Step 1 ZIP Process - Develop an Effective Strategy

ZIP (Zero-lag Implementation Process) is an agile methodology designed to accelerate Information technology application development (DevOps) by minimizing delays, streamlining processes, and ensuring resources are used efficiently. And the first step is developing a solid strategy.

When I’m asked to create a strategy or help companies build one, I always say it’s about way more than just setting goals. A good strategy is about defining a clear direction, making smart decisions about priorities, and aligning resources to gain a real competitive advantage. And I've seen this play out in fascinating ways over my career.

One of my first jobs was at a startup accounting, banking and payment processing company with exactly twelve people—I was the twelfth hire. My supervisor pointed me to a desk and handed me my responsibilities: “Answer the phone,” he said. “And when it’s quiet, create a new product for us.” Simple, right? I looked at him in horror. My "resources" included a phone, a notebook, and a pencil. He gave me all the resources I needed for the job and set my priorities to answer the phone. When the phone rang there was no question in my mind I was to stop what I was doing and answer the phone. He clearly had a strategy, even if he didn't exactly spell it out in detail.

I started answering the phone and talking directly to customers, taking notes, asking tons of questions, and listening to their challenges. Little did I know at the time I was understanding the external factors and assessing the landscape of the company. I’d then take customer questions to the programmers and dig for answers. At the time I did not know it but I was establishing a clear vision and mission for the company. Before long, I began to spot a theme: customers wanted to run their own queries, to get the info they needed without having to call us every time.

So, my new product idea took shape—giving customers the ability to query the system on their own. It turned out to be exactly what they wanted, and soon enough, we were selling it along with our accounting product to the top 100 banks across the country. Our small startup exploded to over 150 people and was eventually acquired by a major bank. A success story born from a straightforward, clearly communicated strategy!

Of course, there’s a lot more to crafting a strong, actionable strategy, but I’ll streamline the process for you so that you, too, can build one that works and creates value.

Elements That Make an Effective Strategy

Michael Porter, "The essence of strategy is choosing what not to do."

1. Assess the Current Landscape

• Purpose: Understand the internal and external factors impacting the organization.
• Actions:
  • Conduct a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) to evaluate current capabilities and areas for growth.
  • Examine industry trends and competitive landscape to identify potential threats and areas of opportunity.
  • Gather stakeholder input to understand expectations and assess readiness for change.
• Outcome: A solid grasp of the company’s position, environment, and the strategic context in which decisions will be made.

Ken Andrews, “In analyzing a company’s strengths and weaknesses, the executive must be more than objective; he must be detached and look at the business as an outsider would.”

2. Define Vision, Mission, and Objectives

• Purpose: Establish a clear vision and mission that communicate the “why” behind the strategy.
• Actions:
  • Create a vision statement that defines the long-term ambition and desired future state of the organization.
  • Draft a mission statement to clarify the purpose and core values driving the organization.
  • Set SMART objectives (Specific, Measurable, Achievable, Relevant, Time-bound) that align with the organization’s vision and will serve as strategic targets.
• Outcome: A clearly articulated vision and mission that provide direction, along with measurable objectives to track progress.

3. Identify Strategic Initiatives and Priorities

• Purpose: Select focus areas that will deliver the most value and align with the vision.
• Actions:
  • Use insights from the landscape assessment to identify key strategic initiatives that address weaknesses, leverage strengths, and capitalize on opportunities.
  • Prioritize initiatives based on impact, feasibility, and alignment with the organization’s objectives.
  • Choose a manageable number of high-impact initiatives to avoid overstretching resources.
• Outcome: A targeted set of initiatives that provide focus and maximize the organization’s ability to achieve its goals.

4. Allocate Resources and Define Key Metrics

• Purpose: Ensure adequate support and accountability for each strategic initiative.
• Actions:
  • Assign budget, personnel, and technology resources to each initiative based on priority and resource availability.
  • Define KPIs (Key Performance Indicators) for each initiative to measure progress and success.
  • Establish a reporting and review cadence to track KPIs regularly and adjust resources as needed.
• Outcome: An actionable plan with dedicated resources, accountability measures, and clear metrics to track progress.

5. Develop an Execution Plan with Milestones

• Purpose: Break down each initiative into actionable steps and define clear timelines.
• Actions:
  • Create a phased implementation plan that sets short-term and long-term milestones for each initiative.
  • Define roles and responsibilities to ensure accountability and smooth coordination across departments.
  • Implement feedback loops to gather insights from teams executing the plan, adjusting milestones or tactics as needed.
• Outcome: A step-by-step plan that provides a roadmap for implementation, with regular checkpoints to assess progress.

6. Communicate the Strategy and Build Buy-In

• Purpose: Ensure everyone understands and supports the strategy.
• Actions:
  • Develop a communication plan to share the strategy with stakeholders at all levels, focusing on “why” the strategy is important and “how” each department contributes.
  • Hold Q&A sessions and workshops to address questions, clarify roles, and foster engagement.
  • Build buy-in by aligning departmental goals with the strategic objectives, ensuring each team understands their role in achieving the overall vision.
• Outcome: A well-communicated strategy with strong organizational support, making implementation smoother and more unified.

7. Monitor, Evaluate, and Adjust as Needed

• Purpose: Continuously improve the strategy and ensure alignment with changing circumstances.
• Actions:
  • Regularly review KPIs and strategic milestones to assess progress and make adjustments where necessary.
  • Use data-driven insights to adapt the strategy as the internal or external landscape shifts.
  • Conduct annual strategic reviews with the executive team to evaluate overall performance and refine the strategy for the next period.
• Outcome: An adaptive strategy that remains relevant and effective over time.

What Makes a Good Strategy?

Sun Tzu, "Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat."

In my story above, I skipped over a lot of juicy details. Honestly, I could fill an entire book just talking about that one experience! But for our purposes here, I’ll spare you the epic novel and jump straight to the good stuff—the top takeaways you need.

A good strategy includes several key characteristics:

1. Clarity of Purpose and Direction: A good strategy provides a clear vision of the future and defines a path to get there. It should answer why the strategy is important and outline the steps needed to reach the desired outcomes.

2. Focused and Realistic Goals: Effective strategies focus on achievable, high-impact objectives rather than trying to accomplish everything at once. This focus prevents dilution of efforts and maximizes results.

3. Adaptability: The best strategies are flexible enough to accommodate changes. This includes having feedback loops, regular KPI reviews, and the willingness to pivot when necessary.

4. Aligned Resources and Accountability: A strong strategy ensures that resources are allocated to priority areas and that every initiative has accountable owners. This alignment keeps everyone focused on shared objectives.

5. Measurement and Tracking: Good strategies incorporate measurable outcomes and establish a framework for monitoring progress. KPIs and milestones provide accountability and help identify issues early.

6. Engagement and Buy-In: Successful strategies engage all stakeholders, aligning their contributions with the strategic vision. Building buy-in through clear communication and support ensures unified efforts toward common goals. 

Peter Drucker, "The best way to predict the future is to create it."

The Ansoff Matrix - Case Study

Igor Ansoff – Often called the father of strategic management, he developed the Ansoff Matrix, a tool for identifying strategic growth options.

• Quote: "To manage a business is to balance the long-range view and the short-range view."

The Ansoff Matrix is a strategic tool that helps businesses identify growth opportunities by looking at four key areas: Market Penetration, Market Development, Product Development, and Diversification. 

Here is how you can apply each quadrant to developing an IT strategy:

1. Market Penetration: Enhance customer adoption and maximize value within existing markets.

• Objective: Increase the adoption and optimize usage of IT solutions by existing customers, helping them fully leverage the technology they’ve invested in.
• Initiatives:
  • Provide customer training sessions and webinars to deepen their understanding and use of current products, ensuring they see the full benefits.
  • Improve system performance and user experience based on customer feedback to make interactions seamless and efficient.
  • Highlight and promote underutilized features, such as advanced data analytics in a CRM, to help customers gain deeper insights and maximize their ROI.
• Goal: Drive greater customer engagement, making IT solutions an integral part of their operations and enhancing their overall satisfaction and retention.

2. Market Development: Expand IT services into new customer segments or geographic regions.

• Objective: Broaden the customer base by offering proven IT solutions to new markets, industries, or geographical areas.
• Initiatives:
  • Identify and target under-served customer segments that could benefit from existing IT solutions, such as expanding an ERP solution from manufacturing into retail or logistics sectors.
  • Localize solutions to meet regional regulations and customer preferences, ensuring the product fits each market’s unique requirements.
  • Promote cross-functional adoption within customer organizations, encouraging different departments to use the platform and achieve greater integration and efficiency.
• Goal: Build a wider, more diverse customer base by reaching new segments and helping more customers benefit from proven IT solutions.

3. Product Development: Develop new IT solutions tailored to existing customers' evolving needs.

• Objective: Introduce new or enhanced IT services that meet the changing requirements of current customers, enabling them to stay competitive and efficient.
• Initiatives:
  • Develop cloud-based collaboration tools or specialized project management systems to support hybrid work and increase productivity.
  • Create mobile applications that give customers remote access to essential resources, allowing for greater flexibility and on-the-go productivity.
  • Implement advanced analytics or AI tools that help customers automate repetitive tasks, gain predictive insights, and improve decision-making.
• Goal: Equip customers with new, valuable capabilities that enhance their experience, streamline operations, and adapt to changing market dynamics.

4. Diversification: Enter new markets with innovative IT solutions for emerging customer needs.

• Objective: Develop or adopt groundbreaking IT technologies that allow the company to enter entirely new sectors or address unique customer challenges.
• Initiatives:
  • Launch pilot projects exploring new technologies, like AI-driven customer support for instant issue resolution or IoT for smart building management.
  • Partner with specialized vendors to integrate blockchain solutions for secure financial transactions and transparent asset tracking.
  • Develop custom cybersecurity solutions aimed at high-sensitivity sectors such as finance and healthcare to address unique security and compliance needs.
• Goal: Establish a future-focused IT portfolio that not only keeps customers at the forefront of innovation but also positions the company as a leader in emerging technologies.

This customer-centric approach to the Ansoff Matrix demonstrates how a company can grow its IT service offerings by deepening existing customer relationships, expanding into new customer segments, developing new solutions to meet evolving needs, and entering entirely new markets with innovative technologies.