![]() Quadrant Two, Customer Perspective: One customer-centric objective could be to increase repeat customer, or take a clear lead in the market so that potential customers gravitate towards the company’s product. Quadrant One, Financial Perspective: Financial goals could be to reduce costs or even to change the payment model in response to threats or changes in the SWOT or PEST models. It is important that each stakeholder sees how everything fits together. ![]() This is important because different stakeholders in the company will approach the strategic plan from different perspectives. The strategy map’s four quadrants cover strategic objectives from different perspectives. Strategy MapĪ strategy map helps you set down and illustrate the company’s strategic objectives in one view. Companies would do well to prepare for this. Quadrant Four, Technological Factors: Today, a company’s product may be cutting edge, but a new wave in technology could render it completely obsolete. Quadrant Three, Social Factors: Changes in customer needs and priorities may cast a product in a different light. ![]() Quadrant Two, Economic Factors: As an example, changes in interest or unemployment rates will directly affect a company’s revenue. Quadrant One, Political Factors: Legal changes, changes in tax policy, or changes in government can affect the company’s strength or buyers’ willingness to commit. In addition, looking at the PEST Model helps with contingency planning, a critical part of a proactive strategic plan. Failing to look at these changes when creating a strategic plan means that the strategic actions you take might be a strategy that would work in the environment of a few months back though it no longer works today. PEST ModelĮffective strategic planning must also look outside at changes that are not directly in the company’s control. For example, an innovative product needs marketing and sales to help it take the lead in the market. Quadrant Four, Organization: Does the organization have the processes to take full advantage of this resource? A resource may need several departments to work together to fully mine all potential success. Quadrant Three, Imitable: How difficult would it be for competitors to acquire this resource? Even if the resource is rare right now how likely is it that it it will no longer be in the future? Quadrant Two, Rare: Is this resource easily found elsewhere? A resource that is very common is definitely a positive, but likely not the key to gargantuan success. Quadrant One, Valuable: Does this resource truly bring value to customers? If not, it may not deserve the attention it has received. The VRIO framework helps you dig deeper and make sure that you are effectively using your strengths as resources. There are factors that could prevent these strengths from contributing to success. When it comes to strategic planning, it is important that you do not stop with a SWOT analysis, content with the strengths that you’ve uncovered. Quadrant Four, Threats: Given weaknesses (or competitors’ strengths) where could the company get in trouble? VRIO FrameworkĪfter you have completed the SWOT analysis, the VRIO framework helps you analyze your strengths and understand if these strengths translate to advantage. Quadrant Three, Opportunities: Given the strengths (or competitors’ weaknesses) what are the opportunities for success that you can see? Quadrant Two, Weaknesses: What are the areas where the company needs improvement? Quadrant One, Strengths: What does the company have going for it? This is a great start in strategic planning because it helps you get a sense of how things really are before you create strategic objectives: The SWOT Analysis helps you take a look at your company and analyze both potential positives and negatives. ![]() Check out these strategic planning models and launch them in Priority Matrix, via the links provided. You can launch these models and share them in a strategic planning meeting or you can work on these models in collaboration with other executives, across time. Priority Matrix’s four-quadrant design supports multiples strategic planning models. However, before this can happen, a solid strategic plan must be in place. Advanced views like the Gantt Chart, in-context information, and one on one views, help executives make sure that strategic decisions inform operational activities. Because of its ability to improve communications and increase visibility across the organization, Priority Matrix is ideal for strategic planning. ![]()
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