Strategic Issues & ProblemsA strategic issue is a fundamental policy question or critical challenge affecting an organization's mandates, mission, values, stakeholders, resources, structure, processes, management, or product or service level and mix. Strategic issues diagnosis is a problem formulation process involving strategic decision-making processes to identify problems of strategic relevance. Identifying problems of strategic relevance and formulating appropriate strategies to respond to these problems is difficult. It often requires you to build a model of the problem, collect some data and information to test your hypotheses and assumptions underlying the problem to even discover what the real problems are to solve. The process is akin to an “empirical discovery loop” that enables systematic discovery and formulation of problems in complex real world situations such as strategy and policy making.
Strategic Issues Diagnosis Modeling
The substantive outputs of the strategic issues diagnosis processes including assumptions, cause-effect understandings, and predictive judgments can constrain or facilitate decision-making during the issues diagnosis and subsequent strategy formulation stages of strategic management. Analytical models of the diagnosis substantive outputs include elements such as assumptions, cause-effect understandings, and predictive judgments as well as symbolic output of elements such as domain language and labels. Assumptions and cause-effect understandings, tacitly accepted or consciously explicated, are materialized in the form of predictive judgments. Some examples of predictive judgments include:
Solving The Problem - Strategy Formulation
Deciding how to solve the problem, i.e., strategy development, creates the need for more information and analysis, and simulation. In most organizations and enterprises strategy development involves the identification and formulation of strategies at three levels i.e., corporate, business/competitive, and functional levels. and the implementation and execution of selected strategies from the formulated options/alternatives. Strategy formulation is a problem solving process that results in a set of strategic alternatives/options – a set of hypothetical solutions to the problems identified from strategic issues diagnosis.
In order to deliver value, a strategy has to enable change and adaptation of the organization to a problem; this requires that there are known problems to be solved. Yet identifying these problems is hard, partly because of complexity induced by the complicated structures (composed of many interrelated sub-problems, possibly from different domains, e.g., such as expressed through business architecture domains, etc.) of these problems, uncertainty due to incomplete information, and turbulence in the environment.
The Value of Modeling Strategic Issues Diagnosis
Modeling strategic issues diagnosis has a number of benefits including:
I am a serial technology entrepreneur and computer scientist interested in model-driven analysis and evaluation of strategy, its formulation, implementation and execution, to better inform strategic decision-making, and improve organization performance and ensure sustainable growth.