Strategic framework — developing and implementing strategy
This article contains the following sections:
What is a strategic framework?
Benefits of having a strategic framework
What is a strategic framework?
Conceptually, a strategic framework outlines where an organization wants to go and how it gets there. In business terms, it is the structure an organization employs to define its strategy and describe how it will be achieved. It guides annual operational (implementation) planning and generally consists of the following core elements:
Strategic identity: describes why an organization exists — its purpose — and what the future will be like if this purpose is fulfilled.
Strategic implementation: confirms how the strategic identity is achieved.
The figure below provides an example of a typical and effective strategic framework structure — showing the core elements and their relationships.
This structure can be customized to an organization’s needs. For example:
OKRs (Objectives and Key Results) or OGSMs (Objectives, Goals, Strategies, and Measures) can be used for strategic implementation. See our article on these for more information.
The Balanced Scorecard can focus implementation on themed, key success areas for an organization. See our article on this for more information.
Competitive advantage can be included.
Strategies can be inserted above objectives - describing, at a higher level, the actions an organization pursues. However, this adds an extra layer of corporate language (complexity) that can be avoided for SMEs and start-ups.
KPIs can also be anchored against the vision and/or purpose - creating a dual or triple layer of measures to manage organizational performance.
Two versions of a strategic framework are typically created - one for communicating to internal and the other external stakeholders. The external version omits detailed information such as financials, goals, and actions. The internal version includes this information - using it to guide operational implementation planning.
See our article for a more in-depth analysis of purpose — including how to define it and why purpose-driven organizations are more successful.
Benefits of having a strategic framework
When incorporated into a regular strategic planning function - it makes organizations more successful and effective (confirmed by research)
Establishes a singular planning function under which all an organization’s strategy and operations are coordinated.
Provides a clear and comprehensive overview of an organization – making it easier to tell its ‘story’ to internal or external stakeholders.
Demonstrates what an organization cares about – its purpose. This is a crucial success factor for modern organizations.
Connects vague high-level "corporate" strategy to actionable, operational pathways.
Fosters unity amongst all departments and teams by aligning operations and setting common targets.
Helps secure investment – by providing the above clear overview.
How we develop a strategic framework
We develop it as part of a broader strategic plan that involves environmental and organizational analyses, defining competitive advantage, setting a strategic roadmap, and other elements. The figure below provides a four-phase workflow for how we achieve this.
Example strategic framework
Consider the information below for a fictional electric vehicle (EV) battery-technology provider, "Motion Battery Technologies” (MBT):
The need MBT fills: EVs can't drive as far and take longer to "fill the tank.” This makes them less practical — limiting their uptake and worsening climate change. A solution is needed.
How MBT fills this need: With modular, rapidly swappable battery solutions integrated with EV manufacturers and available to EV operators.
Positive impacts MBT brings: Accelerate the electrification of transportation, mitigate climate change, and create a more sustainable future.
Best practices
Once developed, a strategic framework should be comprehensively reviewed every two to three years. The strategic implementation plan (objectives, goals, and actions) may need resetting due to internal or external forces.
Each objective should have an owner, typically a department head or executive-level manager, responsible for leading its achievement.
A strategic framework should be brief - able to fit on 1 page.
Does your organization need help in establishing its strategic framework? If so, we’re happy to help.