I did a lot of research before I began this article. I wanted to find a metaphor for strategy that would help draw you (my reader) in this topic and illustrate my main points about strategy. I Googled a number of different words combined with “strategy.” When I tried out “strategy metaphor,” I found a site with a variety of clip arts representing strategy.

Here’s a sampling of what I found:

I got a wide range of images: Military strategy. Sports strategy. Strategy in the boardroom. Here’s what they all, as different as they might seem, have in common: The way strategy is commonly defined is “a game plan for winning.”

Is there anything wrong with that definition? Yes and no. No, in that no one attacks an enemy, plays a sport or starts a business with the intent of losing. But, yes, because strategy is so much more.

Better definition for strategy

If the definition for strategy is a game plan for winning, then the definition for effective strategy is a series of tough daily decisions and tradeoffs that support an overall game plan for winning. Strategic intentions are realized or not realized in the trenches on a daily basis when decisions are made on head count, resourcing, product offerings, service standards, etc.

Effective strategy has three major components: It is well-grounded, articulated and used as a decision-making filter for leaders and employees throughout the organization.

How the components of effective strategy work together

Consider the visual below:

1. A well-grounded strategy that is also articulated but not used as a decision-making filter is inconsequential. These are strategies or, better yet, strategic intentions that make good wall hangings in the employee break rooms. Inspirational …yes. Actionable …no.One of my clients was a large, upscale resort in Orlando (name withheld upon request of client). Their leader crafted vision and mission statements that would have choked up even the most no-nonsense leader. Posters with the vision and mission were visible in all employee areas. Cards were made for employees to carry everywhere they went. The vision and mission were very relevant to this resort’s brand and target market. It was all very articulated.When I was brought in, the executives of this resort asked over and over, “What is our strategy?” and “What are our goals?” This resort’s challenge was that the executives did not know how to translate their strategic intentions into filters for everyday decisions. So when they were forced into budget-cutting, they didn’t know what to cut. And when they had to add or eliminate head count, they didn’t have direction as to what would help or hinder them in achieving their goals.
2. A well-grounded strategy that is also used as a decision-making filter but is not articulated is inconsistent. These strategic plans are specific enough that leaders and employees have some sense of direction and can use the strategy for decision-making, but everyone in the organization is not on the same page with regard to what that direction is.I supported the strategic transformation of the staff groups (Finance, Human Resources and Information Technology) of a large nonprofit organization. In the past, this organization was perceived by the internal clients it serves as being bureaucratic and difficult to work with. The strategy was for the organization to become customer-centric, which was well-received by employees and clients. The problem was there were five executives and six opinions on what customer-centric meant. Thus, a great deal of tension arose when each executive made decisions that appeared to the others to conflict with agreed-upon strategic goals. And group decision-making processes on resourcing, service standards, etc. were painful to say the least. Ultimately, the transformation fell way short of original intentions, due to the lack of a well-articulated strategy.
3. An articulated strategy that is used as a decision-making filter but is not well-grounded is insignificant. It is quite possible for an organization to be successful in the short term using this type of strategic approach, but is it impossible to be successful over the long term.I often use the term “strategy discovery” rather than “strategy planning,” because I think that in many ways strategy is an internal contemplation process to answer the core questions: “Who are we?” and “What do we want?” You can’t build a long-term strategy on what you wish to be good at or passionate about, or what you hope the market will want. You have to build a strategy on what is already in place.I was an internal consultant for Walt Disney World for almost a decade. One of Disney’s espoused values was “balance,” which was hard to believe, considering that I often worked late into the night and on weekends. I think Disney wanted to believe in balance but couldn’t sustain business practices to support it, because “balance” was not in alignment with broader company values such as “excellence” and the reality of a 24/7 operation. Disney attracts top talent because it really does believe in and live out performance excellence, and strategic plans work when they are put into place based on Disney’s values. And when Disney does something that violates excellence, it probably frustrates Cast members more than it does Guests.
4. A well-grounded strategy that is articulated and used as a decision-making filter is intentional and implemented. One of my favorite companies to cite in this instance is Nordstrom’s. I love to shop there. And I love to ponder why I love to shop there. The reason is that I experience what I know about the internal processes and strategic intentions of a company every time I go to Nordstrom’s.Nordstrom’s sets itself apart from all other stores itself in the area of customer experience. Its products aren’t very different from those of Bloomingdale’s, Neiman Marcus or any other high-end department store. But the Nordstrom shopping experience is legendary. The woman who sells my makeup is listed in my cell phone contacts. I can call her up anytime and tell her what I want, and she will send it to me. She is that empowered. The salesmen in the shoe department all know me by name, even though I haven’t bought a new pair of shoes there in over six months. I can and have returned items several months after purchase with no hassle. In other words, the organization’s systems and processes support the front-line employee’s ability to make decisions that support the company’s strategy.

Moving from strategy to effective strategy

Here are some tips and best practices to improve your strategy’s effectiveness:

To improve on how well-grounded your strategy is:

Goal: To be able to answer clearly, “Who are we?” and “What do we want?”

Sample tactics:

• Conduct focus groups with customers to better understand their awareness of what you have to offer, their intent to try your products and services, and their intent to repeat and to recommend you to others.
• Conduct an internal business assessment with employees to better understand their perceptions of customer satisfaction.
• Hire a firm that specializes in future trends in your industry.
• Benchmark with other companies both inside and outside your industry to better understand the market and where your potential strengths are.
• Take your senior leaders on a retreat and give them exercises to help them identify organizational strengths, employee passion and market needs.
• Conduct action sessions with a cross-section of employees, and give them exercises similar to those you would give your senior leaders.

To improve how you articulate your strategy:

Goal: To create a common “song sheet” for all your leaders and employees to “sing” from.

Sample tactics:

• Translate strategic intentions into a strategic charter containing statements that represent your organization’s purpose and future goals, as well as tactics to achieve those goals.
• Create a “position paper,” which is a strategic document that lays out in detail your strategic intentions that employees, stakeholders and upper leadership can use when making critical decisions.
• Translate statements into a strategy map or balanced scorecard which demonstrates how the organization’s loftier visions translate to day-to-day objectives.
• Develop an internal blog on which you, your direct reports and employees can post examples of strategy in action.
• Ensure that every training program references strategic intentions.

To improve the way you use strategy as a decision-making filter:

Goal: To make day-to-day decisions taking strategic intentions into account. Make all tough decisions and tradeoffs with the strategy in mind.

Sample tactics:

• Translate your strategy map or balanced scorecard to a set of metrics against which performance and progress can be measured.
• Create an “initiative matrix” to improve decision-making for starting and resourcing projects (comparing projects against measurable results).
• Create a process in which individual performance objectives are linked directly to the strategic intentions.
• Ensure that each leader is trained to explain how his or her direct report’s job supports the achievement of the strategic intentions.

The Bottom Line

Strategy is about so much more than how to run a play or which tactic can be used to flank an enemy. It is also about so much more than vision and mission statements framed and hanging on the wall in the break room, or endless binders taking up valuable bookshelf space.

Strategy is about making daily decisions and tradeoffs, which can be challenging in tough economic times. For example, a cruise line might want to differentiate itself from other lines based on its high-end food offerings. But in cost-cutting times, when jobs are at stake, it is hard to argue for keeping the lobster on the buffet.

Southwest Airlines is the only airline that has remained profitable in this tough economic climate. United has determined that customers are only interested in price, so it has eliminated many of its customer-service enhancements and now charges for bags. Spirit Airlines has caused all kind of stir because it has proposed charging for carry-on bags, as well as checked bags. Perhaps the lesson in this is that a strategy isn’t really a strategy until it is challenged during tough times. When the difficult decisions are needed, what you eventually choose probably reveals what your true strategic intentions actually are.

Are you wondering how to ensure that your strategy is effective and how to get all your employees “singing” off the same strategic song sheet? Check out the other resources (including a free assessment) available online at www.acceleraconsultinggroup.com or give us a call at 407.376.8522 for a free consultation. We accelerate results by igniting leadership and organizational potential!