The document outlines the five essential elements of strategy: objective, necessary condition, success metric, target value, and means. It defines each element and provides examples to illustrate how they fit together to form a strategic plan. Specifically, it shows how setting an objective requires determining necessary conditions, then devising success metrics with target values, and identifying means to move the metrics toward the targets to achieve the objective. The overall process involves iteratively applying the five elements to break down strategies into understandable, actionable components.

1. Essential Elements of 5
STRATEGY
A deck prepared by @ljuti. For more, follow @StrategyMasters

2. Organizational strategies often get
stuck to a very high level and vague
concepts

3. You can break them down to
understandable, down-to-earth
actionable pieces with the
five essential elements
of strategy

4. the elements
OBJECTIVE
NECESSARY CONDITION
SUCCESS METRIC
TARGET VALUE
MEANS

5. 1 OBJECTIVE

6. Strategic OBJECTIVE
a defined objective that an
organization must achieve to
ultimately reach its vision
and strategic goals
DEFINITION
Saad Faruque, Flickr (CC)

7. Revenues increase.
EXAMPLE
EXAMPLE #1 : OBJECTIVE

8. EXAMPLE #2 : OBJECTIVE
Customers can buy solutions
derived from R&D program
results.
EXAMPLE

9. objectives can be categorized
into different perspectives
CUSTOMER
MARKET
OFFERING
CAPABILITIES
PEOPLE
DEVELOPMENT
FINANCIAL
SHAREHOLDER
… and more
Altug Karakoc, Flickr (CC)

10. NECESSARY
CONDITION 2

11. NECESSARY CONDITION
a discrete element whose
presence is required for
success
DEFINITION
also known as critical success factors (csf)

12. EXAMPLE
EXAMPLE #1 : NECESSARY CONDITION
Revenues are maximized from
existing customers.

13. EXAMPLE #2 : NECESSARY CONDITION
R&D program is complete.
AND/OR
Solutions can be developed
from R&D program results.
EXAMPLE

14. necessary conditions can be either
external or internal
EXTERNAL
Imposed from outside
the organization.
“Compliance with
environmental laws.”
INTERNAL
Organization imposes
upon itself.
“Excellent people and
technology.”
Bosc d’Anjou, Flickr (CC) Quasic, Flickr (CC)

15. SUCCESS
METRIC 3

16. SUCCESS METRIC
a defined way of measuring and
demonstrating the presence of
a Necessary Condition
DEFINITION

17. EXAMPLE #1 : SUCCESS METRIC
Renewal rate of existing
customer contracts
EXAMPLE

18. EXAMPLE #2 : SUCCESS METRIC
EXAMPLE
Number of new solution
blueprints or prototypes
based on R&D program results

19. OBJECTIVE
data-driven
COMPOSITE
combines multiple
sources
DELEGATED
someone else
measures it
SELF-ASSESSMENT
your own opinion
4
types of
metrics
Josep Ma Rosell, Flickr (CC)

20. TARGET
VALUE 4

21. TARGET VALUE
the desired value on a Success
Metric that demonstrates a
Necessary Condition
has been attained
DEFINITION

22. EXAMPLE #1 : TARGET VALUE
Renewal rate is 95% by the
end of the year.
EXAMPLE

23. EXAMPLE #2 : TARGET VALUE
EXAMPLE
One solution prototype based
on R&D program results

24. HITTING THE TARGET VALUE
MEANS YOU’VE ATTAINED
THE NECESSARY CONDITION
TO REACH THE OBJECTIVE
Emilio Kûffer, Flickr (CC)

25. 5 MEANS

26. MEANS
DEFINITION
a set of activities that will
“move the needle” of Success
Metric towards Target Value

27. EXAMPLE #1 : MEANS
EXAMPLE
Chart contracts up for renewal.
Determine customer satisfaction.
Ensure there are no active complaints
before renewal.
…

28. EXAMPLE #2 : MEANS
EXAMPLE
Create a program to develop ideas into
blueprints and prototypes.
Ensure appropriate resources and
capabilities for prototyping.
Install rewarding system for ideas.
…

29. MEANS CAN BE EITHER
TEMPORARY
Projects, one-off tasks,
temporary practices,
etc.
“Business Development
Project in Malaysia.”
PERMANENT
Culture, practices,
ways of work, habits,
etc.
“Continuous evaluation
of customer engagements.”
Chris Lott, Flickr (CC)

30. Synthesis Putting it all together ∞

31. LET’S PUT THE ELEMENTS
TOGETHER IN ATTEMPT
TO SEE THE WHOLE
Lawrence Rayner, Flickr (CC)

32. the process is simple and straight-forward
begin finish
SET OR PICK
AN OBJECTIVE
DETERMINE
NECESSARY
CONDITIONS
DEVISE A
SUCCESS
METRIC
DEFINE
TARGET
VALUE
FIGURE OUT
MEANS TO
MOVE THE
NEEDLE
Marc Wathieu, Flickr (CC)

33. OBJECTIVE
Revenues increase.

34. REVENUES
INCREASE
NECESSARY
CONDITION
NECESSARY
CONDITION
NECESSARY
CONDITION
Revenues are
maximized from
existing customers.
New customers are
acquired and
secured.
Highest gross
margins from sales
are realized.

35. OBJECTIVE
MAX
EXISTING
NECESSARY
CONDITION
NECESSARY
CONDITION
SUCCESS
METRIC
TARGET
VALUE
Renewal rate of
existing customer
contracts.
Renewal rate is 95%
by the end of the
year.

36. OBJECTIVE
NECESSARY
CONDITION
NECESSARY
CONDITION
NECESSARY
CONDITION
RENEWAL
RATE 95%
MEAN MEAN MEAN
Chart contracts up
for renewal.
Determine
customer
satisfaction.
Ensure no active
complaints before
renewal.

37. NOW RINSE AND REPEAT.
(YOU’LL HAVE TO DO IT ONLY ABOUT A HUNDRED TIMES)
tripleigrek, Flickr (CC)

38. THE GAME IS
EASY
TO PLAY.
COMING UP WITH
THE RIGHT IDEAS
IS THE HARD
PART.
Cary Bass-Deschenes, Flickr (CC)

39. BUT EVENTUALLY YOU’LL
HAVE IT ALL FIGURED OUT
Son of Groucho, Flickr (CC)

40. NOW GO OUT THERE
AND GIT ‘ER DONE!
Sergey Galyonkin, Flickr (CC)

41. THANKS!
This deck was prepared by @ljuti
For more on strategy, follow @StrategyMasters