Having decided that it would be fun to write a series of blogs on the subject of strategy, it made sense to me to start by addressing a fundamental question – what’s the point of investing in strategy ?

I am sure that there will be some readers of this blog who will be surprised by the question and take the view that the value is obvious.  However, my evidence from over 20 years as a practitioner in this area, suggests that the value of investing in strategy is far from obvious to all.

Before delving into this issue, it seems appropriate to offer a view on what is meant by “investing in strategy”.  My experience is that it means different things to different people.  To facilitate what follows, there is a need for a definition.

Let’s start with the dictionary.

The Oxford English defines strategy as “a plan of action designed to achieve a long-term or overall aim” and investment as “an act of devoting time, effort, or energy to a particular undertaking with the expectation of a worthwhile result”.

So there we have it !

“Investing in strategy = committing resources to developing a plan of action that delivers a worthwhile result”

Seems like a good thing to do.  Right ?  So why isn’t there greater commitment and discipline among many organisations to do this.  There is evidence of more widespread commitment to capital investment, new product and service development, and marketing and sales.  So why not the thing that brings all of this together into a cohesive game plan that maximises prospects of success ?

I’ve given a great deal of thought to this over many years.  Whilst there is unlikely to be a single answer that covers all circumstances, my conclusion is that for many it is more difficult to attribute a return from continuous investment in strategy development than in many other disciplines.

For some, strategy design might appear to be less specialist and more accessible than other management disciplines, thereby lending itself to a less formal, do-it-yourself, when-you-can-fit-it-in, approach.  For others, the absence of investment is a result in their belief that any strategy and plan will be short-lived, will reduce agility and will therefore not deliver value for stakeholders.

Whatever the reason, failure to acknowledge the significance of strategy, and continually invest in this area, is a missed opportunity.  Why is that my belief ?  Strategies that are effectively designed and implemented act to:

• engage stakeholders in the process of defining their organisation’s future;

• identify the choices that organisations might face with respect to where they might allocate resources;

• select preferred choices based upon shared understanding of their internal and external environments, and performance objectives at a point in time;

• capture choices within a framework that facilitates tracking during implementation;

• actively manage and monitor implementation, enabling revision and refinement of the strategy to reflect changing circumstances

• maximise prospects that the “worthwhile result” for which the organisation is aiming, is achieved

As for return in investment, it seems to me that all of the return achieved by an organisation might be attributed to their strategy, with other disciplines sub-ordinated in respect of their contributions.  That’s the point !

NEXT TIME OUT WE’LL BE OFFERING OUR TAKE ON VISION, VALUES AND THE POWER OF WORDS.