Approach to Strategy: What we can borrow from science

Written By Paul Dalla Torre

Strategy

Finding the best path forward is needed to break-through into new markets and products. Strategy that iterates actions can help point us in the right direction. Separately, the science protocol of Problem Statement, Hypothesis and Experiment (whose fan base includes Elon Musk) is a framework that is iterative by design. Incorporating these principles into our strategy design could help bring our plans to life.

What follows is a framework with principles to help embed (and document) iteration into our business strategy in 3 steps:

  1. Goals,

  2. Hypotheses,

  3. Implement & iterate

Framework

1. Goals

Business goals

  • Define SMART goals that are aligned with your strategic vision across all functions.

    For example: "Increase market share of our primary product line by 15% within the next 12 months."

Strategic analysis

  • Analyze the factors affecting your business:

    • external (PESTEL),

    • internal (SWOT) and

    • industry competition (Porter’s Five Forces).

Problem statement

  • From the analysis, identify the strategic problems or challenges to be overcome.

    For example "Our company is experiencing declining market share in our primary product line due to increased competition and changing customer preferences."


2. Hypotheses

  • Brainstorm hypotheses (is. assumptions and potential solutions) to address the problem statements.

  • Hypotheses should be actionable and measurable.

    For example: "Introducing a new product feature that enhances user experience will increase customer satisfaction and drive a 15% increase in market share."



3. Implement, iterate

  • Implement (ie. “experiment”)

    • Plan - create a detailed plan for each potential solution or initiative, outlining scope, resources, timeline, and success metrics.

      For example: "Launch the new product feature in a specific geographic market for six months."

    • Execute - implement the initiative.

    • Measure - collect and analyze data to evaluate the initiative’s impact on achieving business goals.

      For example: "Track customer feedback, satisfaction scores, and sales data during the six-month period."

  • Iterate - learn and adapt

    Assess whether the “experiment’s” outcomes help with the business goals.

    If:

    • Yes, do more.

    • No, revaluate assumptions and do something else.

      For example: "If the new feature results in increased customer satisfaction and market share growth, consider a broader rollout. If not, adjust the feature based on feedback and test again."

Useful principles:

  1. Recognize and reward continuous improvement, innovation and strategic thinking across the business.

  2. Ensure everyone understands the strategic plan and their role in making it happen.

  3. Think about several risk scenario’s and steps to mitigate.

  4. Collaborate across all business functions so that everyone is aligned.

  5. Flex strategy implementation based on changing market dynamics and / or unforeseen circumstances.

  6. Establish feedback loops to flag ongoing adjustments.

Conclusion

Borrowing an experiment mindset from science can ground our strategy in iteration and ongoing learning and help us uncover best options to achieve break-through goals.

Paul Dalla Torre