Strategic planning is critical to the continued success of any organization, yet fewer than half of the executives who responded to a new online survey conducted by The McKinsey Quarterly say that they are satisfied with their company’s approach to planning strategy. Further, although three-quarters of the respondents report that their company has a formal strategic planning process, fewer than a quarter say that the process is key to making their most important decisions; senior executives — most importantly, the CEO — drive decision making. The executives also raised significant concerns about the way their company executes the strategy, communicates it, aligns the organization with it, and measures performance against it.—The McKinsey Quarterly

Strategy is a long-term Action Plan designed to achieve a particular set of goals; a comprehensive tool kit which helps a company develop an overarching road map. The road map metaphor is useful because Strategy is the mechanism organizations use when embarking on a journey. Strategy, just as a well thought out road map, defines the destination, route of travel, and other critical pieces of information. It illuminates the who, what, where, when, why, and how for the entire organization.  

Continuing the road map metaphor, it becomes obvious that communicating information, aligning the organization, measuring performance against the plan, and execution are absolutely critical if a company wants to arrive at their planned destination. The well thought out road map provides for options and alternatives. Strategy, as a road map, is about making deliberate Choices and having the Adaptability to adjust to changing circumstances. A basic tenet of Strategy is the ability to drive profitable growth by leveraging Value Disciplines and Operating Models.

Using the Value Discipline Model helps companies identify how their customers “buy” the value which they represent. Do customers look for Low Cost Leaders, the latest & greatest Technology, or are they looking for the Best Total Solution? Knowing this is critical because successful companies can not be all things to all customers. To do so risks losing the most profitable customers and attracting less profitable ones.

The Supply Chain Center’s approach to Strategy delivers the critical ‘road map’ companies need to achieve their goals & objectives and it ensures that communication, alignment, performance measures, and execution are active, crisp, and focused.