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WHAT "VALUE GAP"? I'm kind of geting tired to see opinions that the Strategy is about closing the "value gap" between a desired "TO-BE" and the existing "AS-IS". I remember encountering this state duopoly for the first time decades ago in a Project Management course ... or was it a Continuous Improvement course? Anyhow, it was certainly not related to the Strategy. THE STRATEGIC VALUE GAP One merit of Drs. Robert Kaplan & David Norton is that they have envisioned the "missing link" between the definition and the implementation of the Strategy. They added the Stage 1 ('Develop the Strategy') within the XPP (Execution Premium Process) cycle, aimed at clarifying (not formulating) the Strategy and defining the Strategic Value Gap /*. Unfortunately, XPP's Strategic Value Gap was only defined in relatively loose terms. What became necessary was a more pragmatic, instrumental definition. That's where the formulation stepping stones of Strategic Choices > Activity System (AS) > Capabilities System (CS) came to the rescue. THE STRATEGIC GAPS In aiming to surmount Strategy's Paramount Challenges, the Strategic Choices and the Activity+Capabilities Systems supporting them provide the basis for identifying the STRATEGIC GAPS, resulting from the comparison (and gap analysis) between the Required AS+CS and the Existing ones. From here, it's only one small step to make: Aggregate the Strategic Gaps into the Strategic Objectives required to plan Strategy's execution, as XPP describes. This allows Strategy's implementation to focus on closing the Strategic Gaps and achieving Strategy's Outcomes through the effects of the Strategic Initiatives, corrected based on Measurement system's monitoring, measurement that is equally instrumental in adapting the Strategy and Strategic Plan models. To dig into more details on the use of the Strategic Gaps, consider attending the November edition (4-29 Nov) of the Explaining Strategy course. More details, including Fair Pricing Policy enrollment information, on the course website: explaining-strategy.com /* WHERE TO READ MORE ABOUT K-N BSC (XPP)? https://lnkd.in/dRM99fcW THE BALANCED SCORECARD REFERENCE https://lnkd.in/d4UdtCMF Also read: THE CRUX https://lnkd.in/dYHJSTgj CHALLENGE-BASED STRATEGY https://lnkd.in/dFNWcWtr THE STEPPING STONES https://lnkd.in/dGPrdpRk STRATEGY-CULTURE SYMBIOSIS https://lnkd.in/dNQEwGUF FROM PARAMOUNT CHALLENGES TO BSC THEMES https://lnkd.in/dB4P6PD2 THE ACTIVITY SYSTEM https://lnkd.in/dUqAH4hS MODELING STRATEGY https://lnkd.in/dJhN6wax WHAT IS THE PENTA MODEL? https://lnkd.in/gg22Vq5V
SUNDARRAJ. S
3mo
Of course there is a value gap between Strategy and execution. Major challenge is insufficient funding and lack of communication in explaining the strategy to Execution team. It is great challenge for organization. Thanks for your valid point and insight on Value Gap model.
When an organisation has paramount challenges of say insufficient budget for set initiatives, I see that as a gap. It won't achieve implementation.
Raghu Ranjolkar
3mo
Strategy is about questioning the status quo. It involves challenging existing assumptions, identifying gaps, and seeking innovative approaches that lead to growth or improvement. Questioning the status quo directly relates to defining the value gap because it uncovers discrepancies between the current state and the desired state
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Consultant, Professor & Corporate Trainer
3moGreat model, Mihai! But why didn’t you add winning aspirations along with the paramount challenges ? Aren’t they both derived from SWOT & form the basis for strategic choices?