This article is the third in a series of features covering industry specific strategic frameworking applications. Over the next few months, we will cover diverse industry sectors and will demonstrate how businesses benefit in achieving superior performance results, and in exceeding their industry average growth rate.
What is strategic frameworking ?
A strategic framework is a comprehensive architecture, which enables the design and implementation of business strategies.
What is its purpose ?
Establishing how a business’s people (individuals and teams) are connected and what activities they should focus on to achieve desired strategic outcomes.
Why is is important ?
Currently the majority of strategies fail to achieve their desired result. This is due to 4 main reasons: ineffective/absent strategy management process, poor strategy design, execution and adaptation. A strategic framework is a “must have” to effectively overcome the propensity for failure in these areas.
What makes strategic frameworking so effective is its relentless focus on segmentation to create strategy that is relevant and deliverable. Instead of starting with the conventional grand vision and mission statement, it begins by asking what is our current position as a business (in a specific market segment, product category, geography,channel) and what the final objective should be. Frameworking then enables the business teams to define a solution, develop a strategy at the lowest common denominator and through a process of iteration and continuous challenge, improves and refines them through testing.
In contrast, when companies use only one dimension to drive strategy (eg product), they will be focusing strategy on what they know and not on looking at what they don’t know.
Creating multiple segmentation will lead individuals and teams to develop iteration (prototypes) and multiply the chance of success.
The framework applied to the Banking industry
When approaching an industry sector and set-up a strategic framework, the critical framework components are the strategic dimensions, defined as strategic drivers.
At the highest level, these drivers are the strategic enablement of the business. Once put together, they define by their intrinsic nature, the strategic framework of companies.
The diagram below displays graphically the strategic framework that will allow a business in the Banking industry to optimally deliver strategies
These 4 dimensions, and subsequent sub-levels, constitute the strategic framework. The various combinations of dimensions create and organize growth segments which the organisations people connect to and focus on to identify and deliver actions to grow the business.
To activate the framework people tasked with delivering and executing strategy need to connect effectively and this means that specific roles are required to be created in alignment with the framework.
In the example above, the Product/service development function responsible for developing new products will have to work with managers leading a specific end-use markets (eg Small Business), a geography (eg a county), a channel (eg branch) a product group (Merchant services) , ensuring that the addition to the product portfolio is in line with the strategic objective relevant to the specific dimensions of the business; as well as a route to market and “supply chain” to coordinate delivery
Effective strategies are neither yearlong studies nor 100 page plus documents. They are living, breathing and totally dynamic requiring individuals and teams to collaborate on a continuous basis through a formal framework.
Enablegrowth provides the business platform for businesses to achieve superior performance results, in exceeding their industry average growth rate.
Enablegrowth has extensive experience in setting-up and activating strategic frameworks. If you need us to provide you with a specific industry sector framework for your business please reach out at email@example.com