Master Strategy: Making Key Strategic Decision
"Master strategy" is a structured procedure of how to think during making key strategic decisions and during the formulation and implementation of business strategy. It consists of the following parts:
1. The basic frame of business strategy precisely defines key decisions and core parameters of business strategy.
2. Structured strategic decision-making:
2.1. Basic phases of structured strategic decision-making.
2.2. System of categories and criteria for testing validity of alternative strategies.
2.3. System of concepts testing techniques.
3. Action review: (U.S. Army, U.S. Navy, U.S. Air Force): preparation for action and post action analysis of what happened, why it happened, could we do it even better in the future and what can we learn from it.
In the analytical phase of formulation and implementation of business strategy (diagnosis of the current state and preparation for the future) strategic audit and strategic scenario planning: how to get ready for the future can be used in a very effective way (see www.perlaki.sk).
After the formulation of optimal business strategy, its creators develop project of its implementation, prepare its communication strategy (the way of its visualization, presentation, etc.) and prepare project of employees’ participation in its final formulation and implementation.
The above mentioned structured approach can be - if the client is interested - enlarged by a preparatory phase of trainings from the area of business strategy (see training program Building a Successful Company: Business Strategy) and a closing phase consisting of the formulation and implementation of strategic goals and key strategies to achieve them.
Advantages of master strategy
1. The basic frame of business strategy, structured strategic decision-making and action review are precise methodical procedures of how to formulate and implement master business strategy (grand strategy, high strategy) and how to make key strategic decisions.
2. The basic frame of business strategy precisely defines key decisions and core parameters of master business strategy. Alternative strategies will be created by structured strategic decision-making. The best alternative - i. e. the optimal business strategy - will be chosen by testing the validity of alternative strategies. We can prepare very well for all big challenges, risks, problems, obstacles, barriers and blocks - and for their overcoming or removing - by means of the action review process.
3. Structured strategic decision-making has three phases:
3.1. Formulation of alternative strategies.
3.2. Laying down boundary conditions for their success - i. e. identification of biggest challenges - and the ways of their testing.
3.3. Testing the validity of boundary conditions of success and choosing the optimal strategy according to the test results: making strategic decision.
4. For testing the validity of alternative strategies, system of specific categories and criteria describing specific industry and system of concepts testing techniques are used. These systems are open systems. They may be expanded by other criteria, categories and techniques that are characteristic of the given company and the given industry.
5. Changing group dynamics. Structured strategic decision-making changes group dynamics from win - lose to win - win.
6. By before action review we can prepare very well for all big challenges, risks, problems, obstacles, barriers and blocks of formulation and implementation of business strategy - and for overcoming or removing them. By after action review we can significantly increase the effectiveness of our individual, group and organizational learning in the area of business strategy. In the contemporary turbulent VUCA world (volatility, uncertainty, complexity, ambiguity) it will create for us an enormous competitive advantage.
7. Structured strategic decision-making has very wide areas of application. It can be used either at corporate and company level or at the level of particular divisions, sections, departments, working groups, teams and individuals.