Much of the information that is available, whether printed word or online, to those seeking to learn how to better develop strategies tends to refer to what strategists term, ‘Vision-Based Strategy’ falsely giving the impression that all strategy should be vision based.
If all in the garden is rosy, this might be the case however reality does have a habit of throwing up problems which side-track us from our vision. When this happens, what do we do with strategy?
Ever since H. Igor Ansoff’s ‘Corporate Strategy’ (1965) popularised the concept of business strategy to a wider audience, strategy has evolved at an incredible pace with numerous models, theories, versions and methods arriving (and frequently departing).
How many different models of strategy are there? Probably over 1000 and, as in many other areas of life, some are good, many are mediocre, most lag behind or have fallen by the wayside.
It sounds confusing but it doesn’t need to be. Fundamentally nearly all of the successful models fall into one of two camps.
Model One; Vision-Based Strategy (aka Goals-Based Planning)
This will be the more familiar model to most working in and with strategy. It is ‘vision-based’ in that it defines the future before working (planning) back to the present by defining specific objectives that will need to be achieved against a set timescale if the Vision is to become reality.
These objectives will typically be specific (e.g. to increase profit margins on ‘product X’ by 10% by the end of the next four years). Actions will be attached to each goal clarifying the what, when, why, where, who and how to each objective.
A good Vision-Based Strategy will consider both external and internal factors, clearly identify organisational priorities and utilise both historical intelligence and analysis of current factors. In looking to the future, consideration will be given to informed forecasts, intuition and common sense.
Vision-Based Strategy tends to be longer term planning, certainly longer than 3 years with sounder models looking 10-12 years ahead although it should be noted that this will be subdivided into strategic planning cycles (frequently 3-5 years in duration).
Model Two; Issues-Based Strategy
This model will be less familiar to many although that is not to say it doesn’t have its place.
With Issue-Based Strategy we begin with the present and Work (plan) forward to the future. As the name suggests, it is typically used to identify issues faced by the organisation and work them forward toward solutions.
Common practice is to identify issues as questions (e.g. “how will we recruit our Board of Trustees?” or “how will we address the shortfall in expected funding?”) Action plans are then compiled describing the what, when, why, where, who and how required to address each issue.
Although this model can be used to address external factors it is more commonly utilised to focus on internal matters and the establishing of strong internal structures and systems.
Issue-Based Strategy tends to the shorter term, typically one year and never more than three. It is generally beneficial for young organisations, those facing critical current issues and/or those with far less resource (e.g. personnel or funding) than is required for its desired development. Generally, through sound Issue-Based Strategy, once issues have been addressed organisations will emerge stronger and then benefit from more Vision-Based planning.
The Hybrid Model
It is possible for a Vision-Based Strategy to incorporate Issue-Based planning. For example, if short term, unpredicted problems arise while working towards a longer term vision it will make little sense to ‘bin’ a Vision-Based Strategy which is otherwise delivering. Far wiser to incorporate into it Issue-Based planning designed to address and solve the problem so delivery of the longer term vision stays on course.
Don’t overcomplicate it
As stated earlier, since 1965 there have probably been over 1000 different models of strategy of which all of those which have stood any test of time are based on either Vision or Issue.
Regardless of which model you are applying, it is worth remembering that at its most basic, strategy is about identifying and working through the challenges which hinder you from reaching your chosen destination. Challenges that can be predicted should be planned for via ‘Vision-Based’ thinking, those that can’t will likely require ‘Issue-Based’ thinking as and when they arise.
© Jim Cowan, Cowan Global, 2011, 2016