Strategy Analysis

Practical tips#

State the business need from the enterprise’s point of view#

The training materials describe business needs as problems or opportunities of strategic importance. They can surface top-down (from leadership), bottom-up (from operations), from middle managers, or from external drivers such as regulation or competitors. Whatever the origin, write the need from the perspective of the enterprise, not of one stakeholder. “Front-desk staff want fewer phone calls” is a stakeholder wish; “customers cannot find out when their bike will be ready without calling, which ties up staff and frustrates customers” is a business need.

When you assess a need, consider:

• the harm the problem causes if nothing is done;
• the benefits a solution would bring;
• how quickly the problem must be addressed;
• the underlying source of the problem (use Root Cause Analysis rather than taking the first explanation).

Check that the future state reflects real goals#

F. P. Tarasenko warns that stated goals often differ from real ones, usually in good faith: experts substitute their own view for the stakeholder’s goal, people confuse goals with means, or a goal set is incomplete. Test the future state by asking “why do you need this?” until you reach something the sponsor would defend as an end in itself, and check that no affected group’s goal is missing. See Identifying Goals and Defining Criteria.

Include transition states#

A change strategy rarely jumps straight to the target. Describe intermediate states that each deliver some value and can be stopped safely if circumstances change.

Example: strategy analysis at The Workshop#

The Workshop (a fictional chain of 12 bike-repair shops) starts with a vague wish for “an app”. Strategy analysis turns it into:

• Current state: bookings by phone and walk-in only; customers phone to ask about repair status; each workshop orders parts from the supplier separately by email.
• Business need: too much staff time goes on phone calls and parts chasing, and customers are frustrated by not knowing when bikes will be ready.
• Future state objectives: most bookings made online; customers notified automatically at key repair stages; parts ordered through one channel with visible delivery dates.
• Risks: mechanics may not update repair status consistently; the supplier may not support electronic ordering.
• Change strategy: first, online booking and status notifications using an off-the-shelf booking service (transition state 1); then integrated parts ordering once the supplier is ready (transition state 2).