Factors
While developing strategic plans, leadership needs to first understand its assumptions. What are the factors, especially those outside of the control of the organization, that may exert irresistible force on the course of events. Factors that should be taken into account include threats like natural disasters, economic swings, and geo-political events. They also include critical resources for the organization like availability of raw materials, labor, market demand etc. And even positive forces like an unanticipated demand for our products or services. These may be macro in nature like a pandemic, or they may be very specific to the organization, like labor available in the metro area. Once these are identified, analyze them and reduce and combine them so they are mutually exclusive and collectively exhaustive of the factors the organization needs to take into account. It may help to engage the team in scenario analysis to identify factors. A global pandemic is an example of an uncontrollable outside force which we ignore at our own peril.
Implications
If factors are the irresistible force, implications are the “so-what?” factor. They are why one cares about each factor. For instance, in the case of a global pandemic, the implication is that we might have to shut our doors for a period of time. Or we may not be able to operate at full capacity due to a drop in demand. Or we may experience heightened demand for our product(s) which play a role in sanitization of workspaces. There may be, indeed it is likely that, there will be more than one implication for a factor. …and more than one factor may lead to the same single implication. It is helpful to create a network showing the relationship between factors and implications. An implication, as implied above, may be negative or it may be positive.
Strategy
Strategy is the high-level response of the organization to the factors and implications. A strategy does not have to arise only from the factors and implications, it may be the normal course of business. …or it may be a case specific response to the factors and implications. But it needs to respond to the factor and implications by mitigating the impact of negative implications and amplifying the impact of positive implications. Ideally it arises out of the normal course of business, but it may be a strategy that is only deployed in the event of a factor. Deploy personal protective equipment (PPE) is a strategy that only deployed in the event of a pandemic, or similar factor unless your organization is in the healthcare industry. The FIST network will visually highlight strategies that address multiple factor and implication combinations. These double word score strategies are efficient and valuable.
Tactics
Tactics are the action steps taken to implement a strategy at a low level. In the case of a global pandemic they might include a long list of actions starting with convening a response team within the organization to create a plan. Obtaining PPE supplies for the employees, initiating a protocol for working offsite etc. Like double word score strategies, double word score tactics might serve to implement more than one strategy and are similarly efficient.
A Word About Margin for Error
It is unlikely that a large number of organizations had crisis management plans in place to respond to a global pathogen. However, many had plans for disasters that could be adjusted to respond to the pandemic without having to start from scratch. At this point, it is safe to say that any get-out-of-jail free cards for not having planned are now used up and this next strategy planning cycle needs to include serious scenario planning and examination of things that could happen but that are “not very likely.”
One way to plan for such exigencies is to create more margin now. Many organizations that were operating at or near breakeven are now closed indefinitely because of the duration of this pandemic event and their inadequate cash reserves. The government does not have the resources to bail out all organizations. Remember, we ARE the government. Its funding comes from us. We must plan to bail ourselves out of the next event. …and maybe this one, depending on how it plays out.
Call To Action
Add FIST analysis to your next strategic planning cycle.
1. Make a list of all the factors affecting your organization. This is an excellent leadership group e. This is an excellent leadership group exercise.
2. Analyze the implications of the various factors identified and highlight those with large positive and large negative impacts. This is most effectively done by a small number of business analysts who understand the ramifications thoroughly.
3. Develop strategies to address each of the major impact implications. This is best in large groups with breakouts.
4. Develop tactical plans to support the strategies. This is best done in small subject specific groups with a report out to the leadership group.
Email me if you would like a copy of a FIST model template and a sample completed FIST Model. I hope you found something to apply to your business in this MBR. Let me know either way.
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