Strategy is an integral part of any successful business. To ensure that your strategy is effective, it's important to understand the five elements of the Strategy Diamond model: scenarios, differentiators, vehicles, staging, and economic logic. These five aspects are related to the decisions that companies, businesses, and teams must make when defining and refining their strategies. When crafting your brand plan, it's important to use these four elements of smart strategic statements to ensure that you structure and demonstrate your good thinking. Regardless of the scope and complexity of the strategy or even the size of the company, great strategies include these elements.
This group of elements constitutes the strategy diamond.
Scenariosare used to analyze the gap between aspiration and current projection. They help identify what is standing in the way of success. When expanding a project, it's important to consider the cost of design, strategic importance of certain attributes (such as breathability, moisture content, shape), cost of manufacturing, and sustainability considerations.
Differentiatorsare used to set a company apart from its competitors. For example, Nike has opted for a direct retail presence in addition to using traditional retail distribution channels.
Differentiators can also be used to create a unique selling point for a product or service.
Vehiclesrefer to the methods used to achieve a goal. When setting KPIs, it's important to make sure that they accurately reflect what success means in each area of focus and that they can be measured accurately on a regular basis. The key question is how to achieve the greatest possible impact with the available funds.
Stagingand Rhythm refer to the timeline for achieving goals. In some cases, it may be necessary to reap benefits from the start and have the credibility of certain key stakeholders to implement a strategy.
Companies that incorporate all five elements into their strategic planning process create strategies that are easier to execute.