Defrag your strategy

A phenomenon we've observed over the past few years is increasing fragmentation of the elements of strategy to the detriment of achieving alignment, commitment and momentum. 

In the first of a series of articles, April Strategy Co-founder Tim Westall examines the foundations of good strategy and how to prevent them being hijacked and fragmented.

The six foundations of good strategy 

Strategic success starts with six agreed foundations clarified by the leadership team and board before you kick off detailed planning. 

Before you plan strategy, agree the foundations: 

1. Core purpose - the value we create for customers, people and investors 

2. Core values - the enduring beliefs that shape behaviour and decisions 

3. Vision - a compelling picture of the future we're aiming for 

4. Goals - measurable indicators of progress toward that vision 

5. Risk stance - our collective appetite (or aversion) and resilience 

6. Priorities - the handful of strategic thrusts that command most effort and focus. 

When these are aligned, strategy and implementation land far more smoothly.

Too often organisations follow ‘ready - fire - aim’, ie diagnose, rush into action, then belatedly ask what to stop, start or change to make the plan work. That backward sequence creates wasted effort and missed outcomes. 

Good leaders do what good builders do – they lay the foundations first, then build with confidence. 

Core purpose 

The first foundation is core purpose. A company’s core purpose is its enduring reason for being beyond profit. It answers the question: “Why do we exist?”  

A strong purpose is: 

• timeless: stable despite changing strategies or products 

• impact‑oriented: focused on the value created for customers and society 

• decision‑guiding: a north star for strategy, culture, and trade‑offs. 

Good purpose statements are simple, memorable, and distinctive. Poor ones are either long, vague legalese or generic marketing lines. 

For established organisations, purpose is often discovered rather than invented, being already embedded in what the company consistently does and believes. 

Here are a few questions you could ask to start the process of discovering purpose: 

1. Why do you work for your organisation?  

2. Why was it created? 

3. What needs do you serve?  

4. What do you ultimately want to achieve in your role/as an organisation?  

5. What do you want to be known for?  

6. What inspires you to come to work every day?  

7. What needs to change to inspire you?   

A practical framing 

A tool we use to discover purpose is the Japanese Ikigai framework, originally conceived to aid individuals in pursuit of their enduring ‘reason for being’. We’ve found it works well for organisations too. 

The tool asks a team to consider: 

• What is your mission? (something the world needs that you love) 

• What is your vocation? (what the world needs and that you get paid for) 

• What is your profession? (what you get paid for and what you’re good at) 

• What is your passion? (what you’re good at and what you love) 

When mission, vocation, profession and passion overlap, you’ve found your reason for  

being. 

Why we need core purpose 

The benefits of discovering why an organisation exists, beyond making money, are many.  

A core purpose drives a sharper strategy so you can easily understand what to do and not do, and make decisions more quickly. It also leads to a stronger brand as customers will pay a premium for brands that are more meaningful. And staff will be more effective when they believe that their work matters. 

In the long-term, companies with a clear purpose attract ‘patient’ capital which provides more stability to develop. A clear purpose can also inspire customer-centric innovation over the longer-term. 

What about ESG? 

ESG has moved from niche to mainstream, though still contested. 

Under The Companies Act of 2006, directors have a statutory duty to consider the impact of their business on the community and environment. Section 172 states they must act in good faith to promote the company’s success having regard to long-term consequences, employees, business relationships, community/environment, reputation for high standards, and fairness between members. 

In other words, the components of ESG and the primacy of sustainability are already embedded within the primary responsibilities of Directors. It does not have to be laid out in core purpose. 

Despite the USA backlash, ESG won’t disappear. It will focus more on financial materiality and real-world impact. 

In our next article coming soon, Tim will look at the second foundation of good strategy - core values, the critical companion piece to core purpose.