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- 14 Dec 1968 (55 years old)
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Develop a Strategy
- 11th May, 2019
- IOI Quality Standards
-
Strategy is a plan that Org creates to become or stay a Relevant and Performing Organisation (RPO).
-
Strategy development is the development of such a plan.
-
The aim of these standards is to help Orgtologists to create and develop a strategy, or to train others to do so according to orgtology theories and principles.
-
Click on any of the standards in the table below to go directly to its specifications.
Phase:
IOI Standard:
IOI Standard Nr:
1. Initiate a strategy development project.
-
Understand the strategy development needs.
-
Draft a project plan and brief for the strategy development process.
-
Draft a project inception report.
-
Draft milestone completion reports fr al completed milestones.
-
2.1
-
2.2
-
2.3
-
2.4
2.
Org Identity and Definition.
-
Define the organisational intent.
-
Develop behavioural rules around these values.
-
Develop a business canvas that depicts the core modus operandi (way of doing things).
-
2.5
-
2.6
-
2.7
-
2.8
-
2.9
-
2.10
3.
Current reality analysis.
-
Analyse REET data.
-
Draft and submit a REET Report with reccommendations.
-
2.11
-
2.12
-
2.13
4. Operational Performance Analysis
-
Draft core business processes and cross map with Level Zero.
-
Develop Level Zero targets.
-
2.14
-
2.15
-
2.16
-
2.17
5.
Strategic Intent & Direction.
-
Assess and decide on the best strategy type for the Org.
- Use the 5V model, the REET analysis, and the operational performance analysis to determine the change needed.
-
Define strategic objectives and programs.
-
2.18
-
2.19
-
2.20
-
2.21
6.
Implementation Plan.
- Identify strategic projects and link to the strategic programs.
-
Create a work breakdown structure for each project.
-
2.22
-
2.23
-
2.24
-
2.25
7.
Monitor & Lead.
-
Develop strategy monitoring tools.
- Ensure strategic accountability and responsibility.
-
2.26
-
2.27
-
2.28
Define the purpose of your organisation.
Strategy Development: Phase 1: Standard 1.1
(1.1.1) The statement of purpose defines the organisations reason for existance.
(1.1.2) The statement of purpose is distinct from the statement of intent.
(1.1.3) The statement of purpose is written in present tense. E.g., “We ensure price and financial stability for the country.” Do not describe a future state, e.g., “To ensure price and financial stability for the country.”
Develop organisational values.
Strategy Development: Phase 1: Standard 1.2
(1.2.1) There is a narrative that describes the desired behavior of the organisation.
(1.2.2) The strategy holds a list of values that defines deisred behaviour.
(1.2.3) Each value has a description.
(1.2.4) Each value has a set of behavioural rules.
(1.2.5) Behavioural rules are part of the organisational performance asessment system.
Develop a business model for your organisation.
Strategy Development: Phase 1: Standard 1.3
(1.3.1) The business model has clearly identified value drivers. In orgtology the generic value drivers are process efficiency, strategic effectiveness, meaningful relationships, focused intelligence, and productive resources.
(1.3.2) The business model is linked to core critical success factors (CSF) for the organisation to perform and stay relevant. These are high level CSF’s and as rule of thumb, they must not exceed ten. The CSF’s for performance and relevance must be listed separately (E.g., five for performance and five for relevane).
(1.3.3) The business model is decribed through a business canvas. The description must include partners, key activities, key resources, value propositions, customer relationships, distribution channels, customer segments, cost structure, and revenue streams.
(1.3.4) Depict the “value flow” of your business model. This is a model, value chain, or diagram that shows the interdependence of the organisational activity. The core value drivers must be depicted.
Do a ROET analysis (Relationships, Opportunities, Effciency, and Threats).
Strategy Development: Phase 2: Standard 1.4
(1.4.1) Duringstrategy development there was a clear method of ROET assessment. ROET assessment methods can include (but not limied to) a workshop or meeting where dialogue is facilitated around ROET; a questionnaire to employees and other stakeholders; interviews and/or meetings with stakeholders.
(1.4.2) The ROET generated sufficient data to make reasonable assumptions about relationships, opportunities, efficiency, and threats.
(1.4.3) The ROET analysis is reduced to a concise report.
(1.4.4) The ROET report has clear recommendations regarding the strategic direction that the organisation should take.
Extract operational systems, core targets, and top ten risks from the process construct.
Strategy Development: Phase 2: Standard 1.5
(1.5.1) The organisational process construct is divided into core operational systems.
(1.5.2) Each operational system holds at least one core target that shows the health of that system. Each target must include a qualification, quantification, measure, evidence, and weighting. This "super target", must summarize all other targets within that system.
(1.5.3) The strategy clearly depicts the top ten operational risks.
Assess the strategic position of your organisation.
Strategy Development: Phase 3: Standard 1.6
(1.6.1) There is a method to assess the organisations rank/position in its industry.
(1.6.2) Org knows what rank it wants within its industry.
(1.6.3) There is a method to assess the relatioship between sponsorship (Org has the resources to do its work) and entropy (compeditors). This method should give guidance on which predominant strategic approach Org must follow:
(1.6.2.1) Process efficiency strategy - when sponsorship is high and competition (entropy) is low.
(1.6.2.2) Competitive strategy - when competition is high and industry processes are internalized.
(1.6.2.3) Disruptive innovation (blue ocean) strategy - when the only option is to make your competitor irrelevant.
Develop strategic intent through the 5V model.
Strategy Development: Phase 3: Standard 1.7
(1.7.1) The 5V Model is fully designed. This implies five vision statements (5V) that imply the following strategic periods:
(1.7.1.1) V1 – ultimate dream (long-term vision)
(1.7.1.2) V2 – Nine years from commencement of strategy (long-medium term vision)
(1.7.1.3) V3 - Six years from commencement of strategy (medium term vision)
(1.7.1.4) V4 - Three years from commencement of strategy (short-medium term vision)
(1.7.1.5) V5 - One year from commencement of strategy (short term vision)
(1.7.2) The V1 statement defines the ultimate dream of Org. This is a non-quantifiable idea of the ultimate state for your organisation. It is a dream, and therefore Org can define it in any way it wants.
(1.7.3) The strategic period of Org is in line with the V4 target date.
(1.7.4) Statements V2, V3, and V4 (also nown as the 3-6-9 vision) have both quantifyable and qualifyable vision statements.
(1.7.5) The V5 statement is up to date (it changes on an annual basis).
Define strategic objectives.
Strategy Development: Phase 3: Standard 1.8
(1.8.1) Strategic objectives are derived from the ROET and operational analysis.
(1.8.2) Strategic objectives define the change that Org must make to close the gap between its current reality and its "3-6-9" position. It is good practice to have between two and five strategic objectives. More than that becomes hard to manage.
(1.8.3) Each strategic objective begins with a verb.
Create a work breakdown structure for the strategic programs.
Strategy Development: Phase 4: Standard 1.9
(1.9.1) Each strategic objective is turned into a strategic program. The objective becomes the aim of the program.
(1.9.2) Each strategic program is linked to one or more strategic projects. We execute strategic programs through project management method, which means that child projects make up the activity of a strategic program.
(1.9.3) Each strategic project has a clear work breakdown structure that includes the following items:
(1.9.3.1) List of activities.
(1.9.3.2) Classification code for each activity (C-Key).
(1.9.3.3) Dependency flow (predecessors to activities).
(1.9.3.4) Estimated duration for each activity (use the critical path or PERT method).
(1.9.3.5) Name of the responsible person (not roles) to each activity.
(1.9.3.6) Resource weight of each activity (cost of the activity as a percentage of the budget).
(1.9.3.7) Target date for completion of the activity.
(1.9.4) There is a project brief and/or plan for each project.
Calculate the cost of strategy.
Strategy Development: Phase 4: Standard 1.10
(1.10.1) There is a cost calculation for the strategy. Jointly, the cost of all the strategic programs is the cost of strategy. The cost of strategic programs is the sum of all its strategic project cost.
(1.10.2) There is a cost calculation for operations. To relate cost of strategy to the organisational budget, we must know the cost of operations. The process construct of Org create its operational cost. Therefore, the cost of all process activity is also the operational cost of Org.
(1.10.3) There is an overall organisational cost calculation. The sum of strategic and operational cost is the total cost of running and changing Org. Therefore, strategy and operations have an inverse relationship, meaning increase of one demands a decrease from the other.
(1.10.4) Relate cost to 100 points (%). This will put expenses in perspective. It is good practice to relate cost as follows:
(1.10.4.1) % Strategic cost to % operational cost.
(1.10.4.2) % Strategic programs cost to overall cost of strategy.
(1.10.4.3) % Project cost to overall program cost.
(1.10.4.4) % Operational systems cost to overall operational cost.
(1.10.4.5) % Process cost to operational systems cost.
Assess the strategic risk.
Strategy Development: Phase 4: Standard 1.11
(1.11.1) There are critical success factors (CSF's) for each project in terms of efficiency, completion, and effect.
(1.11.2) The risk register contains these CSF's.
(1.11.3) There is a method to calculate the Risk Exposure Value [risk value (probability * impact) - control value (mitigation * business continuety) = exposure].
(1.11.4) The risk register enables Org to extract it strategic risks and also to extract the risks for each strategi program.
(1.11.5) The top ten strategic risks are listed.
Develop the strategy document.
Strategy Development: Phase 5: Standard 1.12
(1.12.1) The strategy document has a clear statement of organisational definition and identity. This statement should include the following items (order not important):
(1.12.1.1) A statement of purpose / mission.
(1.12.1.2) A statement of intent / vision.
(1.12.1.3) A statement of organisational values.
(1.12.1.4) A organisational business model.
(1.12.2) The strategy document has a clear statement of operational efficiency. This statement should include the following items:
(1.12.2.1) A summary of the process construct showing its core systems.
(1.12.2.2) A list of the process construct's core targets.
(1.12.2.3) A list the top ten operational risks.
(1.12.3) The strategy document has a clear statement of strategic effectiveness. This statement should include the following items:
(1.12.3.1) A summary of the ROET analysis with its proposed strategic focus areas.
(1.12.3.2) A 5V model.
(1.12.3.3) A list of the strategic objectives, the program director, and a target date, and associated projects with their project leaders.
(1.12.3.4) A list of the top ten strategic risks.
(1.12.4) The document holds a section on how the organisation will monitor and execute its strategy.
(1.12.5) There is an executive summary that explains the context and process used to devise this strategy as well as why a specific strategic choice was taken. It should also have a summarized version of what the strategy entails.
Monitor the execution of strategy.
Strategy Development: Phase 5: Standard 1.13
(1.13.1) There is a strategic scorecard that quantifies the following:
(1.13.1.1) A scorecard that shows how well the strategic programs are executed.
(1.13.1.2) A scorecard that shows how well our process construct is running.
(1.13.2) There is a feedback system that will keep the CEO informed.
(1.13.3) The executive or management team has a generic agenda that gives specific time to discuss their "3-6-9" vision.
(1.13.4) Strategy teams meet regularly and they follow project management method.
(1.13.5) Program directors are senior people who can give direct feedback to the CEO.
Post is under moderationStream item published successfully. Item will now be visible on your stream. -
Develop a Strategy
- 11th May, 2019
- IOI Quality Standards
-
Strategy is a plan that Org creates to become or stay a Relevant and Performing Organisation (RPO).
-
Strategy development is the development of such a plan.
-
The aim of these standards is to help Orgtologists to create and develop a strategy, or to train others to do so according to orgtology theories and principles.
-
Click on any of the standards in the table below to go directly to its specifications.
Phase:
IOI Standard:
IOI Standard Nr:
1. Initiate a strategy development project.
-
Understand the strategy development needs.
-
Draft a project plan and brief for the strategy development process.
-
Draft a project inception report.
-
Draft milestone completion reports fr al completed milestones.
-
2.1
-
2.2
-
2.3
-
2.4
2.
Org Identity and Definition.
-
Define the organisational intent.
-
Develop behavioural rules around these values.
-
Develop a business canvas that depicts the core modus operandi (way of doing things).
-
2.5
-
2.6
-
2.7
-
2.8
-
2.9
-
2.10
3.
Current reality analysis.
-
Analyse REET data.
-
Draft and submit a REET Report with reccommendations.
-
2.11
-
2.12
-
2.13
4. Operational Performance Analysis
-
Draft core business processes and cross map with Level Zero.
-
Develop Level Zero targets.
-
2.14
-
2.15
-
2.16
-
2.17
5.
Strategic Intent & Direction.
-
Assess and decide on the best strategy type for the Org.
- Use the 5V model, the REET analysis, and the operational performance analysis to determine the change needed.
-
Define strategic objectives and programs.
-
2.18
-
2.19
-
2.20
-
2.21
6.
Implementation Plan.
- Identify strategic projects and link to the strategic programs.
-
Create a work breakdown structure for each project.
-
2.22
-
2.23
-
2.24
-
2.25
7.
Monitor & Lead.
-
Develop strategy monitoring tools.
- Ensure strategic accountability and responsibility.
-
2.26
-
2.27
-
2.28
Define the purpose of your organisation.
Strategy Development: Phase 1: Standard 1.1
(1.1.1) The statement of purpose defines the organisations reason for existance.
(1.1.2) The statement of purpose is distinct from the statement of intent.
(1.1.3) The statement of purpose is written in present tense. E.g., “We ensure price and financial stability for the country.” Do not describe a future state, e.g., “To ensure price and financial stability for the country.”
Develop organisational values.
Strategy Development: Phase 1: Standard 1.2
(1.2.1) There is a narrative that describes the desired behavior of the organisation.
(1.2.2) The strategy holds a list of values that defines deisred behaviour.
(1.2.3) Each value has a description.
(1.2.4) Each value has a set of behavioural rules.
(1.2.5) Behavioural rules are part of the organisational performance asessment system.
Develop a business model for your organisation.
Strategy Development: Phase 1: Standard 1.3
(1.3.1) The business model has clearly identified value drivers. In orgtology the generic value drivers are process efficiency, strategic effectiveness, meaningful relationships, focused intelligence, and productive resources.
(1.3.2) The business model is linked to core critical success factors (CSF) for the organisation to perform and stay relevant. These are high level CSF’s and as rule of thumb, they must not exceed ten. The CSF’s for performance and relevance must be listed separately (E.g., five for performance and five for relevane).
(1.3.3) The business model is decribed through a business canvas. The description must include partners, key activities, key resources, value propositions, customer relationships, distribution channels, customer segments, cost structure, and revenue streams.
(1.3.4) Depict the “value flow” of your business model. This is a model, value chain, or diagram that shows the interdependence of the organisational activity. The core value drivers must be depicted.
Do a ROET analysis (Relationships, Opportunities, Effciency, and Threats).
Strategy Development: Phase 2: Standard 1.4
(1.4.1) Duringstrategy development there was a clear method of ROET assessment. ROET assessment methods can include (but not limied to) a workshop or meeting where dialogue is facilitated around ROET; a questionnaire to employees and other stakeholders; interviews and/or meetings with stakeholders.
(1.4.2) The ROET generated sufficient data to make reasonable assumptions about relationships, opportunities, efficiency, and threats.
(1.4.3) The ROET analysis is reduced to a concise report.
(1.4.4) The ROET report has clear recommendations regarding the strategic direction that the organisation should take.
Extract operational systems, core targets, and top ten risks from the process construct.
Strategy Development: Phase 2: Standard 1.5
(1.5.1) The organisational process construct is divided into core operational systems.
(1.5.2) Each operational system holds at least one core target that shows the health of that system. Each target must include a qualification, quantification, measure, evidence, and weighting. This "super target", must summarize all other targets within that system.
(1.5.3) The strategy clearly depicts the top ten operational risks.
Assess the strategic position of your organisation.
Strategy Development: Phase 3: Standard 1.6
(1.6.1) There is a method to assess the organisations rank/position in its industry.
(1.6.2) Org knows what rank it wants within its industry.
(1.6.3) There is a method to assess the relatioship between sponsorship (Org has the resources to do its work) and entropy (compeditors). This method should give guidance on which predominant strategic approach Org must follow:
(1.6.2.1) Process efficiency strategy - when sponsorship is high and competition (entropy) is low.
(1.6.2.2) Competitive strategy - when competition is high and industry processes are internalized.
(1.6.2.3) Disruptive innovation (blue ocean) strategy - when the only option is to make your competitor irrelevant.
Develop strategic intent through the 5V model.
Strategy Development: Phase 3: Standard 1.7
(1.7.1) The 5V Model is fully designed. This implies five vision statements (5V) that imply the following strategic periods:
(1.7.1.1) V1 – ultimate dream (long-term vision)
(1.7.1.2) V2 – Nine years from commencement of strategy (long-medium term vision)
(1.7.1.3) V3 - Six years from commencement of strategy (medium term vision)
(1.7.1.4) V4 - Three years from commencement of strategy (short-medium term vision)
(1.7.1.5) V5 - One year from commencement of strategy (short term vision)
(1.7.2) The V1 statement defines the ultimate dream of Org. This is a non-quantifiable idea of the ultimate state for your organisation. It is a dream, and therefore Org can define it in any way it wants.
(1.7.3) The strategic period of Org is in line with the V4 target date.
(1.7.4) Statements V2, V3, and V4 (also nown as the 3-6-9 vision) have both quantifyable and qualifyable vision statements.
(1.7.5) The V5 statement is up to date (it changes on an annual basis).
Define strategic objectives.
Strategy Development: Phase 3: Standard 1.8
(1.8.1) Strategic objectives are derived from the ROET and operational analysis.
(1.8.2) Strategic objectives define the change that Org must make to close the gap between its current reality and its "3-6-9" position. It is good practice to have between two and five strategic objectives. More than that becomes hard to manage.
(1.8.3) Each strategic objective begins with a verb.
Create a work breakdown structure for the strategic programs.
Strategy Development: Phase 4: Standard 1.9
(1.9.1) Each strategic objective is turned into a strategic program. The objective becomes the aim of the program.
(1.9.2) Each strategic program is linked to one or more strategic projects. We execute strategic programs through project management method, which means that child projects make up the activity of a strategic program.
(1.9.3) Each strategic project has a clear work breakdown structure that includes the following items:
(1.9.3.1) List of activities.
(1.9.3.2) Classification code for each activity (C-Key).
(1.9.3.3) Dependency flow (predecessors to activities).
(1.9.3.4) Estimated duration for each activity (use the critical path or PERT method).
(1.9.3.5) Name of the responsible person (not roles) to each activity.
(1.9.3.6) Resource weight of each activity (cost of the activity as a percentage of the budget).
(1.9.3.7) Target date for completion of the activity.
(1.9.4) There is a project brief and/or plan for each project.
Calculate the cost of strategy.
Strategy Development: Phase 4: Standard 1.10
(1.10.1) There is a cost calculation for the strategy. Jointly, the cost of all the strategic programs is the cost of strategy. The cost of strategic programs is the sum of all its strategic project cost.
(1.10.2) There is a cost calculation for operations. To relate cost of strategy to the organisational budget, we must know the cost of operations. The process construct of Org create its operational cost. Therefore, the cost of all process activity is also the operational cost of Org.
(1.10.3) There is an overall organisational cost calculation. The sum of strategic and operational cost is the total cost of running and changing Org. Therefore, strategy and operations have an inverse relationship, meaning increase of one demands a decrease from the other.
(1.10.4) Relate cost to 100 points (%). This will put expenses in perspective. It is good practice to relate cost as follows:
(1.10.4.1) % Strategic cost to % operational cost.
(1.10.4.2) % Strategic programs cost to overall cost of strategy.
(1.10.4.3) % Project cost to overall program cost.
(1.10.4.4) % Operational systems cost to overall operational cost.
(1.10.4.5) % Process cost to operational systems cost.
Assess the strategic risk.
Strategy Development: Phase 4: Standard 1.11
(1.11.1) There are critical success factors (CSF's) for each project in terms of efficiency, completion, and effect.
(1.11.2) The risk register contains these CSF's.
(1.11.3) There is a method to calculate the Risk Exposure Value [risk value (probability * impact) - control value (mitigation * business continuety) = exposure].
(1.11.4) The risk register enables Org to extract it strategic risks and also to extract the risks for each strategi program.
(1.11.5) The top ten strategic risks are listed.
Develop the strategy document.
Strategy Development: Phase 5: Standard 1.12
(1.12.1) The strategy document has a clear statement of organisational definition and identity. This statement should include the following items (order not important):
(1.12.1.1) A statement of purpose / mission.
(1.12.1.2) A statement of intent / vision.
(1.12.1.3) A statement of organisational values.
(1.12.1.4) A organisational business model.
(1.12.2) The strategy document has a clear statement of operational efficiency. This statement should include the following items:
(1.12.2.1) A summary of the process construct showing its core systems.
(1.12.2.2) A list of the process construct's core targets.
(1.12.2.3) A list the top ten operational risks.
(1.12.3) The strategy document has a clear statement of strategic effectiveness. This statement should include the following items:
(1.12.3.1) A summary of the ROET analysis with its proposed strategic focus areas.
(1.12.3.2) A 5V model.
(1.12.3.3) A list of the strategic objectives, the program director, and a target date, and associated projects with their project leaders.
(1.12.3.4) A list of the top ten strategic risks.
(1.12.4) The document holds a section on how the organisation will monitor and execute its strategy.
(1.12.5) There is an executive summary that explains the context and process used to devise this strategy as well as why a specific strategic choice was taken. It should also have a summarized version of what the strategy entails.
Monitor the execution of strategy.
Strategy Development: Phase 5: Standard 1.13
(1.13.1) There is a strategic scorecard that quantifies the following:
(1.13.1.1) A scorecard that shows how well the strategic programs are executed.
(1.13.1.2) A scorecard that shows how well our process construct is running.
(1.13.2) There is a feedback system that will keep the CEO informed.
(1.13.3) The executive or management team has a generic agenda that gives specific time to discuss their "3-6-9" vision.
(1.13.4) Strategy teams meet regularly and they follow project management method.
(1.13.5) Program directors are senior people who can give direct feedback to the CEO.
Post is under moderationStream item published successfully. Item will now be visible on your stream. -
Develop a Strategy
- 11th May, 2019
- IOI Quality Standards
-
Strategy is a plan that Org creates to become or stay a Relevant and Performing Organisation (RPO).
-
Strategy development is the development of such a plan.
-
The aim of these standards is to help Orgtologists to create and develop a strategy, or to train others to do so according to orgtology theories and principles.
-
Click on any of the standards in the table below to go directly to its specifications.
Phase:
IOI Standard:
IOI Standard Nr:
1. Initiate a strategy development project.
-
Understand the strategy development needs.
-
Draft a project plan and brief for the strategy development process.
-
Draft a project inception report.
-
Draft milestone completion reports fr al completed milestones.
-
2.1
-
2.2
-
2.3
-
2.4
2.
Org Identity and Definition.
-
Define the organisational intent.
-
Develop behavioural rules around these values.
-
Develop a business canvas that depicts the core modus operandi (way of doing things).
-
2.5
-
2.6
-
2.7
-
2.8
-
2.9
-
2.10
3.
Current reality analysis.
-
Analyse REET data.
-
Draft and submit a REET Report with reccommendations.
-
2.11
-
2.12
-
2.13
4. Operational Performance Analysis
-
Draft core business processes and cross map with Level Zero.
-
Develop Level Zero targets.
-
2.14
-
2.15
-
2.16
-
2.17
5.
Strategic Intent & Direction.
-
Assess and decide on the best strategy type for the Org.
- Use the 5V model, the REET analysis, and the operational performance analysis to determine the change needed.
-
Define strategic objectives and programs.
-
2.18
-
2.19
-
2.20
-
2.21
6.
Implementation Plan.
- Identify strategic projects and link to the strategic programs.
-
Create a work breakdown structure for each project.
-
2.22
-
2.23
-
2.24
-
2.25
7.
Monitor & Lead.
-
Develop strategy monitoring tools.
- Ensure strategic accountability and responsibility.
-
2.26
-
2.27
-
2.28
Define the purpose of your organisation.
Strategy Development: Phase 1: Standard 1.1
(1.1.1) The statement of purpose defines the organisations reason for existance.
(1.1.2) The statement of purpose is distinct from the statement of intent.
(1.1.3) The statement of purpose is written in present tense. E.g., “We ensure price and financial stability for the country.” Do not describe a future state, e.g., “To ensure price and financial stability for the country.”
Develop organisational values.
Strategy Development: Phase 1: Standard 1.2
(1.2.1) There is a narrative that describes the desired behavior of the organisation.
(1.2.2) The strategy holds a list of values that defines deisred behaviour.
(1.2.3) Each value has a description.
(1.2.4) Each value has a set of behavioural rules.
(1.2.5) Behavioural rules are part of the organisational performance asessment system.
Develop a business model for your organisation.
Strategy Development: Phase 1: Standard 1.3
(1.3.1) The business model has clearly identified value drivers. In orgtology the generic value drivers are process efficiency, strategic effectiveness, meaningful relationships, focused intelligence, and productive resources.
(1.3.2) The business model is linked to core critical success factors (CSF) for the organisation to perform and stay relevant. These are high level CSF’s and as rule of thumb, they must not exceed ten. The CSF’s for performance and relevance must be listed separately (E.g., five for performance and five for relevane).
(1.3.3) The business model is decribed through a business canvas. The description must include partners, key activities, key resources, value propositions, customer relationships, distribution channels, customer segments, cost structure, and revenue streams.
(1.3.4) Depict the “value flow” of your business model. This is a model, value chain, or diagram that shows the interdependence of the organisational activity. The core value drivers must be depicted.
Do a ROET analysis (Relationships, Opportunities, Effciency, and Threats).
Strategy Development: Phase 2: Standard 1.4
(1.4.1) Duringstrategy development there was a clear method of ROET assessment. ROET assessment methods can include (but not limied to) a workshop or meeting where dialogue is facilitated around ROET; a questionnaire to employees and other stakeholders; interviews and/or meetings with stakeholders.
(1.4.2) The ROET generated sufficient data to make reasonable assumptions about relationships, opportunities, efficiency, and threats.
(1.4.3) The ROET analysis is reduced to a concise report.
(1.4.4) The ROET report has clear recommendations regarding the strategic direction that the organisation should take.
Extract operational systems, core targets, and top ten risks from the process construct.
Strategy Development: Phase 2: Standard 1.5
(1.5.1) The organisational process construct is divided into core operational systems.
(1.5.2) Each operational system holds at least one core target that shows the health of that system. Each target must include a qualification, quantification, measure, evidence, and weighting. This "super target", must summarize all other targets within that system.
(1.5.3) The strategy clearly depicts the top ten operational risks.
Assess the strategic position of your organisation.
Strategy Development: Phase 3: Standard 1.6
(1.6.1) There is a method to assess the organisations rank/position in its industry.
(1.6.2) Org knows what rank it wants within its industry.
(1.6.3) There is a method to assess the relatioship between sponsorship (Org has the resources to do its work) and entropy (compeditors). This method should give guidance on which predominant strategic approach Org must follow:
(1.6.2.1) Process efficiency strategy - when sponsorship is high and competition (entropy) is low.
(1.6.2.2) Competitive strategy - when competition is high and industry processes are internalized.
(1.6.2.3) Disruptive innovation (blue ocean) strategy - when the only option is to make your competitor irrelevant.
Develop strategic intent through the 5V model.
Strategy Development: Phase 3: Standard 1.7
(1.7.1) The 5V Model is fully designed. This implies five vision statements (5V) that imply the following strategic periods:
(1.7.1.1) V1 – ultimate dream (long-term vision)
(1.7.1.2) V2 – Nine years from commencement of strategy (long-medium term vision)
(1.7.1.3) V3 - Six years from commencement of strategy (medium term vision)
(1.7.1.4) V4 - Three years from commencement of strategy (short-medium term vision)
(1.7.1.5) V5 - One year from commencement of strategy (short term vision)
(1.7.2) The V1 statement defines the ultimate dream of Org. This is a non-quantifiable idea of the ultimate state for your organisation. It is a dream, and therefore Org can define it in any way it wants.
(1.7.3) The strategic period of Org is in line with the V4 target date.
(1.7.4) Statements V2, V3, and V4 (also nown as the 3-6-9 vision) have both quantifyable and qualifyable vision statements.
(1.7.5) The V5 statement is up to date (it changes on an annual basis).
Define strategic objectives.
Strategy Development: Phase 3: Standard 1.8
(1.8.1) Strategic objectives are derived from the ROET and operational analysis.
(1.8.2) Strategic objectives define the change that Org must make to close the gap between its current reality and its "3-6-9" position. It is good practice to have between two and five strategic objectives. More than that becomes hard to manage.
(1.8.3) Each strategic objective begins with a verb.
Create a work breakdown structure for the strategic programs.
Strategy Development: Phase 4: Standard 1.9
(1.9.1) Each strategic objective is turned into a strategic program. The objective becomes the aim of the program.
(1.9.2) Each strategic program is linked to one or more strategic projects. We execute strategic programs through project management method, which means that child projects make up the activity of a strategic program.
(1.9.3) Each strategic project has a clear work breakdown structure that includes the following items:
(1.9.3.1) List of activities.
(1.9.3.2) Classification code for each activity (C-Key).
(1.9.3.3) Dependency flow (predecessors to activities).
(1.9.3.4) Estimated duration for each activity (use the critical path or PERT method).
(1.9.3.5) Name of the responsible person (not roles) to each activity.
(1.9.3.6) Resource weight of each activity (cost of the activity as a percentage of the budget).
(1.9.3.7) Target date for completion of the activity.
(1.9.4) There is a project brief and/or plan for each project.
Calculate the cost of strategy.
Strategy Development: Phase 4: Standard 1.10
(1.10.1) There is a cost calculation for the strategy. Jointly, the cost of all the strategic programs is the cost of strategy. The cost of strategic programs is the sum of all its strategic project cost.
(1.10.2) There is a cost calculation for operations. To relate cost of strategy to the organisational budget, we must know the cost of operations. The process construct of Org create its operational cost. Therefore, the cost of all process activity is also the operational cost of Org.
(1.10.3) There is an overall organisational cost calculation. The sum of strategic and operational cost is the total cost of running and changing Org. Therefore, strategy and operations have an inverse relationship, meaning increase of one demands a decrease from the other.
(1.10.4) Relate cost to 100 points (%). This will put expenses in perspective. It is good practice to relate cost as follows:
(1.10.4.1) % Strategic cost to % operational cost.
(1.10.4.2) % Strategic programs cost to overall cost of strategy.
(1.10.4.3) % Project cost to overall program cost.
(1.10.4.4) % Operational systems cost to overall operational cost.
(1.10.4.5) % Process cost to operational systems cost.
Assess the strategic risk.
Strategy Development: Phase 4: Standard 1.11
(1.11.1) There are critical success factors (CSF's) for each project in terms of efficiency, completion, and effect.
(1.11.2) The risk register contains these CSF's.
(1.11.3) There is a method to calculate the Risk Exposure Value [risk value (probability * impact) - control value (mitigation * business continuety) = exposure].
(1.11.4) The risk register enables Org to extract it strategic risks and also to extract the risks for each strategi program.
(1.11.5) The top ten strategic risks are listed.
Develop the strategy document.
Strategy Development: Phase 5: Standard 1.12
(1.12.1) The strategy document has a clear statement of organisational definition and identity. This statement should include the following items (order not important):
(1.12.1.1) A statement of purpose / mission.
(1.12.1.2) A statement of intent / vision.
(1.12.1.3) A statement of organisational values.
(1.12.1.4) A organisational business model.
(1.12.2) The strategy document has a clear statement of operational efficiency. This statement should include the following items:
(1.12.2.1) A summary of the process construct showing its core systems.
(1.12.2.2) A list of the process construct's core targets.
(1.12.2.3) A list the top ten operational risks.
(1.12.3) The strategy document has a clear statement of strategic effectiveness. This statement should include the following items:
(1.12.3.1) A summary of the ROET analysis with its proposed strategic focus areas.
(1.12.3.2) A 5V model.
(1.12.3.3) A list of the strategic objectives, the program director, and a target date, and associated projects with their project leaders.
(1.12.3.4) A list of the top ten strategic risks.
(1.12.4) The document holds a section on how the organisation will monitor and execute its strategy.
(1.12.5) There is an executive summary that explains the context and process used to devise this strategy as well as why a specific strategic choice was taken. It should also have a summarized version of what the strategy entails.
Monitor the execution of strategy.
Strategy Development: Phase 5: Standard 1.13
(1.13.1) There is a strategic scorecard that quantifies the following:
(1.13.1.1) A scorecard that shows how well the strategic programs are executed.
(1.13.1.2) A scorecard that shows how well our process construct is running.
(1.13.2) There is a feedback system that will keep the CEO informed.
(1.13.3) The executive or management team has a generic agenda that gives specific time to discuss their "3-6-9" vision.
(1.13.4) Strategy teams meet regularly and they follow project management method.
(1.13.5) Program directors are senior people who can give direct feedback to the CEO.
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Develop a Strategy
- 11th May, 2019
- IOI Quality Standards
-
Strategy is a plan that Org creates to become or stay a Relevant and Performing Organisation (RPO).
-
Strategy development is the development of such a plan.
-
The aim of these standards is to help Orgtologists to create and develop a strategy, or to train others to do so according to orgtology theories and principles.
-
Click on any of the standards in the table below to go directly to its specifications.
Phase:
IOI Standard:
IOI Standard Nr:
1. Initiate a strategy development project.
-
Understand the strategy development needs.
-
Draft a project plan and brief for the strategy development process.
-
Draft a project inception report.
-
Draft milestone completion reports fr al completed milestones.
-
2.1
-
2.2
-
2.3
-
2.4
2.
Org Identity and Definition.
-
Define the organisational intent.
-
Develop behavioural rules around these values.
-
Develop a business canvas that depicts the core modus operandi (way of doing things).
-
2.5
-
2.6
-
2.7
-
2.8
-
2.9
-
2.10
3.
Current reality analysis.
-
Analyse REET data.
-
Draft and submit a REET Report with reccommendations.
-
2.11
-
2.12
-
2.13
4. Operational Performance Analysis
-
Draft core business processes and cross map with Level Zero.
-
Develop Level Zero targets.
-
2.14
-
2.15
-
2.16
-
2.17
5.
Strategic Intent & Direction.
-
Assess and decide on the best strategy type for the Org.
- Use the 5V model, the REET analysis, and the operational performance analysis to determine the change needed.
-
Define strategic objectives and programs.
-
2.18
-
2.19
-
2.20
-
2.21
6.
Implementation Plan.
- Identify strategic projects and link to the strategic programs.
-
Create a work breakdown structure for each project.
-
2.22
-
2.23
-
2.24
-
2.25
7.
Monitor & Lead.
-
Develop strategy monitoring tools.
- Ensure strategic accountability and responsibility.
-
2.26
-
2.27
-
2.28
Define the purpose of your organisation.
Strategy Development: Phase 1: Standard 1.1
(1.1.1) The statement of purpose defines the organisations reason for existance.
(1.1.2) The statement of purpose is distinct from the statement of intent.
(1.1.3) The statement of purpose is written in present tense. E.g., “We ensure price and financial stability for the country.” Do not describe a future state, e.g., “To ensure price and financial stability for the country.”
Develop organisational values.
Strategy Development: Phase 1: Standard 1.2
(1.2.1) There is a narrative that describes the desired behavior of the organisation.
(1.2.2) The strategy holds a list of values that defines deisred behaviour.
(1.2.3) Each value has a description.
(1.2.4) Each value has a set of behavioural rules.
(1.2.5) Behavioural rules are part of the organisational performance asessment system.
Develop a business model for your organisation.
Strategy Development: Phase 1: Standard 1.3
(1.3.1) The business model has clearly identified value drivers. In orgtology the generic value drivers are process efficiency, strategic effectiveness, meaningful relationships, focused intelligence, and productive resources.
(1.3.2) The business model is linked to core critical success factors (CSF) for the organisation to perform and stay relevant. These are high level CSF’s and as rule of thumb, they must not exceed ten. The CSF’s for performance and relevance must be listed separately (E.g., five for performance and five for relevane).
(1.3.3) The business model is decribed through a business canvas. The description must include partners, key activities, key resources, value propositions, customer relationships, distribution channels, customer segments, cost structure, and revenue streams.
(1.3.4) Depict the “value flow” of your business model. This is a model, value chain, or diagram that shows the interdependence of the organisational activity. The core value drivers must be depicted.
Do a ROET analysis (Relationships, Opportunities, Effciency, and Threats).
Strategy Development: Phase 2: Standard 1.4
(1.4.1) Duringstrategy development there was a clear method of ROET assessment. ROET assessment methods can include (but not limied to) a workshop or meeting where dialogue is facilitated around ROET; a questionnaire to employees and other stakeholders; interviews and/or meetings with stakeholders.
(1.4.2) The ROET generated sufficient data to make reasonable assumptions about relationships, opportunities, efficiency, and threats.
(1.4.3) The ROET analysis is reduced to a concise report.
(1.4.4) The ROET report has clear recommendations regarding the strategic direction that the organisation should take.
Extract operational systems, core targets, and top ten risks from the process construct.
Strategy Development: Phase 2: Standard 1.5
(1.5.1) The organisational process construct is divided into core operational systems.
(1.5.2) Each operational system holds at least one core target that shows the health of that system. Each target must include a qualification, quantification, measure, evidence, and weighting. This "super target", must summarize all other targets within that system.
(1.5.3) The strategy clearly depicts the top ten operational risks.
Assess the strategic position of your organisation.
Strategy Development: Phase 3: Standard 1.6
(1.6.1) There is a method to assess the organisations rank/position in its industry.
(1.6.2) Org knows what rank it wants within its industry.
(1.6.3) There is a method to assess the relatioship between sponsorship (Org has the resources to do its work) and entropy (compeditors). This method should give guidance on which predominant strategic approach Org must follow:
(1.6.2.1) Process efficiency strategy - when sponsorship is high and competition (entropy) is low.
(1.6.2.2) Competitive strategy - when competition is high and industry processes are internalized.
(1.6.2.3) Disruptive innovation (blue ocean) strategy - when the only option is to make your competitor irrelevant.
Develop strategic intent through the 5V model.
Strategy Development: Phase 3: Standard 1.7
(1.7.1) The 5V Model is fully designed. This implies five vision statements (5V) that imply the following strategic periods:
(1.7.1.1) V1 – ultimate dream (long-term vision)
(1.7.1.2) V2 – Nine years from commencement of strategy (long-medium term vision)
(1.7.1.3) V3 - Six years from commencement of strategy (medium term vision)
(1.7.1.4) V4 - Three years from commencement of strategy (short-medium term vision)
(1.7.1.5) V5 - One year from commencement of strategy (short term vision)
(1.7.2) The V1 statement defines the ultimate dream of Org. This is a non-quantifiable idea of the ultimate state for your organisation. It is a dream, and therefore Org can define it in any way it wants.
(1.7.3) The strategic period of Org is in line with the V4 target date.
(1.7.4) Statements V2, V3, and V4 (also nown as the 3-6-9 vision) have both quantifyable and qualifyable vision statements.
(1.7.5) The V5 statement is up to date (it changes on an annual basis).
Define strategic objectives.
Strategy Development: Phase 3: Standard 1.8
(1.8.1) Strategic objectives are derived from the ROET and operational analysis.
(1.8.2) Strategic objectives define the change that Org must make to close the gap between its current reality and its "3-6-9" position. It is good practice to have between two and five strategic objectives. More than that becomes hard to manage.
(1.8.3) Each strategic objective begins with a verb.
Create a work breakdown structure for the strategic programs.
Strategy Development: Phase 4: Standard 1.9
(1.9.1) Each strategic objective is turned into a strategic program. The objective becomes the aim of the program.
(1.9.2) Each strategic program is linked to one or more strategic projects. We execute strategic programs through project management method, which means that child projects make up the activity of a strategic program.
(1.9.3) Each strategic project has a clear work breakdown structure that includes the following items:
(1.9.3.1) List of activities.
(1.9.3.2) Classification code for each activity (C-Key).
(1.9.3.3) Dependency flow (predecessors to activities).
(1.9.3.4) Estimated duration for each activity (use the critical path or PERT method).
(1.9.3.5) Name of the responsible person (not roles) to each activity.
(1.9.3.6) Resource weight of each activity (cost of the activity as a percentage of the budget).
(1.9.3.7) Target date for completion of the activity.
(1.9.4) There is a project brief and/or plan for each project.
Calculate the cost of strategy.
Strategy Development: Phase 4: Standard 1.10
(1.10.1) There is a cost calculation for the strategy. Jointly, the cost of all the strategic programs is the cost of strategy. The cost of strategic programs is the sum of all its strategic project cost.
(1.10.2) There is a cost calculation for operations. To relate cost of strategy to the organisational budget, we must know the cost of operations. The process construct of Org create its operational cost. Therefore, the cost of all process activity is also the operational cost of Org.
(1.10.3) There is an overall organisational cost calculation. The sum of strategic and operational cost is the total cost of running and changing Org. Therefore, strategy and operations have an inverse relationship, meaning increase of one demands a decrease from the other.
(1.10.4) Relate cost to 100 points (%). This will put expenses in perspective. It is good practice to relate cost as follows:
(1.10.4.1) % Strategic cost to % operational cost.
(1.10.4.2) % Strategic programs cost to overall cost of strategy.
(1.10.4.3) % Project cost to overall program cost.
(1.10.4.4) % Operational systems cost to overall operational cost.
(1.10.4.5) % Process cost to operational systems cost.
Assess the strategic risk.
Strategy Development: Phase 4: Standard 1.11
(1.11.1) There are critical success factors (CSF's) for each project in terms of efficiency, completion, and effect.
(1.11.2) The risk register contains these CSF's.
(1.11.3) There is a method to calculate the Risk Exposure Value [risk value (probability * impact) - control value (mitigation * business continuety) = exposure].
(1.11.4) The risk register enables Org to extract it strategic risks and also to extract the risks for each strategi program.
(1.11.5) The top ten strategic risks are listed.
Develop the strategy document.
Strategy Development: Phase 5: Standard 1.12
(1.12.1) The strategy document has a clear statement of organisational definition and identity. This statement should include the following items (order not important):
(1.12.1.1) A statement of purpose / mission.
(1.12.1.2) A statement of intent / vision.
(1.12.1.3) A statement of organisational values.
(1.12.1.4) A organisational business model.
(1.12.2) The strategy document has a clear statement of operational efficiency. This statement should include the following items:
(1.12.2.1) A summary of the process construct showing its core systems.
(1.12.2.2) A list of the process construct's core targets.
(1.12.2.3) A list the top ten operational risks.
(1.12.3) The strategy document has a clear statement of strategic effectiveness. This statement should include the following items:
(1.12.3.1) A summary of the ROET analysis with its proposed strategic focus areas.
(1.12.3.2) A 5V model.
(1.12.3.3) A list of the strategic objectives, the program director, and a target date, and associated projects with their project leaders.
(1.12.3.4) A list of the top ten strategic risks.
(1.12.4) The document holds a section on how the organisation will monitor and execute its strategy.
(1.12.5) There is an executive summary that explains the context and process used to devise this strategy as well as why a specific strategic choice was taken. It should also have a summarized version of what the strategy entails.
Monitor the execution of strategy.
Strategy Development: Phase 5: Standard 1.13
(1.13.1) There is a strategic scorecard that quantifies the following:
(1.13.1.1) A scorecard that shows how well the strategic programs are executed.
(1.13.1.2) A scorecard that shows how well our process construct is running.
(1.13.2) There is a feedback system that will keep the CEO informed.
(1.13.3) The executive or management team has a generic agenda that gives specific time to discuss their "3-6-9" vision.
(1.13.4) Strategy teams meet regularly and they follow project management method.
(1.13.5) Program directors are senior people who can give direct feedback to the CEO.
Post is under moderationStream item published successfully. Item will now be visible on your stream. -
Develop a Strategy
- 11th May, 2019
- IOI Quality Standards
-
Strategy is a plan that Org creates to become or stay a Relevant and Performing Organisation (RPO).
-
Strategy development is the development of such a plan.
-
The aim of these standards is to help Orgtologists to create and develop a strategy, or to train others to do so according to orgtology theories and principles.
-
Click on any of the standards in the table below to go directly to its specifications.
Phase:
IOI Standard:
IOI Standard Nr:
1. Initiate a strategy development project.
-
Understand the strategy development needs.
-
Draft a project plan and brief for the strategy development process.
-
Draft a project inception report.
-
Draft milestone completion reports fr al completed milestones.
-
2.1
-
2.2
-
2.3
-
2.4
2.
Org Identity and Definition.
-
Define the organisational intent.
-
Develop behavioural rules around these values.
-
Develop a business canvas that depicts the core modus operandi (way of doing things).
-
2.5
-
2.6
-
2.7
-
2.8
-
2.9
-
2.10
3.
Current reality analysis.
-
Analyse REET data.
-
Draft and submit a REET Report with reccommendations.
-
2.11
-
2.12
-
2.13
4. Operational Performance Analysis
-
Draft core business processes and cross map with Level Zero.
-
Develop Level Zero targets.
-
2.14
-
2.15
-
2.16
-
2.17
5.
Strategic Intent & Direction.
-
Assess and decide on the best strategy type for the Org.
- Use the 5V model, the REET analysis, and the operational performance analysis to determine the change needed.
-
Define strategic objectives and programs.
-
2.18
-
2.19
-
2.20
-
2.21
6.
Implementation Plan.
- Identify strategic projects and link to the strategic programs.
-
Create a work breakdown structure for each project.
-
2.22
-
2.23
-
2.24
-
2.25
7.
Monitor & Lead.
-
Develop strategy monitoring tools.
- Ensure strategic accountability and responsibility.
-
2.26
-
2.27
-
2.28
Define the purpose of your organisation.
Strategy Development: Phase 1: Standard 1.1
(1.1.1) The statement of purpose defines the organisations reason for existance.
(1.1.2) The statement of purpose is distinct from the statement of intent.
(1.1.3) The statement of purpose is written in present tense. E.g., “We ensure price and financial stability for the country.” Do not describe a future state, e.g., “To ensure price and financial stability for the country.”
Develop organisational values.
Strategy Development: Phase 1: Standard 1.2
(1.2.1) There is a narrative that describes the desired behavior of the organisation.
(1.2.2) The strategy holds a list of values that defines deisred behaviour.
(1.2.3) Each value has a description.
(1.2.4) Each value has a set of behavioural rules.
(1.2.5) Behavioural rules are part of the organisational performance asessment system.
Develop a business model for your organisation.
Strategy Development: Phase 1: Standard 1.3
(1.3.1) The business model has clearly identified value drivers. In orgtology the generic value drivers are process efficiency, strategic effectiveness, meaningful relationships, focused intelligence, and productive resources.
(1.3.2) The business model is linked to core critical success factors (CSF) for the organisation to perform and stay relevant. These are high level CSF’s and as rule of thumb, they must not exceed ten. The CSF’s for performance and relevance must be listed separately (E.g., five for performance and five for relevane).
(1.3.3) The business model is decribed through a business canvas. The description must include partners, key activities, key resources, value propositions, customer relationships, distribution channels, customer segments, cost structure, and revenue streams.
(1.3.4) Depict the “value flow” of your business model. This is a model, value chain, or diagram that shows the interdependence of the organisational activity. The core value drivers must be depicted.
Do a ROET analysis (Relationships, Opportunities, Effciency, and Threats).
Strategy Development: Phase 2: Standard 1.4
(1.4.1) Duringstrategy development there was a clear method of ROET assessment. ROET assessment methods can include (but not limied to) a workshop or meeting where dialogue is facilitated around ROET; a questionnaire to employees and other stakeholders; interviews and/or meetings with stakeholders.
(1.4.2) The ROET generated sufficient data to make reasonable assumptions about relationships, opportunities, efficiency, and threats.
(1.4.3) The ROET analysis is reduced to a concise report.
(1.4.4) The ROET report has clear recommendations regarding the strategic direction that the organisation should take.
Extract operational systems, core targets, and top ten risks from the process construct.
Strategy Development: Phase 2: Standard 1.5
(1.5.1) The organisational process construct is divided into core operational systems.
(1.5.2) Each operational system holds at least one core target that shows the health of that system. Each target must include a qualification, quantification, measure, evidence, and weighting. This "super target", must summarize all other targets within that system.
(1.5.3) The strategy clearly depicts the top ten operational risks.
Assess the strategic position of your organisation.
Strategy Development: Phase 3: Standard 1.6
(1.6.1) There is a method to assess the organisations rank/position in its industry.
(1.6.2) Org knows what rank it wants within its industry.
(1.6.3) There is a method to assess the relatioship between sponsorship (Org has the resources to do its work) and entropy (compeditors). This method should give guidance on which predominant strategic approach Org must follow:
(1.6.2.1) Process efficiency strategy - when sponsorship is high and competition (entropy) is low.
(1.6.2.2) Competitive strategy - when competition is high and industry processes are internalized.
(1.6.2.3) Disruptive innovation (blue ocean) strategy - when the only option is to make your competitor irrelevant.
Develop strategic intent through the 5V model.
Strategy Development: Phase 3: Standard 1.7
(1.7.1) The 5V Model is fully designed. This implies five vision statements (5V) that imply the following strategic periods:
(1.7.1.1) V1 – ultimate dream (long-term vision)
(1.7.1.2) V2 – Nine years from commencement of strategy (long-medium term vision)
(1.7.1.3) V3 - Six years from commencement of strategy (medium term vision)
(1.7.1.4) V4 - Three years from commencement of strategy (short-medium term vision)
(1.7.1.5) V5 - One year from commencement of strategy (short term vision)
(1.7.2) The V1 statement defines the ultimate dream of Org. This is a non-quantifiable idea of the ultimate state for your organisation. It is a dream, and therefore Org can define it in any way it wants.
(1.7.3) The strategic period of Org is in line with the V4 target date.
(1.7.4) Statements V2, V3, and V4 (also nown as the 3-6-9 vision) have both quantifyable and qualifyable vision statements.
(1.7.5) The V5 statement is up to date (it changes on an annual basis).
Define strategic objectives.
Strategy Development: Phase 3: Standard 1.8
(1.8.1) Strategic objectives are derived from the ROET and operational analysis.
(1.8.2) Strategic objectives define the change that Org must make to close the gap between its current reality and its "3-6-9" position. It is good practice to have between two and five strategic objectives. More than that becomes hard to manage.
(1.8.3) Each strategic objective begins with a verb.
Create a work breakdown structure for the strategic programs.
Strategy Development: Phase 4: Standard 1.9
(1.9.1) Each strategic objective is turned into a strategic program. The objective becomes the aim of the program.
(1.9.2) Each strategic program is linked to one or more strategic projects. We execute strategic programs through project management method, which means that child projects make up the activity of a strategic program.
(1.9.3) Each strategic project has a clear work breakdown structure that includes the following items:
(1.9.3.1) List of activities.
(1.9.3.2) Classification code for each activity (C-Key).
(1.9.3.3) Dependency flow (predecessors to activities).
(1.9.3.4) Estimated duration for each activity (use the critical path or PERT method).
(1.9.3.5) Name of the responsible person (not roles) to each activity.
(1.9.3.6) Resource weight of each activity (cost of the activity as a percentage of the budget).
(1.9.3.7) Target date for completion of the activity.
(1.9.4) There is a project brief and/or plan for each project.
Calculate the cost of strategy.
Strategy Development: Phase 4: Standard 1.10
(1.10.1) There is a cost calculation for the strategy. Jointly, the cost of all the strategic programs is the cost of strategy. The cost of strategic programs is the sum of all its strategic project cost.
(1.10.2) There is a cost calculation for operations. To relate cost of strategy to the organisational budget, we must know the cost of operations. The process construct of Org create its operational cost. Therefore, the cost of all process activity is also the operational cost of Org.
(1.10.3) There is an overall organisational cost calculation. The sum of strategic and operational cost is the total cost of running and changing Org. Therefore, strategy and operations have an inverse relationship, meaning increase of one demands a decrease from the other.
(1.10.4) Relate cost to 100 points (%). This will put expenses in perspective. It is good practice to relate cost as follows:
(1.10.4.1) % Strategic cost to % operational cost.
(1.10.4.2) % Strategic programs cost to overall cost of strategy.
(1.10.4.3) % Project cost to overall program cost.
(1.10.4.4) % Operational systems cost to overall operational cost.
(1.10.4.5) % Process cost to operational systems cost.
Assess the strategic risk.
Strategy Development: Phase 4: Standard 1.11
(1.11.1) There are critical success factors (CSF's) for each project in terms of efficiency, completion, and effect.
(1.11.2) The risk register contains these CSF's.
(1.11.3) There is a method to calculate the Risk Exposure Value [risk value (probability * impact) - control value (mitigation * business continuety) = exposure].
(1.11.4) The risk register enables Org to extract it strategic risks and also to extract the risks for each strategi program.
(1.11.5) The top ten strategic risks are listed.
Develop the strategy document.
Strategy Development: Phase 5: Standard 1.12
(1.12.1) The strategy document has a clear statement of organisational definition and identity. This statement should include the following items (order not important):
(1.12.1.1) A statement of purpose / mission.
(1.12.1.2) A statement of intent / vision.
(1.12.1.3) A statement of organisational values.
(1.12.1.4) A organisational business model.
(1.12.2) The strategy document has a clear statement of operational efficiency. This statement should include the following items:
(1.12.2.1) A summary of the process construct showing its core systems.
(1.12.2.2) A list of the process construct's core targets.
(1.12.2.3) A list the top ten operational risks.
(1.12.3) The strategy document has a clear statement of strategic effectiveness. This statement should include the following items:
(1.12.3.1) A summary of the ROET analysis with its proposed strategic focus areas.
(1.12.3.2) A 5V model.
(1.12.3.3) A list of the strategic objectives, the program director, and a target date, and associated projects with their project leaders.
(1.12.3.4) A list of the top ten strategic risks.
(1.12.4) The document holds a section on how the organisation will monitor and execute its strategy.
(1.12.5) There is an executive summary that explains the context and process used to devise this strategy as well as why a specific strategic choice was taken. It should also have a summarized version of what the strategy entails.
Monitor the execution of strategy.
Strategy Development: Phase 5: Standard 1.13
(1.13.1) There is a strategic scorecard that quantifies the following:
(1.13.1.1) A scorecard that shows how well the strategic programs are executed.
(1.13.1.2) A scorecard that shows how well our process construct is running.
(1.13.2) There is a feedback system that will keep the CEO informed.
(1.13.3) The executive or management team has a generic agenda that gives specific time to discuss their "3-6-9" vision.
(1.13.4) Strategy teams meet regularly and they follow project management method.
(1.13.5) Program directors are senior people who can give direct feedback to the CEO.
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Develop a Strategy
- 11th May, 2019
- IOI Quality Standards
-
Strategy is a plan that Org creates to become or stay a Relevant and Performing Organisation (RPO).
-
Strategy development is the development of such a plan.
-
The aim of these standards is to help Orgtologists to create and develop a strategy, or to train others to do so according to orgtology theories and principles.
-
Click on any of the standards in the table below to go directly to its specifications.
Phase:
IOI Standard:
IOI Standard Nr:
1. Initiate a strategy development project.
-
Understand the strategy development needs.
-
Draft a project plan and brief for the strategy development process.
-
Draft a project inception report.
-
Draft milestone completion reports fr al completed milestones.
-
2.1
-
2.2
-
2.3
-
2.4
2.
Org Identity and Definition.
-
Define the organisational intent.
-
Develop behavioural rules around these values.
-
Develop a business canvas that depicts the core modus operandi (way of doing things).
-
2.5
-
2.6
-
2.7
-
2.8
-
2.9
-
2.10
3.
Current reality analysis.
-
Analyse REET data.
-
Draft and submit a REET Report with reccommendations.
-
2.11
-
2.12
-
2.13
4. Operational Performance Analysis
-
Draft core business processes and cross map with Level Zero.
-
Develop Level Zero targets.
-
2.14
-
2.15
-
2.16
-
2.17
5.
Strategic Intent & Direction.
-
Assess and decide on the best strategy type for the Org.
- Use the 5V model, the REET analysis, and the operational performance analysis to determine the change needed.
-
Define strategic objectives and programs.
-
2.18
-
2.19
-
2.20
-
2.21
6.
Implementation Plan.
- Identify strategic projects and link to the strategic programs.
-
Create a work breakdown structure for each project.
-
2.22
-
2.23
-
2.24
-
2.25
7.
Monitor & Lead.
-
Develop strategy monitoring tools.
- Ensure strategic accountability and responsibility.
-
2.26
-
2.27
-
2.28
Define the purpose of your organisation.
Strategy Development: Phase 1: Standard 1.1
(1.1.1) The statement of purpose defines the organisations reason for existance.
(1.1.2) The statement of purpose is distinct from the statement of intent.
(1.1.3) The statement of purpose is written in present tense. E.g., “We ensure price and financial stability for the country.” Do not describe a future state, e.g., “To ensure price and financial stability for the country.”
Develop organisational values.
Strategy Development: Phase 1: Standard 1.2
(1.2.1) There is a narrative that describes the desired behavior of the organisation.
(1.2.2) The strategy holds a list of values that defines deisred behaviour.
(1.2.3) Each value has a description.
(1.2.4) Each value has a set of behavioural rules.
(1.2.5) Behavioural rules are part of the organisational performance asessment system.
Develop a business model for your organisation.
Strategy Development: Phase 1: Standard 1.3
(1.3.1) The business model has clearly identified value drivers. In orgtology the generic value drivers are process efficiency, strategic effectiveness, meaningful relationships, focused intelligence, and productive resources.
(1.3.2) The business model is linked to core critical success factors (CSF) for the organisation to perform and stay relevant. These are high level CSF’s and as rule of thumb, they must not exceed ten. The CSF’s for performance and relevance must be listed separately (E.g., five for performance and five for relevane).
(1.3.3) The business model is decribed through a business canvas. The description must include partners, key activities, key resources, value propositions, customer relationships, distribution channels, customer segments, cost structure, and revenue streams.
(1.3.4) Depict the “value flow” of your business model. This is a model, value chain, or diagram that shows the interdependence of the organisational activity. The core value drivers must be depicted.
Do a ROET analysis (Relationships, Opportunities, Effciency, and Threats).
Strategy Development: Phase 2: Standard 1.4
(1.4.1) Duringstrategy development there was a clear method of ROET assessment. ROET assessment methods can include (but not limied to) a workshop or meeting where dialogue is facilitated around ROET; a questionnaire to employees and other stakeholders; interviews and/or meetings with stakeholders.
(1.4.2) The ROET generated sufficient data to make reasonable assumptions about relationships, opportunities, efficiency, and threats.
(1.4.3) The ROET analysis is reduced to a concise report.
(1.4.4) The ROET report has clear recommendations regarding the strategic direction that the organisation should take.
Extract operational systems, core targets, and top ten risks from the process construct.
Strategy Development: Phase 2: Standard 1.5
(1.5.1) The organisational process construct is divided into core operational systems.
(1.5.2) Each operational system holds at least one core target that shows the health of that system. Each target must include a qualification, quantification, measure, evidence, and weighting. This "super target", must summarize all other targets within that system.
(1.5.3) The strategy clearly depicts the top ten operational risks.
Assess the strategic position of your organisation.
Strategy Development: Phase 3: Standard 1.6
(1.6.1) There is a method to assess the organisations rank/position in its industry.
(1.6.2) Org knows what rank it wants within its industry.
(1.6.3) There is a method to assess the relatioship between sponsorship (Org has the resources to do its work) and entropy (compeditors). This method should give guidance on which predominant strategic approach Org must follow:
(1.6.2.1) Process efficiency strategy - when sponsorship is high and competition (entropy) is low.
(1.6.2.2) Competitive strategy - when competition is high and industry processes are internalized.
(1.6.2.3) Disruptive innovation (blue ocean) strategy - when the only option is to make your competitor irrelevant.
Develop strategic intent through the 5V model.
Strategy Development: Phase 3: Standard 1.7
(1.7.1) The 5V Model is fully designed. This implies five vision statements (5V) that imply the following strategic periods:
(1.7.1.1) V1 – ultimate dream (long-term vision)
(1.7.1.2) V2 – Nine years from commencement of strategy (long-medium term vision)
(1.7.1.3) V3 - Six years from commencement of strategy (medium term vision)
(1.7.1.4) V4 - Three years from commencement of strategy (short-medium term vision)
(1.7.1.5) V5 - One year from commencement of strategy (short term vision)
(1.7.2) The V1 statement defines the ultimate dream of Org. This is a non-quantifiable idea of the ultimate state for your organisation. It is a dream, and therefore Org can define it in any way it wants.
(1.7.3) The strategic period of Org is in line with the V4 target date.
(1.7.4) Statements V2, V3, and V4 (also nown as the 3-6-9 vision) have both quantifyable and qualifyable vision statements.
(1.7.5) The V5 statement is up to date (it changes on an annual basis).
Define strategic objectives.
Strategy Development: Phase 3: Standard 1.8
(1.8.1) Strategic objectives are derived from the ROET and operational analysis.
(1.8.2) Strategic objectives define the change that Org must make to close the gap between its current reality and its "3-6-9" position. It is good practice to have between two and five strategic objectives. More than that becomes hard to manage.
(1.8.3) Each strategic objective begins with a verb.
Create a work breakdown structure for the strategic programs.
Strategy Development: Phase 4: Standard 1.9
(1.9.1) Each strategic objective is turned into a strategic program. The objective becomes the aim of the program.
(1.9.2) Each strategic program is linked to one or more strategic projects. We execute strategic programs through project management method, which means that child projects make up the activity of a strategic program.
(1.9.3) Each strategic project has a clear work breakdown structure that includes the following items:
(1.9.3.1) List of activities.
(1.9.3.2) Classification code for each activity (C-Key).
(1.9.3.3) Dependency flow (predecessors to activities).
(1.9.3.4) Estimated duration for each activity (use the critical path or PERT method).
(1.9.3.5) Name of the responsible person (not roles) to each activity.
(1.9.3.6) Resource weight of each activity (cost of the activity as a percentage of the budget).
(1.9.3.7) Target date for completion of the activity.
(1.9.4) There is a project brief and/or plan for each project.
Calculate the cost of strategy.
Strategy Development: Phase 4: Standard 1.10
(1.10.1) There is a cost calculation for the strategy. Jointly, the cost of all the strategic programs is the cost of strategy. The cost of strategic programs is the sum of all its strategic project cost.
(1.10.2) There is a cost calculation for operations. To relate cost of strategy to the organisational budget, we must know the cost of operations. The process construct of Org create its operational cost. Therefore, the cost of all process activity is also the operational cost of Org.
(1.10.3) There is an overall organisational cost calculation. The sum of strategic and operational cost is the total cost of running and changing Org. Therefore, strategy and operations have an inverse relationship, meaning increase of one demands a decrease from the other.
(1.10.4) Relate cost to 100 points (%). This will put expenses in perspective. It is good practice to relate cost as follows:
(1.10.4.1) % Strategic cost to % operational cost.
(1.10.4.2) % Strategic programs cost to overall cost of strategy.
(1.10.4.3) % Project cost to overall program cost.
(1.10.4.4) % Operational systems cost to overall operational cost.
(1.10.4.5) % Process cost to operational systems cost.
Assess the strategic risk.
Strategy Development: Phase 4: Standard 1.11
(1.11.1) There are critical success factors (CSF's) for each project in terms of efficiency, completion, and effect.
(1.11.2) The risk register contains these CSF's.
(1.11.3) There is a method to calculate the Risk Exposure Value [risk value (probability * impact) - control value (mitigation * business continuety) = exposure].
(1.11.4) The risk register enables Org to extract it strategic risks and also to extract the risks for each strategi program.
(1.11.5) The top ten strategic risks are listed.
Develop the strategy document.
Strategy Development: Phase 5: Standard 1.12
(1.12.1) The strategy document has a clear statement of organisational definition and identity. This statement should include the following items (order not important):
(1.12.1.1) A statement of purpose / mission.
(1.12.1.2) A statement of intent / vision.
(1.12.1.3) A statement of organisational values.
(1.12.1.4) A organisational business model.
(1.12.2) The strategy document has a clear statement of operational efficiency. This statement should include the following items:
(1.12.2.1) A summary of the process construct showing its core systems.
(1.12.2.2) A list of the process construct's core targets.
(1.12.2.3) A list the top ten operational risks.
(1.12.3) The strategy document has a clear statement of strategic effectiveness. This statement should include the following items:
(1.12.3.1) A summary of the ROET analysis with its proposed strategic focus areas.
(1.12.3.2) A 5V model.
(1.12.3.3) A list of the strategic objectives, the program director, and a target date, and associated projects with their project leaders.
(1.12.3.4) A list of the top ten strategic risks.
(1.12.4) The document holds a section on how the organisation will monitor and execute its strategy.
(1.12.5) There is an executive summary that explains the context and process used to devise this strategy as well as why a specific strategic choice was taken. It should also have a summarized version of what the strategy entails.
Monitor the execution of strategy.
Strategy Development: Phase 5: Standard 1.13
(1.13.1) There is a strategic scorecard that quantifies the following:
(1.13.1.1) A scorecard that shows how well the strategic programs are executed.
(1.13.1.2) A scorecard that shows how well our process construct is running.
(1.13.2) There is a feedback system that will keep the CEO informed.
(1.13.3) The executive or management team has a generic agenda that gives specific time to discuss their "3-6-9" vision.
(1.13.4) Strategy teams meet regularly and they follow project management method.
(1.13.5) Program directors are senior people who can give direct feedback to the CEO.
Post is under moderationStream item published successfully. Item will now be visible on your stream. -
Develop a Strategy
- 11th May, 2019
- IOI Quality Standards
-
Strategy is a plan that Org creates to become or stay a Relevant and Performing Organisation (RPO).
-
Strategy development is the development of such a plan.
-
The aim of these standards is to help Orgtologists to create and develop a strategy, or to train others to do so according to orgtology theories and principles.
-
Click on any of the standards in the table below to go directly to its specifications.
Phase:
IOI Standard:
IOI Standard Nr:
1. Initiate a strategy development project.
-
Understand the strategy development needs.
-
Draft a project plan and brief for the strategy development process.
-
Draft a project inception report.
-
Draft milestone completion reports fr al completed milestones.
-
2.1
-
2.2
-
2.3
-
2.4
2.
Org Identity and Definition.
-
Define the organisational intent.
-
Develop behavioural rules around these values.
-
Develop a business canvas that depicts the core modus operandi (way of doing things).
-
2.5
-
2.6
-
2.7
-
2.8
-
2.9
-
2.10
3.
Current reality analysis.
-
Analyse REET data.
-
Draft and submit a REET Report with reccommendations.
-
2.11
-
2.12
-
2.13
4. Operational Performance Analysis
-
Draft core business processes and cross map with Level Zero.
-
Develop Level Zero targets.
-
2.14
-
2.15
-
2.16
-
2.17
5.
Strategic Intent & Direction.
-
Assess and decide on the best strategy type for the Org.
- Use the 5V model, the REET analysis, and the operational performance analysis to determine the change needed.
-
Define strategic objectives and programs.
-
2.18
-
2.19
-
2.20
-
2.21
6.
Implementation Plan.
- Identify strategic projects and link to the strategic programs.
-
Create a work breakdown structure for each project.
-
2.22
-
2.23
-
2.24
-
2.25
7.
Monitor & Lead.
-
Develop strategy monitoring tools.
- Ensure strategic accountability and responsibility.
-
2.26
-
2.27
-
2.28
Define the purpose of your organisation.
Strategy Development: Phase 1: Standard 1.1
(1.1.1) The statement of purpose defines the organisations reason for existance.
(1.1.2) The statement of purpose is distinct from the statement of intent.
(1.1.3) The statement of purpose is written in present tense. E.g., “We ensure price and financial stability for the country.” Do not describe a future state, e.g., “To ensure price and financial stability for the country.”
Develop organisational values.
Strategy Development: Phase 1: Standard 1.2
(1.2.1) There is a narrative that describes the desired behavior of the organisation.
(1.2.2) The strategy holds a list of values that defines deisred behaviour.
(1.2.3) Each value has a description.
(1.2.4) Each value has a set of behavioural rules.
(1.2.5) Behavioural rules are part of the organisational performance asessment system.
Develop a business model for your organisation.
Strategy Development: Phase 1: Standard 1.3
(1.3.1) The business model has clearly identified value drivers. In orgtology the generic value drivers are process efficiency, strategic effectiveness, meaningful relationships, focused intelligence, and productive resources.
(1.3.2) The business model is linked to core critical success factors (CSF) for the organisation to perform and stay relevant. These are high level CSF’s and as rule of thumb, they must not exceed ten. The CSF’s for performance and relevance must be listed separately (E.g., five for performance and five for relevane).
(1.3.3) The business model is decribed through a business canvas. The description must include partners, key activities, key resources, value propositions, customer relationships, distribution channels, customer segments, cost structure, and revenue streams.
(1.3.4) Depict the “value flow” of your business model. This is a model, value chain, or diagram that shows the interdependence of the organisational activity. The core value drivers must be depicted.
Do a ROET analysis (Relationships, Opportunities, Effciency, and Threats).
Strategy Development: Phase 2: Standard 1.4
(1.4.1) Duringstrategy development there was a clear method of ROET assessment. ROET assessment methods can include (but not limied to) a workshop or meeting where dialogue is facilitated around ROET; a questionnaire to employees and other stakeholders; interviews and/or meetings with stakeholders.
(1.4.2) The ROET generated sufficient data to make reasonable assumptions about relationships, opportunities, efficiency, and threats.
(1.4.3) The ROET analysis is reduced to a concise report.
(1.4.4) The ROET report has clear recommendations regarding the strategic direction that the organisation should take.
Extract operational systems, core targets, and top ten risks from the process construct.
Strategy Development: Phase 2: Standard 1.5
(1.5.1) The organisational process construct is divided into core operational systems.
(1.5.2) Each operational system holds at least one core target that shows the health of that system. Each target must include a qualification, quantification, measure, evidence, and weighting. This "super target", must summarize all other targets within that system.
(1.5.3) The strategy clearly depicts the top ten operational risks.
Assess the strategic position of your organisation.
Strategy Development: Phase 3: Standard 1.6
(1.6.1) There is a method to assess the organisations rank/position in its industry.
(1.6.2) Org knows what rank it wants within its industry.
(1.6.3) There is a method to assess the relatioship between sponsorship (Org has the resources to do its work) and entropy (compeditors). This method should give guidance on which predominant strategic approach Org must follow:
(1.6.2.1) Process efficiency strategy - when sponsorship is high and competition (entropy) is low.
(1.6.2.2) Competitive strategy - when competition is high and industry processes are internalized.
(1.6.2.3) Disruptive innovation (blue ocean) strategy - when the only option is to make your competitor irrelevant.
Develop strategic intent through the 5V model.
Strategy Development: Phase 3: Standard 1.7
(1.7.1) The 5V Model is fully designed. This implies five vision statements (5V) that imply the following strategic periods:
(1.7.1.1) V1 – ultimate dream (long-term vision)
(1.7.1.2) V2 – Nine years from commencement of strategy (long-medium term vision)
(1.7.1.3) V3 - Six years from commencement of strategy (medium term vision)
(1.7.1.4) V4 - Three years from commencement of strategy (short-medium term vision)
(1.7.1.5) V5 - One year from commencement of strategy (short term vision)
(1.7.2) The V1 statement defines the ultimate dream of Org. This is a non-quantifiable idea of the ultimate state for your organisation. It is a dream, and therefore Org can define it in any way it wants.
(1.7.3) The strategic period of Org is in line with the V4 target date.
(1.7.4) Statements V2, V3, and V4 (also nown as the 3-6-9 vision) have both quantifyable and qualifyable vision statements.
(1.7.5) The V5 statement is up to date (it changes on an annual basis).
Define strategic objectives.
Strategy Development: Phase 3: Standard 1.8
(1.8.1) Strategic objectives are derived from the ROET and operational analysis.
(1.8.2) Strategic objectives define the change that Org must make to close the gap between its current reality and its "3-6-9" position. It is good practice to have between two and five strategic objectives. More than that becomes hard to manage.
(1.8.3) Each strategic objective begins with a verb.
Create a work breakdown structure for the strategic programs.
Strategy Development: Phase 4: Standard 1.9
(1.9.1) Each strategic objective is turned into a strategic program. The objective becomes the aim of the program.
(1.9.2) Each strategic program is linked to one or more strategic projects. We execute strategic programs through project management method, which means that child projects make up the activity of a strategic program.
(1.9.3) Each strategic project has a clear work breakdown structure that includes the following items:
(1.9.3.1) List of activities.
(1.9.3.2) Classification code for each activity (C-Key).
(1.9.3.3) Dependency flow (predecessors to activities).
(1.9.3.4) Estimated duration for each activity (use the critical path or PERT method).
(1.9.3.5) Name of the responsible person (not roles) to each activity.
(1.9.3.6) Resource weight of each activity (cost of the activity as a percentage of the budget).
(1.9.3.7) Target date for completion of the activity.
(1.9.4) There is a project brief and/or plan for each project.
Calculate the cost of strategy.
Strategy Development: Phase 4: Standard 1.10
(1.10.1) There is a cost calculation for the strategy. Jointly, the cost of all the strategic programs is the cost of strategy. The cost of strategic programs is the sum of all its strategic project cost.
(1.10.2) There is a cost calculation for operations. To relate cost of strategy to the organisational budget, we must know the cost of operations. The process construct of Org create its operational cost. Therefore, the cost of all process activity is also the operational cost of Org.
(1.10.3) There is an overall organisational cost calculation. The sum of strategic and operational cost is the total cost of running and changing Org. Therefore, strategy and operations have an inverse relationship, meaning increase of one demands a decrease from the other.
(1.10.4) Relate cost to 100 points (%). This will put expenses in perspective. It is good practice to relate cost as follows:
(1.10.4.1) % Strategic cost to % operational cost.
(1.10.4.2) % Strategic programs cost to overall cost of strategy.
(1.10.4.3) % Project cost to overall program cost.
(1.10.4.4) % Operational systems cost to overall operational cost.
(1.10.4.5) % Process cost to operational systems cost.
Assess the strategic risk.
Strategy Development: Phase 4: Standard 1.11
(1.11.1) There are critical success factors (CSF's) for each project in terms of efficiency, completion, and effect.
(1.11.2) The risk register contains these CSF's.
(1.11.3) There is a method to calculate the Risk Exposure Value [risk value (probability * impact) - control value (mitigation * business continuety) = exposure].
(1.11.4) The risk register enables Org to extract it strategic risks and also to extract the risks for each strategi program.
(1.11.5) The top ten strategic risks are listed.
Develop the strategy document.
Strategy Development: Phase 5: Standard 1.12
(1.12.1) The strategy document has a clear statement of organisational definition and identity. This statement should include the following items (order not important):
(1.12.1.1) A statement of purpose / mission.
(1.12.1.2) A statement of intent / vision.
(1.12.1.3) A statement of organisational values.
(1.12.1.4) A organisational business model.
(1.12.2) The strategy document has a clear statement of operational efficiency. This statement should include the following items:
(1.12.2.1) A summary of the process construct showing its core systems.
(1.12.2.2) A list of the process construct's core targets.
(1.12.2.3) A list the top ten operational risks.
(1.12.3) The strategy document has a clear statement of strategic effectiveness. This statement should include the following items:
(1.12.3.1) A summary of the ROET analysis with its proposed strategic focus areas.
(1.12.3.2) A 5V model.
(1.12.3.3) A list of the strategic objectives, the program director, and a target date, and associated projects with their project leaders.
(1.12.3.4) A list of the top ten strategic risks.
(1.12.4) The document holds a section on how the organisation will monitor and execute its strategy.
(1.12.5) There is an executive summary that explains the context and process used to devise this strategy as well as why a specific strategic choice was taken. It should also have a summarized version of what the strategy entails.
Monitor the execution of strategy.
Strategy Development: Phase 5: Standard 1.13
(1.13.1) There is a strategic scorecard that quantifies the following:
(1.13.1.1) A scorecard that shows how well the strategic programs are executed.
(1.13.1.2) A scorecard that shows how well our process construct is running.
(1.13.2) There is a feedback system that will keep the CEO informed.
(1.13.3) The executive or management team has a generic agenda that gives specific time to discuss their "3-6-9" vision.
(1.13.4) Strategy teams meet regularly and they follow project management method.
(1.13.5) Program directors are senior people who can give direct feedback to the CEO.
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Develop a Strategy
- 11th May, 2019
- IOI Quality Standards
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Strategy is a plan that Org creates to become or stay a Relevant and Performing Organisation (RPO).
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Strategy development is the development of such a plan.
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The aim of these standards is to help Orgtologists to create and develop a strategy, or to train others to do so according to orgtology theories and principles.
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Click on any of the standards in the table below to go directly to its specifications.
Phase:
IOI Standard:
IOI Standard Nr:
1. Initiate a strategy development project.
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Understand the strategy development needs.
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Draft a project plan and brief for the strategy development process.
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Draft a project inception report.
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Draft milestone completion reports fr al completed milestones.
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2.1
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2.2
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2.3
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2.4
2.
Org Identity and Definition.
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Define the organisational intent.
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Develop behavioural rules around these values.
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Develop a business canvas that depicts the core modus operandi (way of doing things).
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2.5
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2.6
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2.7
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2.8
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2.9
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2.10
3.
Current reality analysis.
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Analyse REET data.
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Draft and submit a REET Report with reccommendations.
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2.11
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2.12
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2.13
4. Operational Performance Analysis
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Draft core business processes and cross map with Level Zero.
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Develop Level Zero targets.
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2.14
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2.15
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2.16
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2.17
5.
Strategic Intent & Direction.
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Assess and decide on the best strategy type for the Org.
- Use the 5V model, the REET analysis, and the operational performance analysis to determine the change needed.
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Define strategic objectives and programs.
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2.18
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2.19
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2.20
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2.21
6.
Implementation Plan.
- Identify strategic projects and link to the strategic programs.
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Create a work breakdown structure for each project.
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2.22
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2.23
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2.24
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2.25
7.
Monitor & Lead.
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Develop strategy monitoring tools.
- Ensure strategic accountability and responsibility.
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2.26
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2.27
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2.28
Define the purpose of your organisation.
Strategy Development: Phase 1: Standard 1.1
(1.1.1) The statement of purpose defines the organisations reason for existance.
(1.1.2) The statement of purpose is distinct from the statement of intent.
(1.1.3) The statement of purpose is written in present tense. E.g., “We ensure price and financial stability for the country.” Do not describe a future state, e.g., “To ensure price and financial stability for the country.”
Develop organisational values.
Strategy Development: Phase 1: Standard 1.2
(1.2.1) There is a narrative that describes the desired behavior of the organisation.
(1.2.2) The strategy holds a list of values that defines deisred behaviour.
(1.2.3) Each value has a description.
(1.2.4) Each value has a set of behavioural rules.
(1.2.5) Behavioural rules are part of the organisational performance asessment system.
Develop a business model for your organisation.
Strategy Development: Phase 1: Standard 1.3
(1.3.1) The business model has clearly identified value drivers. In orgtology the generic value drivers are process efficiency, strategic effectiveness, meaningful relationships, focused intelligence, and productive resources.
(1.3.2) The business model is linked to core critical success factors (CSF) for the organisation to perform and stay relevant. These are high level CSF’s and as rule of thumb, they must not exceed ten. The CSF’s for performance and relevance must be listed separately (E.g., five for performance and five for relevane).
(1.3.3) The business model is decribed through a business canvas. The description must include partners, key activities, key resources, value propositions, customer relationships, distribution channels, customer segments, cost structure, and revenue streams.
(1.3.4) Depict the “value flow” of your business model. This is a model, value chain, or diagram that shows the interdependence of the organisational activity. The core value drivers must be depicted.
Do a ROET analysis (Relationships, Opportunities, Effciency, and Threats).
Strategy Development: Phase 2: Standard 1.4
(1.4.1) Duringstrategy development there was a clear method of ROET assessment. ROET assessment methods can include (but not limied to) a workshop or meeting where dialogue is facilitated around ROET; a questionnaire to employees and other stakeholders; interviews and/or meetings with stakeholders.
(1.4.2) The ROET generated sufficient data to make reasonable assumptions about relationships, opportunities, efficiency, and threats.
(1.4.3) The ROET analysis is reduced to a concise report.
(1.4.4) The ROET report has clear recommendations regarding the strategic direction that the organisation should take.
Extract operational systems, core targets, and top ten risks from the process construct.
Strategy Development: Phase 2: Standard 1.5
(1.5.1) The organisational process construct is divided into core operational systems.
(1.5.2) Each operational system holds at least one core target that shows the health of that system. Each target must include a qualification, quantification, measure, evidence, and weighting. This "super target", must summarize all other targets within that system.
(1.5.3) The strategy clearly depicts the top ten operational risks.
Assess the strategic position of your organisation.
Strategy Development: Phase 3: Standard 1.6
(1.6.1) There is a method to assess the organisations rank/position in its industry.
(1.6.2) Org knows what rank it wants within its industry.
(1.6.3) There is a method to assess the relatioship between sponsorship (Org has the resources to do its work) and entropy (compeditors). This method should give guidance on which predominant strategic approach Org must follow:
(1.6.2.1) Process efficiency strategy - when sponsorship is high and competition (entropy) is low.
(1.6.2.2) Competitive strategy - when competition is high and industry processes are internalized.
(1.6.2.3) Disruptive innovation (blue ocean) strategy - when the only option is to make your competitor irrelevant.
Develop strategic intent through the 5V model.
Strategy Development: Phase 3: Standard 1.7
(1.7.1) The 5V Model is fully designed. This implies five vision statements (5V) that imply the following strategic periods:
(1.7.1.1) V1 – ultimate dream (long-term vision)
(1.7.1.2) V2 – Nine years from commencement of strategy (long-medium term vision)
(1.7.1.3) V3 - Six years from commencement of strategy (medium term vision)
(1.7.1.4) V4 - Three years from commencement of strategy (short-medium term vision)
(1.7.1.5) V5 - One year from commencement of strategy (short term vision)
(1.7.2) The V1 statement defines the ultimate dream of Org. This is a non-quantifiable idea of the ultimate state for your organisation. It is a dream, and therefore Org can define it in any way it wants.
(1.7.3) The strategic period of Org is in line with the V4 target date.
(1.7.4) Statements V2, V3, and V4 (also nown as the 3-6-9 vision) have both quantifyable and qualifyable vision statements.
(1.7.5) The V5 statement is up to date (it changes on an annual basis).
Define strategic objectives.
Strategy Development: Phase 3: Standard 1.8
(1.8.1) Strategic objectives are derived from the ROET and operational analysis.
(1.8.2) Strategic objectives define the change that Org must make to close the gap between its current reality and its "3-6-9" position. It is good practice to have between two and five strategic objectives. More than that becomes hard to manage.
(1.8.3) Each strategic objective begins with a verb.
Create a work breakdown structure for the strategic programs.
Strategy Development: Phase 4: Standard 1.9
(1.9.1) Each strategic objective is turned into a strategic program. The objective becomes the aim of the program.
(1.9.2) Each strategic program is linked to one or more strategic projects. We execute strategic programs through project management method, which means that child projects make up the activity of a strategic program.
(1.9.3) Each strategic project has a clear work breakdown structure that includes the following items:
(1.9.3.1) List of activities.
(1.9.3.2) Classification code for each activity (C-Key).
(1.9.3.3) Dependency flow (predecessors to activities).
(1.9.3.4) Estimated duration for each activity (use the critical path or PERT method).
(1.9.3.5) Name of the responsible person (not roles) to each activity.
(1.9.3.6) Resource weight of each activity (cost of the activity as a percentage of the budget).
(1.9.3.7) Target date for completion of the activity.
(1.9.4) There is a project brief and/or plan for each project.
Calculate the cost of strategy.
Strategy Development: Phase 4: Standard 1.10
(1.10.1) There is a cost calculation for the strategy. Jointly, the cost of all the strategic programs is the cost of strategy. The cost of strategic programs is the sum of all its strategic project cost.
(1.10.2) There is a cost calculation for operations. To relate cost of strategy to the organisational budget, we must know the cost of operations. The process construct of Org create its operational cost. Therefore, the cost of all process activity is also the operational cost of Org.
(1.10.3) There is an overall organisational cost calculation. The sum of strategic and operational cost is the total cost of running and changing Org. Therefore, strategy and operations have an inverse relationship, meaning increase of one demands a decrease from the other.
(1.10.4) Relate cost to 100 points (%). This will put expenses in perspective. It is good practice to relate cost as follows:
(1.10.4.1) % Strategic cost to % operational cost.
(1.10.4.2) % Strategic programs cost to overall cost of strategy.
(1.10.4.3) % Project cost to overall program cost.
(1.10.4.4) % Operational systems cost to overall operational cost.
(1.10.4.5) % Process cost to operational systems cost.
Assess the strategic risk.
Strategy Development: Phase 4: Standard 1.11
(1.11.1) There are critical success factors (CSF's) for each project in terms of efficiency, completion, and effect.
(1.11.2) The risk register contains these CSF's.
(1.11.3) There is a method to calculate the Risk Exposure Value [risk value (probability * impact) - control value (mitigation * business continuety) = exposure].
(1.11.4) The risk register enables Org to extract it strategic risks and also to extract the risks for each strategi program.
(1.11.5) The top ten strategic risks are listed.
Develop the strategy document.
Strategy Development: Phase 5: Standard 1.12
(1.12.1) The strategy document has a clear statement of organisational definition and identity. This statement should include the following items (order not important):
(1.12.1.1) A statement of purpose / mission.
(1.12.1.2) A statement of intent / vision.
(1.12.1.3) A statement of organisational values.
(1.12.1.4) A organisational business model.
(1.12.2) The strategy document has a clear statement of operational efficiency. This statement should include the following items:
(1.12.2.1) A summary of the process construct showing its core systems.
(1.12.2.2) A list of the process construct's core targets.
(1.12.2.3) A list the top ten operational risks.
(1.12.3) The strategy document has a clear statement of strategic effectiveness. This statement should include the following items:
(1.12.3.1) A summary of the ROET analysis with its proposed strategic focus areas.
(1.12.3.2) A 5V model.
(1.12.3.3) A list of the strategic objectives, the program director, and a target date, and associated projects with their project leaders.
(1.12.3.4) A list of the top ten strategic risks.
(1.12.4) The document holds a section on how the organisation will monitor and execute its strategy.
(1.12.5) There is an executive summary that explains the context and process used to devise this strategy as well as why a specific strategic choice was taken. It should also have a summarized version of what the strategy entails.
Monitor the execution of strategy.
Strategy Development: Phase 5: Standard 1.13
(1.13.1) There is a strategic scorecard that quantifies the following:
(1.13.1.1) A scorecard that shows how well the strategic programs are executed.
(1.13.1.2) A scorecard that shows how well our process construct is running.
(1.13.2) There is a feedback system that will keep the CEO informed.
(1.13.3) The executive or management team has a generic agenda that gives specific time to discuss their "3-6-9" vision.
(1.13.4) Strategy teams meet regularly and they follow project management method.
(1.13.5) Program directors are senior people who can give direct feedback to the CEO.
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