BY DR. TANAI CHARINSARN

August 10, 2016

“ The plan is nothing but planning is everything ” - Dwight D. Eisenhower

STRATEGY PROCESS BY STRATEGIC LEARNING (SENSE & RESPONSE)

STRATEGIC LEARNING 

Strategic Learning Cycle

This theory is a combination of both theories in the process of strategy development. To move from learning to a specific strategy, it is necessary to have a feedback loop to continually evaluate and improve what has been done. The integration of both approaches in this process is called the Strategic Learning Cycle.

PHASE 1: DIAGNOSE - Business Diagnosis (2-3 months) During this phase, the business should focus on learning from the outcomes of the previous year's strategies in terms of employee performance, market changes, and competition. It's important to gather extensive data and use that data to gain insights into the business. Various individuals at all levels of the organization should contribute data based on their interactions with customers, supplier satisfaction, and market conditions.

PHASE 2: DESIGN - Business Design (2-3 days) In this phase, the business should design its strategy to create a competitive advantage and foster innovation. This design should be based on the insights gathered from the data. Senior management, using suitable tools like SWOT and 5-Forces analysis, should be responsible for this phase. The outcome is an idea that should be further explored and developed into the next strategic plan.

PHASE 3: BUSINESS VALUE ANALYSIS (ROI) (1-2 months) This step involves creating a business plan to assess the financial viability of the chosen strategy. It includes market feasibility, operational planning, and financial planning. The goal is to evaluate whether the strategy is financially beneficial for the company. It is important to understand that this is not a one-time activity but a process of planning to enhance the business's success by making it more accurate and efficient.

PHASE 4: PILOT SCALE PROJECT (3-4 months) Since it is difficult to predict if the planned strategy will work as intended, this phase involves implementing a pilot-scale project to learn from trial and error. A successful pilot project should be a full-scale, yet small, implementation. Results are assessed after the specified time to learn what works and what doesn't. The goal is to determine whether the strategy should continue at a larger scale and to identify the conditions for its success.

PHASE 5: EXECUTION In the final phase, everyone in the organization must actively participate in executing the strategy. Management takes the lead in facilitating change, and project managers act as change agents. Changes may involve how success is measured, operational processes, organizational culture, employee development, and IT system support for operations. The key is to keep trying and learning through practical implementation until the strategy is precise and successful.

This process combines theoretical and practical aspects and ensures that the strategic plan aligns with the business's potential to compete in the market.