Five-Phase Strategy Model

Phase I: Strategic Intelligence Gathering and Analysis
A rigorous process is undertaken to gather, organize, and analyze data on markets, competitors, technology, and past performance to ensure that the right information is used to facilitate good strategic decision making. Phase One provides an information base for strategic decision making and an agreed-upon set of assumptions about the internal and external environments in which an organization will operate during its strategic time frame.

Phase II: Formulating Strategy
A strategic profile of the organization is developed for guiding day-to-day decision making. This profile defines key strategic elements including:

• The basis for competitive advantage
• The scope of the products and services that will and will not be offered, and the markets that will and will not be served
• The relative emphasis and financial mix of the future product/market scope
• The source of new business and growth
• The capabilities needed to implement the strategy
• The business results to be achieved
• The critical issues (barriers to implementation) to be resolved

Phase III: Implementation Planning
As a result of formulating a clear strategy, many projects emerge, the execution of which leads to successful implementation of the strategy. The creation of a strategic Master Project Plan, using Kepner-Tregoe's proprietary Project Management techniques, is the key output of this phase, providing a detailed definition of each project, sequencing projects, developing a schedule, and indicating the required resource levels for each project. The training of key staff in Project Management techniques ensures successful implementation.

Phase IV: Implementing Strategy
Even the most elegant and robust strategic visions are worthless without effective implementation. It is the implementation phase of the process that yields the tangible results sought by all organizations. During this phase, planned actions are taken, implementation is monitored, and the plan is modified as circumstances change and the strategy is revised. Also during this phase, employees are given the necessary skills to play their role effectively in implementation, with a particular emphasis on project management and decision making. Effective communication is at the heart of flawless strategy implementation. Every employee and external stakeholder is briefed on the strategy with the intent of creating understanding, commitment, and answers to the question, "What's in it for me?"

Phase V: Strategy Monitoring and Updating
Ongoing review of the strategy is essential for keeping the strategy vibrant and relevant as a key tool in the continuous quest for success. Typically, executive leaders are adept at reviewing the operations and financial dimensions of the business. The strategic review process is equally important. Activities include: determining if the assumptions upon which the strategy rests remain valid; assessing if the strategic direction continues to make business sense; and keeping abreast of progress toward implementation.