In the explanation of the strategic planning process, I defined five steps. The second step is “strategy formulation.” That’s the application area of most of the strategic planning frameworks.
Formulating the right goals requires a skill of comprehensive analysis of the challenges and art of focusing on the right things. Each of the business frameworks has its specialization.
The missing piece of the puzzle are the stakeholders of the organization. Most of the frameworks imply that there is a list of stakeholders with their interests, priorities, resources, etc., but we rarely see a specific requirement.
In the specific organization, the list should be more detailed. Think, for example, about different types of customers and their needs. They will all have an impact on the strategy formulation.
The output of the frameworks are the change ideas and goals that are, in most cases, vague and ambiguous. They look good on the presentation slides but aren’t ready for practical purposes. A solution is to do a value-based decomposition.