Episode A.012 Identifying 2020 Strategic Initiatives

Author Notes
This is the week of concurrent shows - building on each other. Check out our Show Notes Episode B.012 Building A Strategy Process for where creating strategic initiatives fits into the entire process.

Let's start with where the Strategy Process ends - Present and Future Initiatives and some definitions.

• Strategic Initiative: key actions focused on achieving a specific outcome or closing a gap between the current and future situation;
• Business Goal: converting Strategic Initiatives into goals that are achievable over a specific length of time, usually at the owner or executive team level;
• Business Objectives: converting Business Goals into actionable and measure objectives at the supervisor and worker level.

Examples

• Strategic Initiative 1: Upgrade Product XXX by adding the following features y and z from competitor A to take advantage of their going out of business.
• Business Goal 1.1: The Product Development position is to purchase product XXX and compare its features against our product BBB. We want to add features y and z to the BBB product and have it ready for production by July.
• Business Objective 1.1.1: Add the y and z features from Product XXX to Product BBB in June.
• Business Objective 1.1.2: The addition of y and z features to Product BBB cannot add more than 10% to the cost of production.

I realize this is a generic example however it should give you an idea of how Strategic Objectives are turned into business objectives for members of the organization. If you are solopreneur or have few employees this might seem like too much structure, understand the intention and use this process as it fits. This is part of building a scalable organization.

The process has several objectives that need to be addressed:

1. Every year you need to look at the market and determine what to fix and what to build.
2. Those "ideas" need to be converted into something every person in the business has some responsibility to make happen.
3. You need a method for planning, measuring, and tracking to ensure it is done on time and budget.

Tools and Techniques

• Brainstorming: when you initially build the list of initiatives, keep the process open to any idea and move quickly, this is not the time to evaluate any of the options - think it and put it up.
• Prioritizing: if you are using a group the Nominal Group Technique (NGT) works well. After the discussion of what each idea means, have the group cluster the list into like groups - this will reduce the number by 40-50%. Now allow each person to individually select their top 3. Once that is completed tabulate the scores and create a priority list. 
• Decision: using the priority list, ask the question - what is the minimum number of items that must happen and indicate on the list - top 4 or 5. Then ask the next question "what didn't we include in the top 4 or 5 that must be included and adjust the list as necessary. 
• Recommendations: provide the owner/executive team with the final list and a reason for selection and placement on the list.

If it is just you or do not have enough employees to use the NGT, it works just as well at the individual level. This list is essential for the next phase in the process - assigning a Budget.
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Next show: A.013 Converting Initiatives into Goals