How can you audit your organization's strategy?

Don’t look just inward at your company's internal operations and processes. Examine the broader landscape - specifically, how changes in the external environment could impact the organization's strategy going forward. This includes an assessment of potential disruption from new technologies, changing consumer preferences, emerging competitors, regulatory shifts, and other external forces. For example: how might trends toward remote work affect the company's real estate and talent strategy? How might new innovations in your industry make parts of your strategy obsolete? Has the competitive landscape shifted in ways that require a strategy pivot?

Learn the difference between the strategy itself and the strategy process. For the strategy process, focus on the analysis of stakeholders, external factors, cascading into the scorecard, alignment between scorecards, and the decomposition of high-level objectives. Additionally, the function of the strategy office is critical—ensuring standards for terminology, strategy description, strategy review, and more.

An additional element to be considered while getting into a strategy audit is to also focus on the period (time duration) for which the audit is intended. Given the dynamic nature of business & advances in the influencing factors (consider Porter's Five Forces), the audit has to define the timelines of its impact - and the next review date.

I would conduct a materiality assessment before embarking on an “audit”. A materiality assessment helps you identify and understand the relative importance of specific strategic issues to your organization, their potential impact on your organization, and their importance to stakeholders. The key to gaining alignment on how stakeholders define the importance of strategic issues. Then, you will have better information for scope development. I would recommend not using the word “audit”. Most people will go to the prior experiences of testing books of accounts and validation of inventory to make sure that all are following policy and procedure. Use the word assessment. This reduces the potential negative reaction of all involved.

When conducting a Strategy Maturity Assessment, focus on three key capabilities: 1. Strategic Thinking, to craft future-oriented plans; 2. Execution Excellence, to translate strategy into action and measurable outcomes; and 3. Empowerment, to engage employees and drive ongoing transformation. Assess both internal (Executive team, project managers) and external (strategy experts, benchmarks) perspectives. Analyze tools, processes, and skills across these areas, using clear measurement frameworks to ensure continuous improvement and alignment with strategic goals.

Internal scanning? "Capabilities Mapping" is my go-to tool. It gives you a clear snapshot of what’s critical for your business model and where you outperform or fall behind your peers—strengths and weaknesses in one view. For external scanning, while Porter’s 5 Forces and PESTEL are solid, I lean towards "Trends Mapping". It helps gauge your readiness for disruptions, highlighting key relative Opportunities and Threats. Finally, distill all insights through a Rated, Related, and Ranked SWOT to crystallise what really matters.

Auditing an organization’s strategy for integration and adaptability also involves assessing how well strategic goals are communicated and embraced across all levels, ensuring alignment with cultural values and operational practices. It examines the organization’s responsiveness to external changes, such as market trends and regulatory shifts, to gauge its agility and ability to capitalize on opportunities. This approach fosters a cohesive implementation strategy that aligns with the organizational ethos, promoting resilience and sustainable growth amidst dynamic challenges and evolving business landscapes.

If you are part of a larger enterprise you must ascertain if your strategic planning models are aligned. Most basically are you and your parent value based or portfolio based? A mismatch at this level could be fatal if not recognized and accepted.

To track evaluate your strategy execution progress, monitor both your efforts (are you executing initiatives correctly?) and your results (are they moving the needle?). But if you want to evaluate the validity of the strategy itself: 1. Don’t change direction constantly. Strategy is your stable compass in a fast-moving world. 2. "If the plan doesn't work, change the plan, but never the goal": Be ruthless in changing, stopping or adding initiatives to drive more impact. 3. When assessing your strategy, start by evaluating your expected strategic outcomes. 4. Only ofter check if your strategic levers are still relevant. 5. Finally question your strategy execution framework. Often it’s not the strategy but its implementation that fails.

To improve your strategy and boost implementation success, focus on three actions: 1. AIM: Ensure absolute clarity on your strategic objectives. No more guesswork or vague targets — just a crystal-clear finish line that everyone can see. Set clear, specific goals so your team knows exactly where they’re headed. 2. ACT: Prioritise your portfolio of strategic initiatives and execute with laser-focus. No distractions—just a straight, purposeful path toward your goals. 3. TRACK: Keep an eye on your pace. Continuously monitor your progress toward your strategic goals, making adjustments as needed. Stay focused on tracking both your efforts and results. And make smart decisions to keep your momentum strong.