Define Phase – Blueprint Of The Strategy

The define phase is highly relevant and sets the tone for the strategy. It provides a blueprint to build up the strategy. In this phase, the executives are involved in defining the status of the company and its operation and keep an eye on the current market scenario.

This phase is relevant, as the voice of the customer is confirmed in this phase. Technical, social and the economic trends are also considered. The strengths and weaknesses of the competition are identified. Using the Kano analysis, CTQ and the Big Y’s (outcomes) are established, which in turn are translated to the performance measures.

The key performance indicators and goals are defined to be a part of the project charter. Other tools, such as the SWOT analysis and the McKinsey 7-S model, may also be used to define the strategy for the business.

Measure Phase

The measure phase is very critical in developing a business strategy, as it is a quantitative measure of the performance of the business. It is the indicator of the effectiveness of the current operations in business improvements.

With the substantiated data for support, the strategic decisions can be made. The financial performance and the growth can be reviewed based on stock market data, balance sheets, cash flow statements and an analysis on the return on investment (ROI).

Indicators such as changing market share and the rate of market growth can be relevant to devise strategies to deal accordingly with the next plan period.  Benchmarking studies can be very useful in measuring the growth in terms of competitors and self-set benchmarks.

Analyze Phase

Using collected data, the strength and the weaknesses of the business, opportunities, threats and market position can be investigated. The data will be useful to understand the root cause of the difference in the performance, strategies of the competitors, the product cycles and the existing market strategies.

Experienced executives can make good interpretation of results of such an analysis and synthesize the results to understand the areas of improvement.

The Improve Phase

The business’ strategy must be continuously improved to stay on track with the changes in customer, economic and technical factors affecting the strategy.

Using the data from the earlier phases, those areas that need improvement are identified, and the executives can brainstorm ideas to take the business forward.

The risks involved in any initiative have to be assessed to help set high level KPIs and milestones to achieve the business’ goals.

The Control Phase

Close monitoring of the performance and the strategy is necessary to ensure business is going on the right track. A control plan is devised to track the key financial and market performances, sales and production and other relevant areas. A contingency plan is utilized in response to price wars, political events and competition.

DMAIC thus proves to be a controlled and disciplined model for business strategy. It creates a framework to provide for decision-making tools to be utilized in the structured process that helps to take the organization toward success.