Strategic Change Agenda: How to Define Transformation Goals

Learn how to facilitate definition of the goals for a strategy map with the Strategic Change Agenda framework.

Background

Strategic Change Agenda is one of the frameworks[1] for strategy formulation. In the context of strategic planning, the change agenda tool was mentioned in “The Execution Premium”[2] as a tool that “explains the need for the change in the strategy.” One of its best-practice applications was the design of Strategic Change Agenda (called Strategic Shift) for the FBI[3].

A template for strategic change agenda

Strategic Change Agenda
Sign-up with a free plan to access Strategic Change Agenda as well as 31 other scorecard templates.

What is the Strategic Change Agenda?

In essence:

With Strategic Change Agenda we analyze the possible change dimensions in the context of current state versus desired future state to formulate specific objectives for the strategy map.

By using the framework, we make sure that all the goals on the strategy map have a meaningful context “by design.”

Isn’t it Obvious? What’s The Value of the Framework?

From the first look, the framework might look like an obvious tool with no real value. We all do the “current vs. desired” analysis even in our daily life. How does the framework help?

The important part of the framework is the connection between the goal that is formulated on the strategy map and the change agenda.

This connection explains the reasoning behind the goal, makes it easier to explain strategy to the stakeholders, and increases the chances for successful strategy execution.

How are the Strategic Dimensions Formulated?

The Strategic Change Agenda works as a pre-filter for the Balanced Scorecard’s strategy map. The strategic dimensions are formulated according to the organization’s vision as well as using the findings of other business frameworks, like:

Example of Using Strategic Change Agenda

Here is an example of the Strategic Change Agenda.

Change Dimension Current State Future State
Product complexity Product is hard to get started Product is easily adapted by the new users
Product acceptance Product is used occasionally Product forms a part of the toolkit that managers use daily
Sales team Focused on sale presentation Focused on client’s challenge
Marketing  Old-style marketing materials High-quality video content among marketing materials
Team Office-based: few locations Remote team: talking client’s language

We can use these change dimensions to formulate goals for the strategy map. Let’s take “product complexity” change dimension as an example:

  • Current state: product is hard to get started
  • Future state: product is easily adapted by the new users

With these two states as a context, we have some possible goals for the strategy map:

  • Implement onboarding tutorials
  • Analyze the complexity points of the product
  • Revise product marketing materials
  • Change the approach to train sales agents

Among these candidates, I’d prefer to start with the analysis of the product complexity to find the root-case of the challenge. We can map this goal into the Learning & Growth perspective of the Balanced Scorecard.

Formulating Goals on the Strategy Map

When adding the goal to the strategy map, it’s important to keep its context.

  • There should be a well-articulated answer to the question “Why is this goal important?”

To answer this question, we can get back to the Strategic Change Agenda and look at the respective:

  • Change dimension
  • Current state
  • Future state

Change Agenda in BSC Designer

In BSC Designer, you can use a Strategic Change Agenda template to formulate the change dimensions, current and future states.

Once the Change Agenda is defined, select the future state and use the Idea to goal button on the toolbar. It will help to formulate a goal in another strategy scorecard, keeping the future state in the context field.

Should your stakeholder have questions about the reasoning behind the goal, you can always see the involved change dimension and get back to the original Strategic Change Agenda for more detail.

Advantages and Disadvantages of the Framework

A strong side of the framework is its simplicity supported by a few guiding principles:

  • Define the change dimension
  • Define where we are now
  • Define where we want to be
  • Formulate a goal for the shift from current state to future state

Another strong side of the framework is that it gives contextual information for the goals “by design.” With the context well-defined, it’s easier to answer “why?” questions asked by the stakeholders and achieve better acceptance of the goals.

Similar to other strategy definition frameworks, the effectiveness of the initial discussion is defined by the experience of the team:

  • There is no guarantee that all relevant dimensions will be taken into account (other strategy formulation frameworks like mentioned PESTEL or 7-S will add value in this case).
  • Similar to mixing strategic and operational goals, mixing strategic and operational dimensions might be an issue – invite an experienced facilitator to keep the discussion on the right track.

Alternative Frameworks

Here are some alternatives to the Strategic Change Agenda.

Gap Analysis – Quantified Change Dimensions

Similar to the Strategic Change Agenda, Gap analysis suggests looking at the difference between the current and desired states. Gap analysis is used for performance indicators, where the performance gaps (actual performance vs. expected performance) are quantified.

Three Horizons – Prioritization of The Change Dimensions

McKinsey’s Three Horizons Model was introduced as a framework for high-level planning of the innovation efforts.

Rather than focusing on a single state (“future” state of the strategic change agenda), Three Horizons suggests there are three scopes for the change depending on the time horizon:

  • Horizon 1: Change of existing business model
  • Horizon 2: Change by addressing goals in the comfort zone
  • Horizon 3: Change to address the future trends

In this way, the Three Horizons framework can add a layer of prioritization to the Strategic Change Agenda.

Executive Summary

Strategic Change Agenda helps formulate contextual goals using a pair of current/future states across change dimensions. To use the framework, follow these steps:

  • Find change dimensions; use the strategy formulation frameworks like PESTEL, SWOT, or Five Forces
  • Describe current and future states
  • Formulate goals on the strategy map, keeping the states and the change dimension as a context
What's next?

  • Access templates. Sign-up with a free plan at BSC Designer for immediate access to 31 scorecard templates, including Strategic Change Agenda discussed in this article.
  • Master skills. Check out free video tutorial for the Balanced Scorecard. Master your strategy planning and execution skills with Strategy Execution training.
  • Automate. Learn what Balanced Scorecard software is and how it can make your life easier by automating strategy execution, KPIs, and strategy maps.

Online wizard will help even inexperienced users to create a professional strategy map with business goals, KPIs, and initiatives.

Strategy Map Wizard – Balanced Scorecard in 6 Minutes

Answer simple questions - build a professional strategy map in 6 minutes.

Strategy formulation and description might be a time-consuming project even for an experienced strategist. This Strategy Scorecard Wizard will make the whole process fast and intuitive.

Start now!

More About Strategic Planning

Strategic Planning Process:
BSC Designer software will support your team on all steps of strategic planning.
Examples of the Balanced Scorecard:
Examples of the Balanced Scorecard with KPIs
Strategy Maps:
8 Steps to Create a Strategy Map By BSC Designer

References

  1. ^ Comparison of Strategic Planning Models and Frameworks, Aleksey Savkin, BSC Designer, 2020
  2. ^ The Execution Premium, Robert S. Kaplan, David P. Norton, Ingram Publisher Services, 2008
  3. ^ How the FBI Manages Performance, Bernard Marr, 2015
Cite as: Aleksey Savkin, "Strategic Change Agenda: How to Define Transformation Goals," BSC Designer, August 3, 2022, https://bscdesigner.com/strategic-change-agenda.htm.