Last week I wrote about Rethinking Strategy and the concept of Real-Time Strategic Planning, based on a book called The Nonprofit Strategy Revolution by David La Piana. While this book is focused on the nonprofit sector, I believe the concepts have wonderful application for both for-profit and not-for-profit businesses. Another concept in the book that I found really compelling is around the Strategy Pyramid. This article will dig into this concept and how it may be a useful way for you to think about strategy in your business.

Traditionally thinking around strategic planning conjures up memories of massive information gathering, multi-day farming sessions, and binders filled with fancy reports. Real-Time Strategic Planning is much more nimble and relevant to today’s fast paced business environment. It is built on the foundation of a strong vision or mission and gives a business the ability to quickly adapt as new challenges or opportunities arise.

Another common trait of traditional strategic planning is that oftentimes the strategies are not strategies at all. Through the traditional planning process many things come up that would be good for the business to focus on. These could be goals, programs, operational processes, technology, or something else all together. While important, these things are not necessary “strategy level” items. At least not Organizational Strategies.

This brings us to La Piana’s Strategy Pyramid. The Strategy Pyramid is made of three levels of strategies:

• Operational Strategy (bottom)

• Programmatic Strategy (middle)

• Organizational Strategy (top)

In this pyramid, the base is made up of Operational Strategies, Programmatic Strategies are in the middle and Organizational Strategies are the top.

Operational Strategies

All strong organizations are built upon a strong base of administrative processes and management systems. In order to run effective programming and have a positive impact on the community a nonprofit must rest upon the solid base of strong operations. To deliver quality products and grow sales a for profit business must have the same solid foundation. Strong operations ensure the “trains run on time” (quote from my friend Cameron Nicholson).

Operational Strategies are the initiatives designed to improve efficiencies, execution, or responsiveness. These could include any number of things. Some examples include:

• New software will help you manage your campaign more efficiently

• A Diversity and Inclusion training to grow your staff team

• Preventative maintenance plans to protect your assets

• Initiatives to improve communications with staff or customers

Generally speaking, operational strategies are those things impacting the infrastructure of the business, such as human resources, finance, technology or communications.

Programmatic Strategies 

In the nonprofit world, programs are where the “rubber hits the road.” They are how an organization delivers their mission to the world and provides the impact they intend for their community. In the for profit universe, this layer of strategies is likely the products or services the business sells. In both instances, when a customer or community member thinks of the business, it’s the programs or products that they usually think of first.

Programmatic Strategies are the decisions around what activities/products will be delivered and how they will be delivered. Here are a few of the decisions that could lead to Programmatic Strategies:

• Delivering programs in-person on on-line

• Providing carry-out or delivery

• Narrowly focusing your products or offering a broad range

• One product/program, a few, or many

Programs (or products/services) sits on top of the operations; they are supported by that solid base.

Organizational Strategies

On the top of the pyramid are the Organizational Strategies. These strategies honor and are developed in order to fulfill the organization’s mission or the company’s vision. They take into account trends happening in the market, challenges coming from competitors, opportunities from partnerships, and their unique deliverables. Organizational Strategies are the big picture actions or activities the business will take to move towards achieving its mission or vision. Organizational Strategies include things like:

• Expanding to new service areas

• Establishing an intentional brand or culture

• Shifting funding sources

• Expanding to online retail

Even though the Organizational Strategies are on the top of the pyramid, this is actually where we start when formulating strategy for a business.

Start Building at the Top

With almost any construction project you start at the base and build up. This process of strategy formation does just the opposite, It starts with clarifying mission and/or vision and builds down through the layers. The mission/vision is the heart of the business, its purpose for being, and the very core of all decision making. It’s a solid practice to regularly visit the mission/vision to keep everyone focused on why the business exists. Your organizational strategies are the ways in which you will work towards your mission/vision. To quote La Piana: “Organizational Strategy is about who and what the nonprofit is in the larger world. It’s about organizational identity, direction, brand, and market position.” Same goes with for profit companies.

Once Organizational Strategies have been established, it gives clarity to the kinds of programs, products or services that should be delivered and how they will reach the participants and customers. Programmatic Strategies can be developed which support and align with the Organizational Strategies. After these top two layers are in place, Operational Strategies can be created in order to best serve the strategies that rest upon this base layer. By building each layer based on the strategies above it, each segment is connected and creates a coordinated set of actions. Programmatic and Operational Strategies can also be thought of as large or involved goals which will help you work towards your Organizational Strategies.

Examples

To help give some clarity, here are a couple of examples of how strategies may look in a for profit company and a nonprofit agency.

• For profit clothing retailer:

  • Organizational Strategy: In addition to our thriving catalog and website sales we will add pop-up stores in order to see if physical locations will appeal to our customers.

  • Programmatic (Product) Strategy: This summer we will have pop-up stores at festivals in the three states where our sales are highest. We will provide our top selling summer items in a variety of sizes and limited colors.

  • Operational Strategies: In order to support our summer pop-up stores we will need to research and invest in a mobile pay system and mobile store hardware (racks, displays, tent, and changing booth). A dedicated staff will research and secure venues as well as create a schedule and communication system.

• Nonprofit environmental agency:

  • Organizational Strategy: Our mission is to create a sustainable planet with future generations in mind. To this end we will focus on improving air quality in the metropolitan community we serve.

  • Programmatic Strategy: Our signature program will be a tree planting initiative which will engage volunteers and school or camp youth groups in planting trees. The program will involve education and follow-up care to ensure long-term impact.

  • Operational Strategies: Funding will be central to supporting the tree planting project. Development will focus on grant writing and corporate sponsorships. Additionally, a dedicated staff will be responsible for identifying locations, recruiting volunteers, securing youth groups and coordinating events.

These examples are greatly simplified, but they clearly illustrate the importance of each strategy building upon the one before it. Thinking of strategies as a coordinated set of actions not only reduces waste, it helps propel you towards your vision/mission.

If you would like to explore Real-Time Strategic Planning for your business or organization, email me at kim@athena-coco.com to schedule a free 30-minute consultation. Calm the Chaos by streamlining your strategy development, and find time to focus on what’s important to YOU.