"Omne agens agit propter finem." "Each agent acts on account of an end."
The meaning of activities performed in an organization is given by the value that is created. The value here does not represent only financial profit, but all benefits which bring an organization one step closer to fulfilling its vision, mission and strategy. In the times of pervasive and ongoing unceratinty we need to find new ways how to effectively develop and execute strategies in order to maximize the value we create. Projects, initiatives and respective processes need to be managed in conformity with strategic objectives that are meaningful in real-time.
We live in a complex, fast changing and dynamic world. The volume of information we consider when making decisions is increasing. The way we gather insight about underlying dynamics and future trends has changed forever. However, the dominant professional methodologies still act as if the future is predictable and stable, and as if strategies can be built on past success. And as if such plans, when implemented, lead to the expected benefits.
Uncertain times place a premium on strategy - not just on having a good one today but also on being able to adapt it continuously- development of strategy in an organization and its implementation in practice represents a continuous cycle of assessment and deciding on change or the creation of new strategic objectives.There is a need to develop strategic capabilities and a discipline of strategic thinking and practice on all organizational levels across an organization.
If we look at the nature of strategy and strategic objectives we can easily identify the two fundamental attributes:
i Relevant
ii. Meaningful
But when developing a strategy and defining respective strategic objectives we need to consider a dynamic nature of assumptions and facts the choices about strategy and decisions about strategic objectives are based on.
Therefore - we add the third fundamental attribute of the strategic objectives:
iii. Dynamic - in terms of reflecting real-time information.
In order to work effectively with the "dynamic" attribute of strategic objectives we have developed a concept of dynamic strategy insights - a grasped and carefully defined integrated "bit" of strategy which is transformed in the light of changes to the initial facts and assumptions.
Dynamic strategy insights can be also understood as the realization of a true nature of underlying dynamics reflecting real-time information about customers, competitors, organizational capabilities and respective costs.
Expressed mathematically, a dynamic strategy insight (DSI) is a time (t) function in variable facts (F) and assumptions (A)
DSI=f(F,A,t)
In the concept, dynamic startegy insights are considered as a driver and a navigator of value creation.
These insights can be grasped only in the case of engagement of all levels of management. Facts and assumptions developed for the determined strategy insights must be submitted in the necessary measure of detail from TOP management on a tactical level (business unit managers, project board) and from there on an operational level (team leader, project manager).
Lower levels of management (tactical level, operational level) are able on the basis of their own knowledge and experience to significantly expand the TOP management view and enhance the relevancy and meaningfulness of the insight how to create value for the organization.
To achieve the full potential of dynamic strategy insights, development process must be managed transversely across an organization (top down and bottom up)
We believe that the application of this integrative thinking approach when developing strategy insights is important not only with the introductory setting of a strategy, but likewise it is also able to offer us a baseline (for the kind of basic assumptions and known facts on which we define the strategy insights).
There is also a need to develop a robust framework which could be integrated into management systems of an organization in order to enable value creation processes across all levels of organization to reflect underlying dynamics and be driven by dynamic strategic insights.
The framework we've been developing for handling the management of dynamic insights consists of:
» application of processes for assessing changes to strategy insights (deterministic analyses, probabilistic analyses)
» application of soft skills (leading strategy insights analysis team, researching, and aggregating)
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