What is a Strategy Development Model?
A Strategy Development Model is a structured process or methodology that guides an organisation through the creation, evaluation, and selection of its strategic direction. It provides a systematic approach to moving from environmental analysis and internal assessment through to a clearly defined and coherent strategy that can be implemented.
Various strategy development models exist, ranging from simple three-step processes to comprehensive multi-stage methodologies. The right model for an organisation depends on its size, complexity, strategic maturity, and available resources for the planning process.
Common stages in strategy development
While specific models vary, most strategy development processes share common stages: environmental scanning and analysis (understanding the external landscape), internal assessment (evaluating capabilities, resources, and performance), strategic options generation (identifying possible future directions), options evaluation and selection (choosing the preferred strategy), and strategy articulation and communication (documenting and communicating the strategy).
Some models include an explicit implementation planning stage, recognising that strategy development without execution planning is incomplete.
Deliberate vs emergent strategy development
Henry Mintzberg made the important distinction between deliberate strategy (planned, intentional strategy developed through a formal process) and emergent strategy (patterns that emerge from day-to-day decisions and actions without explicit planning). Most real-world strategy combines both.
A structured strategy development model is most associated with deliberate strategy. But effective strategy development also leaves room for learning and adaptation as the organisation encounters new information and circumstances.
What makes a strategy development process effective?
Effective strategy development processes are inclusive (involving diverse perspectives), grounded in evidence (using real data rather than assumption), focused (producing clear choices rather than lists of everything possible), and connected to execution (resulting in plans that can actually be implemented).
The process should also build commitment. Strategy that is developed collaboratively and communicated clearly is much more likely to be executed effectively than strategy that is developed in isolation by a small leadership group and cascaded downward.
How Empiraa supports strategy development and execution
Empiraa is designed to support both the strategy development process and the execution that follows. Teams can use Empiraa to document their vision, goals, and strategic priorities, and then connect those to initiatives, actions, and metrics that drive implementation.
For advisors using Empiraa GPS, providing clients with a structured strategy development model is one of the most valuable services they can offer — and Empiraa gives them the tools to take clients from the strategy development conversation through to ongoing execution management.