• Strategy is a plan that we create 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.

Define the purpose of your organisation.

Strategy Development: Phase 1: Standard 1.1

(1.1.1) Write a statement of purpose in such a way that:        

           (1.1.1.1) It defines the reason that your organisation exists;

           (1.1.1.2) It is distinct from a statement of intent; and

           (1.1.1.3) It is in present state. 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) Develop a narrative that describes the desired behavior of the organisation.

(1.2.2) Extract values from the narrative:

            (1.2.2.1) List all the values that will define the desired behavior.

            (1.2.2.2) Cluster values into common groups.

            (1.2.2.3) Define the final values.

(1.2.3) Describe each value.

(1.2.4) Validate and approve the values.

(1.2.5) Implement a values internalization strategy.

Develop a business model for your organisation.

Strategy Development: Phase 1: Standard 1.3

(1.3.1) Do research on business models of similar organisations and industries.

(1.3.2) Identify the value drivers for the business model. Generic value drivers in orgtology are process efficiency, strategic effectiveness, meaningful relationships, focused intelligence, and productive resources.

(1.3.3) List and describe the core critical success factors (CSF) for your 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.

(1.3.4) Describe the business model. The description must give detail on the unique way in which your organisation does its business. Some items to consider when describing a business model are value propositions, target customer segments, distribution channels, customer relationships, value configurations, core capabilities, commercial network, partner network, cost structure, and revenue model.

(1.3.5) 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 DOEP (people Dynamics, Opportunities, risk Exposure, and Pocess effciency analysis.

Strategy Development: Phase 2: Standard 1.4

(1.4.1) Decide on a method and devise an action plan for implementation. DOEP can be done in a myriad of ways, under which the following or a combination thereof:

            (1.4.1.1) Workshop or meeting where dialogue is facilitated and noted around DOEP.

            (1.4.1.2) Questionnaire to employees and other stakeholders.

            (1.4.1.3) Interviews and/or meetings with stakeholders.

(1.4.2) Run the analysis.

(1.4.3) Process the analysis.

(1.4.4) Draft a DOEP report and make 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) Extract the core operational systems from the operational process construct.

(1.5.2) Extract the core operational targets from each core operational system. This should include the qualification, quantification, measures, evidence, and weighting. Ideally, each system should have one "super target", which summarizes all the targets within that system.

(1.5.3) Extract the top ten operational risks from the process construct.

(1.5.4) Integrate this operational assessment with the DOEP analysis into one report.

Assess the strategic position of your organisation.

Strategy Development: Phase 3: Standard 1.6

(1.6.1) Use the DOEP and the operational analysis to understand the people dynamics, opportunities, risk exposure, and process efficiency of your organisation.

(1.6.2) Compare the current reality of the organisation to similar organisations in its industry.

(1.6.3) Assess your rank/position in your industry. If there is no standard way to assess the rank or position of an organisation in your industry, then create a standard way

(1.6.4) Decide on the best strategic approach to increase the relevance of Org. Orgtology poses three generic approaches to strategy, which are:

            (1.6.4.1) Process efficiency strategy - when sponsorship is high and competition (entropy) is low.

            (1.6.4.2) Competitive strategy - when competition is high and industry processes are internalized.

            (1.6.4.3) 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) Record five vision (5V) statements in such a way that they imply the following strategic periods:

           (1.7.1.1) V1 – ultimate dream

           (1.7.1.2) V2 – Three strategic periods (long-medium term vision)

           (1.7.1.3) V3 - Two strategic periods (medium term vision)

           (1.7.1.4) V4 - One strategic period (short-medium term vision)

           (1.7.1.5) V5 - One year (short term vision)

(1.7.2) Create a V1 statement. V1 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) Decide what rank or position you want your organisation to have in your industry hierarchy.

(1.7.4) Identify the gap between your current rank/position and your desired rank/position.

(1.7.5) Decide on a strategic period. This would be a projection of how long it will take the organisation to move from its current state to its desired V4 state.

(1.7.6) Create a V4 statement. V4 is a projection of the position of your organisation at the end of a strategic period. V4 must be in line with V1 – the ultimate dream of Org. It is good practice to use the position/rank within the industry to formulate a V4 statement. This is not a rule.

(1.7.7) Shorten the gap between V1 and V4 by creating V2 and V3 statements. V2 and V3 are statements must show where we want to go over a longer term than our V4 period. The IOI is not specific on what the duration of these periods must be. As rule of thumb, V2 is three strategic periods; V3 is two strategic periods; and V4 is one strategic period. As with V4, it is preferable that V2 and V3 statements are quantifiable.

(1.7.8) Define a V5 statement. This is your 12-month super goal, which aims to get you closer to V4. It is good practice to relate your V5 statement to the execution of all organisational targets for that year.

Define strategic objectives.

Strategy Development: Phase 3: Standard 1.8

(1.8.1) Identify which aspects of the DOEP and operational analysis you must work with to close the gap between your current and V4, V3, and V2 positions.

(1.8.2) Define the change that the organisation wants to make as strategic objectives. It is good practice to have between two and five strategic objectives. More than that becomes hard to manage.When writing a strategic objective, begin with a verb.

Create a work breakdown structure for the strategic programs.

Strategy Development: Phase 4: Standard 1.9

(1.9.1) Turn each strategic objective into a strategic program. The objective becomes the aim of the program.

(1.9.2) Decide which projects will emanate within each program.

(1.9.3) Decide on the activity breakdown for the programs. The breakdown should have the following items:

            (1.9.3.1) List of activities, including activities that are projects;

            (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 to each activity;

             (1.9.3.6) Resource weight of each activity (cost of the activity as a percentage of the budget); and

             (1.9.3.7) Target date for completion of the activity.

       (1.9.4) Create a project brief for each project.

Calculate the cost of strategy.

Strategy Development: Phase 4: Standard 1.10

(1.10.1) Calculate the cost of strategy. Jointly, the cost of all the strategic programs is the cost of strategy. The cost of strategic programs is the sum of all strategic project cost.

(1.10.2) Calculate the cost of operations. To relate cost of strategy to the organisational budget, we must know the cost of operations. Jointly, the systems of Org create its operational cost. Therefore, the cost of all process activity is also the operational cost of Org.

(1.10.3) Calculate the overall organisational cost. 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) Identify critical success factors (CSF's) for each project in terms of efficiency, completion, and effect.

(1.11.2) Translate these CSF's to risks.

(1.11.3) Quantify both the risk and control values in order to rank the risks.

(1.11.4) From the project risks, list the top ten risks for each strategic program.

(1.11.5) From the strategic program risks, list the overall top-ten risks for strategy execution.

Develop the strategy document.

Strategy Development: Phase 5: Standard 1.12

(1.12.1) Compile a statement of organisational definition and identity. This statement should include the following items:

             (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; and

             (1.12.1.4) A organisational business model.

(1.12.2) Compile a statement of operational efficiency. This statement should include the following items:

             (1.12.2.1) A summary of the process construct, its core systems, and their process families;

             (1.12.2.2) A list of the process construct core targets; and

             (1.12.2.3) A list the top ten operational risks with their mitigation and contingency plans.

(1.12.3) Compile a statement of strategic effectiveness. This statement should include the following items:

             (1.12.3.1) A summary of the DOEP 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

             (1.12.3.4)  A list of the top ten strategic risks with their mitigation and contingency plans.

(1.12.4) Write a section on how the organisation will monitor and execute its strategy.

(1.12.5) Insert 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.

(1.12.6) Add other sections to the strategy document as needed.

(1.12.7) Add the complete DOEP analyses as well as all the program briefs as annexes to the strategy document.

Monitor the execution of strategy.

Strategy Development: Phase 5: Standard 1.13

(1.13.1) Create a strategic scorecard that will quantify the following:

             (1.13.1.1) A strategic scorecard that shows how well the strategic programs are executed; and

             (1.13.1.2) A operational target scorecard that shows how well our process construct is running.

(1.13.2) Set-up and approve a feedback system that will keep the CEO informed.

(1.13.3) Ensure that the strategy teams meet regularly, that they follow project management method, and that the program directors are senior people who can give direct feedback to the CEO.

• Strategy is a plan that we create 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.

Define the purpose of your organisation.

Strategy Development: Phase 1: Standard 1.1

(1.1.1) Write a statement of purpose in such a way that:        

           (1.1.1.1) It defines the reason that your organisation exists;

           (1.1.1.2) It is distinct from a statement of intent; and

           (1.1.1.3) It is in present state. 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) Develop a narrative that describes the desired behavior of the organisation.

(1.2.2) Extract values from the narrative:

            (1.2.2.1) List all the values that will define the desired behavior.

            (1.2.2.2) Cluster values into common groups.

            (1.2.2.3) Define the final values.

(1.2.3) Describe each value.

(1.2.4) Validate and approve the values.

(1.2.5) Implement a values internalization strategy.

Develop a business model for your organisation.

Strategy Development: Phase 1: Standard 1.3

(1.3.1) Do research on business models of similar organisations and industries.

(1.3.2) Identify the value drivers for the business model. Generic value drivers in orgtology are process efficiency, strategic effectiveness, meaningful relationships, focused intelligence, and productive resources.

(1.3.3) List and describe the core critical success factors (CSF) for your 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.

(1.3.4) Describe the business model. The description must give detail on the unique way in which your organisation does its business. Some items to consider when describing a business model are value propositions, target customer segments, distribution channels, customer relationships, value configurations, core capabilities, commercial network, partner network, cost structure, and revenue model.

(1.3.5) 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 DOEP (people Dynamics, Opportunities, risk Exposure, and Pocess effciency analysis.

Strategy Development: Phase 2: Standard 1.4

(1.4.1) Decide on a method and devise an action plan for implementation. DOEP can be done in a myriad of ways, under which the following or a combination thereof:

            (1.4.1.1) Workshop or meeting where dialogue is facilitated and noted around DOEP.

            (1.4.1.2) Questionnaire to employees and other stakeholders.

            (1.4.1.3) Interviews and/or meetings with stakeholders.

(1.4.2) Run the analysis.

(1.4.3) Process the analysis.

(1.4.4) Draft a DOEP report and make 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) Extract the core operational systems from the operational process construct.

(1.5.2) Extract the core operational targets from each core operational system. This should include the qualification, quantification, measures, evidence, and weighting. Ideally, each system should have one "super target", which summarizes all the targets within that system.

(1.5.3) Extract the top ten operational risks from the process construct.

(1.5.4) Integrate this operational assessment with the DOEP analysis into one report.

Assess the strategic position of your organisation.

Strategy Development: Phase 3: Standard 1.6

(1.6.1) Use the DOEP and the operational analysis to understand the people dynamics, opportunities, risk exposure, and process efficiency of your organisation.

(1.6.2) Compare the current reality of the organisation to similar organisations in its industry.

(1.6.3) Assess your rank/position in your industry. If there is no standard way to assess the rank or position of an organisation in your industry, then create a standard way

(1.6.4) Decide on the best strategic approach to increase the relevance of Org. Orgtology poses three generic approaches to strategy, which are:

            (1.6.4.1) Process efficiency strategy - when sponsorship is high and competition (entropy) is low.

            (1.6.4.2) Competitive strategy - when competition is high and industry processes are internalized.

            (1.6.4.3) 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) Record five vision (5V) statements in such a way that they imply the following strategic periods:

           (1.7.1.1) V1 – ultimate dream

           (1.7.1.2) V2 – Three strategic periods (long-medium term vision)

           (1.7.1.3) V3 - Two strategic periods (medium term vision)

           (1.7.1.4) V4 - One strategic period (short-medium term vision)

           (1.7.1.5) V5 - One year (short term vision)

(1.7.2) Create a V1 statement. V1 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) Decide what rank or position you want your organisation to have in your industry hierarchy.

(1.7.4) Identify the gap between your current rank/position and your desired rank/position.

(1.7.5) Decide on a strategic period. This would be a projection of how long it will take the organisation to move from its current state to its desired V4 state.

(1.7.6) Create a V4 statement. V4 is a projection of the position of your organisation at the end of a strategic period. V4 must be in line with V1 – the ultimate dream of Org. It is good practice to use the position/rank within the industry to formulate a V4 statement. This is not a rule.

(1.7.7) Shorten the gap between V1 and V4 by creating V2 and V3 statements. V2 and V3 are statements must show where we want to go over a longer term than our V4 period. The IOI is not specific on what the duration of these periods must be. As rule of thumb, V2 is three strategic periods; V3 is two strategic periods; and V4 is one strategic period. As with V4, it is preferable that V2 and V3 statements are quantifiable.

(1.7.8) Define a V5 statement. This is your 12-month super goal, which aims to get you closer to V4. It is good practice to relate your V5 statement to the execution of all organisational targets for that year.

Define strategic objectives.

Strategy Development: Phase 3: Standard 1.8

(1.8.1) Identify which aspects of the DOEP and operational analysis you must work with to close the gap between your current and V4, V3, and V2 positions.

(1.8.2) Define the change that the organisation wants to make as strategic objectives. It is good practice to have between two and five strategic objectives. More than that becomes hard to manage.When writing a strategic objective, begin with a verb.

Create a work breakdown structure for the strategic programs.

Strategy Development: Phase 4: Standard 1.9

(1.9.1) Turn each strategic objective into a strategic program. The objective becomes the aim of the program.

(1.9.2) Decide which projects will emanate within each program.

(1.9.3) Decide on the activity breakdown for the programs. The breakdown should have the following items:

            (1.9.3.1) List of activities, including activities that are projects;

            (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 to each activity;

             (1.9.3.6) Resource weight of each activity (cost of the activity as a percentage of the budget); and

             (1.9.3.7) Target date for completion of the activity.

       (1.9.4) Create a project brief for each project.

Calculate the cost of strategy.

Strategy Development: Phase 4: Standard 1.10

(1.10.1) Calculate the cost of strategy. Jointly, the cost of all the strategic programs is the cost of strategy. The cost of strategic programs is the sum of all strategic project cost.

(1.10.2) Calculate the cost of operations. To relate cost of strategy to the organisational budget, we must know the cost of operations. Jointly, the systems of Org create its operational cost. Therefore, the cost of all process activity is also the operational cost of Org.

(1.10.3) Calculate the overall organisational cost. 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) Identify critical success factors (CSF's) for each project in terms of efficiency, completion, and effect.

(1.11.2) Translate these CSF's to risks.

(1.11.3) Quantify both the risk and control values in order to rank the risks.

(1.11.4) From the project risks, list the top ten risks for each strategic program.

(1.11.5) From the strategic program risks, list the overall top-ten risks for strategy execution.

Develop the strategy document.

Strategy Development: Phase 5: Standard 1.12

(1.12.1) Compile a statement of organisational definition and identity. This statement should include the following items:

             (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; and

             (1.12.1.4) A organisational business model.

(1.12.2) Compile a statement of operational efficiency. This statement should include the following items:

             (1.12.2.1) A summary of the process construct, its core systems, and their process families;

             (1.12.2.2) A list of the process construct core targets; and

             (1.12.2.3) A list the top ten operational risks with their mitigation and contingency plans.

(1.12.3) Compile a statement of strategic effectiveness. This statement should include the following items:

             (1.12.3.1) A summary of the DOEP 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

             (1.12.3.4)  A list of the top ten strategic risks with their mitigation and contingency plans.

(1.12.4) Write a section on how the organisation will monitor and execute its strategy.

(1.12.5) Insert 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.

(1.12.6) Add other sections to the strategy document as needed.

(1.12.7) Add the complete DOEP analyses as well as all the program briefs as annexes to the strategy document.

Monitor the execution of strategy.

Strategy Development: Phase 5: Standard 1.13

(1.13.1) Create a strategic scorecard that will quantify the following:

             (1.13.1.1) A strategic scorecard that shows how well the strategic programs are executed; and

             (1.13.1.2) A operational target scorecard that shows how well our process construct is running.

(1.13.2) Set-up and approve a feedback system that will keep the CEO informed.

(1.13.3) Ensure that the strategy teams meet regularly, that they follow project management method, and that the program directors are senior people who can give direct feedback to the CEO.

• Strategy is a plan that we create 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.

Define the purpose of your organisation.

Strategy Development: Phase 1: Standard 1.1

(1.1.1) Write a statement of purpose in such a way that:        

           (1.1.1.1) It defines the reason that your organisation exists;

           (1.1.1.2) It is distinct from a statement of intent; and

           (1.1.1.3) It is in present state. 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) Develop a narrative that describes the desired behavior of the organisation.

(1.2.2) Extract values from the narrative:

            (1.2.2.1) List all the values that will define the desired behavior.

            (1.2.2.2) Cluster values into common groups.

            (1.2.2.3) Define the final values.

(1.2.3) Describe each value.

(1.2.4) Validate and approve the values.

(1.2.5) Implement a values internalization strategy.

Develop a business model for your organisation.

Strategy Development: Phase 1: Standard 1.3

(1.3.1) Do research on business models of similar organisations and industries.

(1.3.2) Identify the value drivers for the business model. Generic value drivers in orgtology are process efficiency, strategic effectiveness, meaningful relationships, focused intelligence, and productive resources.

(1.3.3) List and describe the core critical success factors (CSF) for your 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.

(1.3.4) Describe the business model. The description must give detail on the unique way in which your organisation does its business. Some items to consider when describing a business model are value propositions, target customer segments, distribution channels, customer relationships, value configurations, core capabilities, commercial network, partner network, cost structure, and revenue model.

(1.3.5) 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 DOEP (people Dynamics, Opportunities, risk Exposure, and Pocess effciency analysis.

Strategy Development: Phase 2: Standard 1.4

(1.4.1) Decide on a method and devise an action plan for implementation. DOEP can be done in a myriad of ways, under which the following or a combination thereof:

            (1.4.1.1) Workshop or meeting where dialogue is facilitated and noted around DOEP.

            (1.4.1.2) Questionnaire to employees and other stakeholders.

            (1.4.1.3) Interviews and/or meetings with stakeholders.

(1.4.2) Run the analysis.

(1.4.3) Process the analysis.

(1.4.4) Draft a DOEP report and make 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) Extract the core operational systems from the operational process construct.

(1.5.2) Extract the core operational targets from each core operational system. This should include the qualification, quantification, measures, evidence, and weighting. Ideally, each system should have one "super target", which summarizes all the targets within that system.

(1.5.3) Extract the top ten operational risks from the process construct.

(1.5.4) Integrate this operational assessment with the DOEP analysis into one report.

Assess the strategic position of your organisation.

Strategy Development: Phase 3: Standard 1.6

(1.6.1) Use the DOEP and the operational analysis to understand the people dynamics, opportunities, risk exposure, and process efficiency of your organisation.

(1.6.2) Compare the current reality of the organisation to similar organisations in its industry.

(1.6.3) Assess your rank/position in your industry. If there is no standard way to assess the rank or position of an organisation in your industry, then create a standard way

(1.6.4) Decide on the best strategic approach to increase the relevance of Org. Orgtology poses three generic approaches to strategy, which are:

            (1.6.4.1) Process efficiency strategy - when sponsorship is high and competition (entropy) is low.

            (1.6.4.2) Competitive strategy - when competition is high and industry processes are internalized.

            (1.6.4.3) 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) Record five vision (5V) statements in such a way that they imply the following strategic periods:

           (1.7.1.1) V1 – ultimate dream

           (1.7.1.2) V2 – Three strategic periods (long-medium term vision)

           (1.7.1.3) V3 - Two strategic periods (medium term vision)

           (1.7.1.4) V4 - One strategic period (short-medium term vision)

           (1.7.1.5) V5 - One year (short term vision)

(1.7.2) Create a V1 statement. V1 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) Decide what rank or position you want your organisation to have in your industry hierarchy.

(1.7.4) Identify the gap between your current rank/position and your desired rank/position.

(1.7.5) Decide on a strategic period. This would be a projection of how long it will take the organisation to move from its current state to its desired V4 state.

(1.7.6) Create a V4 statement. V4 is a projection of the position of your organisation at the end of a strategic period. V4 must be in line with V1 – the ultimate dream of Org. It is good practice to use the position/rank within the industry to formulate a V4 statement. This is not a rule.

(1.7.7) Shorten the gap between V1 and V4 by creating V2 and V3 statements. V2 and V3 are statements must show where we want to go over a longer term than our V4 period. The IOI is not specific on what the duration of these periods must be. As rule of thumb, V2 is three strategic periods; V3 is two strategic periods; and V4 is one strategic period. As with V4, it is preferable that V2 and V3 statements are quantifiable.

(1.7.8) Define a V5 statement. This is your 12-month super goal, which aims to get you closer to V4. It is good practice to relate your V5 statement to the execution of all organisational targets for that year.

Define strategic objectives.

Strategy Development: Phase 3: Standard 1.8

(1.8.1) Identify which aspects of the DOEP and operational analysis you must work with to close the gap between your current and V4, V3, and V2 positions.

(1.8.2) Define the change that the organisation wants to make as strategic objectives. It is good practice to have between two and five strategic objectives. More than that becomes hard to manage.When writing a strategic objective, begin with a verb.

Create a work breakdown structure for the strategic programs.

Strategy Development: Phase 4: Standard 1.9

(1.9.1) Turn each strategic objective into a strategic program. The objective becomes the aim of the program.

(1.9.2) Decide which projects will emanate within each program.

(1.9.3) Decide on the activity breakdown for the programs. The breakdown should have the following items:

            (1.9.3.1) List of activities, including activities that are projects;

            (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 to each activity;

             (1.9.3.6) Resource weight of each activity (cost of the activity as a percentage of the budget); and

             (1.9.3.7) Target date for completion of the activity.

       (1.9.4) Create a project brief for each project.

Calculate the cost of strategy.

Strategy Development: Phase 4: Standard 1.10

(1.10.1) Calculate the cost of strategy. Jointly, the cost of all the strategic programs is the cost of strategy. The cost of strategic programs is the sum of all strategic project cost.

(1.10.2) Calculate the cost of operations. To relate cost of strategy to the organisational budget, we must know the cost of operations. Jointly, the systems of Org create its operational cost. Therefore, the cost of all process activity is also the operational cost of Org.

(1.10.3) Calculate the overall organisational cost. 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) Identify critical success factors (CSF's) for each project in terms of efficiency, completion, and effect.

(1.11.2) Translate these CSF's to risks.

(1.11.3) Quantify both the risk and control values in order to rank the risks.

(1.11.4) From the project risks, list the top ten risks for each strategic program.

(1.11.5) From the strategic program risks, list the overall top-ten risks for strategy execution.

Develop the strategy document.

Strategy Development: Phase 5: Standard 1.12

(1.12.1) Compile a statement of organisational definition and identity. This statement should include the following items:

             (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; and

             (1.12.1.4) A organisational business model.

(1.12.2) Compile a statement of operational efficiency. This statement should include the following items:

             (1.12.2.1) A summary of the process construct, its core systems, and their process families;

             (1.12.2.2) A list of the process construct core targets; and

             (1.12.2.3) A list the top ten operational risks with their mitigation and contingency plans.

(1.12.3) Compile a statement of strategic effectiveness. This statement should include the following items:

             (1.12.3.1) A summary of the DOEP 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

             (1.12.3.4)  A list of the top ten strategic risks with their mitigation and contingency plans.

(1.12.4) Write a section on how the organisation will monitor and execute its strategy.

(1.12.5) Insert 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.

(1.12.6) Add other sections to the strategy document as needed.

(1.12.7) Add the complete DOEP analyses as well as all the program briefs as annexes to the strategy document.

Monitor the execution of strategy.

Strategy Development: Phase 5: Standard 1.13

(1.13.1) Create a strategic scorecard that will quantify the following:

             (1.13.1.1) A strategic scorecard that shows how well the strategic programs are executed; and

             (1.13.1.2) A operational target scorecard that shows how well our process construct is running.

(1.13.2) Set-up and approve a feedback system that will keep the CEO informed.

(1.13.3) Ensure that the strategy teams meet regularly, that they follow project management method, and that the program directors are senior people who can give direct feedback to the CEO.

• Strategy is a plan that we create 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.

Define the purpose of your organisation.

Strategy Development: Phase 1: Standard 1.1

(1.1.1) Write a statement of purpose in such a way that:        

           (1.1.1.1) It defines the reason that your organisation exists;

           (1.1.1.2) It is distinct from a statement of intent; and

           (1.1.1.3) It is in present state. 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) Develop a narrative that describes the desired behavior of the organisation.

(1.2.2) Extract values from the narrative:

            (1.2.2.1) List all the values that will define the desired behavior.

            (1.2.2.2) Cluster values into common groups.

            (1.2.2.3) Define the final values.

(1.2.3) Describe each value.

(1.2.4) Validate and approve the values.

(1.2.5) Implement a values internalization strategy.

Develop a business model for your organisation.

Strategy Development: Phase 1: Standard 1.3

(1.3.1) Do research on business models of similar organisations and industries.

(1.3.2) Identify the value drivers for the business model. Generic value drivers in orgtology are process efficiency, strategic effectiveness, meaningful relationships, focused intelligence, and productive resources.

(1.3.3) List and describe the core critical success factors (CSF) for your 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.

(1.3.4) Describe the business model. The description must give detail on the unique way in which your organisation does its business. Some items to consider when describing a business model are value propositions, target customer segments, distribution channels, customer relationships, value configurations, core capabilities, commercial network, partner network, cost structure, and revenue model.

(1.3.5) 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 DOEP (people Dynamics, Opportunities, risk Exposure, and Pocess effciency analysis.

Strategy Development: Phase 2: Standard 1.4

(1.4.1) Decide on a method and devise an action plan for implementation. DOEP can be done in a myriad of ways, under which the following or a combination thereof:

            (1.4.1.1) Workshop or meeting where dialogue is facilitated and noted around DOEP.

            (1.4.1.2) Questionnaire to employees and other stakeholders.

            (1.4.1.3) Interviews and/or meetings with stakeholders.

(1.4.2) Run the analysis.

(1.4.3) Process the analysis.

(1.4.4) Draft a DOEP report and make 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) Extract the core operational systems from the operational process construct.

(1.5.2) Extract the core operational targets from each core operational system. This should include the qualification, quantification, measures, evidence, and weighting. Ideally, each system should have one "super target", which summarizes all the targets within that system.

(1.5.3) Extract the top ten operational risks from the process construct.

(1.5.4) Integrate this operational assessment with the DOEP analysis into one report.

Assess the strategic position of your organisation.

Strategy Development: Phase 3: Standard 1.6

(1.6.1) Use the DOEP and the operational analysis to understand the people dynamics, opportunities, risk exposure, and process efficiency of your organisation.

(1.6.2) Compare the current reality of the organisation to similar organisations in its industry.

(1.6.3) Assess your rank/position in your industry. If there is no standard way to assess the rank or position of an organisation in your industry, then create a standard way

(1.6.4) Decide on the best strategic approach to increase the relevance of Org. Orgtology poses three generic approaches to strategy, which are:

            (1.6.4.1) Process efficiency strategy - when sponsorship is high and competition (entropy) is low.

            (1.6.4.2) Competitive strategy - when competition is high and industry processes are internalized.

            (1.6.4.3) 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) Record five vision (5V) statements in such a way that they imply the following strategic periods:

           (1.7.1.1) V1 – ultimate dream

           (1.7.1.2) V2 – Three strategic periods (long-medium term vision)

           (1.7.1.3) V3 - Two strategic periods (medium term vision)

           (1.7.1.4) V4 - One strategic period (short-medium term vision)

           (1.7.1.5) V5 - One year (short term vision)

(1.7.2) Create a V1 statement. V1 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) Decide what rank or position you want your organisation to have in your industry hierarchy.

(1.7.4) Identify the gap between your current rank/position and your desired rank/position.

(1.7.5) Decide on a strategic period. This would be a projection of how long it will take the organisation to move from its current state to its desired V4 state.

(1.7.6) Create a V4 statement. V4 is a projection of the position of your organisation at the end of a strategic period. V4 must be in line with V1 – the ultimate dream of Org. It is good practice to use the position/rank within the industry to formulate a V4 statement. This is not a rule.

(1.7.7) Shorten the gap between V1 and V4 by creating V2 and V3 statements. V2 and V3 are statements must show where we want to go over a longer term than our V4 period. The IOI is not specific on what the duration of these periods must be. As rule of thumb, V2 is three strategic periods; V3 is two strategic periods; and V4 is one strategic period. As with V4, it is preferable that V2 and V3 statements are quantifiable.

(1.7.8) Define a V5 statement. This is your 12-month super goal, which aims to get you closer to V4. It is good practice to relate your V5 statement to the execution of all organisational targets for that year.

Define strategic objectives.

Strategy Development: Phase 3: Standard 1.8

(1.8.1) Identify which aspects of the DOEP and operational analysis you must work with to close the gap between your current and V4, V3, and V2 positions.

(1.8.2) Define the change that the organisation wants to make as strategic objectives. It is good practice to have between two and five strategic objectives. More than that becomes hard to manage.When writing a strategic objective, begin with a verb.

Create a work breakdown structure for the strategic programs.

Strategy Development: Phase 4: Standard 1.9

(1.9.1) Turn each strategic objective into a strategic program. The objective becomes the aim of the program.

(1.9.2) Decide which projects will emanate within each program.

(1.9.3) Decide on the activity breakdown for the programs. The breakdown should have the following items:

            (1.9.3.1) List of activities, including activities that are projects;

            (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 to each activity;

             (1.9.3.6) Resource weight of each activity (cost of the activity as a percentage of the budget); and

             (1.9.3.7) Target date for completion of the activity.

       (1.9.4) Create a project brief for each project.

Calculate the cost of strategy.

Strategy Development: Phase 4: Standard 1.10

(1.10.1) Calculate the cost of strategy. Jointly, the cost of all the strategic programs is the cost of strategy. The cost of strategic programs is the sum of all strategic project cost.

(1.10.2) Calculate the cost of operations. To relate cost of strategy to the organisational budget, we must know the cost of operations. Jointly, the systems of Org create its operational cost. Therefore, the cost of all process activity is also the operational cost of Org.

(1.10.3) Calculate the overall organisational cost. 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) Identify critical success factors (CSF's) for each project in terms of efficiency, completion, and effect.

(1.11.2) Translate these CSF's to risks.

(1.11.3) Quantify both the risk and control values in order to rank the risks.

(1.11.4) From the project risks, list the top ten risks for each strategic program.

(1.11.5) From the strategic program risks, list the overall top-ten risks for strategy execution.

Develop the strategy document.

Strategy Development: Phase 5: Standard 1.12

(1.12.1) Compile a statement of organisational definition and identity. This statement should include the following items:

             (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; and

             (1.12.1.4) A organisational business model.

(1.12.2) Compile a statement of operational efficiency. This statement should include the following items:

             (1.12.2.1) A summary of the process construct, its core systems, and their process families;

             (1.12.2.2) A list of the process construct core targets; and

             (1.12.2.3) A list the top ten operational risks with their mitigation and contingency plans.

(1.12.3) Compile a statement of strategic effectiveness. This statement should include the following items:

             (1.12.3.1) A summary of the DOEP 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

             (1.12.3.4)  A list of the top ten strategic risks with their mitigation and contingency plans.

(1.12.4) Write a section on how the organisation will monitor and execute its strategy.

(1.12.5) Insert 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.

(1.12.6) Add other sections to the strategy document as needed.

(1.12.7) Add the complete DOEP analyses as well as all the program briefs as annexes to the strategy document.

Monitor the execution of strategy.

Strategy Development: Phase 5: Standard 1.13

(1.13.1) Create a strategic scorecard that will quantify the following:

             (1.13.1.1) A strategic scorecard that shows how well the strategic programs are executed; and

             (1.13.1.2) A operational target scorecard that shows how well our process construct is running.

(1.13.2) Set-up and approve a feedback system that will keep the CEO informed.

(1.13.3) Ensure that the strategy teams meet regularly, that they follow project management method, and that the program directors are senior people who can give direct feedback to the CEO.

• Strategy is a plan that we create 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.

Define the purpose of your organisation.

Strategy Development: Phase 1: Standard 1.1

(1.1.1) Write a statement of purpose in such a way that:        

           (1.1.1.1) It defines the reason that your organisation exists;

           (1.1.1.2) It is distinct from a statement of intent; and

           (1.1.1.3) It is in present state. 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) Develop a narrative that describes the desired behavior of the organisation.

(1.2.2) Extract values from the narrative:

            (1.2.2.1) List all the values that will define the desired behavior.

            (1.2.2.2) Cluster values into common groups.

            (1.2.2.3) Define the final values.

(1.2.3) Describe each value.

(1.2.4) Validate and approve the values.

(1.2.5) Implement a values internalization strategy.

Develop a business model for your organisation.

Strategy Development: Phase 1: Standard 1.3

(1.3.1) Do research on business models of similar organisations and industries.

(1.3.2) Identify the value drivers for the business model. Generic value drivers in orgtology are process efficiency, strategic effectiveness, meaningful relationships, focused intelligence, and productive resources.

(1.3.3) List and describe the core critical success factors (CSF) for your 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.

(1.3.4) Describe the business model. The description must give detail on the unique way in which your organisation does its business. Some items to consider when describing a business model are value propositions, target customer segments, distribution channels, customer relationships, value configurations, core capabilities, commercial network, partner network, cost structure, and revenue model.

(1.3.5) 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 DOEP (people Dynamics, Opportunities, risk Exposure, and Pocess effciency analysis.

Strategy Development: Phase 2: Standard 1.4

(1.4.1) Decide on a method and devise an action plan for implementation. DOEP can be done in a myriad of ways, under which the following or a combination thereof:

            (1.4.1.1) Workshop or meeting where dialogue is facilitated and noted around DOEP.

            (1.4.1.2) Questionnaire to employees and other stakeholders.

            (1.4.1.3) Interviews and/or meetings with stakeholders.

(1.4.2) Run the analysis.

(1.4.3) Process the analysis.

(1.4.4) Draft a DOEP report and make 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) Extract the core operational systems from the operational process construct.

(1.5.2) Extract the core operational targets from each core operational system. This should include the qualification, quantification, measures, evidence, and weighting. Ideally, each system should have one "super target", which summarizes all the targets within that system.

(1.5.3) Extract the top ten operational risks from the process construct.

(1.5.4) Integrate this operational assessment with the DOEP analysis into one report.

Assess the strategic position of your organisation.

Strategy Development: Phase 3: Standard 1.6

(1.6.1) Use the DOEP and the operational analysis to understand the people dynamics, opportunities, risk exposure, and process efficiency of your organisation.

(1.6.2) Compare the current reality of the organisation to similar organisations in its industry.

(1.6.3) Assess your rank/position in your industry. If there is no standard way to assess the rank or position of an organisation in your industry, then create a standard way

(1.6.4) Decide on the best strategic approach to increase the relevance of Org. Orgtology poses three generic approaches to strategy, which are:

            (1.6.4.1) Process efficiency strategy - when sponsorship is high and competition (entropy) is low.

            (1.6.4.2) Competitive strategy - when competition is high and industry processes are internalized.

            (1.6.4.3) 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) Record five vision (5V) statements in such a way that they imply the following strategic periods:

           (1.7.1.1) V1 – ultimate dream

           (1.7.1.2) V2 – Three strategic periods (long-medium term vision)

           (1.7.1.3) V3 - Two strategic periods (medium term vision)

           (1.7.1.4) V4 - One strategic period (short-medium term vision)

           (1.7.1.5) V5 - One year (short term vision)

(1.7.2) Create a V1 statement. V1 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) Decide what rank or position you want your organisation to have in your industry hierarchy.

(1.7.4) Identify the gap between your current rank/position and your desired rank/position.

(1.7.5) Decide on a strategic period. This would be a projection of how long it will take the organisation to move from its current state to its desired V4 state.

(1.7.6) Create a V4 statement. V4 is a projection of the position of your organisation at the end of a strategic period. V4 must be in line with V1 – the ultimate dream of Org. It is good practice to use the position/rank within the industry to formulate a V4 statement. This is not a rule.

(1.7.7) Shorten the gap between V1 and V4 by creating V2 and V3 statements. V2 and V3 are statements must show where we want to go over a longer term than our V4 period. The IOI is not specific on what the duration of these periods must be. As rule of thumb, V2 is three strategic periods; V3 is two strategic periods; and V4 is one strategic period. As with V4, it is preferable that V2 and V3 statements are quantifiable.

(1.7.8) Define a V5 statement. This is your 12-month super goal, which aims to get you closer to V4. It is good practice to relate your V5 statement to the execution of all organisational targets for that year.

Define strategic objectives.

Strategy Development: Phase 3: Standard 1.8

(1.8.1) Identify which aspects of the DOEP and operational analysis you must work with to close the gap between your current and V4, V3, and V2 positions.

(1.8.2) Define the change that the organisation wants to make as strategic objectives. It is good practice to have between two and five strategic objectives. More than that becomes hard to manage.When writing a strategic objective, begin with a verb.

Create a work breakdown structure for the strategic programs.

Strategy Development: Phase 4: Standard 1.9

(1.9.1) Turn each strategic objective into a strategic program. The objective becomes the aim of the program.

(1.9.2) Decide which projects will emanate within each program.

(1.9.3) Decide on the activity breakdown for the programs. The breakdown should have the following items:

            (1.9.3.1) List of activities, including activities that are projects;

            (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 to each activity;

             (1.9.3.6) Resource weight of each activity (cost of the activity as a percentage of the budget); and

             (1.9.3.7) Target date for completion of the activity.

       (1.9.4) Create a project brief for each project.

Calculate the cost of strategy.

Strategy Development: Phase 4: Standard 1.10

(1.10.1) Calculate the cost of strategy. Jointly, the cost of all the strategic programs is the cost of strategy. The cost of strategic programs is the sum of all strategic project cost.

(1.10.2) Calculate the cost of operations. To relate cost of strategy to the organisational budget, we must know the cost of operations. Jointly, the systems of Org create its operational cost. Therefore, the cost of all process activity is also the operational cost of Org.

(1.10.3) Calculate the overall organisational cost. 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) Identify critical success factors (CSF's) for each project in terms of efficiency, completion, and effect.

(1.11.2) Translate these CSF's to risks.

(1.11.3) Quantify both the risk and control values in order to rank the risks.

(1.11.4) From the project risks, list the top ten risks for each strategic program.

(1.11.5) From the strategic program risks, list the overall top-ten risks for strategy execution.

Develop the strategy document.

Strategy Development: Phase 5: Standard 1.12

(1.12.1) Compile a statement of organisational definition and identity. This statement should include the following items:

             (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; and

             (1.12.1.4) A organisational business model.

(1.12.2) Compile a statement of operational efficiency. This statement should include the following items:

             (1.12.2.1) A summary of the process construct, its core systems, and their process families;

             (1.12.2.2) A list of the process construct core targets; and

             (1.12.2.3) A list the top ten operational risks with their mitigation and contingency plans.

(1.12.3) Compile a statement of strategic effectiveness. This statement should include the following items:

             (1.12.3.1) A summary of the DOEP 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

             (1.12.3.4)  A list of the top ten strategic risks with their mitigation and contingency plans.

(1.12.4) Write a section on how the organisation will monitor and execute its strategy.

(1.12.5) Insert 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.

(1.12.6) Add other sections to the strategy document as needed.

(1.12.7) Add the complete DOEP analyses as well as all the program briefs as annexes to the strategy document.

Monitor the execution of strategy.

Strategy Development: Phase 5: Standard 1.13

(1.13.1) Create a strategic scorecard that will quantify the following:

             (1.13.1.1) A strategic scorecard that shows how well the strategic programs are executed; and

             (1.13.1.2) A operational target scorecard that shows how well our process construct is running.

(1.13.2) Set-up and approve a feedback system that will keep the CEO informed.

(1.13.3) Ensure that the strategy teams meet regularly, that they follow project management method, and that the program directors are senior people who can give direct feedback to the CEO.

• Strategy is a plan that we create 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.

Define the purpose of your organisation.

Strategy Development: Phase 1: Standard 1.1

(1.1.1) Write a statement of purpose in such a way that:        

           (1.1.1.1) It defines the reason that your organisation exists;

           (1.1.1.2) It is distinct from a statement of intent; and

           (1.1.1.3) It is in present state. 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) Develop a narrative that describes the desired behavior of the organisation.

(1.2.2) Extract values from the narrative:

            (1.2.2.1) List all the values that will define the desired behavior.

            (1.2.2.2) Cluster values into common groups.

            (1.2.2.3) Define the final values.

(1.2.3) Describe each value.

(1.2.4) Validate and approve the values.

(1.2.5) Implement a values internalization strategy.

Develop a business model for your organisation.

Strategy Development: Phase 1: Standard 1.3

(1.3.1) Do research on business models of similar organisations and industries.

(1.3.2) Identify the value drivers for the business model. Generic value drivers in orgtology are process efficiency, strategic effectiveness, meaningful relationships, focused intelligence, and productive resources.

(1.3.3) List and describe the core critical success factors (CSF) for your 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.

(1.3.4) Describe the business model. The description must give detail on the unique way in which your organisation does its business. Some items to consider when describing a business model are value propositions, target customer segments, distribution channels, customer relationships, value configurations, core capabilities, commercial network, partner network, cost structure, and revenue model.

(1.3.5) 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 DOEP (people Dynamics, Opportunities, risk Exposure, and Pocess effciency analysis.

Strategy Development: Phase 2: Standard 1.4

(1.4.1) Decide on a method and devise an action plan for implementation. DOEP can be done in a myriad of ways, under which the following or a combination thereof:

            (1.4.1.1) Workshop or meeting where dialogue is facilitated and noted around DOEP.

            (1.4.1.2) Questionnaire to employees and other stakeholders.

            (1.4.1.3) Interviews and/or meetings with stakeholders.

(1.4.2) Run the analysis.

(1.4.3) Process the analysis.

(1.4.4) Draft a DOEP report and make 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) Extract the core operational systems from the operational process construct.

(1.5.2) Extract the core operational targets from each core operational system. This should include the qualification, quantification, measures, evidence, and weighting. Ideally, each system should have one "super target", which summarizes all the targets within that system.

(1.5.3) Extract the top ten operational risks from the process construct.

(1.5.4) Integrate this operational assessment with the DOEP analysis into one report.

Assess the strategic position of your organisation.

Strategy Development: Phase 3: Standard 1.6

(1.6.1) Use the DOEP and the operational analysis to understand the people dynamics, opportunities, risk exposure, and process efficiency of your organisation.

(1.6.2) Compare the current reality of the organisation to similar organisations in its industry.

(1.6.3) Assess your rank/position in your industry. If there is no standard way to assess the rank or position of an organisation in your industry, then create a standard way

(1.6.4) Decide on the best strategic approach to increase the relevance of Org. Orgtology poses three generic approaches to strategy, which are:

            (1.6.4.1) Process efficiency strategy - when sponsorship is high and competition (entropy) is low.

            (1.6.4.2) Competitive strategy - when competition is high and industry processes are internalized.

            (1.6.4.3) 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) Record five vision (5V) statements in such a way that they imply the following strategic periods:

           (1.7.1.1) V1 – ultimate dream

           (1.7.1.2) V2 – Three strategic periods (long-medium term vision)

           (1.7.1.3) V3 - Two strategic periods (medium term vision)

           (1.7.1.4) V4 - One strategic period (short-medium term vision)

           (1.7.1.5) V5 - One year (short term vision)

(1.7.2) Create a V1 statement. V1 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) Decide what rank or position you want your organisation to have in your industry hierarchy.

(1.7.4) Identify the gap between your current rank/position and your desired rank/position.

(1.7.5) Decide on a strategic period. This would be a projection of how long it will take the organisation to move from its current state to its desired V4 state.

(1.7.6) Create a V4 statement. V4 is a projection of the position of your organisation at the end of a strategic period. V4 must be in line with V1 – the ultimate dream of Org. It is good practice to use the position/rank within the industry to formulate a V4 statement. This is not a rule.

(1.7.7) Shorten the gap between V1 and V4 by creating V2 and V3 statements. V2 and V3 are statements must show where we want to go over a longer term than our V4 period. The IOI is not specific on what the duration of these periods must be. As rule of thumb, V2 is three strategic periods; V3 is two strategic periods; and V4 is one strategic period. As with V4, it is preferable that V2 and V3 statements are quantifiable.

(1.7.8) Define a V5 statement. This is your 12-month super goal, which aims to get you closer to V4. It is good practice to relate your V5 statement to the execution of all organisational targets for that year.

Define strategic objectives.

Strategy Development: Phase 3: Standard 1.8

(1.8.1) Identify which aspects of the DOEP and operational analysis you must work with to close the gap between your current and V4, V3, and V2 positions.

(1.8.2) Define the change that the organisation wants to make as strategic objectives. It is good practice to have between two and five strategic objectives. More than that becomes hard to manage.When writing a strategic objective, begin with a verb.

Create a work breakdown structure for the strategic programs.

Strategy Development: Phase 4: Standard 1.9

(1.9.1) Turn each strategic objective into a strategic program. The objective becomes the aim of the program.

(1.9.2) Decide which projects will emanate within each program.

(1.9.3) Decide on the activity breakdown for the programs. The breakdown should have the following items:

            (1.9.3.1) List of activities, including activities that are projects;

            (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 to each activity;

             (1.9.3.6) Resource weight of each activity (cost of the activity as a percentage of the budget); and

             (1.9.3.7) Target date for completion of the activity.

       (1.9.4) Create a project brief for each project.

Calculate the cost of strategy.

Strategy Development: Phase 4: Standard 1.10

(1.10.1) Calculate the cost of strategy. Jointly, the cost of all the strategic programs is the cost of strategy. The cost of strategic programs is the sum of all strategic project cost.

(1.10.2) Calculate the cost of operations. To relate cost of strategy to the organisational budget, we must know the cost of operations. Jointly, the systems of Org create its operational cost. Therefore, the cost of all process activity is also the operational cost of Org.

(1.10.3) Calculate the overall organisational cost. 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) Identify critical success factors (CSF's) for each project in terms of efficiency, completion, and effect.

(1.11.2) Translate these CSF's to risks.

(1.11.3) Quantify both the risk and control values in order to rank the risks.

(1.11.4) From the project risks, list the top ten risks for each strategic program.

(1.11.5) From the strategic program risks, list the overall top-ten risks for strategy execution.

Develop the strategy document.

Strategy Development: Phase 5: Standard 1.12

(1.12.1) Compile a statement of organisational definition and identity. This statement should include the following items:

             (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; and

             (1.12.1.4) A organisational business model.

(1.12.2) Compile a statement of operational efficiency. This statement should include the following items:

             (1.12.2.1) A summary of the process construct, its core systems, and their process families;

             (1.12.2.2) A list of the process construct core targets; and

             (1.12.2.3) A list the top ten operational risks with their mitigation and contingency plans.

(1.12.3) Compile a statement of strategic effectiveness. This statement should include the following items:

             (1.12.3.1) A summary of the DOEP 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

             (1.12.3.4)  A list of the top ten strategic risks with their mitigation and contingency plans.

(1.12.4) Write a section on how the organisation will monitor and execute its strategy.

(1.12.5) Insert 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.

(1.12.6) Add other sections to the strategy document as needed.

(1.12.7) Add the complete DOEP analyses as well as all the program briefs as annexes to the strategy document.

Monitor the execution of strategy.

Strategy Development: Phase 5: Standard 1.13

(1.13.1) Create a strategic scorecard that will quantify the following:

             (1.13.1.1) A strategic scorecard that shows how well the strategic programs are executed; and

             (1.13.1.2) A operational target scorecard that shows how well our process construct is running.

(1.13.2) Set-up and approve a feedback system that will keep the CEO informed.

(1.13.3) Ensure that the strategy teams meet regularly, that they follow project management method, and that the program directors are senior people who can give direct feedback to the CEO.

• Strategy is a plan that we create 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.

Define the purpose of your organisation.

Strategy Development: Phase 1: Standard 1.1

(1.1.1) Write a statement of purpose in such a way that:        

           (1.1.1.1) It defines the reason that your organisation exists;

           (1.1.1.2) It is distinct from a statement of intent; and

           (1.1.1.3) It is in present state. 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) Develop a narrative that describes the desired behavior of the organisation.

(1.2.2) Extract values from the narrative:

            (1.2.2.1) List all the values that will define the desired behavior.

            (1.2.2.2) Cluster values into common groups.

            (1.2.2.3) Define the final values.

(1.2.3) Describe each value.

(1.2.4) Validate and approve the values.

(1.2.5) Implement a values internalization strategy.

Develop a business model for your organisation.

Strategy Development: Phase 1: Standard 1.3

(1.3.1) Do research on business models of similar organisations and industries.

(1.3.2) Identify the value drivers for the business model. Generic value drivers in orgtology are process efficiency, strategic effectiveness, meaningful relationships, focused intelligence, and productive resources.

(1.3.3) List and describe the core critical success factors (CSF) for your 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.

(1.3.4) Describe the business model. The description must give detail on the unique way in which your organisation does its business. Some items to consider when describing a business model are value propositions, target customer segments, distribution channels, customer relationships, value configurations, core capabilities, commercial network, partner network, cost structure, and revenue model.

(1.3.5) 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 DOEP (people Dynamics, Opportunities, risk Exposure, and Pocess effciency analysis.

Strategy Development: Phase 2: Standard 1.4

(1.4.1) Decide on a method and devise an action plan for implementation. DOEP can be done in a myriad of ways, under which the following or a combination thereof:

            (1.4.1.1) Workshop or meeting where dialogue is facilitated and noted around DOEP.

            (1.4.1.2) Questionnaire to employees and other stakeholders.

            (1.4.1.3) Interviews and/or meetings with stakeholders.

(1.4.2) Run the analysis.

(1.4.3) Process the analysis.

(1.4.4) Draft a DOEP report and make 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) Extract the core operational systems from the operational process construct.

(1.5.2) Extract the core operational targets from each core operational system. This should include the qualification, quantification, measures, evidence, and weighting. Ideally, each system should have one "super target", which summarizes all the targets within that system.

(1.5.3) Extract the top ten operational risks from the process construct.

(1.5.4) Integrate this operational assessment with the DOEP analysis into one report.

Assess the strategic position of your organisation.

Strategy Development: Phase 3: Standard 1.6

(1.6.1) Use the DOEP and the operational analysis to understand the people dynamics, opportunities, risk exposure, and process efficiency of your organisation.

(1.6.2) Compare the current reality of the organisation to similar organisations in its industry.

(1.6.3) Assess your rank/position in your industry. If there is no standard way to assess the rank or position of an organisation in your industry, then create a standard way

(1.6.4) Decide on the best strategic approach to increase the relevance of Org. Orgtology poses three generic approaches to strategy, which are:

            (1.6.4.1) Process efficiency strategy - when sponsorship is high and competition (entropy) is low.

            (1.6.4.2) Competitive strategy - when competition is high and industry processes are internalized.

            (1.6.4.3) 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) Record five vision (5V) statements in such a way that they imply the following strategic periods:

           (1.7.1.1) V1 – ultimate dream

           (1.7.1.2) V2 – Three strategic periods (long-medium term vision)

           (1.7.1.3) V3 - Two strategic periods (medium term vision)

           (1.7.1.4) V4 - One strategic period (short-medium term vision)

           (1.7.1.5) V5 - One year (short term vision)

(1.7.2) Create a V1 statement. V1 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) Decide what rank or position you want your organisation to have in your industry hierarchy.

(1.7.4) Identify the gap between your current rank/position and your desired rank/position.

(1.7.5) Decide on a strategic period. This would be a projection of how long it will take the organisation to move from its current state to its desired V4 state.

(1.7.6) Create a V4 statement. V4 is a projection of the position of your organisation at the end of a strategic period. V4 must be in line with V1 – the ultimate dream of Org. It is good practice to use the position/rank within the industry to formulate a V4 statement. This is not a rule.

(1.7.7) Shorten the gap between V1 and V4 by creating V2 and V3 statements. V2 and V3 are statements must show where we want to go over a longer term than our V4 period. The IOI is not specific on what the duration of these periods must be. As rule of thumb, V2 is three strategic periods; V3 is two strategic periods; and V4 is one strategic period. As with V4, it is preferable that V2 and V3 statements are quantifiable.

(1.7.8) Define a V5 statement. This is your 12-month super goal, which aims to get you closer to V4. It is good practice to relate your V5 statement to the execution of all organisational targets for that year.

Define strategic objectives.

Strategy Development: Phase 3: Standard 1.8

(1.8.1) Identify which aspects of the DOEP and operational analysis you must work with to close the gap between your current and V4, V3, and V2 positions.

(1.8.2) Define the change that the organisation wants to make as strategic objectives. It is good practice to have between two and five strategic objectives. More than that becomes hard to manage.When writing a strategic objective, begin with a verb.

Create a work breakdown structure for the strategic programs.

Strategy Development: Phase 4: Standard 1.9

(1.9.1) Turn each strategic objective into a strategic program. The objective becomes the aim of the program.

(1.9.2) Decide which projects will emanate within each program.

(1.9.3) Decide on the activity breakdown for the programs. The breakdown should have the following items:

            (1.9.3.1) List of activities, including activities that are projects;

            (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 to each activity;

             (1.9.3.6) Resource weight of each activity (cost of the activity as a percentage of the budget); and

             (1.9.3.7) Target date for completion of the activity.

       (1.9.4) Create a project brief for each project.

Calculate the cost of strategy.

Strategy Development: Phase 4: Standard 1.10

(1.10.1) Calculate the cost of strategy. Jointly, the cost of all the strategic programs is the cost of strategy. The cost of strategic programs is the sum of all strategic project cost.

(1.10.2) Calculate the cost of operations. To relate cost of strategy to the organisational budget, we must know the cost of operations. Jointly, the systems of Org create its operational cost. Therefore, the cost of all process activity is also the operational cost of Org.

(1.10.3) Calculate the overall organisational cost. 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) Identify critical success factors (CSF's) for each project in terms of efficiency, completion, and effect.

(1.11.2) Translate these CSF's to risks.

(1.11.3) Quantify both the risk and control values in order to rank the risks.

(1.11.4) From the project risks, list the top ten risks for each strategic program.

(1.11.5) From the strategic program risks, list the overall top-ten risks for strategy execution.

Develop the strategy document.

Strategy Development: Phase 5: Standard 1.12

(1.12.1) Compile a statement of organisational definition and identity. This statement should include the following items:

             (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; and

             (1.12.1.4) A organisational business model.

(1.12.2) Compile a statement of operational efficiency. This statement should include the following items:

             (1.12.2.1) A summary of the process construct, its core systems, and their process families;

             (1.12.2.2) A list of the process construct core targets; and

             (1.12.2.3) A list the top ten operational risks with their mitigation and contingency plans.

(1.12.3) Compile a statement of strategic effectiveness. This statement should include the following items:

             (1.12.3.1) A summary of the DOEP 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

             (1.12.3.4)  A list of the top ten strategic risks with their mitigation and contingency plans.

(1.12.4) Write a section on how the organisation will monitor and execute its strategy.

(1.12.5) Insert 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.

(1.12.6) Add other sections to the strategy document as needed.

(1.12.7) Add the complete DOEP analyses as well as all the program briefs as annexes to the strategy document.

Monitor the execution of strategy.

Strategy Development: Phase 5: Standard 1.13

(1.13.1) Create a strategic scorecard that will quantify the following:

             (1.13.1.1) A strategic scorecard that shows how well the strategic programs are executed; and

             (1.13.1.2) A operational target scorecard that shows how well our process construct is running.

(1.13.2) Set-up and approve a feedback system that will keep the CEO informed.

(1.13.3) Ensure that the strategy teams meet regularly, that they follow project management method, and that the program directors are senior people who can give direct feedback to the CEO.

• Strategy is a plan that we create 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.

Define the purpose of your organisation.

Strategy Development: Phase 1: Standard 1.1

(1.1.1) Write a statement of purpose in such a way that:        

           (1.1.1.1) It defines the reason that your organisation exists;

           (1.1.1.2) It is distinct from a statement of intent; and

           (1.1.1.3) It is in present state. 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) Develop a narrative that describes the desired behavior of the organisation.

(1.2.2) Extract values from the narrative:

            (1.2.2.1) List all the values that will define the desired behavior.

            (1.2.2.2) Cluster values into common groups.

            (1.2.2.3) Define the final values.

(1.2.3) Describe each value.

(1.2.4) Validate and approve the values.

(1.2.5) Implement a values internalization strategy.

Develop a business model for your organisation.

Strategy Development: Phase 1: Standard 1.3

(1.3.1) Do research on business models of similar organisations and industries.

(1.3.2) Identify the value drivers for the business model. Generic value drivers in orgtology are process efficiency, strategic effectiveness, meaningful relationships, focused intelligence, and productive resources.

(1.3.3) List and describe the core critical success factors (CSF) for your 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.

(1.3.4) Describe the business model. The description must give detail on the unique way in which your organisation does its business. Some items to consider when describing a business model are value propositions, target customer segments, distribution channels, customer relationships, value configurations, core capabilities, commercial network, partner network, cost structure, and revenue model.

(1.3.5) 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 DOEP (people Dynamics, Opportunities, risk Exposure, and Pocess effciency analysis.

Strategy Development: Phase 2: Standard 1.4

(1.4.1) Decide on a method and devise an action plan for implementation. DOEP can be done in a myriad of ways, under which the following or a combination thereof:

            (1.4.1.1) Workshop or meeting where dialogue is facilitated and noted around DOEP.

            (1.4.1.2) Questionnaire to employees and other stakeholders.

            (1.4.1.3) Interviews and/or meetings with stakeholders.

(1.4.2) Run the analysis.

(1.4.3) Process the analysis.

(1.4.4) Draft a DOEP report and make 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) Extract the core operational systems from the operational process construct.

(1.5.2) Extract the core operational targets from each core operational system. This should include the qualification, quantification, measures, evidence, and weighting. Ideally, each system should have one "super target", which summarizes all the targets within that system.

(1.5.3) Extract the top ten operational risks from the process construct.

(1.5.4) Integrate this operational assessment with the DOEP analysis into one report.

Assess the strategic position of your organisation.

Strategy Development: Phase 3: Standard 1.6

(1.6.1) Use the DOEP and the operational analysis to understand the people dynamics, opportunities, risk exposure, and process efficiency of your organisation.

(1.6.2) Compare the current reality of the organisation to similar organisations in its industry.

(1.6.3) Assess your rank/position in your industry. If there is no standard way to assess the rank or position of an organisation in your industry, then create a standard way

(1.6.4) Decide on the best strategic approach to increase the relevance of Org. Orgtology poses three generic approaches to strategy, which are:

            (1.6.4.1) Process efficiency strategy - when sponsorship is high and competition (entropy) is low.

            (1.6.4.2) Competitive strategy - when competition is high and industry processes are internalized.

            (1.6.4.3) 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) Record five vision (5V) statements in such a way that they imply the following strategic periods:

           (1.7.1.1) V1 – ultimate dream

           (1.7.1.2) V2 – Three strategic periods (long-medium term vision)

           (1.7.1.3) V3 - Two strategic periods (medium term vision)

           (1.7.1.4) V4 - One strategic period (short-medium term vision)

           (1.7.1.5) V5 - One year (short term vision)

(1.7.2) Create a V1 statement. V1 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) Decide what rank or position you want your organisation to have in your industry hierarchy.

(1.7.4) Identify the gap between your current rank/position and your desired rank/position.

(1.7.5) Decide on a strategic period. This would be a projection of how long it will take the organisation to move from its current state to its desired V4 state.

(1.7.6) Create a V4 statement. V4 is a projection of the position of your organisation at the end of a strategic period. V4 must be in line with V1 – the ultimate dream of Org. It is good practice to use the position/rank within the industry to formulate a V4 statement. This is not a rule.

(1.7.7) Shorten the gap between V1 and V4 by creating V2 and V3 statements. V2 and V3 are statements must show where we want to go over a longer term than our V4 period. The IOI is not specific on what the duration of these periods must be. As rule of thumb, V2 is three strategic periods; V3 is two strategic periods; and V4 is one strategic period. As with V4, it is preferable that V2 and V3 statements are quantifiable.

(1.7.8) Define a V5 statement. This is your 12-month super goal, which aims to get you closer to V4. It is good practice to relate your V5 statement to the execution of all organisational targets for that year.

Define strategic objectives.

Strategy Development: Phase 3: Standard 1.8

(1.8.1) Identify which aspects of the DOEP and operational analysis you must work with to close the gap between your current and V4, V3, and V2 positions.

(1.8.2) Define the change that the organisation wants to make as strategic objectives. It is good practice to have between two and five strategic objectives. More than that becomes hard to manage.When writing a strategic objective, begin with a verb.

Create a work breakdown structure for the strategic programs.

Strategy Development: Phase 4: Standard 1.9

(1.9.1) Turn each strategic objective into a strategic program. The objective becomes the aim of the program.

(1.9.2) Decide which projects will emanate within each program.

(1.9.3) Decide on the activity breakdown for the programs. The breakdown should have the following items:

            (1.9.3.1) List of activities, including activities that are projects;

            (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 to each activity;

             (1.9.3.6) Resource weight of each activity (cost of the activity as a percentage of the budget); and

             (1.9.3.7) Target date for completion of the activity.

       (1.9.4) Create a project brief for each project.

Calculate the cost of strategy.

Strategy Development: Phase 4: Standard 1.10

(1.10.1) Calculate the cost of strategy. Jointly, the cost of all the strategic programs is the cost of strategy. The cost of strategic programs is the sum of all strategic project cost.

(1.10.2) Calculate the cost of operations. To relate cost of strategy to the organisational budget, we must know the cost of operations. Jointly, the systems of Org create its operational cost. Therefore, the cost of all process activity is also the operational cost of Org.

(1.10.3) Calculate the overall organisational cost. 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) Identify critical success factors (CSF's) for each project in terms of efficiency, completion, and effect.

(1.11.2) Translate these CSF's to risks.

(1.11.3) Quantify both the risk and control values in order to rank the risks.

(1.11.4) From the project risks, list the top ten risks for each strategic program.

(1.11.5) From the strategic program risks, list the overall top-ten risks for strategy execution.

Develop the strategy document.

Strategy Development: Phase 5: Standard 1.12

(1.12.1) Compile a statement of organisational definition and identity. This statement should include the following items:

             (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; and

             (1.12.1.4) A organisational business model.

(1.12.2) Compile a statement of operational efficiency. This statement should include the following items:

             (1.12.2.1) A summary of the process construct, its core systems, and their process families;

             (1.12.2.2) A list of the process construct core targets; and

             (1.12.2.3) A list the top ten operational risks with their mitigation and contingency plans.

(1.12.3) Compile a statement of strategic effectiveness. This statement should include the following items:

             (1.12.3.1) A summary of the DOEP 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

             (1.12.3.4)  A list of the top ten strategic risks with their mitigation and contingency plans.

(1.12.4) Write a section on how the organisation will monitor and execute its strategy.

(1.12.5) Insert 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.

(1.12.6) Add other sections to the strategy document as needed.

(1.12.7) Add the complete DOEP analyses as well as all the program briefs as annexes to the strategy document.

Monitor the execution of strategy.

Strategy Development: Phase 5: Standard 1.13

(1.13.1) Create a strategic scorecard that will quantify the following:

             (1.13.1.1) A strategic scorecard that shows how well the strategic programs are executed; and

             (1.13.1.2) A operational target scorecard that shows how well our process construct is running.

(1.13.2) Set-up and approve a feedback system that will keep the CEO informed.

(1.13.3) Ensure that the strategy teams meet regularly, that they follow project management method, and that the program directors are senior people who can give direct feedback to the CEO.

• Strategy is a plan that we create 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.

Define the purpose of your organisation.

Strategy Development: Phase 1: Standard 1.1

(1.1.1) Write a statement of purpose in such a way that:        

           (1.1.1.1) It defines the reason that your organisation exists;

           (1.1.1.2) It is distinct from a statement of intent; and

           (1.1.1.3) It is in present state. 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) Develop a narrative that describes the desired behavior of the organisation.

(1.2.2) Extract values from the narrative:

            (1.2.2.1) List all the values that will define the desired behavior.

            (1.2.2.2) Cluster values into common groups.

            (1.2.2.3) Define the final values.

(1.2.3) Describe each value.

(1.2.4) Validate and approve the values.

(1.2.5) Implement a values internalization strategy.

Develop a business model for your organisation.

Strategy Development: Phase 1: Standard 1.3

(1.3.1) Do research on business models of similar organisations and industries.

(1.3.2) Identify the value drivers for the business model. Generic value drivers in orgtology are process efficiency, strategic effectiveness, meaningful relationships, focused intelligence, and productive resources.

(1.3.3) List and describe the core critical success factors (CSF) for your 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.

(1.3.4) Describe the business model. The description must give detail on the unique way in which your organisation does its business. Some items to consider when describing a business model are value propositions, target customer segments, distribution channels, customer relationships, value configurations, core capabilities, commercial network, partner network, cost structure, and revenue model.

(1.3.5) 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 DOEP (people Dynamics, Opportunities, risk Exposure, and Pocess effciency analysis.

Strategy Development: Phase 2: Standard 1.4

(1.4.1) Decide on a method and devise an action plan for implementation. DOEP can be done in a myriad of ways, under which the following or a combination thereof:

            (1.4.1.1) Workshop or meeting where dialogue is facilitated and noted around DOEP.

            (1.4.1.2) Questionnaire to employees and other stakeholders.

            (1.4.1.3) Interviews and/or meetings with stakeholders.

(1.4.2) Run the analysis.

(1.4.3) Process the analysis.

(1.4.4) Draft a DOEP report and make 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) Extract the core operational systems from the operational process construct.

(1.5.2) Extract the core operational targets from each core operational system. This should include the qualification, quantification, measures, evidence, and weighting. Ideally, each system should have one "super target", which summarizes all the targets within that system.

(1.5.3) Extract the top ten operational risks from the process construct.

(1.5.4) Integrate this operational assessment with the DOEP analysis into one report.

Assess the strategic position of your organisation.

Strategy Development: Phase 3: Standard 1.6

(1.6.1) Use the DOEP and the operational analysis to understand the people dynamics, opportunities, risk exposure, and process efficiency of your organisation.

(1.6.2) Compare the current reality of the organisation to similar organisations in its industry.

(1.6.3) Assess your rank/position in your industry. If there is no standard way to assess the rank or position of an organisation in your industry, then create a standard way

(1.6.4) Decide on the best strategic approach to increase the relevance of Org. Orgtology poses three generic approaches to strategy, which are:

            (1.6.4.1) Process efficiency strategy - when sponsorship is high and competition (entropy) is low.

            (1.6.4.2) Competitive strategy - when competition is high and industry processes are internalized.

            (1.6.4.3) 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) Record five vision (5V) statements in such a way that they imply the following strategic periods:

           (1.7.1.1) V1 – ultimate dream

           (1.7.1.2) V2 – Three strategic periods (long-medium term vision)

           (1.7.1.3) V3 - Two strategic periods (medium term vision)

           (1.7.1.4) V4 - One strategic period (short-medium term vision)

           (1.7.1.5) V5 - One year (short term vision)

(1.7.2) Create a V1 statement. V1 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) Decide what rank or position you want your organisation to have in your industry hierarchy.

(1.7.4) Identify the gap between your current rank/position and your desired rank/position.

(1.7.5) Decide on a strategic period. This would be a projection of how long it will take the organisation to move from its current state to its desired V4 state.

(1.7.6) Create a V4 statement. V4 is a projection of the position of your organisation at the end of a strategic period. V4 must be in line with V1 – the ultimate dream of Org. It is good practice to use the position/rank within the industry to formulate a V4 statement. This is not a rule.

(1.7.7) Shorten the gap between V1 and V4 by creating V2 and V3 statements. V2 and V3 are statements must show where we want to go over a longer term than our V4 period. The IOI is not specific on what the duration of these periods must be. As rule of thumb, V2 is three strategic periods; V3 is two strategic periods; and V4 is one strategic period. As with V4, it is preferable that V2 and V3 statements are quantifiable.

(1.7.8) Define a V5 statement. This is your 12-month super goal, which aims to get you closer to V4. It is good practice to relate your V5 statement to the execution of all organisational targets for that year.

Define strategic objectives.

Strategy Development: Phase 3: Standard 1.8

(1.8.1) Identify which aspects of the DOEP and operational analysis you must work with to close the gap between your current and V4, V3, and V2 positions.

(1.8.2) Define the change that the organisation wants to make as strategic objectives. It is good practice to have between two and five strategic objectives. More than that becomes hard to manage.When writing a strategic objective, begin with a verb.

Create a work breakdown structure for the strategic programs.

Strategy Development: Phase 4: Standard 1.9

(1.9.1) Turn each strategic objective into a strategic program. The objective becomes the aim of the program.

(1.9.2) Decide which projects will emanate within each program.

(1.9.3) Decide on the activity breakdown for the programs. The breakdown should have the following items:

            (1.9.3.1) List of activities, including activities that are projects;

            (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 to each activity;

             (1.9.3.6) Resource weight of each activity (cost of the activity as a percentage of the budget); and

             (1.9.3.7) Target date for completion of the activity.

       (1.9.4) Create a project brief for each project.

Calculate the cost of strategy.

Strategy Development: Phase 4: Standard 1.10

(1.10.1) Calculate the cost of strategy. Jointly, the cost of all the strategic programs is the cost of strategy. The cost of strategic programs is the sum of all strategic project cost.

(1.10.2) Calculate the cost of operations. To relate cost of strategy to the organisational budget, we must know the cost of operations. Jointly, the systems of Org create its operational cost. Therefore, the cost of all process activity is also the operational cost of Org.

(1.10.3) Calculate the overall organisational cost. 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) Identify critical success factors (CSF's) for each project in terms of efficiency, completion, and effect.

(1.11.2) Translate these CSF's to risks.

(1.11.3) Quantify both the risk and control values in order to rank the risks.

(1.11.4) From the project risks, list the top ten risks for each strategic program.

(1.11.5) From the strategic program risks, list the overall top-ten risks for strategy execution.

Develop the strategy document.

Strategy Development: Phase 5: Standard 1.12

(1.12.1) Compile a statement of organisational definition and identity. This statement should include the following items:

             (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; and

             (1.12.1.4) A organisational business model.

(1.12.2) Compile a statement of operational efficiency. This statement should include the following items:

             (1.12.2.1) A summary of the process construct, its core systems, and their process families;

             (1.12.2.2) A list of the process construct core targets; and

             (1.12.2.3) A list the top ten operational risks with their mitigation and contingency plans.

(1.12.3) Compile a statement of strategic effectiveness. This statement should include the following items:

             (1.12.3.1) A summary of the DOEP 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

             (1.12.3.4)  A list of the top ten strategic risks with their mitigation and contingency plans.

(1.12.4) Write a section on how the organisation will monitor and execute its strategy.

(1.12.5) Insert 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.

(1.12.6) Add other sections to the strategy document as needed.

(1.12.7) Add the complete DOEP analyses as well as all the program briefs as annexes to the strategy document.

Monitor the execution of strategy.

Strategy Development: Phase 5: Standard 1.13

(1.13.1) Create a strategic scorecard that will quantify the following:

             (1.13.1.1) A strategic scorecard that shows how well the strategic programs are executed; and

             (1.13.1.2) A operational target scorecard that shows how well our process construct is running.

(1.13.2) Set-up and approve a feedback system that will keep the CEO informed.

(1.13.3) Ensure that the strategy teams meet regularly, that they follow project management method, and that the program directors are senior people who can give direct feedback to the CEO.

• Strategy is a plan that we create 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.

Define the purpose of your organisation.

Strategy Development: Phase 1: Standard 1.1

(1.1.1) Write a statement of purpose in such a way that:        

           (1.1.1.1) It defines the reason that your organisation exists;

           (1.1.1.2) It is distinct from a statement of intent; and

           (1.1.1.3) It is in present state. 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) Develop a narrative that describes the desired behavior of the organisation.

(1.2.2) Extract values from the narrative:

            (1.2.2.1) List all the values that will define the desired behavior.

            (1.2.2.2) Cluster values into common groups.

            (1.2.2.3) Define the final values.

(1.2.3) Describe each value.

(1.2.4) Validate and approve the values.

(1.2.5) Implement a values internalization strategy.

Develop a business model for your organisation.

Strategy Development: Phase 1: Standard 1.3

(1.3.1) Do research on business models of similar organisations and industries.

(1.3.2) Identify the value drivers for the business model. Generic value drivers in orgtology are process efficiency, strategic effectiveness, meaningful relationships, focused intelligence, and productive resources.

(1.3.3) List and describe the core critical success factors (CSF) for your 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.

(1.3.4) Describe the business model. The description must give detail on the unique way in which your organisation does its business. Some items to consider when describing a business model are value propositions, target customer segments, distribution channels, customer relationships, value configurations, core capabilities, commercial network, partner network, cost structure, and revenue model.

(1.3.5) 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 DOEP (people Dynamics, Opportunities, risk Exposure, and Pocess effciency analysis.

Strategy Development: Phase 2: Standard 1.4

(1.4.1) Decide on a method and devise an action plan for implementation. DOEP can be done in a myriad of ways, under which the following or a combination thereof:

            (1.4.1.1) Workshop or meeting where dialogue is facilitated and noted around DOEP.

            (1.4.1.2) Questionnaire to employees and other stakeholders.

            (1.4.1.3) Interviews and/or meetings with stakeholders.

(1.4.2) Run the analysis.

(1.4.3) Process the analysis.

(1.4.4) Draft a DOEP report and make 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) Extract the core operational systems from the operational process construct.

(1.5.2) Extract the core operational targets from each core operational system. This should include the qualification, quantification, measures, evidence, and weighting. Ideally, each system should have one "super target", which summarizes all the targets within that system.

(1.5.3) Extract the top ten operational risks from the process construct.

(1.5.4) Integrate this operational assessment with the DOEP analysis into one report.

Assess the strategic position of your organisation.

Strategy Development: Phase 3: Standard 1.6

(1.6.1) Use the DOEP and the operational analysis to understand the people dynamics, opportunities, risk exposure, and process efficiency of your organisation.

(1.6.2) Compare the current reality of the organisation to similar organisations in its industry.

(1.6.3) Assess your rank/position in your industry. If there is no standard way to assess the rank or position of an organisation in your industry, then create a standard way

(1.6.4) Decide on the best strategic approach to increase the relevance of Org. Orgtology poses three generic approaches to strategy, which are:

            (1.6.4.1) Process efficiency strategy - when sponsorship is high and competition (entropy) is low.

            (1.6.4.2) Competitive strategy - when competition is high and industry processes are internalized.

            (1.6.4.3) 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) Record five vision (5V) statements in such a way that they imply the following strategic periods:

           (1.7.1.1) V1 – ultimate dream

           (1.7.1.2) V2 – Three strategic periods (long-medium term vision)

           (1.7.1.3) V3 - Two strategic periods (medium term vision)

           (1.7.1.4) V4 - One strategic period (short-medium term vision)

           (1.7.1.5) V5 - One year (short term vision)

(1.7.2) Create a V1 statement. V1 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) Decide what rank or position you want your organisation to have in your industry hierarchy.

(1.7.4) Identify the gap between your current rank/position and your desired rank/position.

(1.7.5) Decide on a strategic period. This would be a projection of how long it will take the organisation to move from its current state to its desired V4 state.

(1.7.6) Create a V4 statement. V4 is a projection of the position of your organisation at the end of a strategic period. V4 must be in line with V1 – the ultimate dream of Org. It is good practice to use the position/rank within the industry to formulate a V4 statement. This is not a rule.

(1.7.7) Shorten the gap between V1 and V4 by creating V2 and V3 statements. V2 and V3 are statements must show where we want to go over a longer term than our V4 period. The IOI is not specific on what the duration of these periods must be. As rule of thumb, V2 is three strategic periods; V3 is two strategic periods; and V4 is one strategic period. As with V4, it is preferable that V2 and V3 statements are quantifiable.

(1.7.8) Define a V5 statement. This is your 12-month super goal, which aims to get you closer to V4. It is good practice to relate your V5 statement to the execution of all organisational targets for that year.

Define strategic objectives.

Strategy Development: Phase 3: Standard 1.8

(1.8.1) Identify which aspects of the DOEP and operational analysis you must work with to close the gap between your current and V4, V3, and V2 positions.

(1.8.2) Define the change that the organisation wants to make as strategic objectives. It is good practice to have between two and five strategic objectives. More than that becomes hard to manage.When writing a strategic objective, begin with a verb.

Create a work breakdown structure for the strategic programs.

Strategy Development: Phase 4: Standard 1.9

(1.9.1) Turn each strategic objective into a strategic program. The objective becomes the aim of the program.

(1.9.2) Decide which projects will emanate within each program.

(1.9.3) Decide on the activity breakdown for the programs. The breakdown should have the following items:

            (1.9.3.1) List of activities, including activities that are projects;

            (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 to each activity;

             (1.9.3.6) Resource weight of each activity (cost of the activity as a percentage of the budget); and

             (1.9.3.7) Target date for completion of the activity.

       (1.9.4) Create a project brief for each project.

Calculate the cost of strategy.

Strategy Development: Phase 4: Standard 1.10

(1.10.1) Calculate the cost of strategy. Jointly, the cost of all the strategic programs is the cost of strategy. The cost of strategic programs is the sum of all strategic project cost.

(1.10.2) Calculate the cost of operations. To relate cost of strategy to the organisational budget, we must know the cost of operations. Jointly, the systems of Org create its operational cost. Therefore, the cost of all process activity is also the operational cost of Org.

(1.10.3) Calculate the overall organisational cost. 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) Identify critical success factors (CSF's) for each project in terms of efficiency, completion, and effect.

(1.11.2) Translate these CSF's to risks.

(1.11.3) Quantify both the risk and control values in order to rank the risks.

(1.11.4) From the project risks, list the top ten risks for each strategic program.

(1.11.5) From the strategic program risks, list the overall top-ten risks for strategy execution.

Develop the strategy document.

Strategy Development: Phase 5: Standard 1.12

(1.12.1) Compile a statement of organisational definition and identity. This statement should include the following items:

             (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; and

             (1.12.1.4) A organisational business model.

(1.12.2) Compile a statement of operational efficiency. This statement should include the following items:

             (1.12.2.1) A summary of the process construct, its core systems, and their process families;

             (1.12.2.2) A list of the process construct core targets; and

             (1.12.2.3) A list the top ten operational risks with their mitigation and contingency plans.

(1.12.3) Compile a statement of strategic effectiveness. This statement should include the following items:

             (1.12.3.1) A summary of the DOEP 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

             (1.12.3.4)  A list of the top ten strategic risks with their mitigation and contingency plans.

(1.12.4) Write a section on how the organisation will monitor and execute its strategy.

(1.12.5) Insert 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.

(1.12.6) Add other sections to the strategy document as needed.

(1.12.7) Add the complete DOEP analyses as well as all the program briefs as annexes to the strategy document.

Monitor the execution of strategy.

Strategy Development: Phase 5: Standard 1.13

(1.13.1) Create a strategic scorecard that will quantify the following:

             (1.13.1.1) A strategic scorecard that shows how well the strategic programs are executed; and

             (1.13.1.2) A operational target scorecard that shows how well our process construct is running.

(1.13.2) Set-up and approve a feedback system that will keep the CEO informed.

(1.13.3) Ensure that the strategy teams meet regularly, that they follow project management method, and that the program directors are senior people who can give direct feedback to the CEO.

• Strategy is a plan that we create 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.

Define the purpose of your organisation.

Strategy Development: Phase 1: Standard 1.1

(1.1.1) Write a statement of purpose in such a way that:        

           (1.1.1.1) It defines the reason that your organisation exists;

           (1.1.1.2) It is distinct from a statement of intent; and

           (1.1.1.3) It is in present state. 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) Develop a narrative that describes the desired behavior of the organisation.

(1.2.2) Extract values from the narrative:

            (1.2.2.1) List all the values that will define the desired behavior.

            (1.2.2.2) Cluster values into common groups.

            (1.2.2.3) Define the final values.

(1.2.3) Describe each value.

(1.2.4) Validate and approve the values.

(1.2.5) Implement a values internalization strategy.

Develop a business model for your organisation.

Strategy Development: Phase 1: Standard 1.3

(1.3.1) Do research on business models of similar organisations and industries.

(1.3.2) Identify the value drivers for the business model. Generic value drivers in orgtology are process efficiency, strategic effectiveness, meaningful relationships, focused intelligence, and productive resources.

(1.3.3) List and describe the core critical success factors (CSF) for your 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.

(1.3.4) Describe the business model. The description must give detail on the unique way in which your organisation does its business. Some items to consider when describing a business model are value propositions, target customer segments, distribution channels, customer relationships, value configurations, core capabilities, commercial network, partner network, cost structure, and revenue model.

(1.3.5) 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 DOEP (people Dynamics, Opportunities, risk Exposure, and Pocess effciency analysis.

Strategy Development: Phase 2: Standard 1.4

(1.4.1) Decide on a method and devise an action plan for implementation. DOEP can be done in a myriad of ways, under which the following or a combination thereof:

            (1.4.1.1) Workshop or meeting where dialogue is facilitated and noted around DOEP.

            (1.4.1.2) Questionnaire to employees and other stakeholders.

            (1.4.1.3) Interviews and/or meetings with stakeholders.

(1.4.2) Run the analysis.

(1.4.3) Process the analysis.

(1.4.4) Draft a DOEP report and make 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) Extract the core operational systems from the operational process construct.

(1.5.2) Extract the core operational targets from each core operational system. This should include the qualification, quantification, measures, evidence, and weighting. Ideally, each system should have one "super target", which summarizes all the targets within that system.

(1.5.3) Extract the top ten operational risks from the process construct.

(1.5.4) Integrate this operational assessment with the DOEP analysis into one report.

Assess the strategic position of your organisation.

Strategy Development: Phase 3: Standard 1.6

(1.6.1) Use the DOEP and the operational analysis to understand the people dynamics, opportunities, risk exposure, and process efficiency of your organisation.

(1.6.2) Compare the current reality of the organisation to similar organisations in its industry.

(1.6.3) Assess your rank/position in your industry. If there is no standard way to assess the rank or position of an organisation in your industry, then create a standard way

(1.6.4) Decide on the best strategic approach to increase the relevance of Org. Orgtology poses three generic approaches to strategy, which are:

            (1.6.4.1) Process efficiency strategy - when sponsorship is high and competition (entropy) is low.

            (1.6.4.2) Competitive strategy - when competition is high and industry processes are internalized.

            (1.6.4.3) 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) Record five vision (5V) statements in such a way that they imply the following strategic periods:

           (1.7.1.1) V1 – ultimate dream

           (1.7.1.2) V2 – Three strategic periods (long-medium term vision)

           (1.7.1.3) V3 - Two strategic periods (medium term vision)

           (1.7.1.4) V4 - One strategic period (short-medium term vision)

           (1.7.1.5) V5 - One year (short term vision)

(1.7.2) Create a V1 statement. V1 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) Decide what rank or position you want your organisation to have in your industry hierarchy.

(1.7.4) Identify the gap between your current rank/position and your desired rank/position.

(1.7.5) Decide on a strategic period. This would be a projection of how long it will take the organisation to move from its current state to its desired V4 state.

(1.7.6) Create a V4 statement. V4 is a projection of the position of your organisation at the end of a strategic period. V4 must be in line with V1 – the ultimate dream of Org. It is good practice to use the position/rank within the industry to formulate a V4 statement. This is not a rule.

(1.7.7) Shorten the gap between V1 and V4 by creating V2 and V3 statements. V2 and V3 are statements must show where we want to go over a longer term than our V4 period. The IOI is not specific on what the duration of these periods must be. As rule of thumb, V2 is three strategic periods; V3 is two strategic periods; and V4 is one strategic period. As with V4, it is preferable that V2 and V3 statements are quantifiable.

(1.7.8) Define a V5 statement. This is your 12-month super goal, which aims to get you closer to V4. It is good practice to relate your V5 statement to the execution of all organisational targets for that year.

Define strategic objectives.

Strategy Development: Phase 3: Standard 1.8

(1.8.1) Identify which aspects of the DOEP and operational analysis you must work with to close the gap between your current and V4, V3, and V2 positions.

(1.8.2) Define the change that the organisation wants to make as strategic objectives. It is good practice to have between two and five strategic objectives. More than that becomes hard to manage.When writing a strategic objective, begin with a verb.

Create a work breakdown structure for the strategic programs.

Strategy Development: Phase 4: Standard 1.9

(1.9.1) Turn each strategic objective into a strategic program. The objective becomes the aim of the program.

(1.9.2) Decide which projects will emanate within each program.

(1.9.3) Decide on the activity breakdown for the programs. The breakdown should have the following items:

            (1.9.3.1) List of activities, including activities that are projects;

            (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 to each activity;

             (1.9.3.6) Resource weight of each activity (cost of the activity as a percentage of the budget); and

             (1.9.3.7) Target date for completion of the activity.

       (1.9.4) Create a project brief for each project.

Calculate the cost of strategy.

Strategy Development: Phase 4: Standard 1.10

(1.10.1) Calculate the cost of strategy. Jointly, the cost of all the strategic programs is the cost of strategy. The cost of strategic programs is the sum of all strategic project cost.

(1.10.2) Calculate the cost of operations. To relate cost of strategy to the organisational budget, we must know the cost of operations. Jointly, the systems of Org create its operational cost. Therefore, the cost of all process activity is also the operational cost of Org.

(1.10.3) Calculate the overall organisational cost. 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) Identify critical success factors (CSF's) for each project in terms of efficiency, completion, and effect.

(1.11.2) Translate these CSF's to risks.

(1.11.3) Quantify both the risk and control values in order to rank the risks.

(1.11.4) From the project risks, list the top ten risks for each strategic program.

(1.11.5) From the strategic program risks, list the overall top-ten risks for strategy execution.

Develop the strategy document.

Strategy Development: Phase 5: Standard 1.12

(1.12.1) Compile a statement of organisational definition and identity. This statement should include the following items:

             (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; and

             (1.12.1.4) A organisational business model.

(1.12.2) Compile a statement of operational efficiency. This statement should include the following items:

             (1.12.2.1) A summary of the process construct, its core systems, and their process families;

             (1.12.2.2) A list of the process construct core targets; and

             (1.12.2.3) A list the top ten operational risks with their mitigation and contingency plans.

(1.12.3) Compile a statement of strategic effectiveness. This statement should include the following items:

             (1.12.3.1) A summary of the DOEP 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

             (1.12.3.4)  A list of the top ten strategic risks with their mitigation and contingency plans.

(1.12.4) Write a section on how the organisation will monitor and execute its strategy.

(1.12.5) Insert 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.

(1.12.6) Add other sections to the strategy document as needed.

(1.12.7) Add the complete DOEP analyses as well as all the program briefs as annexes to the strategy document.

Monitor the execution of strategy.

Strategy Development: Phase 5: Standard 1.13

(1.13.1) Create a strategic scorecard that will quantify the following:

             (1.13.1.1) A strategic scorecard that shows how well the strategic programs are executed; and

             (1.13.1.2) A operational target scorecard that shows how well our process construct is running.

(1.13.2) Set-up and approve a feedback system that will keep the CEO informed.

(1.13.3) Ensure that the strategy teams meet regularly, that they follow project management method, and that the program directors are senior people who can give direct feedback to the CEO.

• Strategy is a plan that we create 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.

Define the purpose of your organisation.

Strategy Development: Phase 1: Standard 1.1

(1.1.1) Write a statement of purpose in such a way that:        

           (1.1.1.1) It defines the reason that your organisation exists;

           (1.1.1.2) It is distinct from a statement of intent; and

           (1.1.1.3) It is in present state. 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) Develop a narrative that describes the desired behavior of the organisation.

(1.2.2) Extract values from the narrative:

            (1.2.2.1) List all the values that will define the desired behavior.

            (1.2.2.2) Cluster values into common groups.

            (1.2.2.3) Define the final values.

(1.2.3) Describe each value.

(1.2.4) Validate and approve the values.

(1.2.5) Implement a values internalization strategy.

Develop a business model for your organisation.

Strategy Development: Phase 1: Standard 1.3

(1.3.1) Do research on business models of similar organisations and industries.

(1.3.2) Identify the value drivers for the business model. Generic value drivers in orgtology are process efficiency, strategic effectiveness, meaningful relationships, focused intelligence, and productive resources.

(1.3.3) List and describe the core critical success factors (CSF) for your 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.

(1.3.4) Describe the business model. The description must give detail on the unique way in which your organisation does its business. Some items to consider when describing a business model are value propositions, target customer segments, distribution channels, customer relationships, value configurations, core capabilities, commercial network, partner network, cost structure, and revenue model.

(1.3.5) 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 DOEP (people Dynamics, Opportunities, risk Exposure, and Pocess effciency analysis.

Strategy Development: Phase 2: Standard 1.4

(1.4.1) Decide on a method and devise an action plan for implementation. DOEP can be done in a myriad of ways, under which the following or a combination thereof:

            (1.4.1.1) Workshop or meeting where dialogue is facilitated and noted around DOEP.

            (1.4.1.2) Questionnaire to employees and other stakeholders.

            (1.4.1.3) Interviews and/or meetings with stakeholders.

(1.4.2) Run the analysis.

(1.4.3) Process the analysis.

(1.4.4) Draft a DOEP report and make 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) Extract the core operational systems from the operational process construct.

(1.5.2) Extract the core operational targets from each core operational system. This should include the qualification, quantification, measures, evidence, and weighting. Ideally, each system should have one "super target", which summarizes all the targets within that system.

(1.5.3) Extract the top ten operational risks from the process construct.

(1.5.4) Integrate this operational assessment with the DOEP analysis into one report.

Assess the strategic position of your organisation.

Strategy Development: Phase 3: Standard 1.6

(1.6.1) Use the DOEP and the operational analysis to understand the people dynamics, opportunities, risk exposure, and process efficiency of your organisation.

(1.6.2) Compare the current reality of the organisation to similar organisations in its industry.

(1.6.3) Assess your rank/position in your industry. If there is no standard way to assess the rank or position of an organisation in your industry, then create a standard way

(1.6.4) Decide on the best strategic approach to increase the relevance of Org. Orgtology poses three generic approaches to strategy, which are:

            (1.6.4.1) Process efficiency strategy - when sponsorship is high and competition (entropy) is low.

            (1.6.4.2) Competitive strategy - when competition is high and industry processes are internalized.

            (1.6.4.3) 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) Record five vision (5V) statements in such a way that they imply the following strategic periods:

           (1.7.1.1) V1 – ultimate dream

           (1.7.1.2) V2 – Three strategic periods (long-medium term vision)

           (1.7.1.3) V3 - Two strategic periods (medium term vision)

           (1.7.1.4) V4 - One strategic period (short-medium term vision)

           (1.7.1.5) V5 - One year (short term vision)

(1.7.2) Create a V1 statement. V1 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) Decide what rank or position you want your organisation to have in your industry hierarchy.

(1.7.4) Identify the gap between your current rank/position and your desired rank/position.

(1.7.5) Decide on a strategic period. This would be a projection of how long it will take the organisation to move from its current state to its desired V4 state.

(1.7.6) Create a V4 statement. V4 is a projection of the position of your organisation at the end of a strategic period. V4 must be in line with V1 – the ultimate dream of Org. It is good practice to use the position/rank within the industry to formulate a V4 statement. This is not a rule.

(1.7.7) Shorten the gap between V1 and V4 by creating V2 and V3 statements. V2 and V3 are statements must show where we want to go over a longer term than our V4 period. The IOI is not specific on what the duration of these periods must be. As rule of thumb, V2 is three strategic periods; V3 is two strategic periods; and V4 is one strategic period. As with V4, it is preferable that V2 and V3 statements are quantifiable.

(1.7.8) Define a V5 statement. This is your 12-month super goal, which aims to get you closer to V4. It is good practice to relate your V5 statement to the execution of all organisational targets for that year.

Define strategic objectives.

Strategy Development: Phase 3: Standard 1.8

(1.8.1) Identify which aspects of the DOEP and operational analysis you must work with to close the gap between your current and V4, V3, and V2 positions.

(1.8.2) Define the change that the organisation wants to make as strategic objectives. It is good practice to have between two and five strategic objectives. More than that becomes hard to manage.When writing a strategic objective, begin with a verb.

Create a work breakdown structure for the strategic programs.

Strategy Development: Phase 4: Standard 1.9

(1.9.1) Turn each strategic objective into a strategic program. The objective becomes the aim of the program.

(1.9.2) Decide which projects will emanate within each program.

(1.9.3) Decide on the activity breakdown for the programs. The breakdown should have the following items:

            (1.9.3.1) List of activities, including activities that are projects;

            (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 to each activity;

             (1.9.3.6) Resource weight of each activity (cost of the activity as a percentage of the budget); and

             (1.9.3.7) Target date for completion of the activity.

       (1.9.4) Create a project brief for each project.

Calculate the cost of strategy.

Strategy Development: Phase 4: Standard 1.10

(1.10.1) Calculate the cost of strategy. Jointly, the cost of all the strategic programs is the cost of strategy. The cost of strategic programs is the sum of all strategic project cost.

(1.10.2) Calculate the cost of operations. To relate cost of strategy to the organisational budget, we must know the cost of operations. Jointly, the systems of Org create its operational cost. Therefore, the cost of all process activity is also the operational cost of Org.

(1.10.3) Calculate the overall organisational cost. 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) Identify critical success factors (CSF's) for each project in terms of efficiency, completion, and effect.

(1.11.2) Translate these CSF's to risks.

(1.11.3) Quantify both the risk and control values in order to rank the risks.

(1.11.4) From the project risks, list the top ten risks for each strategic program.

(1.11.5) From the strategic program risks, list the overall top-ten risks for strategy execution.

Develop the strategy document.

Strategy Development: Phase 5: Standard 1.12

(1.12.1) Compile a statement of organisational definition and identity. This statement should include the following items:

             (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; and

             (1.12.1.4) A organisational business model.

(1.12.2) Compile a statement of operational efficiency. This statement should include the following items:

             (1.12.2.1) A summary of the process construct, its core systems, and their process families;

             (1.12.2.2) A list of the process construct core targets; and

             (1.12.2.3) A list the top ten operational risks with their mitigation and contingency plans.

(1.12.3) Compile a statement of strategic effectiveness. This statement should include the following items:

             (1.12.3.1) A summary of the DOEP 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

             (1.12.3.4)  A list of the top ten strategic risks with their mitigation and contingency plans.

(1.12.4) Write a section on how the organisation will monitor and execute its strategy.

(1.12.5) Insert 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.

(1.12.6) Add other sections to the strategy document as needed.

(1.12.7) Add the complete DOEP analyses as well as all the program briefs as annexes to the strategy document.

Monitor the execution of strategy.

Strategy Development: Phase 5: Standard 1.13

(1.13.1) Create a strategic scorecard that will quantify the following:

             (1.13.1.1) A strategic scorecard that shows how well the strategic programs are executed; and

             (1.13.1.2) A operational target scorecard that shows how well our process construct is running.

(1.13.2) Set-up and approve a feedback system that will keep the CEO informed.

(1.13.3) Ensure that the strategy teams meet regularly, that they follow project management method, and that the program directors are senior people who can give direct feedback to the CEO.

• Strategy is a plan that we create 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.

Define the purpose of your organisation.

Strategy Development: Phase 1: Standard 1.1

(1.1.1) Write a statement of purpose in such a way that:        

           (1.1.1.1) It defines the reason that your organisation exists;

           (1.1.1.2) It is distinct from a statement of intent; and

           (1.1.1.3) It is in present state. 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) Develop a narrative that describes the desired behavior of the organisation.

(1.2.2) Extract values from the narrative:

            (1.2.2.1) List all the values that will define the desired behavior.

            (1.2.2.2) Cluster values into common groups.

            (1.2.2.3) Define the final values.

(1.2.3) Describe each value.

(1.2.4) Validate and approve the values.

(1.2.5) Implement a values internalization strategy.

Develop a business model for your organisation.

Strategy Development: Phase 1: Standard 1.3

(1.3.1) Do research on business models of similar organisations and industries.

(1.3.2) Identify the value drivers for the business model. Generic value drivers in orgtology are process efficiency, strategic effectiveness, meaningful relationships, focused intelligence, and productive resources.

(1.3.3) List and describe the core critical success factors (CSF) for your 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.

(1.3.4) Describe the business model. The description must give detail on the unique way in which your organisation does its business. Some items to consider when describing a business model are value propositions, target customer segments, distribution channels, customer relationships, value configurations, core capabilities, commercial network, partner network, cost structure, and revenue model.

(1.3.5) 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 DOEP (people Dynamics, Opportunities, risk Exposure, and Pocess effciency analysis.

Strategy Development: Phase 2: Standard 1.4

(1.4.1) Decide on a method and devise an action plan for implementation. DOEP can be done in a myriad of ways, under which the following or a combination thereof:

            (1.4.1.1) Workshop or meeting where dialogue is facilitated and noted around DOEP.

            (1.4.1.2) Questionnaire to employees and other stakeholders.

            (1.4.1.3) Interviews and/or meetings with stakeholders.

(1.4.2) Run the analysis.

(1.4.3) Process the analysis.

(1.4.4) Draft a DOEP report and make 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) Extract the core operational systems from the operational process construct.

(1.5.2) Extract the core operational targets from each core operational system. This should include the qualification, quantification, measures, evidence, and weighting. Ideally, each system should have one "super target", which summarizes all the targets within that system.

(1.5.3) Extract the top ten operational risks from the process construct.

(1.5.4) Integrate this operational assessment with the DOEP analysis into one report.

Assess the strategic position of your organisation.

Strategy Development: Phase 3: Standard 1.6

(1.6.1) Use the DOEP and the operational analysis to understand the people dynamics, opportunities, risk exposure, and process efficiency of your organisation.

(1.6.2) Compare the current reality of the organisation to similar organisations in its industry.

(1.6.3) Assess your rank/position in your industry. If there is no standard way to assess the rank or position of an organisation in your industry, then create a standard way

(1.6.4) Decide on the best strategic approach to increase the relevance of Org. Orgtology poses three generic approaches to strategy, which are:

            (1.6.4.1) Process efficiency strategy - when sponsorship is high and competition (entropy) is low.

            (1.6.4.2) Competitive strategy - when competition is high and industry processes are internalized.

            (1.6.4.3) 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) Record five vision (5V) statements in such a way that they imply the following strategic periods:

           (1.7.1.1) V1 – ultimate dream

           (1.7.1.2) V2 – Three strategic periods (long-medium term vision)

           (1.7.1.3) V3 - Two strategic periods (medium term vision)

           (1.7.1.4) V4 - One strategic period (short-medium term vision)

           (1.7.1.5) V5 - One year (short term vision)

(1.7.2) Create a V1 statement. V1 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) Decide what rank or position you want your organisation to have in your industry hierarchy.

(1.7.4) Identify the gap between your current rank/position and your desired rank/position.

(1.7.5) Decide on a strategic period. This would be a projection of how long it will take the organisation to move from its current state to its desired V4 state.

(1.7.6) Create a V4 statement. V4 is a projection of the position of your organisation at the end of a strategic period. V4 must be in line with V1 – the ultimate dream of Org. It is good practice to use the position/rank within the industry to formulate a V4 statement. This is not a rule.

(1.7.7) Shorten the gap between V1 and V4 by creating V2 and V3 statements. V2 and V3 are statements must show where we want to go over a longer term than our V4 period. The IOI is not specific on what the duration of these periods must be. As rule of thumb, V2 is three strategic periods; V3 is two strategic periods; and V4 is one strategic period. As with V4, it is preferable that V2 and V3 statements are quantifiable.

(1.7.8) Define a V5 statement. This is your 12-month super goal, which aims to get you closer to V4. It is good practice to relate your V5 statement to the execution of all organisational targets for that year.

Define strategic objectives.

Strategy Development: Phase 3: Standard 1.8

(1.8.1) Identify which aspects of the DOEP and operational analysis you must work with to close the gap between your current and V4, V3, and V2 positions.

(1.8.2) Define the change that the organisation wants to make as strategic objectives. It is good practice to have between two and five strategic objectives. More than that becomes hard to manage.When writing a strategic objective, begin with a verb.

Create a work breakdown structure for the strategic programs.

Strategy Development: Phase 4: Standard 1.9

(1.9.1) Turn each strategic objective into a strategic program. The objective becomes the aim of the program.

(1.9.2) Decide which projects will emanate within each program.

(1.9.3) Decide on the activity breakdown for the programs. The breakdown should have the following items:

            (1.9.3.1) List of activities, including activities that are projects;

            (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 to each activity;

             (1.9.3.6) Resource weight of each activity (cost of the activity as a percentage of the budget); and

             (1.9.3.7) Target date for completion of the activity.

       (1.9.4) Create a project brief for each project.

Calculate the cost of strategy.

Strategy Development: Phase 4: Standard 1.10

(1.10.1) Calculate the cost of strategy. Jointly, the cost of all the strategic programs is the cost of strategy. The cost of strategic programs is the sum of all strategic project cost.

(1.10.2) Calculate the cost of operations. To relate cost of strategy to the organisational budget, we must know the cost of operations. Jointly, the systems of Org create its operational cost. Therefore, the cost of all process activity is also the operational cost of Org.

(1.10.3) Calculate the overall organisational cost. 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) Identify critical success factors (CSF's) for each project in terms of efficiency, completion, and effect.

(1.11.2) Translate these CSF's to risks.

(1.11.3) Quantify both the risk and control values in order to rank the risks.

(1.11.4) From the project risks, list the top ten risks for each strategic program.

(1.11.5) From the strategic program risks, list the overall top-ten risks for strategy execution.

Develop the strategy document.

Strategy Development: Phase 5: Standard 1.12

(1.12.1) Compile a statement of organisational definition and identity. This statement should include the following items:

             (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; and

             (1.12.1.4) A organisational business model.

(1.12.2) Compile a statement of operational efficiency. This statement should include the following items:

             (1.12.2.1) A summary of the process construct, its core systems, and their process families;

             (1.12.2.2) A list of the process construct core targets; and

             (1.12.2.3) A list the top ten operational risks with their mitigation and contingency plans.

(1.12.3) Compile a statement of strategic effectiveness. This statement should include the following items:

             (1.12.3.1) A summary of the DOEP 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

             (1.12.3.4)  A list of the top ten strategic risks with their mitigation and contingency plans.

(1.12.4) Write a section on how the organisation will monitor and execute its strategy.

(1.12.5) Insert 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.

(1.12.6) Add other sections to the strategy document as needed.

(1.12.7) Add the complete DOEP analyses as well as all the program briefs as annexes to the strategy document.

Monitor the execution of strategy.

Strategy Development: Phase 5: Standard 1.13

(1.13.1) Create a strategic scorecard that will quantify the following:

             (1.13.1.1) A strategic scorecard that shows how well the strategic programs are executed; and

             (1.13.1.2) A operational target scorecard that shows how well our process construct is running.

(1.13.2) Set-up and approve a feedback system that will keep the CEO informed.

(1.13.3) Ensure that the strategy teams meet regularly, that they follow project management method, and that the program directors are senior people who can give direct feedback to the CEO.

• Strategy is a plan that we create 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.

Define the purpose of your organisation.

Strategy Development: Phase 1: Standard 1.1

(1.1.1) Write a statement of purpose in such a way that:        

           (1.1.1.1) It defines the reason that your organisation exists;

           (1.1.1.2) It is distinct from a statement of intent; and

           (1.1.1.3) It is in present state. 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) Develop a narrative that describes the desired behavior of the organisation.

(1.2.2) Extract values from the narrative:

            (1.2.2.1) List all the values that will define the desired behavior.

            (1.2.2.2) Cluster values into common groups.

            (1.2.2.3) Define the final values.

(1.2.3) Describe each value.

(1.2.4) Validate and approve the values.

(1.2.5) Implement a values internalization strategy.

Develop a business model for your organisation.

Strategy Development: Phase 1: Standard 1.3

(1.3.1) Do research on business models of similar organisations and industries.

(1.3.2) Identify the value drivers for the business model. Generic value drivers in orgtology are process efficiency, strategic effectiveness, meaningful relationships, focused intelligence, and productive resources.

(1.3.3) List and describe the core critical success factors (CSF) for your 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.

(1.3.4) Describe the business model. The description must give detail on the unique way in which your organisation does its business. Some items to consider when describing a business model are value propositions, target customer segments, distribution channels, customer relationships, value configurations, core capabilities, commercial network, partner network, cost structure, and revenue model.

(1.3.5) 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 DOEP (people Dynamics, Opportunities, risk Exposure, and Pocess effciency analysis.

Strategy Development: Phase 2: Standard 1.4

(1.4.1) Decide on a method and devise an action plan for implementation. DOEP can be done in a myriad of ways, under which the following or a combination thereof:

            (1.4.1.1) Workshop or meeting where dialogue is facilitated and noted around DOEP.

            (1.4.1.2) Questionnaire to employees and other stakeholders.

            (1.4.1.3) Interviews and/or meetings with stakeholders.

(1.4.2) Run the analysis.

(1.4.3) Process the analysis.

(1.4.4) Draft a DOEP report and make 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) Extract the core operational systems from the operational process construct.

(1.5.2) Extract the core operational targets from each core operational system. This should include the qualification, quantification, measures, evidence, and weighting. Ideally, each system should have one "super target", which summarizes all the targets within that system.

(1.5.3) Extract the top ten operational risks from the process construct.

(1.5.4) Integrate this operational assessment with the DOEP analysis into one report.

Assess the strategic position of your organisation.

Strategy Development: Phase 3: Standard 1.6

(1.6.1) Use the DOEP and the operational analysis to understand the people dynamics, opportunities, risk exposure, and process efficiency of your organisation.

(1.6.2) Compare the current reality of the organisation to similar organisations in its industry.

(1.6.3) Assess your rank/position in your industry. If there is no standard way to assess the rank or position of an organisation in your industry, then create a standard way

(1.6.4) Decide on the best strategic approach to increase the relevance of Org. Orgtology poses three generic approaches to strategy, which are:

            (1.6.4.1) Process efficiency strategy - when sponsorship is high and competition (entropy) is low.

            (1.6.4.2) Competitive strategy - when competition is high and industry processes are internalized.

            (1.6.4.3) 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) Record five vision (5V) statements in such a way that they imply the following strategic periods:

           (1.7.1.1) V1 – ultimate dream

           (1.7.1.2) V2 – Three strategic periods (long-medium term vision)

           (1.7.1.3) V3 - Two strategic periods (medium term vision)

           (1.7.1.4) V4 - One strategic period (short-medium term vision)

           (1.7.1.5) V5 - One year (short term vision)

(1.7.2) Create a V1 statement. V1 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) Decide what rank or position you want your organisation to have in your industry hierarchy.

(1.7.4) Identify the gap between your current rank/position and your desired rank/position.

(1.7.5) Decide on a strategic period. This would be a projection of how long it will take the organisation to move from its current state to its desired V4 state.

(1.7.6) Create a V4 statement. V4 is a projection of the position of your organisation at the end of a strategic period. V4 must be in line with V1 – the ultimate dream of Org. It is good practice to use the position/rank within the industry to formulate a V4 statement. This is not a rule.

(1.7.7) Shorten the gap between V1 and V4 by creating V2 and V3 statements. V2 and V3 are statements must show where we want to go over a longer term than our V4 period. The IOI is not specific on what the duration of these periods must be. As rule of thumb, V2 is three strategic periods; V3 is two strategic periods; and V4 is one strategic period. As with V4, it is preferable that V2 and V3 statements are quantifiable.

(1.7.8) Define a V5 statement. This is your 12-month super goal, which aims to get you closer to V4. It is good practice to relate your V5 statement to the execution of all organisational targets for that year.

Define strategic objectives.

Strategy Development: Phase 3: Standard 1.8

(1.8.1) Identify which aspects of the DOEP and operational analysis you must work with to close the gap between your current and V4, V3, and V2 positions.

(1.8.2) Define the change that the organisation wants to make as strategic objectives. It is good practice to have between two and five strategic objectives. More than that becomes hard to manage.When writing a strategic objective, begin with a verb.

Create a work breakdown structure for the strategic programs.

Strategy Development: Phase 4: Standard 1.9

(1.9.1) Turn each strategic objective into a strategic program. The objective becomes the aim of the program.

(1.9.2) Decide which projects will emanate within each program.

(1.9.3) Decide on the activity breakdown for the programs. The breakdown should have the following items:

            (1.9.3.1) List of activities, including activities that are projects;

            (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 to each activity;

             (1.9.3.6) Resource weight of each activity (cost of the activity as a percentage of the budget); and

             (1.9.3.7) Target date for completion of the activity.

       (1.9.4) Create a project brief for each project.

Calculate the cost of strategy.

Strategy Development: Phase 4: Standard 1.10

(1.10.1) Calculate the cost of strategy. Jointly, the cost of all the strategic programs is the cost of strategy. The cost of strategic programs is the sum of all strategic project cost.

(1.10.2) Calculate the cost of operations. To relate cost of strategy to the organisational budget, we must know the cost of operations. Jointly, the systems of Org create its operational cost. Therefore, the cost of all process activity is also the operational cost of Org.

(1.10.3) Calculate the overall organisational cost. 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) Identify critical success factors (CSF's) for each project in terms of efficiency, completion, and effect.

(1.11.2) Translate these CSF's to risks.

(1.11.3) Quantify both the risk and control values in order to rank the risks.

(1.11.4) From the project risks, list the top ten risks for each strategic program.

(1.11.5) From the strategic program risks, list the overall top-ten risks for strategy execution.

Develop the strategy document.

Strategy Development: Phase 5: Standard 1.12

(1.12.1) Compile a statement of organisational definition and identity. This statement should include the following items:

             (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; and

             (1.12.1.4) A organisational business model.

(1.12.2) Compile a statement of operational efficiency. This statement should include the following items:

             (1.12.2.1) A summary of the process construct, its core systems, and their process families;

             (1.12.2.2) A list of the process construct core targets; and

             (1.12.2.3) A list the top ten operational risks with their mitigation and contingency plans.

(1.12.3) Compile a statement of strategic effectiveness. This statement should include the following items:

             (1.12.3.1) A summary of the DOEP 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

             (1.12.3.4)  A list of the top ten strategic risks with their mitigation and contingency plans.

(1.12.4) Write a section on how the organisation will monitor and execute its strategy.

(1.12.5) Insert 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.

(1.12.6) Add other sections to the strategy document as needed.

(1.12.7) Add the complete DOEP analyses as well as all the program briefs as annexes to the strategy document.

Monitor the execution of strategy.

Strategy Development: Phase 5: Standard 1.13

(1.13.1) Create a strategic scorecard that will quantify the following:

             (1.13.1.1) A strategic scorecard that shows how well the strategic programs are executed; and

             (1.13.1.2) A operational target scorecard that shows how well our process construct is running.

(1.13.2) Set-up and approve a feedback system that will keep the CEO informed.

(1.13.3) Ensure that the strategy teams meet regularly, that they follow project management method, and that the program directors are senior people who can give direct feedback to the CEO.

• Strategy is a plan that we create 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.

Define the purpose of your organisation.

Strategy Development: Phase 1: Standard 1.1

(1.1.1) Write a statement of purpose in such a way that:        

           (1.1.1.1) It defines the reason that your organisation exists;

           (1.1.1.2) It is distinct from a statement of intent; and

           (1.1.1.3) It is in present state. 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) Develop a narrative that describes the desired behavior of the organisation.

(1.2.2) Extract values from the narrative:

            (1.2.2.1) List all the values that will define the desired behavior.

            (1.2.2.2) Cluster values into common groups.

            (1.2.2.3) Define the final values.

(1.2.3) Describe each value.

(1.2.4) Validate and approve the values.

(1.2.5) Implement a values internalization strategy.

Develop a business model for your organisation.

Strategy Development: Phase 1: Standard 1.3

(1.3.1) Do research on business models of similar organisations and industries.

(1.3.2) Identify the value drivers for the business model. Generic value drivers in orgtology are process efficiency, strategic effectiveness, meaningful relationships, focused intelligence, and productive resources.

(1.3.3) List and describe the core critical success factors (CSF) for your 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.

(1.3.4) Describe the business model. The description must give detail on the unique way in which your organisation does its business. Some items to consider when describing a business model are value propositions, target customer segments, distribution channels, customer relationships, value configurations, core capabilities, commercial network, partner network, cost structure, and revenue model.

(1.3.5) 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 DOEP (people Dynamics, Opportunities, risk Exposure, and Pocess effciency analysis.

Strategy Development: Phase 2: Standard 1.4

(1.4.1) Decide on a method and devise an action plan for implementation. DOEP can be done in a myriad of ways, under which the following or a combination thereof:

            (1.4.1.1) Workshop or meeting where dialogue is facilitated and noted around DOEP.

            (1.4.1.2) Questionnaire to employees and other stakeholders.

            (1.4.1.3) Interviews and/or meetings with stakeholders.

(1.4.2) Run the analysis.

(1.4.3) Process the analysis.

(1.4.4) Draft a DOEP report and make 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) Extract the core operational systems from the operational process construct.

(1.5.2) Extract the core operational targets from each core operational system. This should include the qualification, quantification, measures, evidence, and weighting. Ideally, each system should have one "super target", which summarizes all the targets within that system.

(1.5.3) Extract the top ten operational risks from the process construct.

(1.5.4) Integrate this operational assessment with the DOEP analysis into one report.

Assess the strategic position of your organisation.

Strategy Development: Phase 3: Standard 1.6

(1.6.1) Use the DOEP and the operational analysis to understand the people dynamics, opportunities, risk exposure, and process efficiency of your organisation.

(1.6.2) Compare the current reality of the organisation to similar organisations in its industry.

(1.6.3) Assess your rank/position in your industry. If there is no standard way to assess the rank or position of an organisation in your industry, then create a standard way

(1.6.4) Decide on the best strategic approach to increase the relevance of Org. Orgtology poses three generic approaches to strategy, which are:

            (1.6.4.1) Process efficiency strategy - when sponsorship is high and competition (entropy) is low.

            (1.6.4.2) Competitive strategy - when competition is high and industry processes are internalized.

            (1.6.4.3) 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) Record five vision (5V) statements in such a way that they imply the following strategic periods:

           (1.7.1.1) V1 – ultimate dream

           (1.7.1.2) V2 – Three strategic periods (long-medium term vision)

           (1.7.1.3) V3 - Two strategic periods (medium term vision)

           (1.7.1.4) V4 - One strategic period (short-medium term vision)

           (1.7.1.5) V5 - One year (short term vision)

(1.7.2) Create a V1 statement. V1 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) Decide what rank or position you want your organisation to have in your industry hierarchy.

(1.7.4) Identify the gap between your current rank/position and your desired rank/position.

(1.7.5) Decide on a strategic period. This would be a projection of how long it will take the organisation to move from its current state to its desired V4 state.

(1.7.6) Create a V4 statement. V4 is a projection of the position of your organisation at the end of a strategic period. V4 must be in line with V1 – the ultimate dream of Org. It is good practice to use the position/rank within the industry to formulate a V4 statement. This is not a rule.

(1.7.7) Shorten the gap between V1 and V4 by creating V2 and V3 statements. V2 and V3 are statements must show where we want to go over a longer term than our V4 period. The IOI is not specific on what the duration of these periods must be. As rule of thumb, V2 is three strategic periods; V3 is two strategic periods; and V4 is one strategic period. As with V4, it is preferable that V2 and V3 statements are quantifiable.

(1.7.8) Define a V5 statement. This is your 12-month super goal, which aims to get you closer to V4. It is good practice to relate your V5 statement to the execution of all organisational targets for that year.

Define strategic objectives.

Strategy Development: Phase 3: Standard 1.8

(1.8.1) Identify which aspects of the DOEP and operational analysis you must work with to close the gap between your current and V4, V3, and V2 positions.

(1.8.2) Define the change that the organisation wants to make as strategic objectives. It is good practice to have between two and five strategic objectives. More than that becomes hard to manage.When writing a strategic objective, begin with a verb.

Create a work breakdown structure for the strategic programs.

Strategy Development: Phase 4: Standard 1.9

(1.9.1) Turn each strategic objective into a strategic program. The objective becomes the aim of the program.

(1.9.2) Decide which projects will emanate within each program.

(1.9.3) Decide on the activity breakdown for the programs. The breakdown should have the following items:

            (1.9.3.1) List of activities, including activities that are projects;

            (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 to each activity;

             (1.9.3.6) Resource weight of each activity (cost of the activity as a percentage of the budget); and

             (1.9.3.7) Target date for completion of the activity.

       (1.9.4) Create a project brief for each project.

Calculate the cost of strategy.

Strategy Development: Phase 4: Standard 1.10

(1.10.1) Calculate the cost of strategy. Jointly, the cost of all the strategic programs is the cost of strategy. The cost of strategic programs is the sum of all strategic project cost.

(1.10.2) Calculate the cost of operations. To relate cost of strategy to the organisational budget, we must know the cost of operations. Jointly, the systems of Org create its operational cost. Therefore, the cost of all process activity is also the operational cost of Org.

(1.10.3) Calculate the overall organisational cost. 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) Identify critical success factors (CSF's) for each project in terms of efficiency, completion, and effect.

(1.11.2) Translate these CSF's to risks.

(1.11.3) Quantify both the risk and control values in order to rank the risks.

(1.11.4) From the project risks, list the top ten risks for each strategic program.

(1.11.5) From the strategic program risks, list the overall top-ten risks for strategy execution.

Develop the strategy document.

Strategy Development: Phase 5: Standard 1.12

(1.12.1) Compile a statement of organisational definition and identity. This statement should include the following items:

             (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; and

             (1.12.1.4) A organisational business model.

(1.12.2) Compile a statement of operational efficiency. This statement should include the following items:

             (1.12.2.1) A summary of the process construct, its core systems, and their process families;

             (1.12.2.2) A list of the process construct core targets; and

             (1.12.2.3) A list the top ten operational risks with their mitigation and contingency plans.

(1.12.3) Compile a statement of strategic effectiveness. This statement should include the following items:

             (1.12.3.1) A summary of the DOEP 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

             (1.12.3.4)  A list of the top ten strategic risks with their mitigation and contingency plans.

(1.12.4) Write a section on how the organisation will monitor and execute its strategy.

(1.12.5) Insert 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.

(1.12.6) Add other sections to the strategy document as needed.

(1.12.7) Add the complete DOEP analyses as well as all the program briefs as annexes to the strategy document.

Monitor the execution of strategy.

Strategy Development: Phase 5: Standard 1.13

(1.13.1) Create a strategic scorecard that will quantify the following:

             (1.13.1.1) A strategic scorecard that shows how well the strategic programs are executed; and

             (1.13.1.2) A operational target scorecard that shows how well our process construct is running.

(1.13.2) Set-up and approve a feedback system that will keep the CEO informed.

(1.13.3) Ensure that the strategy teams meet regularly, that they follow project management method, and that the program directors are senior people who can give direct feedback to the CEO.

• Strategy is a plan that we create 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.

Define the purpose of your organisation.

Strategy Development: Phase 1: Standard 1.1

(1.1.1) Write a statement of purpose in such a way that:        

           (1.1.1.1) It defines the reason that your organisation exists;

           (1.1.1.2) It is distinct from a statement of intent; and

           (1.1.1.3) It is in present state. 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) Develop a narrative that describes the desired behavior of the organisation.

(1.2.2) Extract values from the narrative:

            (1.2.2.1) List all the values that will define the desired behavior.

            (1.2.2.2) Cluster values into common groups.

            (1.2.2.3) Define the final values.

(1.2.3) Describe each value.

(1.2.4) Validate and approve the values.

(1.2.5) Implement a values internalization strategy.

Develop a business model for your organisation.

Strategy Development: Phase 1: Standard 1.3

(1.3.1) Do research on business models of similar organisations and industries.

(1.3.2) Identify the value drivers for the business model. Generic value drivers in orgtology are process efficiency, strategic effectiveness, meaningful relationships, focused intelligence, and productive resources.

(1.3.3) List and describe the core critical success factors (CSF) for your 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.

(1.3.4) Describe the business model. The description must give detail on the unique way in which your organisation does its business. Some items to consider when describing a business model are value propositions, target customer segments, distribution channels, customer relationships, value configurations, core capabilities, commercial network, partner network, cost structure, and revenue model.

(1.3.5) 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 DOEP (people Dynamics, Opportunities, risk Exposure, and Pocess effciency analysis.

Strategy Development: Phase 2: Standard 1.4

(1.4.1) Decide on a method and devise an action plan for implementation. DOEP can be done in a myriad of ways, under which the following or a combination thereof:

            (1.4.1.1) Workshop or meeting where dialogue is facilitated and noted around DOEP.

            (1.4.1.2) Questionnaire to employees and other stakeholders.

            (1.4.1.3) Interviews and/or meetings with stakeholders.

(1.4.2) Run the analysis.

(1.4.3) Process the analysis.

(1.4.4) Draft a DOEP report and make 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) Extract the core operational systems from the operational process construct.

(1.5.2) Extract the core operational targets from each core operational system. This should include the qualification, quantification, measures, evidence, and weighting. Ideally, each system should have one "super target", which summarizes all the targets within that system.

(1.5.3) Extract the top ten operational risks from the process construct.

(1.5.4) Integrate this operational assessment with the DOEP analysis into one report.

Assess the strategic position of your organisation.

Strategy Development: Phase 3: Standard 1.6

(1.6.1) Use the DOEP and the operational analysis to understand the people dynamics, opportunities, risk exposure, and process efficiency of your organisation.

(1.6.2) Compare the current reality of the organisation to similar organisations in its industry.

(1.6.3) Assess your rank/position in your industry. If there is no standard way to assess the rank or position of an organisation in your industry, then create a standard way

(1.6.4) Decide on the best strategic approach to increase the relevance of Org. Orgtology poses three generic approaches to strategy, which are:

            (1.6.4.1) Process efficiency strategy - when sponsorship is high and competition (entropy) is low.

            (1.6.4.2) Competitive strategy - when competition is high and industry processes are internalized.

            (1.6.4.3) 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) Record five vision (5V) statements in such a way that they imply the following strategic periods:

           (1.7.1.1) V1 – ultimate dream

           (1.7.1.2) V2 – Three strategic periods (long-medium term vision)

           (1.7.1.3) V3 - Two strategic periods (medium term vision)

           (1.7.1.4) V4 - One strategic period (short-medium term vision)

           (1.7.1.5) V5 - One year (short term vision)

(1.7.2) Create a V1 statement. V1 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) Decide what rank or position you want your organisation to have in your industry hierarchy.

(1.7.4) Identify the gap between your current rank/position and your desired rank/position.

(1.7.5) Decide on a strategic period. This would be a projection of how long it will take the organisation to move from its current state to its desired V4 state.

(1.7.6) Create a V4 statement. V4 is a projection of the position of your organisation at the end of a strategic period. V4 must be in line with V1 – the ultimate dream of Org. It is good practice to use the position/rank within the industry to formulate a V4 statement. This is not a rule.

(1.7.7) Shorten the gap between V1 and V4 by creating V2 and V3 statements. V2 and V3 are statements must show where we want to go over a longer term than our V4 period. The IOI is not specific on what the duration of these periods must be. As rule of thumb, V2 is three strategic periods; V3 is two strategic periods; and V4 is one strategic period. As with V4, it is preferable that V2 and V3 statements are quantifiable.

(1.7.8) Define a V5 statement. This is your 12-month super goal, which aims to get you closer to V4. It is good practice to relate your V5 statement to the execution of all organisational targets for that year.

Define strategic objectives.

Strategy Development: Phase 3: Standard 1.8

(1.8.1) Identify which aspects of the DOEP and operational analysis you must work with to close the gap between your current and V4, V3, and V2 positions.

(1.8.2) Define the change that the organisation wants to make as strategic objectives. It is good practice to have between two and five strategic objectives. More than that becomes hard to manage.When writing a strategic objective, begin with a verb.

Create a work breakdown structure for the strategic programs.

Strategy Development: Phase 4: Standard 1.9

(1.9.1) Turn each strategic objective into a strategic program. The objective becomes the aim of the program.

(1.9.2) Decide which projects will emanate within each program.

(1.9.3) Decide on the activity breakdown for the programs. The breakdown should have the following items:

            (1.9.3.1) List of activities, including activities that are projects;

            (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 to each activity;

             (1.9.3.6) Resource weight of each activity (cost of the activity as a percentage of the budget); and

             (1.9.3.7) Target date for completion of the activity.

       (1.9.4) Create a project brief for each project.

Calculate the cost of strategy.

Strategy Development: Phase 4: Standard 1.10

(1.10.1) Calculate the cost of strategy. Jointly, the cost of all the strategic programs is the cost of strategy. The cost of strategic programs is the sum of all strategic project cost.

(1.10.2) Calculate the cost of operations. To relate cost of strategy to the organisational budget, we must know the cost of operations. Jointly, the systems of Org create its operational cost. Therefore, the cost of all process activity is also the operational cost of Org.

(1.10.3) Calculate the overall organisational cost. 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) Identify critical success factors (CSF's) for each project in terms of efficiency, completion, and effect.

(1.11.2) Translate these CSF's to risks.

(1.11.3) Quantify both the risk and control values in order to rank the risks.

(1.11.4) From the project risks, list the top ten risks for each strategic program.

(1.11.5) From the strategic program risks, list the overall top-ten risks for strategy execution.

Develop the strategy document.

Strategy Development: Phase 5: Standard 1.12

(1.12.1) Compile a statement of organisational definition and identity. This statement should include the following items:

             (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; and

             (1.12.1.4) A organisational business model.

(1.12.2) Compile a statement of operational efficiency. This statement should include the following items:

             (1.12.2.1) A summary of the process construct, its core systems, and their process families;

             (1.12.2.2) A list of the process construct core targets; and

             (1.12.2.3) A list the top ten operational risks with their mitigation and contingency plans.

(1.12.3) Compile a statement of strategic effectiveness. This statement should include the following items:

             (1.12.3.1) A summary of the DOEP 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

             (1.12.3.4)  A list of the top ten strategic risks with their mitigation and contingency plans.

(1.12.4) Write a section on how the organisation will monitor and execute its strategy.

(1.12.5) Insert 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.

(1.12.6) Add other sections to the strategy document as needed.

(1.12.7) Add the complete DOEP analyses as well as all the program briefs as annexes to the strategy document.

Monitor the execution of strategy.

Strategy Development: Phase 5: Standard 1.13

(1.13.1) Create a strategic scorecard that will quantify the following:

             (1.13.1.1) A strategic scorecard that shows how well the strategic programs are executed; and

             (1.13.1.2) A operational target scorecard that shows how well our process construct is running.

(1.13.2) Set-up and approve a feedback system that will keep the CEO informed.

(1.13.3) Ensure that the strategy teams meet regularly, that they follow project management method, and that the program directors are senior people who can give direct feedback to the CEO.

• Strategy is a plan that we create 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.

Define the purpose of your organisation.

Strategy Development: Phase 1: Standard 1.1

(1.1.1) Write a statement of purpose in such a way that:        

           (1.1.1.1) It defines the reason that your organisation exists;

           (1.1.1.2) It is distinct from a statement of intent; and

           (1.1.1.3) It is in present state. 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) Develop a narrative that describes the desired behavior of the organisation.

(1.2.2) Extract values from the narrative:

            (1.2.2.1) List all the values that will define the desired behavior.

            (1.2.2.2) Cluster values into common groups.

            (1.2.2.3) Define the final values.

(1.2.3) Describe each value.

(1.2.4) Validate and approve the values.

(1.2.5) Implement a values internalization strategy.

Develop a business model for your organisation.

Strategy Development: Phase 1: Standard 1.3

(1.3.1) Do research on business models of similar organisations and industries.

(1.3.2) Identify the value drivers for the business model. Generic value drivers in orgtology are process efficiency, strategic effectiveness, meaningful relationships, focused intelligence, and productive resources.

(1.3.3) List and describe the core critical success factors (CSF) for your 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.

(1.3.4) Describe the business model. The description must give detail on the unique way in which your organisation does its business. Some items to consider when describing a business model are value propositions, target customer segments, distribution channels, customer relationships, value configurations, core capabilities, commercial network, partner network, cost structure, and revenue model.

(1.3.5) 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 DOEP (people Dynamics, Opportunities, risk Exposure, and Pocess effciency analysis.

Strategy Development: Phase 2: Standard 1.4

(1.4.1) Decide on a method and devise an action plan for implementation. DOEP can be done in a myriad of ways, under which the following or a combination thereof:

            (1.4.1.1) Workshop or meeting where dialogue is facilitated and noted around DOEP.

            (1.4.1.2) Questionnaire to employees and other stakeholders.

            (1.4.1.3) Interviews and/or meetings with stakeholders.

(1.4.2) Run the analysis.

(1.4.3) Process the analysis.

(1.4.4) Draft a DOEP report and make 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) Extract the core operational systems from the operational process construct.

(1.5.2) Extract the core operational targets from each core operational system. This should include the qualification, quantification, measures, evidence, and weighting. Ideally, each system should have one "super target", which summarizes all the targets within that system.

(1.5.3) Extract the top ten operational risks from the process construct.

(1.5.4) Integrate this operational assessment with the DOEP analysis into one report.

Assess the strategic position of your organisation.

Strategy Development: Phase 3: Standard 1.6

(1.6.1) Use the DOEP and the operational analysis to understand the people dynamics, opportunities, risk exposure, and process efficiency of your organisation.

(1.6.2) Compare the current reality of the organisation to similar organisations in its industry.

(1.6.3) Assess your rank/position in your industry. If there is no standard way to assess the rank or position of an organisation in your industry, then create a standard way

(1.6.4) Decide on the best strategic approach to increase the relevance of Org. Orgtology poses three generic approaches to strategy, which are:

            (1.6.4.1) Process efficiency strategy - when sponsorship is high and competition (entropy) is low.

            (1.6.4.2) Competitive strategy - when competition is high and industry processes are internalized.

            (1.6.4.3) 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) Record five vision (5V) statements in such a way that they imply the following strategic periods:

           (1.7.1.1) V1 – ultimate dream

           (1.7.1.2) V2 – Three strategic periods (long-medium term vision)

           (1.7.1.3) V3 - Two strategic periods (medium term vision)

           (1.7.1.4) V4 - One strategic period (short-medium term vision)

           (1.7.1.5) V5 - One year (short term vision)

(1.7.2) Create a V1 statement. V1 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) Decide what rank or position you want your organisation to have in your industry hierarchy.

(1.7.4) Identify the gap between your current rank/position and your desired rank/position.

(1.7.5) Decide on a strategic period. This would be a projection of how long it will take the organisation to move from its current state to its desired V4 state.

(1.7.6) Create a V4 statement. V4 is a projection of the position of your organisation at the end of a strategic period. V4 must be in line with V1 – the ultimate dream of Org. It is good practice to use the position/rank within the industry to formulate a V4 statement. This is not a rule.

(1.7.7) Shorten the gap between V1 and V4 by creating V2 and V3 statements. V2 and V3 are statements must show where we want to go over a longer term than our V4 period. The IOI is not specific on what the duration of these periods must be. As rule of thumb, V2 is three strategic periods; V3 is two strategic periods; and V4 is one strategic period. As with V4, it is preferable that V2 and V3 statements are quantifiable.

(1.7.8) Define a V5 statement. This is your 12-month super goal, which aims to get you closer to V4. It is good practice to relate your V5 statement to the execution of all organisational targets for that year.

Define strategic objectives.

Strategy Development: Phase 3: Standard 1.8

(1.8.1) Identify which aspects of the DOEP and operational analysis you must work with to close the gap between your current and V4, V3, and V2 positions.

(1.8.2) Define the change that the organisation wants to make as strategic objectives. It is good practice to have between two and five strategic objectives. More than that becomes hard to manage.When writing a strategic objective, begin with a verb.

Create a work breakdown structure for the strategic programs.

Strategy Development: Phase 4: Standard 1.9

(1.9.1) Turn each strategic objective into a strategic program. The objective becomes the aim of the program.

(1.9.2) Decide which projects will emanate within each program.

(1.9.3) Decide on the activity breakdown for the programs. The breakdown should have the following items:

            (1.9.3.1) List of activities, including activities that are projects;

            (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 to each activity;

             (1.9.3.6) Resource weight of each activity (cost of the activity as a percentage of the budget); and

             (1.9.3.7) Target date for completion of the activity.

       (1.9.4) Create a project brief for each project.

Calculate the cost of strategy.

Strategy Development: Phase 4: Standard 1.10

(1.10.1) Calculate the cost of strategy. Jointly, the cost of all the strategic programs is the cost of strategy. The cost of strategic programs is the sum of all strategic project cost.

(1.10.2) Calculate the cost of operations. To relate cost of strategy to the organisational budget, we must know the cost of operations. Jointly, the systems of Org create its operational cost. Therefore, the cost of all process activity is also the operational cost of Org.

(1.10.3) Calculate the overall organisational cost. 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) Identify critical success factors (CSF's) for each project in terms of efficiency, completion, and effect.

(1.11.2) Translate these CSF's to risks.

(1.11.3) Quantify both the risk and control values in order to rank the risks.

(1.11.4) From the project risks, list the top ten risks for each strategic program.

(1.11.5) From the strategic program risks, list the overall top-ten risks for strategy execution.

Develop the strategy document.

Strategy Development: Phase 5: Standard 1.12

(1.12.1) Compile a statement of organisational definition and identity. This statement should include the following items:

             (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; and

             (1.12.1.4) A organisational business model.

(1.12.2) Compile a statement of operational efficiency. This statement should include the following items:

             (1.12.2.1) A summary of the process construct, its core systems, and their process families;

             (1.12.2.2) A list of the process construct core targets; and

             (1.12.2.3) A list the top ten operational risks with their mitigation and contingency plans.

(1.12.3) Compile a statement of strategic effectiveness. This statement should include the following items:

             (1.12.3.1) A summary of the DOEP 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

             (1.12.3.4)  A list of the top ten strategic risks with their mitigation and contingency plans.

(1.12.4) Write a section on how the organisation will monitor and execute its strategy.

(1.12.5) Insert 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.

(1.12.6) Add other sections to the strategy document as needed.

(1.12.7) Add the complete DOEP analyses as well as all the program briefs as annexes to the strategy document.

Monitor the execution of strategy.

Strategy Development: Phase 5: Standard 1.13

(1.13.1) Create a strategic scorecard that will quantify the following:

             (1.13.1.1) A strategic scorecard that shows how well the strategic programs are executed; and

             (1.13.1.2) A operational target scorecard that shows how well our process construct is running.

(1.13.2) Set-up and approve a feedback system that will keep the CEO informed.

(1.13.3) Ensure that the strategy teams meet regularly, that they follow project management method, and that the program directors are senior people who can give direct feedback to the CEO.

• Strategy is a plan that we create 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.

Define the purpose of your organisation.

Strategy Development: Phase 1: Standard 1.1

(1.1.1) Write a statement of purpose in such a way that:        

           (1.1.1.1) It defines the reason that your organisation exists;

           (1.1.1.2) It is distinct from a statement of intent; and

           (1.1.1.3) It is in present state. 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) Develop a narrative that describes the desired behavior of the organisation.

(1.2.2) Extract values from the narrative:

            (1.2.2.1) List all the values that will define the desired behavior.

            (1.2.2.2) Cluster values into common groups.

            (1.2.2.3) Define the final values.

(1.2.3) Describe each value.

(1.2.4) Validate and approve the values.

(1.2.5) Implement a values internalization strategy.

Develop a business model for your organisation.

Strategy Development: Phase 1: Standard 1.3

(1.3.1) Do research on business models of similar organisations and industries.

(1.3.2) Identify the value drivers for the business model. Generic value drivers in orgtology are process efficiency, strategic effectiveness, meaningful relationships, focused intelligence, and productive resources.

(1.3.3) List and describe the core critical success factors (CSF) for your 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.

(1.3.4) Describe the business model. The description must give detail on the unique way in which your organisation does its business. Some items to consider when describing a business model are value propositions, target customer segments, distribution channels, customer relationships, value configurations, core capabilities, commercial network, partner network, cost structure, and revenue model.

(1.3.5) 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 DOEP (people Dynamics, Opportunities, risk Exposure, and Pocess effciency analysis.

Strategy Development: Phase 2: Standard 1.4

(1.4.1) Decide on a method and devise an action plan for implementation. DOEP can be done in a myriad of ways, under which the following or a combination thereof:

            (1.4.1.1) Workshop or meeting where dialogue is facilitated and noted around DOEP.

            (1.4.1.2) Questionnaire to employees and other stakeholders.

            (1.4.1.3) Interviews and/or meetings with stakeholders.

(1.4.2) Run the analysis.

(1.4.3) Process the analysis.

(1.4.4) Draft a DOEP report and make 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) Extract the core operational systems from the operational process construct.

(1.5.2) Extract the core operational targets from each core operational system. This should include the qualification, quantification, measures, evidence, and weighting. Ideally, each system should have one "super target", which summarizes all the targets within that system.

(1.5.3) Extract the top ten operational risks from the process construct.

(1.5.4) Integrate this operational assessment with the DOEP analysis into one report.

Assess the strategic position of your organisation.

Strategy Development: Phase 3: Standard 1.6

(1.6.1) Use the DOEP and the operational analysis to understand the people dynamics, opportunities, risk exposure, and process efficiency of your organisation.

(1.6.2) Compare the current reality of the organisation to similar organisations in its industry.

(1.6.3) Assess your rank/position in your industry. If there is no standard way to assess the rank or position of an organisation in your industry, then create a standard way

(1.6.4) Decide on the best strategic approach to increase the relevance of Org. Orgtology poses three generic approaches to strategy, which are:

            (1.6.4.1) Process efficiency strategy - when sponsorship is high and competition (entropy) is low.

            (1.6.4.2) Competitive strategy - when competition is high and industry processes are internalized.

            (1.6.4.3) 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) Record five vision (5V) statements in such a way that they imply the following strategic periods:

           (1.7.1.1) V1 – ultimate dream

           (1.7.1.2) V2 – Three strategic periods (long-medium term vision)

           (1.7.1.3) V3 - Two strategic periods (medium term vision)

           (1.7.1.4) V4 - One strategic period (short-medium term vision)

           (1.7.1.5) V5 - One year (short term vision)

(1.7.2) Create a V1 statement. V1 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) Decide what rank or position you want your organisation to have in your industry hierarchy.

(1.7.4) Identify the gap between your current rank/position and your desired rank/position.

(1.7.5) Decide on a strategic period. This would be a projection of how long it will take the organisation to move from its current state to its desired V4 state.

(1.7.6) Create a V4 statement. V4 is a projection of the position of your organisation at the end of a strategic period. V4 must be in line with V1 – the ultimate dream of Org. It is good practice to use the position/rank within the industry to formulate a V4 statement. This is not a rule.

(1.7.7) Shorten the gap between V1 and V4 by creating V2 and V3 statements. V2 and V3 are statements must show where we want to go over a longer term than our V4 period. The IOI is not specific on what the duration of these periods must be. As rule of thumb, V2 is three strategic periods; V3 is two strategic periods; and V4 is one strategic period. As with V4, it is preferable that V2 and V3 statements are quantifiable.

(1.7.8) Define a V5 statement. This is your 12-month super goal, which aims to get you closer to V4. It is good practice to relate your V5 statement to the execution of all organisational targets for that year.

Define strategic objectives.

Strategy Development: Phase 3: Standard 1.8

(1.8.1) Identify which aspects of the DOEP and operational analysis you must work with to close the gap between your current and V4, V3, and V2 positions.

(1.8.2) Define the change that the organisation wants to make as strategic objectives. It is good practice to have between two and five strategic objectives. More than that becomes hard to manage.When writing a strategic objective, begin with a verb.

Create a work breakdown structure for the strategic programs.

Strategy Development: Phase 4: Standard 1.9

(1.9.1) Turn each strategic objective into a strategic program. The objective becomes the aim of the program.

(1.9.2) Decide which projects will emanate within each program.

(1.9.3) Decide on the activity breakdown for the programs. The breakdown should have the following items:

            (1.9.3.1) List of activities, including activities that are projects;

            (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 to each activity;

             (1.9.3.6) Resource weight of each activity (cost of the activity as a percentage of the budget); and

             (1.9.3.7) Target date for completion of the activity.

       (1.9.4) Create a project brief for each project.

Calculate the cost of strategy.

Strategy Development: Phase 4: Standard 1.10

(1.10.1) Calculate the cost of strategy. Jointly, the cost of all the strategic programs is the cost of strategy. The cost of strategic programs is the sum of all strategic project cost.

(1.10.2) Calculate the cost of operations. To relate cost of strategy to the organisational budget, we must know the cost of operations. Jointly, the systems of Org create its operational cost. Therefore, the cost of all process activity is also the operational cost of Org.

(1.10.3) Calculate the overall organisational cost. 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) Identify critical success factors (CSF's) for each project in terms of efficiency, completion, and effect.

(1.11.2) Translate these CSF's to risks.

(1.11.3) Quantify both the risk and control values in order to rank the risks.

(1.11.4) From the project risks, list the top ten risks for each strategic program.

(1.11.5) From the strategic program risks, list the overall top-ten risks for strategy execution.

Develop the strategy document.

Strategy Development: Phase 5: Standard 1.12

(1.12.1) Compile a statement of organisational definition and identity. This statement should include the following items:

             (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; and

             (1.12.1.4) A organisational business model.

(1.12.2) Compile a statement of operational efficiency. This statement should include the following items:

             (1.12.2.1) A summary of the process construct, its core systems, and their process families;

             (1.12.2.2) A list of the process construct core targets; and

             (1.12.2.3) A list the top ten operational risks with their mitigation and contingency plans.

(1.12.3) Compile a statement of strategic effectiveness. This statement should include the following items:

             (1.12.3.1) A summary of the DOEP 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

             (1.12.3.4)  A list of the top ten strategic risks with their mitigation and contingency plans.

(1.12.4) Write a section on how the organisation will monitor and execute its strategy.

(1.12.5) Insert 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.

(1.12.6) Add other sections to the strategy document as needed.

(1.12.7) Add the complete DOEP analyses as well as all the program briefs as annexes to the strategy document.

Monitor the execution of strategy.

Strategy Development: Phase 5: Standard 1.13

(1.13.1) Create a strategic scorecard that will quantify the following:

             (1.13.1.1) A strategic scorecard that shows how well the strategic programs are executed; and

             (1.13.1.2) A operational target scorecard that shows how well our process construct is running.

(1.13.2) Set-up and approve a feedback system that will keep the CEO informed.

(1.13.3) Ensure that the strategy teams meet regularly, that they follow project management method, and that the program directors are senior people who can give direct feedback to the CEO.

• Organisational design is the development of a blueprint for a Relevant and Performing Organisation (RPO).

• The aim of these standards is to help an Orgtologist to design an organisational blueprint., or to train others to do so according to orgtology theories and principles.

• Click on any of the IOI standards in the table below to go to its specifications.

Define organisational purpose as a process

Organisational Design: Phase 1: Standard 2.1

(2.1.1) Define purpose as a target.

(2.1.2) Develop a narrative that will realize purpose. Ask what, why, where, when, who, and how?

(2.1.3) From the narrative, list core activities (high level).

(2.1.4) Create efficiency through dependency flow.

Create a basic construct that shows the core systems of Org

Organisational Design: Phase 1: Standard 2.2

(2.2.1) Link purpose to the basic orgtology process construct. Ensure that the basic systems are covered. These are the resources; core business; relationship, transformation, and risk systems. Different names can be given.

(2.2.2) Create process flow between the systems.

(2.2.3) Test for clarity. Ensure that the EXCO team understands the link between purpose, systems, and core process.

Connect Systems to Process Flow

Organisational Design: Phase 2: Standard 2.3

(2.3.1) Create rules and flow for each system.

(2.3.2) Develop processes and levels around each system. This is a process of linking processes in a process hierarchy.

(2.3.3) Give power and authority to each process. Ask who must do what and report to whom?

(2.3.3) Test the interdependence between processes.

(2.3.4) Assess the relevance of each process.

Develop rules and targets to control process efficiency

Organisational Design: Phase 2: Standard 2.4

(2.4.1) Define the process outputs.

(2.4.2) Define critical success factors for the process to run efficiently.

(2.4.3) List rules that will ensure process efficiency.

(2.4.4) Create targets that will ensure efficiency.

(2.4.5) Quantify targets and link to a monitoring process.

(2.4.6) Link targets to other targets in the process construct (cascade vertically).

Link rules to policy and procedures

Organisational Design: Phase 2: Standard 2.5

(2.5.1) Ensure that rules are endorsed through organisational policy.

(2.5.2) Where necessary, develop or adjust policy to accommodate rules.

(2.5.3) Ensure that policy is adequately explained through procedure.

(2.5.4) Where necessary, develop or adjust procedures to make policy clear.

(2.5.5) Link policy and procedure to a monitoring process.

Integrate the process construct with a project construct

Organisational Design: Phase 3: Standard 2.6

(2.6.1) Ensure that all strategic projects exist to enhance the process construct.

(2.6.2) Ensure that strategic projects are linked to strategic programs.

(2.6.3) Ensure that operational projects are linked to operational processes and systems.

(2.6.4) Ensure that all processes and systems are linked to organisational purpose and that all strategic projects and programs are linked to organisational intent.

(2.6.5) Ensure that the relationship between operations and strategy can be explained and understood through a Sigmoid Curve.

(2.6.6) Ensure that the risk management system separates strategic from operational risks.

(2.6.7) Ensure that cost centers are designed around components of the process and project constructs.

(2.6.8) Ensure that performance management systems are linked to the process, project, and relationship constructs.

Develop outcome metrics

Organisational Design: Phase 3: Standard 2.7

(2.7.1) Quantify all strategic objectives.

(2.7.2) Ensure that all strategic objectives are executed through strategic projects.

(2.7.3) Cascade the quantification of strategic objectives to strategic projects.

(2.7.4) Link the effect of outcomes to the efficiency of outputs.

(2.7.5) Create a scorecard for core organisational outputs and outcomes.

Develop the stakeholder relationship window

Organisational Design: Phase 4: Standard 2.8

(2.8.1) Define all stakeholders, and segment further as deemed necessary.

(2.8.2) Plot each stakeholder segment on a relationship window.

(2.8.3) Ensure that there is a strategic project for optimizing the relationship with each stakeholder segment.

Develop an organogram

Organisational Design: Phase 4: Standard 2.9

(2.9.1) Make governance decisions on the process and project constructs.

(2.9.2) Ensure that there is accountability for stakeholder, strategic, and operational interests. 

(2.9.3) Distribute work to teams.

(2.9.4) Choose an organogram type.

(2.9.5) Develop "easy to follow" authority flow.

(2.9.6) Create communication rules.

(2.9.7) Test.

(2.9.8) Adjust.

Create a framework that will internalize a culture of inclusion

Organisational Design: Phase 4: Standard 2.10

(2.10.1) Establish a cultural transformation team.

(2.10.2) Develop a cultural narrative for the organisation.

(2.10.3) Align the cultural narrative to the purpose, intent, and values of Org.

(2.10.4) Develop or adjust organisational symbols and rituals that aligns with the cultural narrative.

(2.10.5) Internalize a "culture of inclusion" framework that will stimulate constant growth, cohesion, and integration.

(2.10.6) Develop a project plan for the cultural transformation project.

(2.10.7) Get executive endorsement for the cultural transformation project.

• Strategy is a plan that we create 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.

Define the purpose of your organisation.

Strategy Development: Phase 1: Standard 1.1

(1.1.1) Write a statement of purpose in such a way that:        

           (1.1.1.1) It defines the reason that your organisation exists;

           (1.1.1.2) It is distinct from a statement of intent; and

           (1.1.1.3) It is in present state. 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) Develop a narrative that describes the desired behavior of the organisation.

(1.2.2) Extract values from the narrative:

            (1.2.2.1) List all the values that will define the desired behavior.

            (1.2.2.2) Cluster values into common groups.

            (1.2.2.3) Define the final values.

(1.2.3) Describe each value.

(1.2.4) Validate and approve the values.

(1.2.5) Implement a values internalization strategy.

Develop a business model for your organisation.

Strategy Development: Phase 1: Standard 1.3

(1.3.1) Do research on business models of similar organisations and industries.

(1.3.2) Identify the value drivers for the business model. Generic value drivers in orgtology are process efficiency, strategic effectiveness, meaningful relationships, focused intelligence, and productive resources.

(1.3.3) List and describe the core critical success factors (CSF) for your 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.

(1.3.4) Describe the business model. The description must give detail on the unique way in which your organisation does its business. Some items to consider when describing a business model are value propositions, target customer segments, distribution channels, customer relationships, value configurations, core capabilities, commercial network, partner network, cost structure, and revenue model.

(1.3.5) 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 DOEP (people Dynamics, Opportunities, risk Exposure, and Pocess effciency analysis.

Strategy Development: Phase 2: Standard 1.4

(1.4.1) Decide on a method and devise an action plan for implementation. DOEP can be done in a myriad of ways, under which the following or a combination thereof:

            (1.4.1.1) Workshop or meeting where dialogue is facilitated and noted around DOEP.

            (1.4.1.2) Questionnaire to employees and other stakeholders.

            (1.4.1.3) Interviews and/or meetings with stakeholders.

(1.4.2) Run the analysis.

(1.4.3) Process the analysis.

(1.4.4) Draft a DOEP report and make 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) Extract the core operational systems from the operational process construct.

(1.5.2) Extract the core operational targets from each core operational system. This should include the qualification, quantification, measures, evidence, and weighting. Ideally, each system should have one "super target", which summarizes all the targets within that system.

(1.5.3) Extract the top ten operational risks from the process construct.

(1.5.4) Integrate this operational assessment with the DOEP analysis into one report.

Assess the strategic position of your organisation.

Strategy Development: Phase 3: Standard 1.6

(1.6.1) Use the DOEP and the operational analysis to understand the people dynamics, opportunities, risk exposure, and process efficiency of your organisation.

(1.6.2) Compare the current reality of the organisation to similar organisations in its industry.

(1.6.3) Assess your rank/position in your industry. If there is no standard way to assess the rank or position of an organisation in your industry, then create a standard way

(1.6.4) Decide on the best strategic approach to increase the relevance of Org. Orgtology poses three generic approaches to strategy, which are:

            (1.6.4.1) Process efficiency strategy - when sponsorship is high and competition (entropy) is low.

            (1.6.4.2) Competitive strategy - when competition is high and industry processes are internalized.

            (1.6.4.3) 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) Record five vision (5V) statements in such a way that they imply the following strategic periods:

           (1.7.1.1) V1 – ultimate dream

           (1.7.1.2) V2 – Three strategic periods (long-medium term vision)

           (1.7.1.3) V3 - Two strategic periods (medium term vision)

           (1.7.1.4) V4 - One strategic period (short-medium term vision)

           (1.7.1.5) V5 - One year (short term vision)

(1.7.2) Create a V1 statement. V1 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) Decide what rank or position you want your organisation to have in your industry hierarchy.

(1.7.4) Identify the gap between your current rank/position and your desired rank/position.

(1.7.5) Decide on a strategic period. This would be a projection of how long it will take the organisation to move from its current state to its desired V4 state.

(1.7.6) Create a V4 statement. V4 is a projection of the position of your organisation at the end of a strategic period. V4 must be in line with V1 – the ultimate dream of Org. It is good practice to use the position/rank within the industry to formulate a V4 statement. This is not a rule.

(1.7.7) Shorten the gap between V1 and V4 by creating V2 and V3 statements. V2 and V3 are statements must show where we want to go over a longer term than our V4 period. The IOI is not specific on what the duration of these periods must be. As rule of thumb, V2 is three strategic periods; V3 is two strategic periods; and V4 is one strategic period. As with V4, it is preferable that V2 and V3 statements are quantifiable.

(1.7.8) Define a V5 statement. This is your 12-month super goal, which aims to get you closer to V4. It is good practice to relate your V5 statement to the execution of all organisational targets for that year.

Define strategic objectives.

Strategy Development: Phase 3: Standard 1.8

(1.8.1) Identify which aspects of the DOEP and operational analysis you must work with to close the gap between your current and V4, V3, and V2 positions.

(1.8.2) Define the change that the organisation wants to make as strategic objectives. It is good practice to have between two and five strategic objectives. More than that becomes hard to manage.When writing a strategic objective, begin with a verb.

Create a work breakdown structure for the strategic programs.

Strategy Development: Phase 4: Standard 1.9

(1.9.1) Turn each strategic objective into a strategic program. The objective becomes the aim of the program.

(1.9.2) Decide which projects will emanate within each program.

(1.9.3) Decide on the activity breakdown for the programs. The breakdown should have the following items:

            (1.9.3.1) List of activities, including activities that are projects;

            (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 to each activity;

             (1.9.3.6) Resource weight of each activity (cost of the activity as a percentage of the budget); and

             (1.9.3.7) Target date for completion of the activity.

       (1.9.4) Create a project brief for each project.

Calculate the cost of strategy.

Strategy Development: Phase 4: Standard 1.10

(1.10.1) Calculate the cost of strategy. Jointly, the cost of all the strategic programs is the cost of strategy. The cost of strategic programs is the sum of all strategic project cost.

(1.10.2) Calculate the cost of operations. To relate cost of strategy to the organisational budget, we must know the cost of operations. Jointly, the systems of Org create its operational cost. Therefore, the cost of all process activity is also the operational cost of Org.

(1.10.3) Calculate the overall organisational cost. 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) Identify critical success factors (CSF's) for each project in terms of efficiency, completion, and effect.

(1.11.2) Translate these CSF's to risks.

(1.11.3) Quantify both the risk and control values in order to rank the risks.

(1.11.4) From the project risks, list the top ten risks for each strategic program.

(1.11.5) From the strategic program risks, list the overall top-ten risks for strategy execution.

Develop the strategy document.

Strategy Development: Phase 5: Standard 1.12

(1.12.1) Compile a statement of organisational definition and identity. This statement should include the following items:

             (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; and

             (1.12.1.4) A organisational business model.

(1.12.2) Compile a statement of operational efficiency. This statement should include the following items:

             (1.12.2.1) A summary of the process construct, its core systems, and their process families;

             (1.12.2.2) A list of the process construct core targets; and

             (1.12.2.3) A list the top ten operational risks with their mitigation and contingency plans.

(1.12.3) Compile a statement of strategic effectiveness. This statement should include the following items:

             (1.12.3.1) A summary of the DOEP 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

             (1.12.3.4)  A list of the top ten strategic risks with their mitigation and contingency plans.

(1.12.4) Write a section on how the organisation will monitor and execute its strategy.

(1.12.5) Insert 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.

(1.12.6) Add other sections to the strategy document as needed.

(1.12.7) Add the complete DOEP analyses as well as all the program briefs as annexes to the strategy document.

Monitor the execution of strategy.

Strategy Development: Phase 5: Standard 1.13

(1.13.1) Create a strategic scorecard that will quantify the following:

             (1.13.1.1) A strategic scorecard that shows how well the strategic programs are executed; and

             (1.13.1.2) A operational target scorecard that shows how well our process construct is running.

(1.13.2) Set-up and approve a feedback system that will keep the CEO informed.

(1.13.3) Ensure that the strategy teams meet regularly, that they follow project management method, and that the program directors are senior people who can give direct feedback to the CEO.

• Strategy is a plan that we create 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.

Define the purpose of your organisation.

Strategy Development: Phase 1: Standard 1.1

(1.1.1) Write a statement of purpose in such a way that:        

           (1.1.1.1) It defines the reason that your organisation exists;

           (1.1.1.2) It is distinct from a statement of intent; and

           (1.1.1.3) It is in present state. 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) Develop a narrative that describes the desired behavior of the organisation.

(1.2.2) Extract values from the narrative:

            (1.2.2.1) List all the values that will define the desired behavior.

            (1.2.2.2) Cluster values into common groups.

            (1.2.2.3) Define the final values.

(1.2.3) Describe each value.

(1.2.4) Validate and approve the values.

(1.2.5) Implement a values internalization strategy.

Develop a business model for your organisation.

Strategy Development: Phase 1: Standard 1.3

(1.3.1) Do research on business models of similar organisations and industries.

(1.3.2) Identify the value drivers for the business model. Generic value drivers in orgtology are process efficiency, strategic effectiveness, meaningful relationships, focused intelligence, and productive resources.

(1.3.3) List and describe the core critical success factors (CSF) for your 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.

(1.3.4) Describe the business model. The description must give detail on the unique way in which your organisation does its business. Some items to consider when describing a business model are value propositions, target customer segments, distribution channels, customer relationships, value configurations, core capabilities, commercial network, partner network, cost structure, and revenue model.

(1.3.5) 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 DOEP (people Dynamics, Opportunities, risk Exposure, and Pocess effciency analysis.

Strategy Development: Phase 2: Standard 1.4

(1.4.1) Decide on a method and devise an action plan for implementation. DOEP can be done in a myriad of ways, under which the following or a combination thereof:

            (1.4.1.1) Workshop or meeting where dialogue is facilitated and noted around DOEP.

            (1.4.1.2) Questionnaire to employees and other stakeholders.

            (1.4.1.3) Interviews and/or meetings with stakeholders.

(1.4.2) Run the analysis.

(1.4.3) Process the analysis.

(1.4.4) Draft a DOEP report and make 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) Extract the core operational systems from the operational process construct.

(1.5.2) Extract the core operational targets from each core operational system. This should include the qualification, quantification, measures, evidence, and weighting. Ideally, each system should have one "super target", which summarizes all the targets within that system.

(1.5.3) Extract the top ten operational risks from the process construct.

(1.5.4) Integrate this operational assessment with the DOEP analysis into one report.

Assess the strategic position of your organisation.

Strategy Development: Phase 3: Standard 1.6

(1.6.1) Use the DOEP and the operational analysis to understand the people dynamics, opportunities, risk exposure, and process efficiency of your organisation.

(1.6.2) Compare the current reality of the organisation to similar organisations in its industry.

(1.6.3) Assess your rank/position in your industry. If there is no standard way to assess the rank or position of an organisation in your industry, then create a standard way

(1.6.4) Decide on the best strategic approach to increase the relevance of Org. Orgtology poses three generic approaches to strategy, which are:

            (1.6.4.1) Process efficiency strategy - when sponsorship is high and competition (entropy) is low.

            (1.6.4.2) Competitive strategy - when competition is high and industry processes are internalized.

            (1.6.4.3) 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) Record five vision (5V) statements in such a way that they imply the following strategic periods:

           (1.7.1.1) V1 – ultimate dream

           (1.7.1.2) V2 – Three strategic periods (long-medium term vision)

           (1.7.1.3) V3 - Two strategic periods (medium term vision)

           (1.7.1.4) V4 - One strategic period (short-medium term vision)

           (1.7.1.5) V5 - One year (short term vision)

(1.7.2) Create a V1 statement. V1 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) Decide what rank or position you want your organisation to have in your industry hierarchy.

(1.7.4) Identify the gap between your current rank/position and your desired rank/position.

(1.7.5) Decide on a strategic period. This would be a projection of how long it will take the organisation to move from its current state to its desired V4 state.

(1.7.6) Create a V4 statement. V4 is a projection of the position of your organisation at the end of a strategic period. V4 must be in line with V1 – the ultimate dream of Org. It is good practice to use the position/rank within the industry to formulate a V4 statement. This is not a rule.

(1.7.7) Shorten the gap between V1 and V4 by creating V2 and V3 statements. V2 and V3 are statements must show where we want to go over a longer term than our V4 period. The IOI is not specific on what the duration of these periods must be. As rule of thumb, V2 is three strategic periods; V3 is two strategic periods; and V4 is one strategic period. As with V4, it is preferable that V2 and V3 statements are quantifiable.

(1.7.8) Define a V5 statement. This is your 12-month super goal, which aims to get you closer to V4. It is good practice to relate your V5 statement to the execution of all organisational targets for that year.

Define strategic objectives.

Strategy Development: Phase 3: Standard 1.8

(1.8.1) Identify which aspects of the DOEP and operational analysis you must work with to close the gap between your current and V4, V3, and V2 positions.

(1.8.2) Define the change that the organisation wants to make as strategic objectives. It is good practice to have between two and five strategic objectives. More than that becomes hard to manage.When writing a strategic objective, begin with a verb.

Create a work breakdown structure for the strategic programs.

Strategy Development: Phase 4: Standard 1.9

(1.9.1) Turn each strategic objective into a strategic program. The objective becomes the aim of the program.

(1.9.2) Decide which projects will emanate within each program.

(1.9.3) Decide on the activity breakdown for the programs. The breakdown should have the following items:

            (1.9.3.1) List of activities, including activities that are projects;

            (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 to each activity;

             (1.9.3.6) Resource weight of each activity (cost of the activity as a percentage of the budget); and

             (1.9.3.7) Target date for completion of the activity.

       (1.9.4) Create a project brief for each project.

Calculate the cost of strategy.

Strategy Development: Phase 4: Standard 1.10

(1.10.1) Calculate the cost of strategy. Jointly, the cost of all the strategic programs is the cost of strategy. The cost of strategic programs is the sum of all strategic project cost.

(1.10.2) Calculate the cost of operations. To relate cost of strategy to the organisational budget, we must know the cost of operations. Jointly, the systems of Org create its operational cost. Therefore, the cost of all process activity is also the operational cost of Org.

(1.10.3) Calculate the overall organisational cost. 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) Identify critical success factors (CSF's) for each project in terms of efficiency, completion, and effect.

(1.11.2) Translate these CSF's to risks.

(1.11.3) Quantify both the risk and control values in order to rank the risks.

(1.11.4) From the project risks, list the top ten risks for each strategic program.

(1.11.5) From the strategic program risks, list the overall top-ten risks for strategy execution.

Develop the strategy document.

Strategy Development: Phase 5: Standard 1.12

(1.12.1) Compile a statement of organisational definition and identity. This statement should include the following items:

             (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; and

             (1.12.1.4) A organisational business model.

(1.12.2) Compile a statement of operational efficiency. This statement should include the following items:

             (1.12.2.1) A summary of the process construct, its core systems, and their process families;

             (1.12.2.2) A list of the process construct core targets; and

             (1.12.2.3) A list the top ten operational risks with their mitigation and contingency plans.

(1.12.3) Compile a statement of strategic effectiveness. This statement should include the following items:

             (1.12.3.1) A summary of the DOEP 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

             (1.12.3.4)  A list of the top ten strategic risks with their mitigation and contingency plans.

(1.12.4) Write a section on how the organisation will monitor and execute its strategy.

(1.12.5) Insert 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.

(1.12.6) Add other sections to the strategy document as needed.

(1.12.7) Add the complete DOEP analyses as well as all the program briefs as annexes to the strategy document.

Monitor the execution of strategy.

Strategy Development: Phase 5: Standard 1.13

(1.13.1) Create a strategic scorecard that will quantify the following:

             (1.13.1.1) A strategic scorecard that shows how well the strategic programs are executed; and

             (1.13.1.2) A operational target scorecard that shows how well our process construct is running.

(1.13.2) Set-up and approve a feedback system that will keep the CEO informed.

(1.13.3) Ensure that the strategy teams meet regularly, that they follow project management method, and that the program directors are senior people who can give direct feedback to the CEO.

• Organisational design is the development of a blueprint for a Relevant and Performing Organisation (RPO).

• The aim of these standards is to help an Orgtologist to design an organisational blueprint., or to train others to do so according to orgtology theories and principles.

• Click on any of the IOI standards in the table below to go to its specifications.

Define organisational purpose as a process

Organisational Design: Phase 1: Standard 2.1

(2.1.1) Define purpose as a target.

(2.1.2) Develop a narrative that will realize purpose. Ask what, why, where, when, who, and how?

(2.1.3) From the narrative, list core activities (high level).

(2.1.4) Create efficiency through dependency flow.

Create a basic construct that shows the core systems of Org

Organisational Design: Phase 1: Standard 2.2

(2.2.1) Link purpose to the basic orgtology process construct. Ensure that the basic systems are covered. These are the resources; core business; relationship, transformation, and risk systems. Different names can be given.

(2.2.2) Create process flow between the systems.

(2.2.3) Test for clarity. Ensure that the EXCO team understands the link between purpose, systems, and core process.

Connect Systems to Process Flow

Organisational Design: Phase 2: Standard 2.3

(2.3.1) Create rules and flow for each system.

(2.3.2) Develop processes and levels around each system. This is a process of linking processes in a process hierarchy.

(2.3.3) Give power and authority to each process. Ask who must do what and report to whom?

(2.3.3) Test the interdependence between processes.

(2.3.4) Assess the relevance of each process.

Develop rules and targets to control process efficiency

Organisational Design: Phase 2: Standard 2.4

(2.4.1) Define the process outputs.

(2.4.2) Define critical success factors for the process to run efficiently.

(2.4.3) List rules that will ensure process efficiency.

(2.4.4) Create targets that will ensure efficiency.

(2.4.5) Quantify targets and link to a monitoring process.

(2.4.6) Link targets to other targets in the process construct (cascade vertically).

Link rules to policy and procedures

Organisational Design: Phase 2: Standard 2.5

(2.5.1) Ensure that rules are endorsed through organisational policy.

(2.5.2) Where necessary, develop or adjust policy to accommodate rules.

(2.5.3) Ensure that policy is adequately explained through procedure.

(2.5.4) Where necessary, develop or adjust procedures to make policy clear.

(2.5.5) Link policy and procedure to a monitoring process.

Integrate the process construct with a project construct

Organisational Design: Phase 3: Standard 2.6

(2.6.1) Ensure that all strategic projects exist to enhance the process construct.

(2.6.2) Ensure that strategic projects are linked to strategic programs.

(2.6.3) Ensure that operational projects are linked to operational processes and systems.

(2.6.4) Ensure that all processes and systems are linked to organisational purpose and that all strategic projects and programs are linked to organisational intent.

(2.6.5) Ensure that the relationship between operations and strategy can be explained and understood through a Sigmoid Curve.

(2.6.6) Ensure that the risk management system separates strategic from operational risks.

(2.6.7) Ensure that cost centers are designed around components of the process and project constructs.

(2.6.8) Ensure that performance management systems are linked to the process, project, and relationship constructs.

Develop outcome metrics

Organisational Design: Phase 3: Standard 2.7

(2.7.1) Quantify all strategic objectives.

(2.7.2) Ensure that all strategic objectives are executed through strategic projects.

(2.7.3) Cascade the quantification of strategic objectives to strategic projects.

(2.7.4) Link the effect of outcomes to the efficiency of outputs.

(2.7.5) Create a scorecard for core organisational outputs and outcomes.

Develop the stakeholder relationship window

Organisational Design: Phase 4: Standard 2.8

(2.8.1) Define all stakeholders, and segment further as deemed necessary.

(2.8.2) Plot each stakeholder segment on a relationship window.

(2.8.3) Ensure that there is a strategic project for optimizing the relationship with each stakeholder segment.

Develop an organogram

Organisational Design: Phase 4: Standard 2.9

(2.9.1) Make governance decisions on the process and project constructs.

(2.9.2) Ensure that there is accountability for stakeholder, strategic, and operational interests. 

(2.9.3) Distribute work to teams.

(2.9.4) Choose an organogram type.

(2.9.5) Develop "easy to follow" authority flow.

(2.9.6) Create communication rules.

(2.9.7) Test.

(2.9.8) Adjust.

Create a framework that will internalize a culture of inclusion

Organisational Design: Phase 4: Standard 2.10

(2.10.1) Establish a cultural transformation team.

(2.10.2) Develop a cultural narrative for the organisation.

(2.10.3) Align the cultural narrative to the purpose, intent, and values of Org.

(2.10.4) Develop or adjust organisational symbols and rituals that aligns with the cultural narrative.

(2.10.5) Internalize a "culture of inclusion" framework that will stimulate constant growth, cohesion, and integration.

(2.10.6) Develop a project plan for the cultural transformation project.

(2.10.7) Get executive endorsement for the cultural transformation project.

• Strategy is a plan that we create 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.

Define the purpose of your organisation.

Strategy Development: Phase 1: Standard 1.1

(1.1.1) Write a statement of purpose in such a way that:        

           (1.1.1.1) It defines the reason that your organisation exists;

           (1.1.1.2) It is distinct from a statement of intent; and

           (1.1.1.3) It is in present state. 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) Develop a narrative that describes the desired behavior of the organisation.

(1.2.2) Extract values from the narrative:

            (1.2.2.1) List all the values that will define the desired behavior.

            (1.2.2.2) Cluster values into common groups.

            (1.2.2.3) Define the final values.

(1.2.3) Describe each value.

(1.2.4) Validate and approve the values.

(1.2.5) Implement a values internalization strategy.

Develop a business model for your organisation.

Strategy Development: Phase 1: Standard 1.3

(1.3.1) Do research on business models of similar organisations and industries.

(1.3.2) Identify the value drivers for the business model. Generic value drivers in orgtology are process efficiency, strategic effectiveness, meaningful relationships, focused intelligence, and productive resources.

(1.3.3) List and describe the core critical success factors (CSF) for your 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.

(1.3.4) Describe the business model. The description must give detail on the unique way in which your organisation does its business. Some items to consider when describing a business model are value propositions, target customer segments, distribution channels, customer relationships, value configurations, core capabilities, commercial network, partner network, cost structure, and revenue model.

(1.3.5) 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 DOEP (people Dynamics, Opportunities, risk Exposure, and Pocess effciency analysis.

Strategy Development: Phase 2: Standard 1.4

(1.4.1) Decide on a method and devise an action plan for implementation. DOEP can be done in a myriad of ways, under which the following or a combination thereof:

            (1.4.1.1) Workshop or meeting where dialogue is facilitated and noted around DOEP.

            (1.4.1.2) Questionnaire to employees and other stakeholders.

            (1.4.1.3) Interviews and/or meetings with stakeholders.

(1.4.2) Run the analysis.

(1.4.3) Process the analysis.

(1.4.4) Draft a DOEP report and make 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) Extract the core operational systems from the operational process construct.

(1.5.2) Extract the core operational targets from each core operational system. This should include the qualification, quantification, measures, evidence, and weighting. Ideally, each system should have one "super target", which summarizes all the targets within that system.

(1.5.3) Extract the top ten operational risks from the process construct.

(1.5.4) Integrate this operational assessment with the DOEP analysis into one report.

Assess the strategic position of your organisation.

Strategy Development: Phase 3: Standard 1.6

(1.6.1) Use the DOEP and the operational analysis to understand the people dynamics, opportunities, risk exposure, and process efficiency of your organisation.

(1.6.2) Compare the current reality of the organisation to similar organisations in its industry.

(1.6.3) Assess your rank/position in your industry. If there is no standard way to assess the rank or position of an organisation in your industry, then create a standard way

(1.6.4) Decide on the best strategic approach to increase the relevance of Org. Orgtology poses three generic approaches to strategy, which are:

            (1.6.4.1) Process efficiency strategy - when sponsorship is high and competition (entropy) is low.

            (1.6.4.2) Competitive strategy - when competition is high and industry processes are internalized.

            (1.6.4.3) 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) Record five vision (5V) statements in such a way that they imply the following strategic periods:

           (1.7.1.1) V1 – ultimate dream

           (1.7.1.2) V2 – Three strategic periods (long-medium term vision)

           (1.7.1.3) V3 - Two strategic periods (medium term vision)

           (1.7.1.4) V4 - One strategic period (short-medium term vision)

           (1.7.1.5) V5 - One year (short term vision)

(1.7.2) Create a V1 statement. V1 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) Decide what rank or position you want your organisation to have in your industry hierarchy.

(1.7.4) Identify the gap between your current rank/position and your desired rank/position.

(1.7.5) Decide on a strategic period. This would be a projection of how long it will take the organisation to move from its current state to its desired V4 state.

(1.7.6) Create a V4 statement. V4 is a projection of the position of your organisation at the end of a strategic period. V4 must be in line with V1 – the ultimate dream of Org. It is good practice to use the position/rank within the industry to formulate a V4 statement. This is not a rule.

(1.7.7) Shorten the gap between V1 and V4 by creating V2 and V3 statements. V2 and V3 are statements must show where we want to go over a longer term than our V4 period. The IOI is not specific on what the duration of these periods must be. As rule of thumb, V2 is three strategic periods; V3 is two strategic periods; and V4 is one strategic period. As with V4, it is preferable that V2 and V3 statements are quantifiable.

(1.7.8) Define a V5 statement. This is your 12-month super goal, which aims to get you closer to V4. It is good practice to relate your V5 statement to the execution of all organisational targets for that year.

Define strategic objectives.

Strategy Development: Phase 3: Standard 1.8

(1.8.1) Identify which aspects of the DOEP and operational analysis you must work with to close the gap between your current and V4, V3, and V2 positions.

(1.8.2) Define the change that the organisation wants to make as strategic objectives. It is good practice to have between two and five strategic objectives. More than that becomes hard to manage.When writing a strategic objective, begin with a verb.

Create a work breakdown structure for the strategic programs.

Strategy Development: Phase 4: Standard 1.9

(1.9.1) Turn each strategic objective into a strategic program. The objective becomes the aim of the program.

(1.9.2) Decide which projects will emanate within each program.

(1.9.3) Decide on the activity breakdown for the programs. The breakdown should have the following items:

            (1.9.3.1) List of activities, including activities that are projects;

            (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 to each activity;

             (1.9.3.6) Resource weight of each activity (cost of the activity as a percentage of the budget); and

             (1.9.3.7) Target date for completion of the activity.

       (1.9.4) Create a project brief for each project.

Calculate the cost of strategy.

Strategy Development: Phase 4: Standard 1.10

(1.10.1) Calculate the cost of strategy. Jointly, the cost of all the strategic programs is the cost of strategy. The cost of strategic programs is the sum of all strategic project cost.

(1.10.2) Calculate the cost of operations. To relate cost of strategy to the organisational budget, we must know the cost of operations. Jointly, the systems of Org create its operational cost. Therefore, the cost of all process activity is also the operational cost of Org.

(1.10.3) Calculate the overall organisational cost. 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) Identify critical success factors (CSF's) for each project in terms of efficiency, completion, and effect.

(1.11.2) Translate these CSF's to risks.

(1.11.3) Quantify both the risk and control values in order to rank the risks.

(1.11.4) From the project risks, list the top ten risks for each strategic program.

(1.11.5) From the strategic program risks, list the overall top-ten risks for strategy execution.

Develop the strategy document.

Strategy Development: Phase 5: Standard 1.12

(1.12.1) Compile a statement of organisational definition and identity. This statement should include the following items:

             (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; and

             (1.12.1.4) A organisational business model.

(1.12.2) Compile a statement of operational efficiency. This statement should include the following items:

             (1.12.2.1) A summary of the process construct, its core systems, and their process families;

             (1.12.2.2) A list of the process construct core targets; and

             (1.12.2.3) A list the top ten operational risks with their mitigation and contingency plans.

(1.12.3) Compile a statement of strategic effectiveness. This statement should include the following items:

             (1.12.3.1) A summary of the DOEP 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

             (1.12.3.4)  A list of the top ten strategic risks with their mitigation and contingency plans.

(1.12.4) Write a section on how the organisation will monitor and execute its strategy.

(1.12.5) Insert 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.

(1.12.6) Add other sections to the strategy document as needed.

(1.12.7) Add the complete DOEP analyses as well as all the program briefs as annexes to the strategy document.

Monitor the execution of strategy.

Strategy Development: Phase 5: Standard 1.13

(1.13.1) Create a strategic scorecard that will quantify the following:

             (1.13.1.1) A strategic scorecard that shows how well the strategic programs are executed; and

             (1.13.1.2) A operational target scorecard that shows how well our process construct is running.

(1.13.2) Set-up and approve a feedback system that will keep the CEO informed.

(1.13.3) Ensure that the strategy teams meet regularly, that they follow project management method, and that the program directors are senior people who can give direct feedback to the CEO.

• Organisational design is the development of a blueprint for a Relevant and Performing Organisation (RPO).

• The aim of these standards is to help an Orgtologist to design an organisational blueprint., or to train others to do so according to orgtology theories and principles.

• Click on any of the IOI standards in the table below to go to its specifications.

Define organisational purpose as a process

Organisational Design: Phase 1: Standard 2.1

(2.1.1) Define purpose as a target.

(2.1.2) Develop a narrative that will realize purpose. Ask what, why, where, when, who, and how?

(2.1.3) From the narrative, list core activities (high level).

(2.1.4) Create efficiency through dependency flow.

Create a basic construct that shows the core systems of Org

Organisational Design: Phase 1: Standard 2.2

(2.2.1) Link purpose to the basic orgtology process construct. Ensure that the basic systems are covered. These are the resources; core business; relationship, transformation, and risk systems. Different names can be given.

(2.2.2) Create process flow between the systems.

(2.2.3) Test for clarity. Ensure that the EXCO team understands the link between purpose, systems, and core process.

Connect Systems to Process Flow

Organisational Design: Phase 2: Standard 2.3

(2.3.1) Create rules and flow for each system.

(2.3.2) Develop processes and levels around each system. This is a process of linking processes in a process hierarchy.

(2.3.3) Give power and authority to each process. Ask who must do what and report to whom?

(2.3.3) Test the interdependence between processes.

(2.3.4) Assess the relevance of each process.

Develop rules and targets to control process efficiency

Organisational Design: Phase 2: Standard 2.4

(2.4.1) Define the process outputs.

(2.4.2) Define critical success factors for the process to run efficiently.

(2.4.3) List rules that will ensure process efficiency.

(2.4.4) Create targets that will ensure efficiency.

(2.4.5) Quantify targets and link to a monitoring process.

(2.4.6) Link targets to other targets in the process construct (cascade vertically).

Link rules to policy and procedures

Organisational Design: Phase 2: Standard 2.5

(2.5.1) Ensure that rules are endorsed through organisational policy.

(2.5.2) Where necessary, develop or adjust policy to accommodate rules.

(2.5.3) Ensure that policy is adequately explained through procedure.

(2.5.4) Where necessary, develop or adjust procedures to make policy clear.

(2.5.5) Link policy and procedure to a monitoring process.

Integrate the process construct with a project construct

Organisational Design: Phase 3: Standard 2.6

(2.6.1) Ensure that all strategic projects exist to enhance the process construct.

(2.6.2) Ensure that strategic projects are linked to strategic programs.

(2.6.3) Ensure that operational projects are linked to operational processes and systems.

(2.6.4) Ensure that all processes and systems are linked to organisational purpose and that all strategic projects and programs are linked to organisational intent.

(2.6.5) Ensure that the relationship between operations and strategy can be explained and understood through a Sigmoid Curve.

(2.6.6) Ensure that the risk management system separates strategic from operational risks.

(2.6.7) Ensure that cost centers are designed around components of the process and project constructs.

(2.6.8) Ensure that performance management systems are linked to the process, project, and relationship constructs.

Develop outcome metrics

Organisational Design: Phase 3: Standard 2.7

(2.7.1) Quantify all strategic objectives.

(2.7.2) Ensure that all strategic objectives are executed through strategic projects.

(2.7.3) Cascade the quantification of strategic objectives to strategic projects.

(2.7.4) Link the effect of outcomes to the efficiency of outputs.

(2.7.5) Create a scorecard for core organisational outputs and outcomes.

Develop the stakeholder relationship window

Organisational Design: Phase 4: Standard 2.8

(2.8.1) Define all stakeholders, and segment further as deemed necessary.

(2.8.2) Plot each stakeholder segment on a relationship window.

(2.8.3) Ensure that there is a strategic project for optimizing the relationship with each stakeholder segment.

Develop an organogram

Organisational Design: Phase 4: Standard 2.9

(2.9.1) Make governance decisions on the process and project constructs.

(2.9.2) Ensure that there is accountability for stakeholder, strategic, and operational interests. 

(2.9.3) Distribute work to teams.

(2.9.4) Choose an organogram type.

(2.9.5) Develop "easy to follow" authority flow.

(2.9.6) Create communication rules.

(2.9.7) Test.

(2.9.8) Adjust.

Create a framework that will internalize a culture of inclusion

Organisational Design: Phase 4: Standard 2.10

(2.10.1) Establish a cultural transformation team.

(2.10.2) Develop a cultural narrative for the organisation.

(2.10.3) Align the cultural narrative to the purpose, intent, and values of Org.

(2.10.4) Develop or adjust organisational symbols and rituals that aligns with the cultural narrative.

(2.10.5) Internalize a "culture of inclusion" framework that will stimulate constant growth, cohesion, and integration.

(2.10.6) Develop a project plan for the cultural transformation project.

(2.10.7) Get executive endorsement for the cultural transformation project.

• Organisational design is the development of a blueprint for a Relevant and Performing Organisation (RPO).

• The aim of these standards is to help an Orgtologist to design an organisational blueprint., or to train others to do so according to orgtology theories and principles.

• Click on any of the IOI standards in the table below to go to its specifications.

Define organisational purpose as a process

Organisational Design: Phase 1: Standard 2.1

(2.1.1) Define purpose as a target.

(2.1.2) Develop a narrative that will realize purpose. Ask what, why, where, when, who, and how?

(2.1.3) From the narrative, list core activities (high level).

(2.1.4) Create efficiency through dependency flow.

Create a basic construct that shows the core systems of Org

Organisational Design: Phase 1: Standard 2.2

(2.2.1) Link purpose to the basic orgtology process construct. Ensure that the basic systems are covered. These are the resources; core business; relationship, transformation, and risk systems. Different names can be given.

(2.2.2) Create process flow between the systems.

(2.2.3) Test for clarity. Ensure that the EXCO team understands the link between purpose, systems, and core process.

Connect Systems to Process Flow

Organisational Design: Phase 2: Standard 2.3

(2.3.1) Create rules and flow for each system.

(2.3.2) Develop processes and levels around each system. This is a process of linking processes in a process hierarchy.

(2.3.3) Give power and authority to each process. Ask who must do what and report to whom?

(2.3.3) Test the interdependence between processes.

(2.3.4) Assess the relevance of each process.

Develop rules and targets to control process efficiency

Organisational Design: Phase 2: Standard 2.4

(2.4.1) Define the process outputs.

(2.4.2) Define critical success factors for the process to run efficiently.

(2.4.3) List rules that will ensure process efficiency.

(2.4.4) Create targets that will ensure efficiency.

(2.4.5) Quantify targets and link to a monitoring process.

(2.4.6) Link targets to other targets in the process construct (cascade vertically).

Link rules to policy and procedures

Organisational Design: Phase 2: Standard 2.5

(2.5.1) Ensure that rules are endorsed through organisational policy.

(2.5.2) Where necessary, develop or adjust policy to accommodate rules.

(2.5.3) Ensure that policy is adequately explained through procedure.

(2.5.4) Where necessary, develop or adjust procedures to make policy clear.

(2.5.5) Link policy and procedure to a monitoring process.

Integrate the process construct with a project construct

Organisational Design: Phase 3: Standard 2.6

(2.6.1) Ensure that all strategic projects exist to enhance the process construct.

(2.6.2) Ensure that strategic projects are linked to strategic programs.

(2.6.3) Ensure that operational projects are linked to operational processes and systems.

(2.6.4) Ensure that all processes and systems are linked to organisational purpose and that all strategic projects and programs are linked to organisational intent.

(2.6.5) Ensure that the relationship between operations and strategy can be explained and understood through a Sigmoid Curve.

(2.6.6) Ensure that the risk management system separates strategic from operational risks.

(2.6.7) Ensure that cost centers are designed around components of the process and project constructs.

(2.6.8) Ensure that performance management systems are linked to the process, project, and relationship constructs.

Develop outcome metrics

Organisational Design: Phase 3: Standard 2.7

(2.7.1) Quantify all strategic objectives.

(2.7.2) Ensure that all strategic objectives are executed through strategic projects.

(2.7.3) Cascade the quantification of strategic objectives to strategic projects.

(2.7.4) Link the effect of outcomes to the efficiency of outputs.

(2.7.5) Create a scorecard for core organisational outputs and outcomes.

Develop the stakeholder relationship window

Organisational Design: Phase 4: Standard 2.8

(2.8.1) Define all stakeholders, and segment further as deemed necessary.

(2.8.2) Plot each stakeholder segment on a relationship window.

(2.8.3) Ensure that there is a strategic project for optimizing the relationship with each stakeholder segment.

Develop an organogram

Organisational Design: Phase 4: Standard 2.9

(2.9.1) Make governance decisions on the process and project constructs.

(2.9.2) Ensure that there is accountability for stakeholder, strategic, and operational interests. 

(2.9.3) Distribute work to teams.

(2.9.4) Choose an organogram type.

(2.9.5) Develop "easy to follow" authority flow.

(2.9.6) Create communication rules.

(2.9.7) Test.

(2.9.8) Adjust.

Create a framework that will internalize a culture of inclusion

Organisational Design: Phase 4: Standard 2.10

(2.10.1) Establish a cultural transformation team.

(2.10.2) Develop a cultural narrative for the organisation.

(2.10.3) Align the cultural narrative to the purpose, intent, and values of Org.

(2.10.4) Develop or adjust organisational symbols and rituals that aligns with the cultural narrative.

(2.10.5) Internalize a "culture of inclusion" framework that will stimulate constant growth, cohesion, and integration.

(2.10.6) Develop a project plan for the cultural transformation project.

(2.10.7) Get executive endorsement for the cultural transformation project.

• Organisational design is the development of a blueprint for a Relevant and Performing Organisation (RPO).

• The aim of these standards is to help an Orgtologist to design an organisational blueprint., or to train others to do so according to orgtology theories and principles.

• Click on any of the IOI standards in the table below to go to its specifications.

Define organisational purpose as a process

Organisational Design: Phase 1: Standard 2.1

(2.1.1) Define purpose as a target.

(2.1.2) Develop a narrative that will realize purpose. Ask what, why, where, when, who, and how?

(2.1.3) From the narrative, list core activities (high level).

(2.1.4) Create efficiency through dependency flow.

Create a basic construct that shows the core systems of Org

Organisational Design: Phase 1: Standard 2.2

(2.2.1) Link purpose to the basic orgtology process construct. Ensure that the basic systems are covered. These are the resources; core business; relationship, transformation, and risk systems. Different names can be given.

(2.2.2) Create process flow between the systems.

(2.2.3) Test for clarity. Ensure that the EXCO team understands the link between purpose, systems, and core process.

Connect Systems to Process Flow

Organisational Design: Phase 2: Standard 2.3

(2.3.1) Create rules and flow for each system.

(2.3.2) Develop processes and levels around each system. This is a process of linking processes in a process hierarchy.

(2.3.3) Give power and authority to each process. Ask who must do what and report to whom?

(2.3.3) Test the interdependence between processes.

(2.3.4) Assess the relevance of each process.

Develop rules and targets to control process efficiency

Organisational Design: Phase 2: Standard 2.4

(2.4.1) Define the process outputs.

(2.4.2) Define critical success factors for the process to run efficiently.