AREA OF STRATEGY

SCORE (0-5)

1. THE BIG ISSUES

• Current profitability. I have a clear view of where value is being created and destroyed across the business.

• Competitors. I understand the profitability, growth and underlying strategies of my main competitors, and have identified potential new entrants to the market.

• Customers. I understand how customers rate us compared to our competitors, how this varies by customer group, what impact this has on our market share, and how customers' spend will grow in the future.

• Suppliers. I know what strategies each of my main suppliers pursue, and what other supplier alternatives exist.

• Organisation. I know what organisational capabilities - people, systems, technology - drive our success, and what barriers exist to future success.

Sub-total (out of 25) - A low score indicates that you do not have a good handle on your current issues. It is likely that your internal meetings are characterised by different opinions about what the problems are, rather than a focused discussion on what to do about commonly-agreed issues.

2. DISTINCTIVE ADVANTAGES

• Target customers. I know who our target customers are, what their needs are, and what will motivate them to buy from us.

• Customer benefits. I can articulate clear benefits of our customer offer that answer our customers' question, "What's in it for me?"

• Reasons to believe. I can explain to customers why they should believe these benefits, and how the benefits are consistently delivered.

• Uniqueness. I understand and can communicate how dramatically unique our offer is to our customers - they cannot get anything like it anywhere else.

• Organisational focus. Our organisation, systems and activities are focused on this distinctive proposition, and we do not fall into the trap of being all things to all people.

Sub-total (out of 25) - A low score indicates that customers see you as a me-too provider. Your profit margins are likely to be lower than the leading players and you are forced to compete on price.

3. COMPELLING VISION

• Compelling core purpose. We have a purpose that speaks to us over and above the task of making money.

• Ambitious goals. We set demanding goals for future performance. We don't necessarily know how we will deliver against them, but they are a constant focus for everyone in the business.

• Deep-seated values. We know how we work best and can articulate what is important to us.

• Clear future picture. We have described how the company will look and feel in the future, and how we will meet our customers' needs, deliver great results and be a brilliant place to work.

• Organisational engagement. We have communicated our future vision at all levels in the organisation. It is the starting point in all discussions, and from the board room to the front-line people support and engage with our direction.

Sub-total (out of 25) - A low score indicates a lack of clarity about the future direction of the business. Management discussions may reveal low levels of alignment about key decisions, and front-line teams may show little enthusiasm. As a leader of the business, you may find lots of low-level decisions being passed up the chain for your approval.

4. FOCUSED AGENDA FOR ACTION

• Addresses the big issues. The agenda addresses the big issues and opportunities facing us and that will shape our future performance.

• Links to the vision. I can clearly see how delivering this agenda will move us closer to our vision and goals.

• Strong themes. The agenda has been broken down into clear, understandable themes that everyone in the business can get to grips with.

• Clear priorities. We are not overburdened with priorities. I understand the two or three critical things we need to focus on at this time to make progress.

• Cross-agenda linkages. There are clear links between our priorities and we need to deliver all of them if we are to become the organisation we aspire to be.

Sub-total (out of 25) - A low score indicates that you are unclear as to how your agenda will move the business forward. Your people will be uncertain what you expect from them and how they should spend their time.

5. INITIATIVES THAT DELIVER

• Visible results. It is clear how delivery of each initiative will benefit the company overall and help us deliver our strategic agenda.

• Quick wins. There is a constant stream of early wins that highlight the way forward and help gain organisational support and momentum. These wins are visibly celebrated by the Executive team.

• Project leadership. There is a identifiable project team which is accountable for the delivery of each project. Many of the team are full-time on their initiative.

• Cross-business ownership. Relevant functional teams have the budgets and operating plans hardwired into the initiative. They are actively involved in its success.

• Executive sponsorship. There is a senior executive champion for each initiative who will support the project team and help resolve issues and concerns.

Sub-total (out of 25) - A low score indicates that initiatives have not been set up for success. Project teams may not be able to engage their line colleagues, and issues may not be resolved. You may find that projects fade and die, and that there are few volunteers to lead future initiatives.

6. AN EFFECTIVE ORGANISATION

• Consistent Executive focus. It is obvious that this strategy is the Executive's constant focus. Their actions and decisions consistently link to the vision and agenda. They do not waiver when the going gets tough.

• Two-way communication. All possible avenues of communication are explored to get the vision, agenda and progress across. Colleagues can have their say and their feedback is listend to and acted upon.

• Decision rights. People understand where and how they can make decisions in line with the strategic direction, and are given the tools to make them effectively.

• Aligned rewards. People are rewarded in the widest sense for delivering the agenda. It is seen as a good career move to be involved in a key strategic initiative.

• High-performing teams. There is support to build the capabilities and performance of teams across the business. People feel empowered to make improvements in line with the strategy, and to give each other honest feedback on performance.

Sub-total (out of 25) - A low score indicates that the organisation is not well set up for long-term delivery. Initiatives may flounder, and many in the organisation are waiting for a new agenda to come along rather than focusing on delivering the current priorities.

GRAND TOTAL (out of 150) - A low score (below 75) indicates that your company is struggling to make real progress in delivering a winning strategy. People may be confused about the organisation's future, and you may find it difficult to maintain profit growth and your position in the market.