The Strategy Workshop: Tools for Effective Strategy Formulation

In this chapter, we focus on the formulation of competitive strategy, recognizing the necessity of tools that provide a synthesis of business units’ competitive situation. We delineate the key components of the plan at the business unit level: the desired positioning and the strategic priorities guiding the business unit toward achieving this position. Our emphasis is on the inclusion of both qualitative and quantitative components in strategic plans to assess their impact and enhance the likelihood of successful implementation. We explore two overarching mechanisms to improve strategy implementation. First, the establishment of formal control systems to evaluate progress on strategic priorities. Second, the importance of addressing systemic losses. We demonstrate how the Hidden P&L framework can aid in identifying losses that strategic priorities may generate.