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Ronald van Haaften By Ronald van Haaften
Ronald van Haaften

Strategy development process.

strategyOver the past 50 years, a multitude of strategy models have been developed for various markets and segments. I've poured over numerous books filled with these models and continue to study them. Each offers insight into the dynamics of your specific field. Some models tackle individual strategic elements, while others encompass a more comprehensive process.

A model that holds particular significance for me is one I've designed, tested, and applied for the past years. It has consistently proven its worth. Let's face it: many of these models are variations on a theme, built around similar core concepts but presented differently. My model is no exception.

However, within its foundational structure, I incorporate a variety of intermediate models, including the EFQM, Boston Consultancy Matrix, Balanced Scorecard, MaBa (Ge Matrix), Steering and Control model (Berenschot), Four Phase model (Hardjrono), Value Discipline model (Tracey & Wiersema), IR grid, 5-forces (Porter), Value Chain, and Growth matrix (Ansoff). But fear not, we'll start with the basics and delve deeper as our strategic journey progresses.

What sets this model apart?

In essence, it's effective. While it may seem intricate at first glance, it's a straightforward model that encompasses all the strategic components needed to craft a comprehensive, pragmatic business plan. Moreover, it integrates four pivotal business development stages:

  1. Policy (Raison d'être process)
  2. Strategy (Targeting & strategy process)
  3. Tactics (arrange processes)
  4. Operationalization (transformation)

So, what's the core principle?

My model provides a rational, top-down structure rooted in fundamental strategy development. The strategic design perspective, or paradigm, heavily influences the process underpinning every strategic plan. It's a coherent sequence where various forces and constraints are assessed to yield fresh strategic insights and identify the optimal value discipline. See figure below.

Yet, it's crucial to note that individual experiences, organizational culture, and developmental ideologies can give rise to emergent strategies. These strategies spontaneously surface without prior intent, largely driven by the unpredictable nature of our business environment. As such, this model aims to produce a fluid, adaptable strategic plan that evolves in response to changing circumstances.

A word of caution

While we commence with a logical process, the procedure itself isn't the sole determinant of your strategy's success. Think of it more as a roadmap or guideline. The consistent adaptation and diligent implementation of the strategic plan by your team are the true keys to success.

Rovaha strategy model

Figure 1.  Rovaha strategy model.

 

Core principles to evaluate:

  1. Raison d'être process
    1. Determine the overriding purpose. > Vision.
    2. Determine the desired future mission statement. > Mission.
    3. Indentify the core reason or justification for existence. > Business definition.
  2. Targetting
    1. Select and quantify the goal and objectives. > Goal & Objectives.
    2. Determine critical success factors. > CSF's
    3. Determine of set of strategic key performance indicators - BSC indicators. > KPI
  3. Strategy development process:
    1. Analyse the external (macro) environment External
    2. Analyse the internal operating environment Internal
    3. Determine the opportunities and threats. > O&T
    4. Determine the strength and weakness. > S&W
    5. Build up the SWOT analyse. > SWOT
    6. Identify and evaluate possible strategies to be implemented
  4. Operationalization
    1. Determine critical processes. > CP
    2. Determine a set of operational key performance indicators. > KPI

After establishing your strategic marketing direction, you can then determine the overarching goals, structure, processes, and performance measures necessary to realize those objectives. The "Feedback Action Learning Loop" underscores that strategic processes are continuous and, in essence, never truly conclude. This model is designed to be a vibrant and evolving strategic-marketing framework.

With that in mind, I'll detail the specific steps associated with each process stage. Stay tuned, my friends!

Next article: Vision statement Next

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