I want to begin this series of Friday blogs by introducing you to the dimensions which compose a dynamic strategy map. Dynamic strategy maps, animated and used, constitute the active, integrated Strategy Constellation. The Strategy Constellation is named to connote the motion, interaction, and complexity we witness in the market and is designed to be substantially more robust and integrated than the typical four (SWOT) and even forty box static matrices that until now have dominated the strategy framework landscape.
Before beginning however, I just want to provide a brief overview of the nature of the next few months of blog posts.
The next few Fridays, we’ll introduce the dimensions composing a dynamic strategy map. After this introduction, we’ll discuss the connections, causalities, and interrelationships between these dimensions. This discussion will highlight the flow of what happens as you run your organization or as an event occurs in the market which effects the environment in which you run your organization. From there, future Friday blog posts will outline how to fill out a strategy map first qualitatively and then quantitatively. Afterward, we’ll illustrate how you can test, temper, and improve the quality of your strategy map by cross-referencing it against a variety of more classical strategy tools.
After illustrating how classical static strategy tools can be used in conjunction with your dynamic strategy map to improve data quality, we’ll cover the use of multiple maps simultaneously and introduce the notion of your vision map. Before offering some case studies, we’ll outline the value of strategy mapping illustrating in detail why strategy constellation is a transformative strategy management framework designed to help leaders innovate and improve profitability. Clicking on the play icon on the image of the laptop of the home page ports you to an audio-visual slide show making a case for dynamic strategy making as opposed to classical static strategy making.
Dynamic Strategy Maps: An Overview of the Dimensions
The market is the largest category in the strategy constellation universe. The market is not an industry, rather it is all industries combined together into a higher level, generic form. Markets are differentiated by industry on an organization by organization basis. So the health care, software, and manufacturing industries are all in the market whereas each individual organization operates in one or several of these industries. More on this later.
The market includes consumers—both current customers and non customers, also known as potential customers. This is a critical point as most marketing and sales strategies are geared only toward existing customers thus cutting an organization off from perhaps its greatest growth opportunities.
Partners help an organization conduct its non-core activities such as administration, strategy making, or customer acquisition. Suppliers are differentiated from partners in that they provide essential materials or labor that is core to the creation of an organization’s offerings. Resources in the market include raw materials like energy, wood, oil, or electronic components. People in the market serve as a basis for employees as well as business partners, suppliers, or providers of capital. Capital in the market exists in the form of equity investment or a variety of debt or loan options which vary based upon an organizations credit and potential. Ideas are perhaps the market’s least fungible yet most pervasive commodity affecting everything from the way activities are conducted to the methods managers employ to increase productivity.
The market also contains a set of active forces which affect all the dimensions mentioned above. Regulation from local, state, national, and international governments can have major effects. For example, if the Federal Reserve of the United States lowers interest rates, the cost of capital for organizations will decrease affording them more liquid capital which in turn might be converted to additional hires, new equipment, or a new social media marketing campaign. Other market forces which I will describe in greater detail in future weeks include economic, cultural, competition, and science & technology.
Finally, the market is composed of organizations. All organizations, whether c-corps, non-profits, or sole proprietorships operating in the software, manufacturing, or health care industries can be described as a set of resources and activities which are configured into a business model which includes offerings and sales channels directed to consumers in the market. An organizations current position may be described by its firmographics, a set of demographics for a company including size, industry, ownership structure and others.
Next week, we’ll more deeply describe the resources of the market including partners, suppliers, raw materials, people, capital and ideas. Should you have any questions do not hesitate to shoot me an email at email@example.com.
Until then, have a great weekend.