Strategy DevelopmentStandard Methodology
Sequence in Strategy Development
The principle that strategy development typically flows top-down from corporate strategy to business-unit and functional strategy, and that even where a functional strategy is the immediate trigger, the overall corporate strategy must be defined (or confirmed) first to keep the organisation aligned to a common direction.
What it is
Guidance on the correct order of strategy development work: corporate strategy first, then business-unit strategy, then functional strategy, even when a project is scoped to start at a lower level.
Problem it solves
Prevents functional or business-unit strategies being developed in a vacuum, disconnected from an overarching corporate direction.
When to use
- Scoping a multi-level strategy engagement
- A functional strategy (e.g. IT, HR) request arrives without a confirmed corporate strategy
Key questions
- Has the corporate strategy been defined or confirmed before this functional/business-unit strategy work begins?
Inputs
- Existing corporate strategy (if any)
- Scope of the requested engagement
Steps
- 1Confirm or define corporate strategyStrategy typically flows top to bottom, beginning with corporate strategy.
- 2Develop business unit strategyAlign business-unit strategy to the confirmed corporate direction.
- 3Develop functional strategyTranslate business-unit strategy into functional strategy, even where the functional strategy was the original request.
Outputs
- A correctly sequenced set of corporate, business-unit and functional strategies
strategy sequencingcorporate strategybusiness unit strategyfunctional strategy
Related methodologies
Custodian: Corporate Support. Internal (staff access). Source: AIA_Methodologies_2024.pptx (slides 11, 12).