There is endless discussion on strategy framework by specialists, business people. I would like to express my view on this topic.
- Firstly, because strategy itself is not a fixed course of actions. It needs review and update regularly. Your strategy is the reflection of the many variables of your business environment (macro, micro and the business itself) which are always changing.
The strategy and strategy framework therefore must be adapted to the situation at the time frame of planning.
Here are some examples.
- During the past 2 years of pandemic, all strategy frameworks are irrelevant!
Businesses are run, if any, by the first level of strategy, i.e. the aspiration.
You couldn't wait to collect information to study, and then to do all the diagnosis, analysis. But you must make decisions and take prompt actions when the situation came. Or you are out of business.
In these situations, there is no time (and no need) for a long-term strategy, and no place for strategic planning exercises.
Only the tactics which were driven by situational conditions and guided by your vision, mission and values.
Some people may still do some scenario building to guide their responses, not all.
It all depends on the situation. So, the so-call "standard" strategy framework is not applicable in this situation.
Pandemic is so rare, it happens once or twice in hundred years. So the situation is exceptional?
OK, some more examples.
- When business is at startup stage. Do you chart your courses and run the business following the recommended standard strategy framework?
No, most people would laugh at it! You struggle and fight to survive everyday.
Survival is your first priority. You will do whatever it takes, try different products and markets, with different sales and marketing approaches, to find a place for you.
You may want to chart the course to growth later when everything is clear and you are entering the growing stage, not at startup stage.
Another example:
- At a later stage when there is no more growth. There is almost no difference on products and services. Everybody is the same. And price is the only thing that decide.
Would you still spend your time on the details of the "standard" strategy framework for your commodity business? Or you would want to spend time on something else more efficient, a new business opportunity for example?
My conclusion is that there is no one single-right strategy framework for everybody to follow.
You have to decide the right approach to strategy for your business.
Questions, challenging are welcome!
Do Hoa - Tinh Hoa Quản Trị
