Extended Blueprints Flashcards
The pattern or plan that integrates an organization’s major goals, policies and action sequences into a cohesive whole
Strategy
While central planning can be useful in laying foundational objectives for an organisation, the breadth of knowledge required to
Make the myriad of decisions that lead to the realisation of any strategy are too large to be taken at that level.
Decentralised or bottom-up strategy evolution can address some of the
Limitations of the top- down approach.
Bottom-up approaches tend to be slow and demonstrate little of the
Leadership characteristics that mark organisations that successfully pursue a strategic plan.
This is something that any successful strategy development process must address.
The tension between higher-level organisational objectives and the lower-level opportunities
Business strategy mapping is a collection of techniques that are used to enable organisations to
Gain visibility into the way that strategic tradeoffs are made between higher-level organisational objectives and the lower-level opportunities .
Business strategy mapping techniques provide both a map of how decisions have been reached as a well as
A guide for what choices are currently under consideration.
Taken together strategy mapping approaches can enable an organisation to ___ and come to decisions about steps to be taken to pursue key organisational objectives.
More effectively communicate
Taken together strategy mapping approaches can enable an organisation to more effectively communicate and
Come to decisions about steps to be taken to pursue key organisational objectives.
Many organisations operate with only the lightest level of formal strategy definition because they believe strategy
Stifles the innovation that is the key differentiator for their organisation.
Many organisations have a formal strategy management group that produces plans that are integral to the executive decision making process because they believe that
The focus that comes from creating a unified approach to organisational change is what differentiates them.
Strategy mapping techniques are a key element of a business architecture that relates
Organisational objectives and the various approaches to achieving them.
Research has shown that organisations develop strategies through the incremental identification of:
What an organisation might do
What an organisation can do
What an organisation’s leadership wants to do
What an organisation should do
Most, if not all, strategic approaches see strategy as a ___ that represent different imperatives and result in various courses of action.
Series of overlapping perspectives upon an organisation
Most, if not all, strategic approaches see strategy as a series of overlapping perspectives upon an organisation that
Represent different imperatives and result in various courses of action.
Strategies are only as effective as the
Ability of an organisation to align itself behind them.
Gaining alignment within an organisation involves much more than simply
Communicating a strategy from the highest levels down to lower levels within an organisation.
A strategic framework allows a much larger part of an organisation to
Understand and act on ideas about how an organisation could be aligned to deliver its objectives.
Opening up a discussion of the implications of the strategic directives allows (1/3)
Strategic gaps to be identified early
Opening up a discussion of the implications of the strategic directives allows (2/3)
Blockages to alignment to be located
Opening up a discussion of the implications of the strategic directives allows (3/3)
The combined knowledge of a much larger organisation to be brought to bear upon a proposed approach.
Strategies which lack a communication framework that offers deeper visibility into an organisation are likely to have limited
Buy-in beyond the highest levels of management.
The most fundamental aspect of any organisation’s successful strategy work.
Communication
One of the main reasons organisations fall short in the execution of the strategy is
The loss of fidelity of strategic objectives.
Some estimates are that only __% of the original strategic intent makes it to the initiative implementation level.
50
A strategy mapping framework formalises the strategic intents of executives and links them to
Specific, unambiguous, objectives which can be communicated more effectively.
A strategic mapping framework provides a structured approach that can help organisations ___, which permits organisations to reassess ongoing initiatives incrementally against evolving objectives.
Incrementally adapt to changes by creating clear relationships among elements within the strategic framework
A strategic mapping framework provides a structured approach that can help organisations incrementally adapt to changes by creating clear relationships among elements within the strategic framework, which permits
Organisations to reassess ongoing initiatives incrementally against evolving objectives.
Organisations make use of various governance frameworks including __, __, and __ in order to ensure that initiatives are aligned with strategy.
Gated approval processes, threshold ROI analysis, and cost-benefit evaluations
Assessment of initiatives that have already been launched is typically limited to
Evaluating whether milestones and cost targets have been met.
By using a strategic mapping framework, organisations gain the ability to create governance frameworks that support
Regular re-evaluation of initiatives for conformance to the then-current strategic objectives.
By tying all decisions to create or enhance capabilities into a strategy mapping framework, it becomes possible for organisations to gain better visibility into
Smaller investment decisions and to assure alignment with capability investment decisions at the strategic level.
One of the greatest obstacles to achieving strategic objectives is the inability
To drive alignment with those objectives deep into an organisation.
A strategy mapping framework provides the infrastructure to allow organisations to examine the linkage between the strategic objectives and the details of how those decisions are
Being decomposed into lower level objectives, mapped to capabilities, value streams, business units, and information concepts and pursued via initiatives.
All strategies must begin with a definition of the set of
The stakeholders whose value proposition may be impacted by the strategy being defined.
No strategy can be expected to be achieved without considering
The environment in which that strategy will have to operate.
The ecosystem an organisation exists within consists of a range of different
External constraints and opportunities.
The relative strength of an organization’s capabilities as compared to rival organizations
The environment of an organisation contains a wide variety of considerations, including: (1/6)
Opportunities to address underserved or new market segments
The environment of an organisation contains a wide variety of considerations, including: (2/6)
External directives, such as regulatory regimens
The environment of an organisation contains a wide variety of considerations, including: (3/6)
Pricing power, both in regards to customers and in regards to suppliers
The environment of an organisation contains a wide variety of considerations, including: (4/6)
Barriers to entry to a marketplace
The environment of an organisation contains a wide variety of considerations, including: (5/6)
Opportunities to disrupt an existing market by introducing new business models driven by items such as technological innovation
The environment of an organisation contains a wide variety of considerations, including: (6/6)
A business strategy is an approach that enables an organisation to preserve and increase
The value it delivers to its identified stakeholders.
Value analysis is the key approach for evaluating the relative attractiveness of
The various strategic choices that an organisation faces.
Value analysis goes beyond examining the
Simple economic exchange captured in financial transactions.
To avoid commoditisation of an organisation’s offerings, it is essential to
Create strong market differentiation.
One of the most powerful ways of achieving strong market differentiation is for an organisation to create
An ecosystem of value.
As various strategies are identified, a rigorous examination of how value is generated can be used to
Identify capabilities that should be targeted for investment and potential partnering opportunities.
Strategy mapping principles 1-3 in combination provide insight into what an organisation
Might be able to achieve.
Determining whether an organisation can implement a particular strategy involves understanding
The existing capabilities within an organisation.
A successful strategy must be able to be reached by the organisation
Within the timeframe defined for that strategy.
Most organizations have a relatively small set of core capabilities that differentiate them and that there is a “__” for organizations that successfully identify these core capabilities and align their strategies to them
Coherence premium
Business strategies must be tested against the core set of capabilities which an organisation possesses to determine if the strategy is
Reachable and coherent.
A strategy that requires ___ is much more likely to fail.
Too rapid an evolution of an organisation’s capabilities
A strategy that requires is likely to cause an organisation to result in diminished effectiveness and efficiency.
Investment in non-core capabilities
This principle focuses on what an organization can achieve
- Business strategies leverage and build upon existing organisational capabilities.
A business strategy is a way of defining how an organisation intends to leverage and enhance
Its existing capabilities in order to deliver new differentiated value.
A strategy is nothing more than a set of guidelines
For the new value proposition that is being targeted.
In order to achieve a strategy, an organisation must launch
One or, more typically, many related initiatives.
It is frequently the case that a strategy cannot be pursued by simply creating
An initiative designed solely for the purpose of achieving the related strategic outcomes.
The majority of initiatives underway within an organisation are ___ focused.
Operationally focused rather than strategically
These initiatives often represent the largest portion of an organisations initiative budget and often touch upon processes across a broad swatch of the organisation.
Operationally focused
The relative size of operational initiatives versus strategic initiatives means that
Strategic outcomes must be at least partially achieved within the context of operational initiatives.
Because strategic objectives are constantly evolving, the process of aligning operational and strategic initiatives needs to be institutionalised into
A continuous effort through the creation of a governance structure.
Each initiative should be responsible for regularly ___ in order to continually realign the organisation either by modifying the initiative or triggering a re-evaluation of objectives in the strategic plan.
analysing and evaluating the manner in which it is pursuing its objectives
Each initiative should be responsible for regularly analysing and evaluating the manner in which it is pursuing its objectives in order to continually
Realign the organisation either by modifying the initiative or triggering a re-evaluation of objectives in the strategic plan.
The creation of a business strategy must include the evaluation of
How various strategic objectives interact with each other.
The interaction between strategic objectives can be broken into two broad categories:
Benefits and risks.
Projecting benefits into the future is difficult because both __, and __ make extrapolating from the current state problematic.
Environmental issues and market and product maturation
High risk strategies are often successfully explored using __, __ or other similar approaches to help gauge the likelihood of the strategy succeeding before an organisation commits significant resources.
Pilot programs, test markets
High risk strategies are often successfully explored using pilot programs, test markets or other similar approaches to help gauge
The likelihood of the strategy succeeding before an organisation commits significant resources.
A strategic approach involves balancing the set of objectives that __ with a set of smaller, more risky objectives that offer potential greater benefits but with much lower certainty.
Yield incremental benefits
A strategic approach involves balancing the set of objectives that yield incremental benefits with a set of
Smaller, more risky objectives that offer potential greater benefits but with much lower certainty.
This principle focuses on what an organisation wants to do.
- Business strategies represent a portfolio of approaches to pursuing objectives.
Because it is seldom possible to directly measure progress towards strategic objectives organisations are required to develop
A range of measures that serve as some sort of proxy for these objectives.
Since the achievement of strategic objectives often cannot be directly measured, it is essential that organisations develop a framework of
Potential measures that capture behaviours that are expected to move in concert with the desired objective.
It is also important to take into account that measures contribute towards objectives over differing timeframes so
Some measures may have an immediate impact while others may only influence the objective over a period of years.
The environment that an organisation operates within is never
Static.
Because the environment is one of the primary drivers for strategy development, this implies that a strategy must be __ to address these environmental changes.
Dynamic
The continuing evolution of strategy makes it essential for organisations to develop effective communication approaches to ensure that
Evolving strategic objectives are regularly and rapidly communicated throughout an organisation.
While the environment is a key driver for strategic change, another important driver is
Organic innovation.
This happens within an organisation when opportunities for changing the value being delivered to a community of interest are discovered outside the senior management ranks.
Organic innovation
The ability to recognise and capitalise on organic innovation is essential for organisation to supplement the necessarily limited
Visibility into opportunities that senior management driven strategy possesses.
In order to be successful, an organisation’s strategies must be __ and __ throughout the organisation in a timely manner.
Socialised and pursued
With the rapid evolution of where competitive advantage can be found, the need to ___ and dynamically respond to changes becomes essential.
Effectively communicate strategy
With the rapid evolution of where competitive advantage can be found, the need to effectively communicate strategy and ___ becomes essential.
Dynamically respond to changes
Variations in how strategy is formed are driven by elements as diverse as industry and market, __, and the individuals participating in the strategy process.
Existing organisational capabilities
Variations in how strategy is formed are driven by elements as diverse as __, existing organisational capabilities, and the individuals participating in the strategy process.
Industry and market
Variations in how strategy is formed are driven by elements as diverse as industry and market, existing organisational capabilities, and the
Individuals participating in the strategy process.
The way in which ___, how the resulting value is captured by mapping the changed value delivered to the various stakeholders, the ability of the organisation’s existing capabilities to deliver these expected outcomes, and the validation of the objectives in respect to the environment in which the organisation operates, all remain consistent.
Strategic objectives are decomposed into lower level objectives
The way in which strategic objectives are decomposed into lower level objectives, ___, the ability of the organisation’s existing capabilities to deliver these expected outcomes, and the validation of the objectives in respect to the environment in which the organisation operates, all remain consistent.
How the resulting value is captured by mapping the changed value delivered to the various stakeholders
The way in which strategic objectives are decomposed into lower level objectives, how the resulting value is captured by mapping the changed value delivered to the various stakeholders, ___, and the validation of the objectives in respect to the environment in which the organisation operates, all remain consistent.
The ability of the organisation’s existing capabilities to deliver these expected outcomes
The way in which strategic objectives are decomposed into lower level objectives, how the resulting value is captured by mapping the changed value delivered to the various stakeholders, the ability of the organisation’s existing capabilities to deliver these expected outcomes, and the ___, all remain consistent.
Validation of the objectives in respect to the environment in which the organisation operates
This principle focuses on what an organisation should do.
- Business strategies are developed using a variety of analytic frameworks.
Strategy mapping articulates a strategy in such a way that
It can be readily interpreted and acted upon.
Strategy maps vary but are essentially a ___, often aligned against an organisational backdrop.
Graphical depiction of goals, objectives, and related courses of action
The __, __, and __ enable strategy formulation by highlighting focal points that executives should incorporate into strategic planning efforts
Ansoff Product/Market Grid, SWOT analysis, and Five Forces Model
“provides the discipline to ensure that the formulated strategy has specific objectives for shareholders and customers, an explicit customer value proposition, the critical internal processes for creating and delivering the value proposition, aligned human resources, information technology, and organization culture
The Norton Kaplan Strategy Map
The Norton Kaplan Strategy Map provides the ___, an explicit customer value proposition, the critical internal processes for creating and delivering the value proposition, aligned human resources, information technology, and organization culture
Discipline to ensure that the formulated strategy has specific objectives for shareholders and customers
The Norton Kaplan Strategy Map provides the discipline to ensure that the formulated strategy has specific objectives for shareholders and customers, ___, the critical internal processes for creating and delivering the value proposition, aligned human resources, information technology, and organization culture
An explicit customer value proposition
The Norton Kaplan Strategy Map provides the discipline to ensure that the formulated strategy has specific objectives for shareholders and customers, an explicit customer value proposition, ___, aligned human resources, information technology, and organization culture
The critical internal processes for creating and delivering the value proposition
The Norton Kaplan Strategy Map provides the discipline to ensure that the formulated strategy has specific objectives for shareholders and customers, an explicit customer value proposition, the critical internal processes for creating and delivering the value proposition, aligned __, __, and __.
Human resources, information technology, and organization culture
The Business Motivation Model (BMM) provides a mapping between the ___ needed to achieve those ends.
“ends” to be achieved (i.e., goals and objectives) and strategies and tactics (i.e., the “means”)
Hoshin Kanri provides cross-mapping concepts including tying mission, goals, and objectives with
Action items and key performance indicators (KPIs).
The end result of any strategic planning process, regardless of approach taken, is a clear set of __, __, and __ that management can act upon to deliver change.
Measurable objectives, priorities, and action items
The “planning” approach to strategy embodies an implicit belief that
High level opportunities should be identified first from which plans should be developed to achieve those objectives.
The “planning” approach to strategy reflects the focus on
Analysing market opportunities as the core analytic approach for strategy development.
Ansoff Product/Market Grid suggests that organisations examine four quadrants that combine ___ axes to produce four distinct value propositions (Market Penetration, Market Development, Service/Product Development, and Diversification).
New Markets / Current Markets and New Products and Services / Current Products and Services
Ansoff Product/Market Grid suggests that organisations examine four quadrants that combine New Markets / Current Markets and New Products and Services / Current Products and Services axes to produce four distinct value propositions ___.
Market Penetration, Market Development, Service/Product Development, and Diversification
The Ansoff Grid provides a quick outward-facing market-oriented view of where an organisation might
Find potential opportunities.
Many organisations face complex combinations of the four quadrants which this approach is unable to address.
Ansoff Product/Market Grid
SWOT combines lenses for an organisation’s __ combined with an analysis of the environment (market opportunities and threats).
Capabilities (strengths and weaknesses)
SWOT combines lenses for an organisation’s capabilities (strengths and weaknesses) combined with an analysis of
The environment (market opportunities and threats).
It is not resilient enough to enable a strategic framework to be built that can be used to guide and govern an organisation.
SWOT
Porter’s approach subdivided the competitive environment into five forces:
Potential Entrants, Suppliers, Buyers, Substitutes and Industry Competitors
The Five Forces Model provides a comprehensive set of perspectives sufficient for organisations to build
A robust strategic framework.
What this framework lacks is both the assessment of what an organisation can do and how the objectives of the organisation link to these perspectives.
The Porter Five Forces Model
The planning approach can be contrasted with approaches that focus on __ as the core analytic concept rather than on market analysis.
Motivational aspects of an organisation
Approaches that focus on motivational aspects of an organisation as the core analytic concept rather than on market analysis are sometimes referred to as
The “design approach” to strategy
In “design approach” to strategy, strategy builds upon an organisation’s existing high-level objectives to
Provide an actionable path or set of paths towards achieving all or part of those objectives.
Vision statements describe
How an organisation wants to be perceived externally
Mission statements describe
The organisation’s core value proposition
The balanced scorecard focuses on identifying top-level objectives and then finding
Metrics that can be used to support the achievement of those objectives.
Lowest-level scorecards typically are __ as opposed to higher-level metrics which are often score composites of these lower-level metrics.
Directly observable metrics
The balanced portion of the scorecard captures the need for objectives to ___ as well as capturing the organisation’s performance within core differentiating capabilities.
Represent value that is delivered to different stakeholders
The balanced portion of the scorecard captures the need for objectives to represent value that is delivered to different stakeholders as well as capturing
The organisation’s performance within core differentiating capabilities.
The strategy map has three components: ___ in the context of the competitive marketplace and the economic, legal, and societal environment.
An objective map; a mapping of objectives and outcomes to capabilities and value streams; and one or more analyses that evaluate the objectives and mapping
The strategy map has three components: an objective map; a mapping of objectives and outcomes to capabilities and value streams; and one or more analyses that evaluate the objectives and mapping in the context
Of the competitive marketplace and the economic, legal, and societal environment.
The core component of strategy is an objective and outcome chain in which
A series of actions are defined that will plausibly result in a achieving the desired objectives.
If a timetable and resource budget are prepared for A series of actions are defined that will plausibly result in a achieving the desired objectives, it would be called
A “plan”
If the “plan” is resourced and the timetable fixed, it becomes
A project.
The desired outcomes of the objective maps can be
Estimated and become measurable objectives.
The actual outcomes of a project can be measured and compared with the objectives to determine if __ and to identify corrective changes to the project.
The project is achieving the objectives of the strategy
The actual outcomes of a project can be measured and compared with the objectives to determine if the project is achieving the objectives of the strategy and to
Identify corrective changes to the project.
The top level outcome in the chain is frequently called a
Strategic objective
An objective map is created with the purpose of achieving this objective.
Strategic objective
These objectives are being pursued to change the “status quo” in the enterprise
Strategic objective
In general, an objective map will consist of a tree-like structure, rooted at the
Strategic objective
Objectives in one strategy may have outcomes that
Oppose desirable outcomes that are part of other strategies.
A strategy portfolio is a collection of objectives which are linked together by outcomes that
Support or oppose the outcomes of other strategies.
Objectives in a strategy will often have
Pre-conditions that must be met before they can be carried out.
In the objective maps, some of the outcomes supporting one objective will
Satisfy the pre-conditions of another objective.
It is not necessary to completely identify all of ___, ___, and ___.
The objectives and their outcomes, the support/oppose relationships between outcomes, and the preconditions for actions.
It is typical to only identify the important initiatives (i.e., those that may be difficult to execute), __, and important oppositional/supportive relationships between outcomes.
The important outcomes
It is typical to only identify __, the important outcomes, and important oppositional/supportive relationships between outcomes.
The important initiatives (i.e., those that may be difficult to execute)
It is typical to only identify the important initiatives (i.e., those that may be difficult to execute), the important outcomes, and
Important oppositional/supportive relationships between outcomes.
Carrying out an initiative requires
Resources of various types.
The skills and information resources to carry out an initiative are likely to be found in
Capabilities that can execute the initiative or can perform related actions.
Matching initiatives to capabilities allows the architect to estimate
The degree of change to a business that will be needed to execute the strategy.
In many cases capabilities need to be __ or __ to enable delivery of a given strategy.
Improved or transformed
Analysis of the skill and other resource requirements of an initiative and their preconditions will be essential inputs into
Defining the capability to be created or transformed.
A strategy action may be
“Carried out” by a capability
A capability may be “augmented to carry out”
A strategy action.
a capability may be”created to carry out”
A strategy action.
Capabilities that are required to direct the execution of strategic initiatives
Executive capabilities
Linking an executive capability to a strategic initiative makes it clear
What part of the enterprise is responsible for the action.
This is an important test of feasibility for a strategy.
The organisation must be able to marshal resources to support the implied additions to the capability.
The linkage of strategic objectives to capabilities creates the signposts needed to
Carry out feasibility and capability analyses for the corresponding objective map.
Linking outcomes to value elements provides information about
The strategic value of the outcome.
If an outcome ___ and ___, the architect should consider whether it is strategic.
Has little value and does little to satisfy critical preconditions
If an outcome is linked to a high value objective, the initiative that produces this outcome
Should be carefully analysed for feasibility and effectiveness
The linkage of outcomes and value elements can be thought of as
Bidirectional.
Value mapping includes a concept of ___ cross-mapping.
Value stream / capability
Using this cross-mapping approach enables a more cohesive perspective on capability / initiative dependencies.
Value stream / capability
Factors in the environment may __ or __ the business value of any strategy.
Enhance or diminish
These factors limit the set of options that an organisation can successfully choose to pursue.
Environmental
Objectives supported by strong capabilities are generally considered to be
Strengths.
Outcomes with high value, such as customer loyalty, can be considered to be
Strengths.
Opportunities can be related to __and indirectly to the contemplated initiatives that result in the accomplishment of them.
Strategic objectives
An alternative, dynamic approach to strategy analysis.
Scenario planning
In this approach, analysts imagine changes in objectives that could be taken by marketplace participants or situational changes that could happen as the consequence of an event.
Scenario planning
Scenario planning can be linked to strategy maps by linking the
Event outcomes to the objectives of the strategy that they support.
Most strategic failures result from __ not bad strategy (Norton / Kaplan)
Poor execution,
This approach is a metric-based approach which attempts to create strategic alignment by creating a series of hierarchical “scorecards”.
The Balanced Scorecard