I have long believed that any organization without a cogent strategy is vulnerable. Too much strategic thinking these days is driven, in my opinion, by a desire to appeal to Wall Street investment bankers and analysts or by a dot.bomb-fueled fear of failure.
Strategy is a two-headed prong. It is creative enough to fashion a vision, while being disciplined enough to drive the vision into reality.
Mike Freedman defines the word as the framework of choices that determine the nature and direction of an organization. It is a definition I like. The word framework establishes boundaries and scope. Choices are about products, services, markets and capabilities. Nature describes the character of any organization. Direction is the organizations course determined by choices about future products, services, customers and markets.
Notice that a decision is not strategic simply because it is long-term or involves mega-dollar expenditures. While these can be made within the strategic framework, only those decisions that change the framework are strategic.
Freedman says there are three critical aspects to a strategy:
1. A strategic vision is based on facts, informed assumptions and critical what-if thinking.
2. The vision must be communicated throughout the organization.
3. Its implementation must be monitored.
I particularly enjoyed the section on Strategic Master Project Planning. Freedman says the purpose of master project plan is to assess the necessary strategic initiatives, integrate the existing operation projects, identify project priority and interdict those projects which are out of line with the strategic vision.
This is a great book. As always, organizations that desire to survive and thrive will have to mast the art of strategy creation and implementation. The Kepner-Tregoe five phase model on which Freedman bases this book is a great foundation for organizations and managers who wish to begin the journey.