Strategy Development in Small Organizations: The Power of Choice

One of the most important concepts in week one of Strategy Development was the power of choice. Strategy is about choosing between options, including what NOT to do.

This central theme become more apparent in the article, Bringing Science to the Art of Strategy. This article highlights that while many strategy decisions are based on rigorous analysis, they are rarely truly scientific. The authors provide a framework to produce more scientifically-valid strategies based on two key factors: the establishment of hypotheses and the subsequent testing of these hypotheses. In building this scientific model, the first step is about choice: moving from issue-focused discussion to the formulation of choices. The rest of the framework is dependent upon this distinction.

Incorporating this scientific method in a small, nonprofit organization may seem daunting and even impractical. While the exact method may not be feasible, incorporating several key points from the article could greatly improve the strategic planning process even within a small organization.

Focus on Choices

The trap of formulating a strategy focused on addressing issues without first uncovering all of the possible options is a universal problem. This may actually be a greater risk within a small organization. The temptation to jump to assumptions of what “will never work” is quite strong. By including the step of laying out choices BEFORE assigning criticism or judgment could help in proving some options more feasible than originally thought.

What NOT to do

By including multiple choices in the scientific process, those that have not passed the tests will help to serve as a guide of what not to do. This is an important part of strategic choices. This is a valid method even within small organizations. While the process of testing might be different, the idea of knowing what we are and also what we are NOT is important and implementable. This will help streamline decision making on all levels.

Scope

The importance of defining scope was highlighted in both Bringing Science to the Art of Strategy and Can You Say What Your Strategy Is? Defining scope is particularly important in smaller organizations. While the mission and vision of even a small organization may be idealistic, when it comes to forming strategy, it is important to be realistic about scope. This will keep strategy focused and actions attainable.

Identifying Barriers

Another key part of the scientific framework presented is identifying barriers associated with choices. This may be a challenge in a smaller organization where there is not a lot of data present. Often, smaller organizations are entering newer markets or pioneering new ideas where barriers may not be readily identifiable. In this case, it is all the more important to look objectively at a set of possibilities instead of what you already “know” to be true.

While implementation of the scientific framework within a small organization may be challenging, the concept of identifying and testing choices as part of strategy, versus focusing on “fixing” existing issues, could lead to better decisions.