The Key Concepts

The First concept is to get agreement on the Foundation Competency that is at the root of the business. Every business is founded upon a key set of of skills and/or knowledge from which the organization has developed or is in the process of developing. This Foundation Competency places limits on the scope of business strategy until that competency changes. That change can occur gradually by organic development within the organization or it can be accelerated by acquisition, Joint Ventures or Strategic Alliances.

The Second concept is determining the "Strategic Heartbeat" of the Organization. The Foundation competency will set boundaries but the Strategic Heartbeat, once this is understood, will make the choices as to which products and which markets to pursue much clearer. The business will have a clear rationale for making these decisions and the organization will be realistically focused by its physical capabilities. Unrealistic ambitions are curbed, resources are preserved and the future focus and direction will be explicit to everyone



The Third concept is the identification of the Enabling Skills and Capabilities which will be required to deliver the strategy. Resource must always be applied to these areas of the business. The Enabling Skills within the business is what gives the Organization its competitive edge. Development of these skills must never be overlooked and should be continuous.



The Fourth concept, is the identification and assignment of the strategic issues that are critical to deal with in order to effect change within the organization and move the business from where it is today to where you want it to be at some point in the future. These issues are the link between the strategy plan and the operating plan. They are "How" the strategy will be executed.


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