Strategy with SCOPE

Roxann Linton and Winsome Richards

October 8, 2024

Many organizations are gearing up to delve into another season of strategic planning where they will design or refine their blueprints for success. At this juncture, it is useful to ‘stick a pin’ and consider how well the strategic planning process has worked for your organization in the past and what might be done to make it more effective. Do the plans that you discuss in the strategy sessions come to life in your operations, helping you to grow measurably towards your vision? Like many others, does your organization struggle to make plans a reality? This article points you to some tips and insights designed to enhance your strategic planning experience, encapsulated in the acronym, S.C.O.P.E. This is the first of two articles introducing these concepts; the second will provide actionable strategies for implementing these ideas.

S - Strategic risk

Strategic risk, often overlooked during the visioning process, is crucial as it encompasses potential losses that a business may incur because of failed business decisions. While this risk could come up for mention in a merger discussion or during plans for expansion in a new jurisdiction, it can also have significant impacts on much smaller decisions, resulting in substantial cumulative losses. Importantly, strategic risk also presents opportunities for innovation and growth when approached thoughtfully.

To reduce the negative impact of strategic risk, organizations should implement a framework for identifying, measuring and managing it, balancing risk management with the potential benefits of informed risk-taking. Whether utilizing simple spreadsheets or sophisticated models, the framework should align with both the potential losses and opportunities inherent in strategic decisions.

C – Capabilities

The capability factor is something that you want to have a clear understanding of (and honest discussions about) at the planning table. What makes you think you can actually do what you are planning? Yes, it’s a great idea but does your organization have the knowledge, time, skill, money, persistence and innovativeness to produce the plan in real life? A mistake that leaders sometimes make is to overlook the capability factor in their optimism about good ideas, which can lead to unrealistic expectations. One way of addressing this is to build a realistic and comprehensive resource plan that clearly reflects what your organization needs in order to ace the idea you are discussing. You will be better able to set practical time horizons, preventing your team from feeling overwhelmed or running on empty. Without this clarity, you may find yourself continually repackaging the same great idea at the planning table with little meaningful progress.

O – Opportunities

Opportunities represent external trends and conditions that a business can leverage for growth, as reflected in the SWOT tool. It is crucial during strategic planning to distinguish between genuine external opportunities and internal strengths, which are often mistakenly labeled as opportunities. In a SWOT analysis, opportunities should focus on external factors such as market trends, technological advancements, or regulatory shifts that a business can act upon. Many organizations make what scholars refer to as the Opportunity Error by prematurely converting opportunities into strategies or confusing them with internal strengths. By effectively distinguishing favorable external factors from internal ones—while recognizing the value of both—businesses can avoid this error. The key is to focus on external conditions for growth, such as market trends or regulatory shifts, without letting internal strengths dominate the discussion at this stage.

P - Performance

Before diving into planning and execution, it is crucial to have a clear vision of what success looks like at each level. Establish robust measures of success for strategic, operational and individual performance, and create a framework for regular monitoring and refinement of the strategic plan. Simply put: ensure you have clear targets, defined roles, established timelines for performance monitoring and evaluation and clear triggers for making adjustments to facilitate effective execution.

E- Engagement

In today’s dynamic business environment - shaped by technological shifts, changing customer expectations, and diverse workforces - engagement is essential for successful strategy. As highlighted in the strategy literature, augmenting formal planning with inclusive, cross-functional collaboration enhances buy-in, understanding, and support. Involving teams across all levels fosters ownership and creates strategies informed by a broader range of perspectives, leading to more adaptive and effective outcomes.

The factors we have mentioned are not exhaustive but effectively integrating them in the strategic planning process will likely enhance both the planning process and its outcomes for your organization.

Roxann is the Founder and CEO of InnerHub Consulting Services Ltd, specializing in organizational transformation, leadership development, and strategic business growth. Winsome is the Lead Consultant at WINR Risk Consultancy, specializing in risk management, regulatory compliance, and corporate training.