Step 6. Strategy Development
As explained above, one of the major ingredients in successful business investment is following a process to ensure that investment opportunities are not the subject of investment before they are ready. We have explained the importance of "Go / Nogo" choices at the right time.
The steps involved in developing a strategy for investment in a Strategic Business Unit ("SBU") which has been awarded "Go" status are such as:
Determine the competitive rank of the SBU:
Low (#11 or lower)
Select the objective
Select the strategy
Select the target.
Examples of this process in practice are shown in the graphics below. These are from the online training program.
Once the strategy has been selected based on competitive rank, the next step is to build a Strategy Map
to guide the strategy implementation.
Here we recommend using the Amplios Horizontal Strategy Mapping tool. This is fully compliant with the Kaplan & Norton Balanced Scorecard method.
Some examples are in the images below:
Note that the Horizontal Strategy Map is highly interactive. Management teams can review the inputs and outputs within a matter of minutes.
The "Results" of each of the strategic choices are then used to form the "Key Performance Indicators" built in to the performance contracts of the top management team members.
For further information on this, Contact Us.