When people talk about having a strategy, they often consider this just one thing.
While it’s important to have a clear and focused one-phase strategy,
there are actually 7 “Strata” [layers] of strategic thinking, from the Scaling Up process:
1. Mindshare — what words do you own in the minds of customers and prospects?
2. Brand Promise— who is your core customer, what needs are you providing for them, three brand promises that are compelling reasons to buy from you, and metrics to know if you are delivering on those promises.
3. Brand Promise guarantee— what you offer to your customers if you break your promise
4. One-phrase strategy— the key competitive “lever” that drives profits, serves your core customer and repels other prospects and competitors [example IKEA is flat-pack furniture]
5. Differentiating activities-– what your business does to execute your one-phrase strategy and is hard for your competitors to copy
6. X-factor— your hidden advantage that allows you to deliver 10-100 times the value compared to your competitors, often expressed as Profit per X [an example is Southwest airlines focus on profit per plane, not per passenger or mile]
7. BHAG [credited to Jim Collins]– your Big Hairy Audacious Goal– your 25-year goal that is aligned with your Purpose and often expressed by X-factor
All of these 7 Strata are designed to be aligned with your Purpose and Core Values and clearly communicated to your whole team on a One-Page Strategic Plan.
When you have clarity and focus on these 7 key elements, they are an amazing filter to make decisions and focus your priorities and efforts.
If you would like more explanation and examples, email me and I will send you an executive summary of Scaling Up by Verne Harnish.