In this article, we address a topic that is likely to divide strategy minds: The strategy workshop.
We would like to give you an insight into how we understand and experience strategy workshops and which aspects from our experience lead to successful strategy development and implementation.
1. why strategy workshops often fail?
You have probably already participated in a strategy workshop and I would like to invite you to think back to when you were in that workshop. If you can remember, reflect on what you think didn't work so well in the workshop.
From our experience, it is often the following issues that cause the workshop to be unsuccessful:
- Spatiality: e.g. the workshop is held in-house or simply in an unsuitable environment (too fancy or boring and not geared to the workshop)
- Preparation: Unfortunately, this is often lacking. There is a lack of a clear agenda and thus also a lack of objectives, which often do not even exist.
- Often the workshop is not really a strategy workshop, but rather a planning meeting for the next year.
So to make sure you don't make these mistakes in the first place and your strategy workshop is on target, let's take a look at what it takes to make a strategy workshop successful.
2. how to make your strategy workshop a success?
Holding a strategy workshop is an art, but it also has a lot to do with craft - and that includes good preparation including goal setting.
We have developed a system for the entire strategy process that we use successfully ourselves and also make available to others as a digital tool: The StrategyFrame®
This consists of three main pillars, as follows:
- Situation analysis - Where are we today and what are our biggest challenges?
- Target picture - Where do we want to go and what specific goals are we pursuing?
- Fields of action - Where do we need to tackle and change things in our organization?
The entire strategy process - and thus also the strategy workshops - is built on these three core elements and modules.
Since these pillars are quite complex, we also recommend making sure that enough time is allocated for implementation so as not to overload the workshops.
For example, we conduct at least two workshops as part of the strategy development process:
- Workshop 1 is for the formulation of the situation analysis and elaboration of the target picture.
- In the second workshop, we then approach the third pillar, i.e. the fields of action and development of measures.
3. who should participate in the strategy workshop?
For the first strategy workshop, we recommend that the top management body participates and, if necessary, the second level as well.
Depending on the goal and size, it is sometimes advisable to bring in selected colleagues who bring a different perspective. They help to break down the mindset and provide valuable diversity in the perspective from and on the company.
We recommend keeping the group size under 12 for the first workshop. There are also exceptions, but it becomes more complex, exhausting and needs different methods when the number of participants is higher.
Conversely, we recommend having at least 5-6 people in the group of participants.
4. what is the process of a strategy workshop?
We usually divide the entire process into two workshops, each lasting 2 days.
As already mentioned, we dedicate the first workshop to the first two pillars: situation analysis and target picture.
The second workshop will then move on to the third pillar and thus to the fields of action and the development of measures.
In detail, the structure then looks as follows:
Strategy Workshop 1 - Day 1
The strategy process does not start with the workshop itself, but already before. Our motto is: No strategy workshop without preparation.
The preparation includes a situation analysis. This can take place the evening before, for example, when the participants take the time to analyze the current situation.
The preparatory discussion is a good basis for then being able to enter into the interpretation of the situation analysis together on the first day.
The first strategy workshop is therefore first of all about becoming aware of the situation, and after a common understanding of the current state, one can then deal with the challenges.
After this part of the strategy process, it makes sense to take a break and then look to the future.
At this point, we can then turn our attention to the impact promise, which is the first aspect of the goal picture. Although we recommend that this point be placed before the strategy workshop, this is often not successful due to time constraints, so we incorporate this as a module in the first workshop.
A comparable and recommended process here is the "Why" development (see Simon Sinek 'Start With Why').
Thus we have already arrived at the conclusion of the first day.
Strategy Workshop 1 - Day 2
The second day is about further developing and formulating the target image.
We first start with a recap from the previous day and then move into elaborating the differentiated customer value. This means that we discuss the questions: What do you do differently and better than your competitors? And how do you earn superior profits with it?
Then it's on to the heart of the StrategyFrames and thus the definition of your playing field: target markets, customer segments and offering.
In this step, you determine in which markets, for which customer segments and with which offer you want to be on the road.
Building on this, the next step is to crystallize the priorities for your organization and formulate where you want to go. With the formulation of the goals and key results, we have reached the end of the first strategy workshop.
After that, we recommend that you allow time for everything to be set, integrated and, if necessary, readjusted and specified.
We are therefore happy to arrange an interim appointment until the second workshop to go through the bullet points again together.
Strategy Workshop 2 - Day 1
For the second part, we recommend expanding the group of participants to include other managers, such as those from operations. Depending on the size of the company, we recommend that at least the entire core of the management level be present.
Of course, the new participants have to be met first. This usually means that the participants of Workshop 1 first present the StrategyFrame® and the formulations that were developed in the first part. This often takes the entire morning of the first day, as we always want to provide the space and opportunity to justify the results and discuss them as a team.
Along the goals, the following questions are then tapped for each goal:
- Where do we stand here today?
- What is the organization's goal picture at this goal level?
- What do the gaps look like to achieve this target picture?
Indeed, through this process, the gaps and needs that need to be filled then become visible.
Strategy Workshop 2 - Day 2
The second day starts with idea development.
First, as many ideas as possible can be generated, which are then aligned along the gaps.
In our StrategyFrame®, we provide the following 6 fields of action as a guide for this process:
- Structures and processes
- People (e.g., staffing needs, missing skills)
- Culture
- Data & IT
- Innovation
- Partnership
You can then develop your measures for the organization or company along these fields of action.
With this step, we have almost reached the end of the workshop, with the final step being to define the next steps and the roadmap for implementation. After all, even the best strategy will not be successful without implementation.
Implementation must therefore not be missing from the strategy process.
This also includes joint communication and transfer to the organization: >> How do we leave this workshop? How do we communicate what we have experienced and worked out here? And when will the presentation of the entire strategy take place?
Sometimes fine-tuning is needed here downstream, but at this point you have all the essential elements to take your strategy into the organization and engage with it in dialogue before moving on to implementation.
In any case, we also recommend giving the strategy a catchy name so that everyone knows what we are talking about in the future. This step can also be used as a good conclusion to the strategy workshop.
Conclusion and final tips
This approach has really proven itself in our experience and has already brought many successes.
Our final tip is probably not a classic strategy tip, but one that we really want you to take to heart:
Do not underestimate the dynamics of the participants.
For as much as rational decisions are involved, the emotional component is also an important factor in the strategy process and it is important to balance this or to use this aspect positively.
It's a chance for a first step toward a new sense of team.
So as an organizer, make sure you have a good environment - and by that we don't just mean functionality, but also the energy of the space and how you as an organization bring participants together.
We hope we could give you a good insight into how we understand and live strategy.
Feel free to contact us if you have any questions, or pick up our book, Hope is Not a Strategy, if you'd like to explore the topic further.
On our website you will also find the StrategyFrame® - our digital strategy tool, which is the basis for our strategy work and which you can test free of charge and without obligation.