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Ioi standards for develop a strategy


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The International Orgtology Institute (IOI) regulates the practice of Orgtology, which includes the certification of Orgtology Practitioners, the endorsement of companies who provide Orgtology Services, and the training of aspirant Orgtologists and Orgtology Specialists.

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Ioi standards for develop a strategy

  1. 1. Phase 1: Define the organisation • IOI Standard 1: Define the purpose of an organisation. • IOI Standard 2: Develop a business model for an organisation. • IOI Standard 3: Develop organisational values. Phase 2: Understand the reality of the organisation • IOI Standard 4: Understand the EOP of an organisation. • IOI Standard 5: Extract operational items from the process construct. • IOI Standard 6: Assess the strategic position of the organisation. • IOI Standard 7: Assess the RPO maturity of an organisation.
  2. 2. Phase 3: Create strategic intent • IOI Standard 8: Develop strategic intent through the 5V Model. Phase 4: Define the strategic intervention • IOI Standard 9: Define strategic objectives. • IOI Standard 10: Create V4 targets. • IOI Standard 11: Create a work breakdown for strategic programmes. Phase 5: Develop a strategic document • IOI Standard 12: Develop a strategy document. Phase 6: Execute and monitor the strategy • IOI Standard 13: Monitor the execution of strategy.
  3. 3.
  4. 4. Define the purpose of Org. IOI Quality Standard 1
  5. 5. (1.1) Write a statement of purpose in such a way that: (1.1.1) It defines the existence of Org; (1.1.2) It is distinct from a statement of intent; and (1.1.3) It is in present state. E.g., “We ensure price and financial stability for the country.” Do not describe a future state, e.g., “To ensure price and financial stability for the country.”
  6. 6. Develop a business model for Org. IOI Quality Standard 2
  7. 7. (2.1) Do research on business models of similar organisations and industries. (2.2) Identify the value drivers for the business model. Generic value drivers in orgamatics are process efficiency; strategic effectiveness; meaningful relationships; focused intelligence; and productive resources. (2.3) List and describe the core critical success factors (CSF) for Org to perform and stay relevant. These are high level CSF’s and as rule of thumb, they must not exceed ten. The CSF’s for performance and relevance must be listed separately.
  8. 8. (2.4) Describe the business model. The description must give detail on the unique way in which Org does its business. Some items to consider when describing a business model are value propositions; target customer segments; distribution channels; customer relationships; value configurations; core capabilities; commercial network; partner network; cost structure; and revenue model. (2.5) Depict the “value flow” of your business model. This is a model, value chain, or diagram that shows the interdependence of the organisational activity. The core value drivers must be depicted.
  9. 9. Develop organisational values. IOI Quality Standard 3
  10. 10. Cross-functional standard taken from standards for “Create an organisational culture”.
  11. 11.
  12. 12. Understand the EOP of Org. IOI Quality Standard 4
  13. 13. Cross functional standard taken from standards for “Do an EOP analysis”.
  14. 14. Extract operational systems, core targets, and top ten risks from the process construct. IOI Quality Standard 5
  15. 15. (5.1) Extract the core operational systems of Org from its process construct and list it in the strategy document with an explanation. (5.2) Extract the core processes of each system from t he process construct and list them with their systems in the strategy document. Give an explanation and aim of each system and its processes.
  16. 16. (5.3) Extract the core operational targets from the process construct and list in the strategy document. This should include the qualification, quantification, measures, evidence, and weighting. (5.4) Extract the top ten operational risks from the process construct and list in the strategy document.
  17. 17. Assess the strategic position of Org. IOI Quality Standard 6
  18. 18. (6.1) Use the EOP analysis to understand the risk exposure, opportunities, and process efficiency of Org. (6.2) Compare your EOP to that of similar organisations in your industry. (6.3) Assess your rank/position in your industry. If there is no standard way to assess the rank or position of an organisation in your industry, then create a standard way.
  19. 19. Assess the RPO maturity of Org. IOI Quality Standard 7
  20. 20. Cross-functional standard taken from standards for “Assess RPO maturity”.
  21. 21.
  22. 22. Develop strategic intent through the 5V model. IOI Quality Standard 8
  23. 23. 8.1. Create a V1 statement. V1 is a definition for the ultimate dream for Org. This is a non-quantifiable idea of the ultimate state of your organisation. It is a dream, and dreams are the business of the entity who dreams them. You can therefore define it in any way you wish. 8.2. Decide what rank or position you want Org to have in your industry hierarchy. 8.3. Identify the gap between your current rank/position and your desired rank/position. If it is possible to close this gap within your envisioned strategic period, then keep your desired rank as is. If it is not possible, then adjust your desired rank or adjust the strategic period.
  24. 24. 8.4. Create a V4 statement. V4 is a projection of the position of Org at the end of a strategic period. This becomes the vision of Org for its strategic period. V4 must be in line with V1 – the ultimate dream of Org. Orgtologist mostly use the position/rank within the industry to formulate a V4 statement. This is not a rule. 8.5. Decide on a strategic period. This would be a projection of how long it will take Org to move from its current state to its desired V4 state.
  25. 25. 8.6. Shorten the gap between V1 and V4 by creating V2 and V3 statements. V2 and V3 are statements that show where we want to go over a longer term than our V4 period. The IOI is not specific on what the duration of these periods must be. As rule of thumb, V2 is 15- years from now and V3 is 10-years from now. It is preferable that V2 and V3 statements are quantifiable. 8.7. Stipulate a V5 statement. V5 is a declaration that all the V4 targets for each of the strategic years will be met at 100%.
  26. 26. 8.8. Record the 5V statements in such a way that they imply the following strategic periods: 8.8.1 V1 - ultimate dream 8.8.2 V2 - long-medium term vision 8.8.3 V3 - medium term vision 8.8.4 V4 - short-medium term vision 8.8.5 V5 - short term vision
  27. 27.
  28. 28. Define strategic objectives. IOI Quality Standard 9
  29. 29. (9.1) Identify which aspects of the EOP analysis you must work with to close the gap between your current and V4 position. (9.2) Cluster your research into (between) two to five strategic focus areas. Define these focus areas as strategic objectives.
  30. 30. Create V4 targets. IOI Quality Standard 10
  31. 31. (10.1) Turn each strategic objective into a V4 target. V4 targets are different to process output targets in that V4 shows an outcome. In other words, we do not measure the efficiency of production or delivery. Instead we measure the effect that the execution of a strategic objective had. This is a shift in relevance. E.g., if the objective is to get more customers, then the V4 target can be to increase the market share of Org.
  32. 32. (10.2) Create a baseline quantification for each V4 target. This is a current state that you quantify and not a projected state. If the target is to increase market share, and current market share is 30%, then the baseline is 30%.
  33. 33. (10.3) Quantify each target for each strategic year within the strategic period. This quantification is based on the baseline quantification. There must be a direct “cause-effect” relationship between the targets and the quantifications. E.g., if the target is to increase market share, then the quantifications for a three-year strategy might be (Year 1) 40%; (Year 2) 50%; and (Year 3) 60%.
  34. 34. (10.4) Show the following items in each V4 target: (10.4.1) A clear definition of each target; (10.4.2) A baseline quantification for each target; and (10.4.3) A quantification for each target for each strategic year.
  35. 35. Create a work breakdown for the programmes and projects that will execute V4 targets. IOI Quality Standard 11
  36. 36. (11.1) Turn each strategic objective into a strategic programme. The objective becomes the aim of the programme. (11.2) Decide which projects will emanate within each programme.
  37. 37. (11.3) Decide on the activity breakdown for the programmes. The breakdown should have the following items: (11.3.1) List of activities, including activities that are projects; (11.3.2) Classification code for each activity (C-Key); (11.3.3) Dependency flow (predecessors to activities); (11.3.4) Estimated duration for each activity (use the critical path or PERT method); (11.3.5) Name of the responsible person to each activity; (11.3.6) Resource weight of each activity (cost of the activity as a percentage of the budget); and (11.3.7) Target date for completion of the activity.
  38. 38. (11.4) Obtain project briefs and budgets for all projects within the strategic programme. (11.5) Develop a budget for the entire programme. (11.6) Create a risk register with mitigation and contingency plans for each risk item.
  39. 39.
  40. 40. Develop a strategy document. IOI Quality Standard 12
  41. 41. (12.1) Compile a statement of organisational definition and identity. This statement should include the following items: (12.1.1) A statement of purpose / mission; (12.1.2) A statement of intent / vision; (12.1.3) A statement of organisational values; and (12.1.4) A organisational business model.
  42. 42. (12.2) Compile a statement of operational efficiency. This statement should include the following items: (12.2.1) A summary of the process construct, its core systems, and their process families; (12.2.2) A list of the systems targets to the process construct; and (12.2.3) A list the top ten process construct risks with their mitigation and contingency plans.
  43. 43. (12.3) Compile a statement of strategic effectiveness. This statement should include the following items: (12.3.1) A summary of the EOP analysis with its proposed strategic focus areas; (12.3.2) A 5V model; (12.3.3) A list of the strategic objectives, their programme aim, the programme director, and target date; (12.3.4) The V4 targets with their quantifications; and (12.3.5) A list of the top ten strategic programme risks with their mitigation and contingency plans.
  44. 44. (12.4) Write a section on how Org will monitor and execute its strategy. (12.5) Insert an executive summary that explains the context and process used to devise this strategy as well as why a specific strategic choice was taken. It should also have a summarised version of what the strategy entails. (12.6) Add other sections to the strategy document as needed. (12.7) Add the complete EOP analyses as well as all the programme briefs as annexes to the strategy document.
  45. 45.
  46. 46. Monitor the execution of strategy. IOI Quality Standard 13
  47. 47. (13.1) Create a strategic scorecard that will show quantified feedback on the following items: (13.1.1) Budget and resource consumption for each programme and project; (13.1.2) A V4 scorecard that shows how we are fairing at executing the V4 targets; (13.1.3) A strategic programmes scorecard that shows the strategy completion, budget efficiency, and the target date efficiency. In other words, we must be able to see how much of the strategy is done, whether we are spending what we planned to spend, and whether our execution is on time; and (13.1.4) A operational target scorecard that shows how well our process construct is running.
  48. 48. (13.2) Separate the monitoring of time, cost, and target execution from the execution of activity. One cannot be referee and player at the same time. (13.3) Ensure that programme teams meet regularly, that they follow project management method, and that the programme directors are senior people who can give direct feedback to the CEO.