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Establish Your Strategic Decision Framework Help everyone align plans and daily work with strategy © 2010 Rally Software Development, Inc.
Everyday, execs and their teams make lots of decisions ,[object Object],[object Object],[object Object],Referenced from Niel Nickolaisen  [email_address]   www.accelinnova.com/strategy.html#n2model © 2010 Rally Software Development, Inc.
So what’s all this talk about  “strategic alignment?”  ,[object Object],Strategy implies choices and decisions  So, strategically-aligned decisions support and enhance   our sustainable competitive advantage Jim Collins: Sustainable advantage = passion +  best at + what drives economic engine Referenced from Niel Nickolaisen  [email_address]   http://www.accelinnova.com/strategy.html#n2model © 2010 Rally Software Development, Inc.
As a leader, I must define a decision framework for my teams  ,[object Object],[object Object],[object Object],© 2010 Rally Software Development, Inc.
Traditional Cost-Benefit Decision Framework Referenced from Niel Nickolaisen  [email_address]   http://www.accelinnova.com/strategy.html#n2model © 2010 Rally Software Development, Inc.
The Problems with Cost-Benefit ,[object Object],[object Object],[object Object],[object Object],Referenced from Niel Nickolaisen  [email_address]   http://www.accelinnova.com/strategy.html#n2model © 2010 Rally Software Development, Inc.
A Better Decision Framework ,[object Object],[object Object],[object Object],[object Object],Referenced from Niel Nickolaisen  [email_address]   http://www.accelinnova.com/strategy.html#n2model © 2010 Rally Software Development, Inc.
Business Value Model: A Decision Framework for Strategic Alignment Referenced from Niel Nickolaisen  [email_address]   http://www.accelinnova.com/strategy.html#n2model © 2010 Rally Software Development, Inc.
Step 1: Business Purpose Alignment & Strategic Intent Model ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Referenced from Niel Nickolaisen  [email_address]   http://www.accelinnova.com/strategy.html#n2model © 2010 Rally Software Development, Inc.
Using the Business Purpose Alignment Model for Products ,[object Object],[object Object],[object Object],Referenced from Niel Nickolaisen  [email_address]   http://www.accelinnova.com/strategy.html#n2model © 2010 Rally Software Development, Inc.
Next, Lower Risk of the Considerations ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Referenced from Niel Nickolaisen  [email_address]   http://www.accelinnova.com/strategy.html#n2model © 2010 Rally Software Development, Inc.
Examples of Handling Considerations ,[object Object],[object Object],[object Object],© 2010 Rally Software Development, Inc.
Costs and Benefits? ,[object Object],Referenced from Niel Nickolaisen  [email_address]   http://www.accelinnova.com/strategy.html#n2model © 2010 Rally Software Development, Inc.
Summary ,[object Object],[object Object],[object Object],© 2010 Rally Software Development, Inc.

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Strategic Decision Framework

  • 1. Establish Your Strategic Decision Framework Help everyone align plans and daily work with strategy © 2010 Rally Software Development, Inc.
  • 2.
  • 3.
  • 4.
  • 5. Traditional Cost-Benefit Decision Framework Referenced from Niel Nickolaisen [email_address] http://www.accelinnova.com/strategy.html#n2model © 2010 Rally Software Development, Inc.
  • 6.
  • 7.
  • 8. Business Value Model: A Decision Framework for Strategic Alignment Referenced from Niel Nickolaisen [email_address] http://www.accelinnova.com/strategy.html#n2model © 2010 Rally Software Development, Inc.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.

Editor's Notes

  1. When aligning around purpose, evaluate business processes on two criteria. First, the extent to which the business process differentiates the organization in the marketplace. Second, the extent to which the process is mission critical to the organization. This yields four business purposes as shown above. With purpose defined, we know how to design and allocate resources to business processes (for example, we design the lower right processes to achieve and maintain parity with the marketplace). The critical step in this evaluation is to decide what generates market differentiation. This is where purpose alignment intersects with strategy.