“We will differentiate ourselves from the competition by creating innovations that generate value for our customers.”
Anyone who sits on an executive board has heard this statement a time or two before. While such a declaration may quell concerns over competitive viability and sustainability, the real work happens when very specific actions take place:
- Do we create a department for innovation or business transformation?
- Do we hire additional management talent or business consultants?
- Should individual line-of-business executives meet offsite to brainstorm and innovate through ideation?
Even though these efforts produce satisfactory results, it’s always helpful when the leadership team creates a management framework to design an action plan. The management framework must be all-encompassing – taking a holistic view of all lines of business to eventually transform the business into an intelligent enterprise.
This innovative management consulting methodology is very similar to the five senses of a human being:
- Sight: Build a strong organizational vision focused on a long-term strategy.
- Hearing: Listen to stakeholders, customers, employees, and partners, then formulate a go-to-market engagement model.
- Touch: Make the vision tangible by creating a detailed strategy blueprint, which includes the mission, strategy drivers, key focus, actionable plan, and desired business outcome
- Smell: Ensure the organization, customer base, workforce, and partner ecosystem are close enough to “smell” the organization’s vision, action, and success. Build a strong brand perception plan and omnichannel organizational communication strategy and integrated communication systems.
- Taste: Create your own recipe for competitive differentiation with a blend of vision, strategy, culture, competitive strengths, and go-to-market approach.
Once the management framework is created, it is critical to measure progress against a KPI-driven scorecard, such as:
- Sight: Return on capital employed to measure the vision
- Hearing: Net promoter score to assess the go-to-market engagement model
- Touch: Customer lifetime value to evaluate the performance of the strategy blueprint
- Smell: Brand equity to determine the brand perception enabled by organizational communication
- Taste: Growth in market share to get an accurate view of competitive differentiation
Formulating an organizational strategy in this new world of digital transformation opens a distinct opportunity to become an intelligent enterprise. By taking this approach, you can work closely with external business process experts and thought leaders and collaboratively design your organization’s long-term strategy.
Learn more about the management framework by reading “Management Framework @ The Five Senses of Organizational Strategy.”