Figure Sense Framework PDF

FIGURE SENSE STRATEGY FRAMEWORK The Figure Sense strategy framework is a problem-solving methodology built on the premise that business strategy draws on four closely related components: framing, an iterative process that represents the conceptual component; formulating, a structured process that r...

FIGURE SENSE STRATEGY FRAMEWORK The Figure Sense strategy framework is a problem-solving methodology built on the premise that business strategy draws on four closely related components: framing, an iterative process that represents the conceptual component; formulating, a structured process that represents the formal planning component; executing, the detailed process of executing the strategy; and assessing, the qualitative and quantitative process of measuring progress toward the desired end state. The Figure Sense strategy framework can help you: understand complex, ill-structured problems, anticipate changes in the strategic environment, create opportunities for success, and manage transitions within the strategic environment. To navigate complex problems, it is often necessary to break down the problem into smaller parts that you can analyze more easily. The challenge is to simplify the tasks to be accomplished without being simplistic. Often, you need to focus on building a better understanding of a smaller element of the problem. From time to time, you will need to step back to evaluate how your improved understanding of an individual element of the problem contributes to your overall understanding. The Figure Sense framework provides cognitive tools and processes to help you iterate between different perspectives. This helps you understand and mitigate the adverse effects of complexity on business strategy. Simplicity is the key to overcoming this complexity, achieved by establishing shared understanding of the problem, the situation, and the solution. The Figure Sense framework provides this by forging shared understanding derived through continuous dialog and collaboration. The Figure Sense framework is underpinned by five core tenets: Applying strategic, critical, and creating thinking. Identifying and solving the right problem. Understanding the strategic environment. Adapting to dynamic conditions. Achieving the designated goals. Framing Framing is an iterative learning process intended to help you understand the problem while providing the tools to visualize both the problem and the solution from various perspectives. Framing focuses on learning about an unfamiliar and ill-structured problem and pivots on that learning to create a broad approach to strategic formulation. Through framing, we learn about the problem through continuous and iterative discourse, constantly validating the facts that bear on the problem, questioning our assumptions, and probing the limits of our knowledge. Framing consists of three distinct steps: framing the problem, framing the strategic environment, and framing potential solutions. We sometimes refer to these steps as the problem space, the environmental space, and the solution space. By repeatedly moving through these three spaces, you and your teammates will produce an actionable concept that will help guide your detailed strategic formulation. Step 1: Frame the problem: Understand and define the problem you wish to solve. Understand the strategic goal you wish to achieve. Problem frame: Any group affected by the problem or the solution you develop is a stakeholder. List these stakeholders. State the problem from the perspective of each stakeholder group. Understand how each stakeholder group defines the problem. Consider the problem from the perspective of those who define the problem differently from how you defined the problem. Seek to combine different statements of the problem into a more general definition that encompasses important aspects of the different statements. Decide upon a definition of the problem that all stakeholders can accept. Problem statement: A concise description of the problem or problem set to solve. Step 2: Frame the strategic environment: Understand the strategic environment, the context in which the problem you wish to solve exists. Relevant actors are groups and individuals that can impact the strategic goal you wish to achieve. List the actors related to the goal you wish to achieve (members of your organization, your customers, your competitors, government regulators, etc.). Define the tendencies (inclination to think or behave in a certain manner), tensions (resistance among or between actors), and potential (capacity for growth within a specific relationship) for each actor. For each actor articulate: o How would they view the strategic goal? o What actions are required to achieve the strategic goal they would support? o What actions are required to achieve the strategic goal they would oppose? Sources of power are the essential conditions, resources, and means needed to achieve the strategic goals identified. Some of these sources of power may be controlled by another actor. List the groups and individuals that affect whether the strategic goal can be achieved. List the groups and individuals whose expertise is critical to the strategic goal.  List the resources that are available to help achieve the strategic goal. Environmental Conditions are the external factors that can impact the efforts to achieve the strategic goal. What are the desired conditions within the strategic environment that represent success? How do tendencies (inclination to think or behave in a certain manner), tensions (resistance among or between actors), and potential (capacity for growth within a specific relationship) affect the strategic environment? What current or expected economic conditions might impact the outcome? What governmental regulations might impact the outcome? Step 3: Frame the solution: The final step in the framing process bridges framing and formulation. It translates understanding of the problem and the strategic environment into a broad approach for achieving the desired goals, which in turn drives the formulation of business strategy. Key considerations: List opportunities to gain and sustain momentum during execution. What is the likelihood of unintended consequences or threats to success? What are the resources required for each action within the recommended solution? How are those resources sequenced and coordinated? What are the risks involved in the recommended solution? How are those risks managed? How do those risks affect momentum? Solution frame: A refined problem statement. An initial guidance that describes the ends, ways, means, and risks. Ends are the goals you want to achieve, ways are the actions and objectives needed to achieve those goals, means are the resources necessary to support those ways, and risks are any potential opportunities or challenges that might affect the ability to achieve the desired ends. The guidance should forecast changes in the strategic environment while identifying critical transitions. A strategic narrative that articulates how the proposed solution will achieve the strategic goals. Products (graphics, charts, tables, etc.) created during framing. Reframing: The strategic environment is in a constant state of flux. Therefore, the problem and environmental frames must evolve as understanding of both change. Reframing reflects the shift in understanding that leads to a new perspective and typically involves a significant effort to redefine the framing of both the problem and strategic environment. Generally, one of three ways triggers reframing: a major event causes a significant change in the strategic environment; a scheduled review of facts and assumptions reveals a major problem or oversight; or assessment challenges understanding of the problem and, as a result, the efficacy of the solution frame. Formulating Formulation approaches strategy from a linear perspective, which allows you to describe the logic of the problem beyond simple cause-and-effect relationships and direct action and resources toward designated goals. The model used for formulation is composed of four related elements: Ends (the goals to be achieved), Ways (the actions and objectives needed to achieve those goals), Means (the resources necessary to support the ways), and Risks (the potential opportunities and challenges to attaining the desired goals). Formulation can best be represented by the formula: E = (W + M) / R In general, risk assumes an inverse relationship to ways and means. Even when risk presents opportunity, pursuing it often reduces the likelihood of success. During formulation, effort continues with the end results of framing (although framing in some form continues through the achievement of the desired goals). The broad solution developed during the final step of framing serves as the foundation for formulation. Formulation, then, continues to extrapolate from that foundation, adding detail and nuance until a mature strategy exists. That strategy defines the changes in time and space necessary to achieve the desired goals, and how those changes will be made. When complete, formulation must answer the fundamental question: How will you solve the problem? It must also account for uncertainty, circumstances, and the actions of others; balance resources in time and space; and gain and maintain a competitive advantage. In addition, formulation answers a number of other strategic questions: Where are we going? (The destination set forth in the Ends of strategic vision), How will we get there? (The pathway defined by the Ways), What do we need to get there? (The resources required as Means), What barriers are on our path? (The obstacles and opportunities posed by Risk), and What does success look like? (The concept of a theory of success). Strategic formulation encompasses five steps, each of which adds detail and nuance to the concept developed during framing. Step 1: Define/clarify goals and objectives: The first step is to revisit the problem statement, goals, and objectives defined during framing, as well as the vision, mission, and values of the organization. During this step, you are asking the following questions:  Are we solving the right problem? Can we achieve the stated goals and objectives with the means available? Are those goals and objectives consistent with our vision and mission? Is our concept consistent with our organizational values? What is our theory of success? The output from this step is (1) a refined problem statement that clearly articulates the desired goals and objectives; (2) confirmation of organizational vision, mission, and values; and (3) a brief description of the theory of success. Step 2: Conduct external analysis: This step expands on our understanding of the strategic environment, the context in which the problem you wish to solve exists. Using a model such as the PESTEL framework or Porter’s Five Forces, external analysis provides a detailed perspective of the strategic environment and the competitive forces at play. In the context of business strategy, external analysis offers contextual information about business, workforce, and marketing planning, as well as product development and organizational change. It ensures the business is postured well to compete within the strategic environment and possesses a clear understanding of the various external factors that could impact strategic execution. The output from this step is the data generated from whatever model(s) is selected for external analysis. Step 3: Conduct internal analysis: This step involves the process of examining internal components to assess resources, assets, characteristics, competencies, capabilities, and competitive advantages. Typically conducted using models such as SWOT, gap analysis, or VRIO, internal analysis facilitates strategic decision-making, formulation, and execution by identifying and thoroughly defining the organization’s strengths and weaknesses. Ultimately, internal analysis enables a firm to determine what is possible, and where and how to increase internal capability and capacity to drive execution and change. The output from this step is the data generated from whatever model(s) is selected for internal analysis. Step 4: Consider alternative strategies: There are infinite possibilities when formulating strategy, and this step allows for comparing and contrasting various approaches to solving the root problem articulated during Step 1. This step considers the advantages, disadvantages, and risks involved in each alternative in an objective process whereby alternative strategies are considered independently of one another and evaluated and compared against an agreed-upon set of criteria, which may be weighted to differentiate more or less critical criteria. In general, the following criteria are used for this step: Suitable (Does the alternative align with the organizational vision, mission, and values and will it achieve the desired goals?) Feasible (Can the alternative achieve the desired goals within the means available?)  Acceptable (Does the alternative balance cost and risk with the potential advantage gained throughout execution?) Distinguishable (Is the alternative sufficiently unique when compared to the others?) Complete (Does the alternative incorporate all of the objectives necessary to achieve the desired goals?) The output from this step is (1) a numerical matrix that lists the relative scores for each of the criteria selected, and (2) a total score for each alternative considered. Step 5: Select a strategy: The final step in the formulation process is the selection of the strategy to be executed. While Step 4 provides an objective comparison of the various alternatives available, the final decision is one based on the judgment and experience of the leadership. Executing Execution is the process of transforming plans into action to achieve a desired and measurable outcome. The execution process follows framing and formulation, after the problem is identified and an appropriate strategy is crafted. Ultimately, successful execution rests on the organization’s ability to lead the process, make key decisions at critical junctures, and execute the strategy efficiently, effectively, and consistently. In practice, that translates to on time and on budget, while managing the unexpected events and contingencies that inevitably occur. While formulating strategy is an essential step in driving change, without execution success is elusive. And without an execution process, even the best strategy will not achieve the intended outcomes. Strategic execution involves five steps, which in total facilitate successful execution of the strategy. Step 1: Determine roles, responsibilities, and relationships: The first step involves assigning the goals and objectives defined during formulation to teams and individuals, prioritizing resources, and establishing the relationships that dictate how different teams will interact with one another and how often. Those relationships will be supported by an underlying communication process that ensures smooth coordination and integration of efforts. Step 2: Delegate the work: Once the roles, responsibilities, and relationships have been assigned, delegate the necessary tasks to the appropriate teams and individuals. Delegation requires two elements to be successful: timelines and leadership. Setting manageable deadlines helps to avoid overwhelming people, but also facilitates the coordination of tasks across teams. Providing effective leadership helps to ensure that tasks are completed on time, but also that teams and individuals have the resources and support required to complete those tasks. Step 3: Execute the strategy: Execution is not something that can be delegated—it is leadership driven and one of the most difficult aspects of execution. While teams and individuals are focused on their respective areas, leadership leverages the communication process to keep apprised of progress through regularly scheduled updates. These updates are opportunities to address challenges and roadblocks, revise deadlines and milestones, and ensure that all teams are aligned with and focused on the strategic vision. In their book, The 4 Disciplines of Execution,” authors Sean Covey and Chris McChesney identify four key elements of execution: focus (maintain the organizational focus on core goals that drive execution toward the desired end state), leverage (act on lead measures, short-term data that can predict long-term lag measures), engagement (actively and continuously engage and communicate about operational realities), and accountability (establish follow-through mechanisms to ensure accountability). Assessing Assessment is the process of gathering and evaluating evidence of progress and performance during execution. The use of objectives and key results (OKRs) and key performance indicators (KPIs) to assess progress is essential. OKRs focus on measuring and managing progress toward intended outcomes; KPIs provide quantitative measures with which to measure and manage performance on the path toward intended outcomes. OKRs and KPIs should not be dictated but rather developed in coordination with the teams and individuals executing the tasks. This ensures clarity of purpose and unity of effort across the organization. Step 1: Take corrective action: As noted earlier, strategy is an iterative process. Effort doesn’t stop when a goal is achieved. The desired end state can change in the midst of execution as the strategy is adapted to unforeseen issues or challenges. Goals may shift in course, as well. As a result, it is imperative to remain attentive, flexible, and willing to adjust or revise planning, not to blindly adhere to the initial plan. Three questions fuel this aspect of assessment: Do we need to adjust? If so, how? Do we need to start over? The answers to these questions can prove invaluable, but they can also prevent a strategy from being irrelevant in the midst of execution. Step 2: Conduct a process retrospective of review: The strategic process doesn’t end with achieving the designated and desired goals. The final step of assessment is the systematic review of the entire process, a deliberate look back on the process and evaluation of each step along the way. While a process review can take many forms, it should address five basic questions: Did we achieve the desired outcomes? If not, why? What steps were required to achieve those outcomes? What issues or challenges emerged during execution that might have been anticipated? How could we have addressed those issues or challenges?  Broadly, what lessons were learned from this process? Although failure is never an intended outcome, an unsuccessful or flawed execution can provide an invaluable learning experience, as long as the leadership takes the opportunity understand what went wrong and why.