No strategy survives the realities of execution untouched. No matter how sound the basis for a strategy appears or how much it is vetted, everything discussed about the strategy during the strategic planning process remains theory and speculation until it is put to the test in the real world.
This is one reason why expecting to get the strategy “right” coming out of the gate is unrealistic. This is also why it is far more productive to invest quality time into standardizing a process for refining a strategy than it is to spend time trying to get the strategy completely right before beginning execution.
What Is Refining?
Refining is the process of freeing something from impurities or unwanted material. For a strategy, the impurities or unwanted materials are the obstacles to consistent and effective execution and the impediments to improved results. Whether it be for a metal or some other material, refinement is a critical stage in turning raw materials into something available for practical use.
Likewise, the refinement process for strategies is critical for turning the right strategy into a true competitive advantage that delivers an expected return on investment. Simply put, an effective strategy refinement process is where the magic (i.e., profit) happens, because this is where the premise and execution plans for a strategy are further validated and additional obstacles to effective execution and improved results are addressed.
A few of the obstacles and impediments that are further uncovered and addressed during the strategy refinement process include:
• False assumptions
• Hidden biases
• Invalid data
• Inefficient processes and systems
• Unexpected outcomes
• Unintended consequences
Yes, an effective strategic planning process will do much to uncover a strategy’s obstacles and impediments before full execution. However, there are some that only come to light when the strategy is in the trenches, facing the rigors of interacting with the intended end user or target. In other words, it is only during execution that the most accurate data to improve decision making becomes known and available.
The Strategy Refinement Process
An effective strategy refinement process scrutinizes the decisions made about the strategy, including the thinking that went into the strategy, the process for executing the strategy and the outcomes and new information obtained as a result of the execution. Because strategic planning is an ongoing process and not just an event, refinement is also ongoing. It is the regular tweaks to a strategy that make the difference over time.
A specific strategy will have specific questions tailored to it, to be answered during the refinement process. However, there are questions that should be a standard part of the refining process for every strategy. A few standard questions for discussion during the strategy refinement process include, but are not limited to, the following:
1. Has new or additional information been uncovered on any aspect of the strategy’s underlying assumptions, principles and decisions?
2. What are the results of assessing internal execution efforts?
3. Are the strategy’s expected milestones and/or outcomes being achieved?
4. Have there been any unintended consequences?
5. What has been the impact of execution on available resources?
6. Has the risk of any negative outcomes from continued execution of the strategy increased or decreased?
7. Is the time frame for the expected return on investment still reasonable and viable?
Conclusion
Having an effective process for refining a strategy increases the chances of consistent and successful execution. Not only does refinement sharpen a strategy, it enhances the ability of those executing the strategy to cut through the noise of imperfect information, distractions and setbacks that inevitably happens during execution. I encourage you to invest in developing a formal strategy refinement process for your company and make it an integral part of your ongoing strategic planning. It will make a positive difference to your top and bottom lines.
