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The Strategy Pyramid
Credit for this content and image goes to Igor Buinevici. You can connect with Igor.
I like this strategy pyramid for its simplicity. I also like it because one cannot execute on strategy, if the concept of strategy is misunderstood or not effectively addressed.
One change I might suggest is this - switch Purpose at top of the pyramid with Execution at the bottom. In my mind, Vision, Values, and Mission come before Strategy.
What do you think?
I hope this material gets your mental juices flowing!
90% of companies fail to execute their strategy: But what sets the other 10% apart?
Let me introduce you to an incredibly effective framework: The Strategy Pyramid.
Originally shared by Wendy McGuiness (2011), this framework outlines 9 essential elements of successful strategy and execution.
These elements are organized into 3 core categories: Purpose, Strategy, and Execution.
A) Purpose
Mission: Defines the company’s core purpose, answering questions like: “Why do we exist?” “What is our main reason for being in business?”
Values: Establishes the principles and beliefs that guide decision-making. Shapes organizational culture by aligning with ethical standards and desired behaviors.
Vision: Creates a compelling image of the company’s desired future. It answers the question: “Where do we aim to be in the years ahead?”
B) Strategy
Strategic Intent: Specifies the organization’s top goals and objectives. Lays out the desired outcomes and how to achieve them.
Drivers: Highlights the key factors driving success, such as: market expansion, innovation, cost efficiency, or customer satisfaction.
Enablers: Focuses on the tools, resources, and capabilities required to implement the strategy. Includes technology, skilled personnel, and financial assets.
C) Execution
Targets and Initiatives: Defines actionable steps and measurable targets aligned with strategic objectives to drive progress.
Performance Indicators: Establishes KPIs to monitor progress and measure the impact of strategic efforts.
Strategy Map: Provides a clear visual representation of the strategy to ensure organizational alignment and clarity.
This framework helps leaders:
1) Define their organization’s purpose.
2) Craft a focused strategy.
3) Execute it with precision.
Each pillar is equally vital - neglecting one can jeopardize the entire process. To succeed in execution: You must clearly define what you are going to execute.