Business runs better when your strategic framework, like a skeleton, is aligned — from the head, through the heart and down to each digit of every finger and toe. Alignment across an organisation's goals — departmental, team and each member — is a crucial benefit of a strategic framework. The cohesion — no conflicts and total clarity in the work — that alignment enables will lead your company where it wants to go.
What is a strategic framework?
Think of a strategic framework as the touchstone for how and why a business functions. Creating a strategic framework is a critical exercise that defines the integral functionality of a business by answering questions, such as:
- Why does our business exist?
- Who are we as a company?
- What do we stand for?
- Where are we headed?
- What are the desired outcomes of our work?
- What tasks are associated with achieving those desired outcomes?
- Why should we monitor a particular task?
When you start a business or add new products or services, determining your business's form and function indubitably leads back to your strategic framework. Next, let's dive into what developing a strategic framework looks like.
How do you define your company's strategic framework?
Developing a strategy for your company is not a one-day activity for your leadership. Teams will have to collect data for analysis. Don't be surprised if you unearth weaknesses or areas of risk within your organisation. As you move through the strategic planning process, it may become clear that immediate changes need to be made, and leadership should engage in a change management process.
The core elements of a strategic framework define your company's:
- Overall goals
- Immediate objectives
- Key result areas
- Action plan
With each element defined, your strategy can provide purpose and clarity to your business's structure, change management and future direction.
Strategic framework examples
As you can imagine, business consultancies have created strategic frameworks that you might find useful. Here are three major ones to consider:
- Boston Consulting Group's Growth Share Matrix
- McKinsey's Three Horizons of Growth
- Core Competencies
WMC Accounting has the expertise to enable small to medium-sized businesses' growth and prosperity. Contact us today to learn more about our strategic planning and business advisory services.