What is the paramount Strategic Driving Force in your business?

Driving Forces

Your company's driving force is the dominant factor influencing your decision making and central to setting your strategy.

A powerful technique for determining your organization’s strategy (the ultimate goal of strategic planning) is to consider its driving force.  They define the driving force as “the primary determiner of the scope of future products and markets.”

Your driving force is the dominant factor that most influences the making of major decisions.

The first thing to invest in when times are good; the last thing to cut back on when times are tough.

  The following 15 driving forces seem to cover most organizations, with examples of companies allied with each driving force.

1. Products offered – produces specific products (things) for its markets.
     Examples: General Motors, Coca-Cola

2. Services offered – delivers specific services (human efforts) for its market.
     Examples: Wells Fargo Bank, Charles Schwab

3. Market needs – focuses on meeting the needs of specific markets.
     Examples: Fisher-Price Toys, Windsor Ont. University

4. Customer needs – focuses on meeting the needs of specific set of customers.
    Examples: YMCA, Toronto Sick Kids

5. Return/profit – focuses on the achievement of predetermined returns or profits.
     Examples: United Way, Goldman Sachs

6. Size/growth – focuses on the achievement of a specific size or growth rate.
     Examples: Network Associates, University of Phoenix

7. Technology – applies its technological capabilities in innovative products or services.
     Examples: Intel, Microsoft, 3M

8. Human resources – leverages its employees’ specific qualities, skills, or training.
     Examples: Kelly Services

9. Service capability – leverages the depth or uniqueness of its employees.
     Examples: Value Line Publishing

10. Production capacity – leverages its investment in physical plant.
       Examples: Boeing, International Paper

11. Sale/distribution method – has a unique or distinctive way of marketing.
       Examples: Dell Computer, amazon.com

12. Natural resources – owns or controls a significant natural resources and has the capability to process  these into usable forms.
       Examples: DeBeers, Exxon

13. Land – owns or controls land and the uses to which it can be put by itself or others.
       Examples: King Ranch, Barrick Gold

14. Assets – owns or controls assets whose preservation is paramount.
       Examples: Noble Drilling

15. Image – seeks to maintain a specific organizational image within its markets and the products or services  it produces.
       Examples: Cartier, Gucci

It is a rare company that can look at the above list and say, "Of course, it's obvious that our driving force is ___."  The discussion might start that way, but you can bet that someone else will jump in to throw cold water on that driving force and suggest another.  Indeed, my experience is that some of the richest, most vigorous, and deeply contentious debates in the entire planning process take place when the planning team tries to identify their driving force.

So how do you proceed to discover your driving force?

Begin by pruning the above list of all those driving forces that simply don't apply.  For example, if you only offer services, strike "products offered" from the list.  After eliminating the obvious ones, then ask yourself the opposite question: is there is another driving force that cannot be readily subsumed inside one of those remaining on the list?  If not, then add it.  You should now have a list of 6-8 driving forces to consider.

Now the real fun begins, not to mention hard mental effort, because every one of the remaining driving forces is important in some degree to the success of your company.  Every company needs to have sufficient human resources and technology to deliver a product or service to meet a particular market's needs in a profitable manner.  That's not the point.  The point of the exercise is to rank these in order of importance.

A structured ranking approach is best.  Perhaps the simplest means to this end is to consider them in pair-wise progression.  That is, take driving force #1 and compare it with driving force #2, and decide which is more important to your company in the actual making of major decisions and setting of important policies.  Next, compare #1 with #3, and then #1 with #4, until #1 has been compared with all the remaining driving forces.

Now take driving force #2 and compare it with driving force #3 and then with #4, etc.

The number of pair-wise comparisons grows rapidly with the number of driving forces.  For 6 driving forces, there are 15 comparisons.  For 8 driving forces, there are 28, and for 10 driving forces, there are 45.  You can readily see the advantages to taking some care in the selection of the initial driving forces to be considered.

My experience is that some comparisons of relative importance are "no brainers" and take only a few minutes for the planning team to reach consensus.  Other comparisons can take a half hour or more.  Altogether, with 6-8 driving forces to compare, you should expect to spend two-three hours to reach your final list of driving forces ranked in order of importance.  The effort you expend in putting this list together, and it is effort, will repay itself many times before the planning process is over.

Chris Wilkinson.                              

Certified Business Behaviour & Attitudes Analyst.               

Business Coach.(Mississauga).

E-mail: buspilot@bell.net

Tel: (905) 275-2907