Strategy is a plan that provides overall direction for an organization and a framework for decision making.
Strategy is the instrument by which executive decision makers communicate and drive the future direction of their organization, without clear well-communicated strategy the organization becomes directionless. The purpose of strategy is to set the overall direction that an organization will take; it is the expression of executive intent and is effectively a contract between the directing layer of an organization and its sponsors (shareholders or elected representatives for public sector concerns). Strategy, specifically in the form of Strategic Goals, forms the very top of the requirements stack driving the portfolio of work and shaping enterprise architecture.
Recommendations for effective strategy
Articulate how Business Value is understood and measured – this helps everyone understand the business purpose and the primary measurement of success helping avoid implementation of intermediary measures that are mis-aligned to strategy
Minimize the number of organizational layers – this avoids unnecessary translation of information across layers and unnecessary middle-management resourcing. See information on Resourcing Levels and Workforce Shaping for more.
Make bold strategic changes – if change is required then sometimes drastic change is required rather than a series of small changes, it might be painful but it’s likely to be more cost-effective to make a bold change.
Push tactical decision making as low as possible in the organization – this empowers individuals to use their skills properly within the organization and prevents stragic decision makers from getting swamped by minor issues. Business Leaders must back up tactical decisions made by their staff for this to work.
Continuously make small tactical improvements – don’t wait for a large change in a year to improve something small that can be fixed today. Make the change and measure the improvement to validate the change and ensure systemic improvement.
Forget the past – Business situations involving large numbers of people are extremely complex and so similar situations from the past are not good indicators of present or future events. Correlation does not equal causation.
Tests for a good strategy
Does the strategy communicate a clear change?
Is it engaging, inspirational and compelling?
Is it clear and unambiguous?
Does it describe the rationale for change?
Is the Business Strategy achievable? or worth risk of failure?
It it relevant to the prevailing business environment?
Do the business goals provide value to the sponsors?
Does it contain a roadmap/plan? Or can one be easily derived?
Does it contain short, medium and long-term goals?
Are strategic goals identifiable, measurable, tangible business state-change milestones?
Do strategic goals follow a logical sequence to a desired end-state?
Does it consider resourcing necessary to realise the goal?
Is it executable?
Extract from Holistic Software Development – Strategic Direction