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Strategy 5.0™ – Where to Play, How To Win, Most Important Goal

Strategy 5.0™ – Where to Play, How To Win, Most Important Goal

By: Jim Gitney   |     March 27, 2022

How many different strategic frameworks are there? Probably as many as there are consultants.  Most are difficult to explain to leadership, and they are impossible to explain to everyone else. While the development of a business strategy can be complex,  the focus of the the Group50® Strategy 5.0™ framework of Where to Play and How to Win provides a solution to this problem by keeping it simple:

  1. Most Important Goal (MIG) defines one measure of success for all stakeholders
  2. Where to Play tells all stakeholders the markets and customers the focus of the company’s strategic plan
  3. How to Win is the company’s playbook for getting it done

Everyone, from the stock room to the board room  (employees, customers, contractors, suppliers), all stakeholders, understand these words. Our Strategy 5.0™ framework shows how the company’s strategy is built upon the foundation established by its Mission, Vision, Values and Value Proposition.  It shows the team the Key Business Levers they should use be differentiated in Where to Play and to  successfully implement the strategies and tactics in How to Win.

Everyone can see the entire strategy on one page and our OSMG (Objectives, strategies, measurements, and goals) approach provides the metrics on which success will be measured and the opportunity for every stakeholder to understand how they tactically and quantitatively contribute to strategic success.

We won’t spend time on Mission, Vision, or Values in this article because companies have been using these as a cultural foundation for a long time, but successful strategic execution requires far more than a cultural foundation.  I want to talk further about some of the more unique concepts in Group50’s Strategy 5.0™ framework of Where to Play and How to Win.

  1. Rallying Cry: The rallying cry may not sound unique to some, but it becomes an important soundbite in the change management process, and it provides a wonderful way to use it as a communication tool and a reminder to all stakeholders of the company’s strategic plan and its objectives
  2. Value Proposition: A company’s value proposition isn’t often discussed outside of the marketing and sales organization. It is important, because it must articulate the essence of the company’s ability to differentiate itself in the marketplace. It provides the “Why” customers buy the company’s products and services
  3. The Most Important Goal – MIG: The Most Important Goal defines what the strategic plan needs to accomplish. What gets measured get managed and, in this case, the Most Important Goal defines how to measure strategic success.  We believe that when a company is focused on only one metric, it will clearly define all other metrics. Examples of a Most Important Goal that will require uniquely different strategic plans include:
    1. Increase Enterprise Value 250%
    2. Quadruple sales
    3. Double cash flow
  4. Key Business Levers: Every company has unique power alleys in their business that they must take advantage of to continue their success. Some examples of these are a strong balance sheet, unique unchallengeable IP, commanding market share, advanced OMNI channel technologies, proprietary manufacturing capabilities or other things they do that creates competitive advantage in the marketplace
  5. Financial goals: This may seem obvious, but it isn’t, and it isn’t easy to create a financial horizon that defines the elements of the company’s Most Important Goal. In some companies, developing these are as difficult as creating strategies and tactics!

These are foundational elements of a company’s strategic plan. They make up many of the Level 1 requirements of Group50’s Business Hierarchy of Needs® change management framework.  They provide the litmus test for the justification for all strategies and tactics. Every senior leadership team we support struggles with developing these and it opens their eyes on why they are necessary to have in order to properly develop a cohesive strategy and to communicate the company’s strategic plan to its stakeholders.

We often find that once completed, leaders have a different perspective of Where to Play. They view their served markets through a new lens,  because they now must validate that these markets are robust enough to support the company’s Most Important Goal and the financials that support it.  Once completed, the most difficult part starts.

How to Win is made up of strategies and tactics that are actionable by every part of the organization. Before leadership can get there, they must understand the company’s strategic gaps and operating gaps through a series of analytical efforts as outlined in Group50’s Strategic Planning 5.0™ playbook.  Once these activities are done, leadership can then get to the process of defining the strategies and tactics that deal with their current state operating gaps and implement the building blocks that move the company toward future state which is defined by its Most Important Goal and Where to Play.

Where to Play and How to Win, are easily understood concepts, but getting there requires a lot of effort over many weeks and involves multiple levels of the organization as part of the change management effort which is fully defined in our Business Hierarchy of Needs® framework. It is important the leadership team have this process properly thought through, planned and objectives that are clearly defined and cascaded throughout the organization.  They holy grail of successful strategic planning and strategic execution is when a leader can walk to any stakeholder be told by them what their roll is in helping the company obtain strategic success.

That is where Group50® comes in.  We have led many leadership teams in companies large and small through this process. We know how all the pieces fit together and where the difficulties will arise. We have built the appropriate supporting frameworks and methodologies for designing and achieving strategic success. Without support, a lot of time can be wasted or worse yet, a poor strategic plan is developed, isn’t rolled out properly and the company becomes a victim of Anti-Strategy and declining decline.

If you want to have a robust strategic plan and a well thought through process for executing it, call a Group50® strategic planning expert at (909) 949-9083, drop us a line at info@group50.com or request more information here.

 

About the Author:  Jim Gitney, CEO and Founder, started Group50® Consulting in 2004 with the focus of working with companies to significantly improve their performance by leveraging peopleprocess and technology.

Jim has held C-suite and Board positions in large and small companies (GE, Black & Decker, Sunbeam, Rain Bird, Pankl Aerospace and others) both privately and publicly held. His subject matter expertise includes Industry 5.0, strategic planning, strategic execution, operations, supply chain and restructuring.  He has taken best practices from around the world, worked closely with clients and other Group50® consultants to create Group50’s Strategy 5.0™ strategic planning framework, the Business Hierarchy of Needs ®, a change management framework and many more strategic planning and execution tools. Group50® Consulting consists of consultants from every functional discipline who have spent their careers in corporate America developing strategic plans and rolling up their shirt sleeves to get it done.  

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This entry was posted in Anti-Strategy, Business Hierarchy of Needs, Strategic Execution 5.0 ™, Strategic Planning 5.0, Strategy 5.0, on March 27, 2022
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One Comment

  • Charles M. Intrieri Consulting March 27, 2022 at 3:26 pm

    Dear Mr. Gitney:

    Change Management can be very difficult in companies. Change can be hard, but it is a necessity to follow the hierarchy of needs. Cultural transformation is very difficult, but it must be implemented if the company wants to change course. If they want to be a Lean company cultural transformation is a must before using Lean tools, Thank you.

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