Strategy System

Summary An organisational strategy is a long-term plan that defines how a company will achieve its goals and operate effectively. A strategy system in PaT turns that plan into clear, structured processes, using Strategy Documents (SDs) instead of spreadsheets, emails and meetings. With the strategy in one connected system, the organisation can set priorities, assign responsibilities, track progress and keep teams aligned towards the same objectives, with greater visibility, accountability and consistency. The Strategy SD holds the purpose and vision, the business analysis and the ideas; the ideas chosen become projects within Key Result Areas; and regular reporting tracks their progress.

See also: Mastering the Business Strategy Template, the how-to for the template.

Steps

Step 1

Open the Strategy SD. It is the current strategy master for the business, and users can spin it up from a template.

Step 2

The SD's section headers run down the page. Among them are Strategic Foundation/Strategy House, Analysis Kit, Ideation and Key Result Areas. To open a section header, click the small arrow at the left end of its row: the rows under it appear, and the arrow turns to point up. Click the arrow again to close the header.

Step 3

Open Strategic Foundation/Strategy House. It holds the organisation's PURPOSE and VISION, two very important parts of any strategy system: they define why the organisation exists in the first place, what its purpose is and what it is ultimately working towards. With them clearly documented in the Strategy SD, the entire business understands the direction, goals and reasoning behind the work it does.

Step 4

Open Analysis Kit. It holds a series of business analysis tools to use as part of strategy planning, including: - SCOT-T, which is similar in some ways to a SWOT analysis; - PESTEL, which helps the business understand the external forces that may impact the organisation; - Porters 5 Forces, inspired by Michael Porter's Five Forces model, which looks at competitive pressures within an industry and how competitors can impact the business.

Step 5

Further down Analysis Kit are Business 360 and a range of other analysis tools. They all help the organisation gain a deeper, more meaningful understanding of where the business currently sits, and of how the market, the economy, industries, competitors and the wider world can impact the way it operates.

From ideas to projects

Step 6

Open Ideation. Every strategy starts with ideas, so this is where strategy begins. Before a strategy session, team members in the business unit add their ideas to Ideation as notes, ready to review and discuss in the session. When building a strategy there is no such thing as a bad idea: even an idea that is not fully thought through could become the foundation of a great idea through further discussion and collaboration.

Step 7

Hold the strategy session. The key members of the business unit come together to review the ideas in Ideation, discuss them and decide which should move forward and become projects.

Step 8

Move each selected idea into Key Result Areas, under one of its five numbered areas, where it is organised, developed and managed as part of the overall strategy. Each idea should sit within a Key Result Area: for an idea to move forward into a project, it should help improve or support one of the Key Result Areas, so that it aligns with the organisation's overall strategy.

Step 9

Choose the area by what the idea improves. The first two areas are: - Customer Centricity: keeping customers at the centre of everything the organisation does. For a service organisation, delivering a great customer experience is extremely important. - Operational Excellence (Systems): having strong systems and processes in place to deliver that experience effectively and consistently.

Step 10

The other three areas are: - People Capability: developing high-performing people within the organisation, because without its people the business cannot succeed. - Brand, Sales, Marketing: growing brand awareness and generating the sales that support the organisation and its operations. - Pursue Growth: initiatives that help the organisation expand and thrive in the long term, as a business needs continued growth to stay successful over time.

Step 11

Once an idea is in its Key Result Area, convert it into a project using a project template. The team then develops and manages the project in PaT until it becomes a reality for the business. In Key Result Areas, an idea that has become a project shows as an underlined link to its project.

Inside a project

Step 12

Click a project's link to open it. The project follows an advanced project management format, designed to flush out the gotchas and key milestones that contribute to a successful implementation.

Step 13

Look at the project's section headers, starting with Project Design (critical thinking) and Project Overview Purpose. Together they form a pre-formatted agenda that pushes people to think more intelligently about what actually needs to be delivered to achieve the strategic initiative.

Step 14

Open any of the section headers, such as Scope (with In Scope and Out of Scope) or Ownership & Stakeholders (with Project Owner, Project Lead and Key Stakeholders), to see the level of detail the agenda asks people to think through. Because people think more critically, the chances of delivering a strong outcome increase significantly.

Reporting on progress

Step 15

The strategy system, or Strategy Framework, is completed by integrating it with the reporting framework. The business's reporting SD lists each project as an underlined link, with its owner's progress updates beneath it.

Step 16

Every project, or strategic initiative, is assigned to a project owner. Based on the reporting cycle, typically monthly, the owner provides updates on progress. The chat thread then creates a running historical record over time, making it easy to revisit, reflect and recalibrate whenever needed.

Step 17

The Strategy Framework has three key components: - The Strategy Document: where ideas are captured and developed, taking them from initial ideation through to an agreed strategic initiative. - The Project Layer: each strategic initiative is supported by an intelligently structured project. It drives critical thinking, and it is where you manage tasks, sub-tasks, sub-projects, Gantt charts and communication with stakeholders. - Closing the Loop (Reporting): the strategy framework is connected into the reporting framework. Regular reporting not only provides updates but also builds a clear historical chain of events that can be accessed instantly.

Result. By working through their business unit's strategy this way, teams can collaborate more effectively and stay aligned towards shared goals, knowing that each project contributes to the overall success of the organisation.