The difference between a strategy and a strategic framework is a simple but extremely important distinction. So, what are strategies and frameworks? A strategy describes the processes that lead to accomplishing individual goals and objectives. Strategies work with business planning on a micro-level—think strategizing for daily operations or establishing monthly goals for a specific project. 

On the other hand, a strategic framework refers to strategizing on a broader scale. Frameworks are used as loose guidelines that help inform the basis for new strategies. Each framework should be created and adjusted with marketplace trends, policy mandates, and other external factors in mind. Since these factors frequently change, frameworks are adaptable in nature. While strategies are much more rigid in their structures since they are more narrow in their focus. 

In the end, strategies and frameworks are meant to seamlessly integrate with each other, creating a holistic understanding of your entire strategic planning process. Understanding how these two elements inform one another is key to successfully improving your strategic planning process and deciding which types of strategic planning are best for your business.  

In this blog, we’ll discuss the elements used in good strategies and frameworks and explain how Elate can help you with both. 

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What Are the Elements of a Strategic Framework?

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Why are frameworks important in strategy? A strategic framework acts as a blueprint for your strategic planning process, and allows you and your team to fill in the critical elements of your overall plan. With this blueprint in place, you can begin creating more targeted individual strategies that align with the main objectives identified in the framework. This is a key element of your strategic planning process. Although there are many varying types of business framework, there are a few common elements that remain constant. For example: 

• Vision: This future-forward statement is an idealized description of what your company will look like once it has achieved its objectives. In short, the vision statement describes where your company is headed if all goes according to plan.
• Mission: Your mission statement is more down to Earth and realistic than your vision statement. It states what your company’s purpose is as it stands today. Both mission and vision statements are long-term and broad elements of the business framework.
• Objectives: These objectives outline what steps are needed to achieve individual goals. These are split into two categories: what is currently in the works, and what is yet to come. This is where businesses start to look at their goals on a micro level and identify which strategies they intend to use to accomplish their short-term, medium-term, and long-term objectives.
• Time-Frame: The time-frame element identifies how long your company wishes to spend on short-term, medium-term, and long-term goals. This also outlines the consequences associated with falling behind, and the benefits of meeting objectives on schedule.

Although these elements are common throughout all strategic planning processes, there is no one-size-fits all business framework template. Every company has its own unique goals, objectives, and challenges. Elate takes this into account. We partner with your team to provide tactical and tangible advice throughout your strategic planning journey, making your broad vision the center of everything we do. 

What Are the Elements of a Strategy?

So, what is a strategy in business? As you have probably guessed, strategy can mean a great number of things. There are short-term, medium-term, and long-term strategies that apply to all sorts of objectives. But they all have one thing in common, being hyper-focused. Every objective should have its own unique strategy that benefits your company’s strategic framework as a whole. According to the Strategy Diamond Framework, there are five key elements of good strategy:

1. Arenas: This identifies where your company needs to be active. This includes geographical areas as well as specific markets.

2. Differentiators: This is all about defining your competitive advantage and involves reviewing your pricing structure and overall brand image. 

3. Vehicles: This element includes defining your plan of action to win in the marketplace. The vehicles are what drive your strategy forward and outline who and what you need to achieve your goals in your identified arenas. This could mean acquiring a company or building alliances.

4. Staging: This element is directly tied to the time frame of your strategy. Here you identify how quickly you plan to achieve each objective and how this affects the overall strategy. 

5. Economic Logic: Although this seems simple, your economic logic is at the core of any strategy. This is where your company outlines how to achieve optimal returns. 

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Source: Oregon State University

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Elate: Aligning Best Practices For Your Strategic Planning Process

Building a successful strategic framework is no easy feat. At Elate, we’re all about bringing simplicity to complex problems. It’s our mission to help high-growth companies easily develop a dynamic planning strategy. By simplifying how we surface insights to the leadership team, our platform delivers access to the critical information they need to take action. This is how we work: 

• We collaborate with you using strategic planning audits, customized action plans, and leadership workshops to properly align your strategies with your vision.
• We use objective migrations and enablement sessions to gain adoption and increase visibility.
• We review quarterly transition assistance rooted in metrics to make meaningful decisions.

What do you think? Are you ready to take one step closer to realizing your company’s vision? If so, connect with us and discover how a partnership with Elate will level-up your company’s strategic planning.

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