Strategic Direction

In one of the early posts, I mentioned that in due course, I will be talking about Strategic Direction etc... well that time has come now..

Strategy is just one element of the overall strategic direction that leaders must define for their organizations. A strategy is not a mission, which is what the organization’s leaders want it to accomplish; missions get elaborated into specific goals and performance metrics. A strategy also is not the value network/chain -- the web of relationships with suppliers, customers, employees, and investors within which the business co-creates and captures economic value. Finally, a strategy is not a vision, which is an inspiring portrait of what it will look and feel like to pursue and achieve the organization’s mission and goals. Visioning is part (along with incentives) of what leaders do to motivate people in the organization to engage in above average effort.

In a nutshell, as illustrated below, mission is about what will be achieved; the value network is about with whom value will be created and captured; strategy is about how resources should be allocated to accomplish the mission in the context of the value network; and vision and incentives is about why people in the organization should feel motivated to perform at a high level.

Mission & Goals: What
Value Network: Who
Strategy: How
Vision & Incentives: Why

Together, the mission, network, strategy, and vision define the strategic direction for a business. They provide the what, who, how, and why necessary to powerfully align action us complex organizations.

Reference: http://discussionleader.hbsp.com/watkins/2007/09/demystifying_strategy_the_what.html

Thus Spake Socrates....