for their strategic decision-making. With SDM, you can define every strategic option at your disposal and build scenarios to evaluate their effectiveness within your organization's top-down strategic alignment.
Limitations are the 'key areas of strategic consideration' when mapping out the unique composition of a business environment:
At the corporate level, the key areas revolve around overall direction, investment decisions, and managing the portfolio of businesses.
At the business level, the key areas relate to how to compete effectively in a particular market or industry through competitive positioning, value proposition, target segments etc.
At a functional level, like marketing, finance or operations, the key areas could be 4Ps, Financial Ratios and Business Process Re-engineering, respectively.
Each of these environments set integral constraints and boundaries within which an entity must operate. These factors influence and shape the business within specific industry, geographical, and regulatory contexts.
Parameters, on the other hand, are defined as 'inputs' into the decision-making process and functional activities that an organization undertakes to bring about a favourable change in how current limitations affect the organization.
The relationship between Limitations and Parameters can be likened to a sport and its competing teams. In every sport, there are key stress areas that every team faces. Each team, with its unique composition of player skills, experience, and abilities, sets up its game plan to exploit the rules of the game to its advantage.
On what basis do we identify the Key Areas for Limitations?
Since we are using the Strategic Decision Model (SDM) in a business environment, the factors that help us determine the 'Key Areas to Consider' at any level of operations should be directly relevant to that business environment or domain.
SDM's 4 Key Drivers
In order to determine what limitations and parameters can qualify in the Strategic Decision Model for corporate, business, and functional level strategies, several industry drivers are taken into account, such as internal competencies, market opportunities, stakeholder interests, and external factors. These drivers provide strategists with a wide spectrum of considerations, qualifying as strategic options in the decision-making process.
Implementing SDM across Corporate, Business and Functional Level Strategies
Crafting Corporate Strategy
Employing the Strategic Decision Model, corporate strategy takes shape by identifying markets and industries to compete in and aligning organizational goals and objectives with strategic investments in M&A, new ventures, and resource allocation for strategic business units, among other areas of strategic interest.
Deriving Business Strategy
Strategic Decision Model enables a Business Unit to identify Parameters as a set of Strategic Options for the business to secure a Competitive Market Position, acquire Competitive Advantage & Differentiation, and Meet Customer Needs with superior Solutions & Performance.
Developing Functional Strategy
Often, strategies conceived by corporate and business units fail to effectively cascade down to the functional levels. Functional strategies, such as marketing, are essential for realizing business objectives and achieving corporate goals
The big question:
What makes the Strategic Decision Model more effective in devising strategies compared to the numerous other approaches, frameworks, and models available?
The Strategic Decision Model (SDM) stands out as a more comprehensive model compared to other popular ones due to its integrative approach. It takes into account internal competencies of an organization, market opportunities, externalities affecting the business organization, and external factors directly impacting the business. Here’s how the SDM excels compared to other widely used strategy models, with examples and insights to support this claim:
Holistic Perspective:
Example: Unlike Porter’s Five Forces, which focuses primarily on external competitive forces, the SDM considers both internal and external factors, offering a more holistic view. For instance, while Porter’s model might suggest a focus on competitive rivalry, the SDM would also analyze internal capabilities and resources to provide a balanced strategy.
Rationale: By incorporating a wider range of factors, including internal strengths and weaknesses as well as external opportunities and threats, the SDM ensures a more comprehensive strategy development process.
Flexibility and Adaptability:
Example: The Balanced Scorecard is an excellent tool for performance measurement but can be rigid when it comes to strategy formulation. The SDM, on the other hand, is flexible and adaptable, allowing organizations to pivot and adjust strategies based on real-time data and evolving circumstances.
Rationale: In today’s fast-paced business environment, the ability to quickly adapt strategies is crucial. The SDM’s flexibility allows organizations to remain agile and responsive to changes, enhancing their competitive edge.
Integration Across Levels:
Example: While the SWOT Analysis is useful for identifying strengths, weaknesses, opportunities, and threats, it often lacks integration across different organizational levels. The SDM ensures that strategies are aligned from the corporate level down to functional levels, ensuring coherence and unity in strategic direction.
Rationale: Strategic alignment across all levels of the organization ensures that every department and function is working towards common goals, enhancing overall efficiency and effectiveness.
Decision-Making Focus:
Example: The Ansoff Matrix helps in understanding growth strategies but doesn’t explicitly guide decision-making processes. The SDM places a strong emphasis on decision-making, providing a structured approach to evaluate various strategic options and make informed decisions.
Rationale: Effective decision-making is at the heart of successful strategy implementation. The SDM’s focus on decision-making ensures that strategies are not only well-formulated but also practically viable and actionable.
Dynamic and Iterative Process:
Example: Traditional models like PESTEL Analysis provide static snapshots of external factors. The SDM is designed to be dynamic and iterative, constantly updating and refining strategies based on ongoing analysis and feedback.
Rationale: A dynamic approach allows for continuous improvement and refinement of strategies, ensuring they remain relevant and effective over time.
When comparing the Strategic Decision Model (SDM) to the models and approaches taught in academia and used by leading management consultancies like McKinsey and Boston Consulting Group, SDM stands out by incorporating practical, industry-relevant, and organization-specific considerations into its 'Limitations,' which then serve as 'Parameters' for maneuvering strategic options. Additionally, SDM can integrate real-time data inputs to dynamically synthesize strategic options, making it highly adaptable and responsive to market dynamics, thus giving the Strategic Decision Model a competitive edge.
The Strategic Decision Model (SDM), McKinsey's 7S Framework, and BCG's Strategy Palette are distinct strategic approaches, each serving unique purposes and focusing on different aspects of an organization. Here are the key differences:
Focus:
SDM: Focuses on the process of making strategic decisions, identifying opportunities, and mitigating risks. It involves analyzing the external environment, identifying strategic options, and selecting the best course of action
7S Framework: Focuses on the internal aspects of an organization, examining seven key elements (Strategy, Structure, Systems, Shared Values, Style, Staff, and Skills) to ensure alignment and effectiveness in achieving organizational goals
BCG Strategy Palette: Focuses on the internal aspects of an organization, examining five distinct approaches to strategy: Classic Strategy, Adaptive Strategy, Visionary Strategy, Shaping Strategy, and Renewal Strategy
Purpose:
SDM: Aims to help organizations make informed strategic decisions that align with their goals and objectives
7S Framework: Aims to ensure that all parts of an organization are working together effectively towards a common goal, by aligning the seven internal elements
BCG Strategy Palette: Aims to provide a comprehensive framework for developing and implementing effective strategies that address the organization's specific needs and challenges
Scope:
SDM: Encompasses both internal and external factors, including market analysis, competitor analysis, and environmental scanning
7S Framework: Focuses solely on internal factors, examining the organization's strategy, structure, systems, shared values, style, staff, and skills
BCG Strategy Palette: Focuses on internal factors, examining the organization's capabilities, resources, and strategic options
Application:
SDM: Typically used in situations where strategic decisions need to be made, such as entering new markets, launching new products, or responding to changes in the competitive landscape
7S Framework: Often used when organizational design and effectiveness are in question, such as during times of change, restructuring, or when seeking to improve overall performance
BCG Strategy Palette: Often used when organizations need to develop a comprehensive strategy that addresses their specific challenges and opportunities
Output:
SDM: Results in a strategic decision(s) that outlines the chosen course of action
7S Framework: Provides a comprehensive analysis of the organization's internal alignment, highlighting areas of strength and weakness, and identifying opportunities for improvement
BCG Strategy Palette: Provides a comprehensive strategy that outlines the organization's approach to achieving its goals and objectives
Almost There, But Not Quite:
How do we ensure that the strategies made at functional levels sync with the corporate and business levels?
Answer:
'Strategic Alignment'
Understanding how every key function within your organization aligns with the corporate and business strategy is mission-critical. However, the fact of the matter is that in most organizations, the people working in these key functions may not clearly see how their efforts impact the organization as a whole. In other words, they may not fully understand how well their function is aligned in adding value to the corporate and business strategies.
We need a 'Framework' that can help an organization identify the key functions that are strategically aligned in delivering business unit objectives and corporate goals.
From the SDM, we understand that at every level of strategy crafting, there are limiting factors influencing and shaping the strategic decisions at every level of the enterprise. These influential factors cascade from the top down, fostering strategic alignment:
The corporate level sets
'goals'
↓
The business level defines
'objectives'
↓
The functional level develops
'domain specific action plans'
to achieve desired outcomes
Strategic alignment is achieved when every organizational function and sub-function builds its action plans to deliver on the business objectives and corporate goals.
It's time to step back
& look at the
Big Picture.
& look at the
Big Picture.
Delta Wing Strategy Framework
Seldom do we see strategies made at the corporate and business unit level flow down to the key business functions on the frontlines. 'Delta Wing Strategy Framework' identifies, hierarchizes and prioritizes every mission-critical functions of an organization. This framework also gives stakeholders a unified and coherent view of every key function at work that needs to be strategically aligned with the business and corporate strategies.
There are some functions that every organization must have in order to operate competitively within their industry, but there are also certain industry-specific functions that should be added to the cascading workflow of strategies. For instance, Clinical Operations Strategy, which deals with the management of clinical trials, studies, and other clinical activities, can be an important function for a healthcare organization. On the other hand, Compliance Strategy is commonly relevant to all large corporations, guiding them to abide by privacy, environmental protection, and personnel safety regulations in their geography and industry.
Here is a preview of three levels of strategy at work, where each level identifies the 'Limitations' and defines what would constitute 'goals,' 'objectives,' and 'action plans.'
SDM in Action: Building Strategic Alignment
Corporate Strategy
At each level of strategy crafting using SDM, we identify key limitations interacting with the operational environment, whether at the corporate, business, or functional levels. Once we have a clear view of these key limitations, we can introspect our capabilities, capacity, and risk tolerance to determine which limitations we should parameterize as strategic options, which we can then leverage to effect the desired change in a given environment.
In the SDM below, the limitations are generic in some sense to most corporate entities. Nevertheless, the strategic choice of parameters I've made holds a hypothetical context in my mind, where I've decided which ones would work and which ones wouldn't. This is what makes every strategy unique, as multiple permutations and varying degrees of change unveil numerous possibilities.
The examples above of parameters give us insight into the corporate mindset and why these strategic options were invoked. One can argue that leveraging patents and IP ensures innovation protection and competitive advantage, while strategic M&A activities drive market expansion and capability enhancement. An optimized supply chains improves efficiency and resilience, while ecosystem integration fosters collaborative innovation, and customer loyalty that creates a high switching costs. Strategic investments fuel growth and long-term value creation, especially when investments in disruptive technologies come to fruition, positioning the company as a market leader.
Business Strategy
SDM can drill down into the specific limitations and opportunities within individual business units. We determine which limitations to parameterize as strategic options through a detailed analysis of business unit capabilities, market positions, and competitive dynamics. Then, we can leverage potential areas for growth or desired change/outcomes while aligning our strategic options with the objectives of the business unit and the overarching corporate goals.
The limitations and parameters chosen in the model below are based on the assumption that this business unit falls within a corporate portfolio structure and its priority is to align its business objectives with the goals of the corporate mission and vision. Any organization adopting this model must explore their business environment and identify the parameters best suited to their needs.
The strategic options in the model above illustrate a corporate and business maneuver that is reactionary, adjusting the business's footing rather than being visionary. No business can anticipate all future scenarios, but it's always better to be proactive and in a leading position, paying attention to market and consumer trends, rather than reacting to changing market conditions and competitors' strategic decisions.
Marketing Strategy
At the functional level of marketing strategy, SDM enables us to focus on the specific constraints and opportunities within the marketing domain that can drive change in the right direction - aligned with business and corporate strategies. By closely examining the operational environment and market dynamics, we identify the limitations and parameters that have bottom-line implications for the marketing function and are most potent in shaping our strategic decisions.
The function of Marketing is the final leg in the race to deliver products and services to the finish line. Given its expertise at the outer edge of the business organization, its reaction time depends on how quickly the rest of the functions can align with the top-down strategic direction
In a race against time, the go-to-market capability of any business organization relies on the marketing department effectively rallying input from all other functions within the organization to deliver a finished product. This interdependence highlights the importance of strategic alignment across all key functional layers of operations, finance, and marketing, as well as their respective sub-functions within a business organization
Ready to discover how the Delta Wing Strategy Framework and Strategic Decision Model can transform your organization?
Unlock the full potential of your business with strategic alignment and comprehensive planning. The Delta Wing Framework and Strategic Decision Model offer a proven approach to ensure your key functions are well-aligned with corporate goals and business unit objectives. By leveraging these tools, you can:
Drive strategic initiatives
Enhance operational efficiency
Achieve cohesive organizational goals
Fill out the form below to get started and learn how this proprietary approach can help your organization soar to new heights.