Page Text: Strategic ambitions
A clear tie between strategy and strategic plans
It’s easy to confuse the essence of strategy with a more detailed strategic plan, especially when conditions are changing fast and the horizon for change is short, but Job No. 1 is to know the difference and why it matters.
Strategy defines the long-term direction of the enterprise, articulating what the enterprise will do to compete and succeed in its chosen markets or, for the public sector, what the agency will do to achieve its mission.
Strategic plans define how the enterprise will realize its long-term ambitions. Functional strategic plans define the roadmap of initiatives and portfolio of investments required to achieve those strategic objectives. In it, functional leaders document the choices and actions needed for the function to deliver on its contribution to the enterprise business model and goals.
Operational plans deal with the execution of specific projects and changes, as well as any operational tasks not contained in the strategic plan.
If you’re responsible for a functional strategy, that means creating strategic frameworks focused only on what’s material. Focus on critical assumptions, relevant metrics and the key initiatives your function needs to contribute effectively to organizational goals, even as they shift.
Strategic assumptions
A way to scope key trends and disruptions
It’s critical to scan and respond to trends and disruptions that could impact your strategy and strategic plans — and for which you need working strategic assumptions .
To ignore or devalue these areas of disruption, now or in the longer term, could leave critical gaps in your strategic planning process — as you overlook both threats and opportunities for your value proposition and competitive positioning.
A recent Gartner survey found that only 38% of organizations have a formal process for this type of trendspotting. Gartner scopes the seven key areas of disruptive change as a “Tapestry” of trends — to reinforce the interconnected nature of the acronymized trend areas (TPESTRE).
Executives across functions and teams can use this TPESTRE construct to identify key trends — from augmented human experience to purpose-driven organizations and digitally enabled sustainability — and analyze their impact, and build strategic assumptions as they begin to map what actions might be needed in terms of business models, people/capabilities and IT systems.
Adaptive strategy
Adaptive approach to strategy
The faster the rate of change in operating conditions and the more disruptions you need to integrate into long-term strategy, the more adaptive your strategy models must be.
An adaptive strategy approach is what makes sure your organization can spot new opportunities earlier and respond more quickly than your competitors — making you most likely to succeed in a dynamic digital world.
A truly adaptive strategy approach is consistent with four core practices designed to move the enterprise from a rigid, top-down, calendar-based process to a more adaptive, event-driven strategy approach. Functional strategy can incorporate the same principles.