Strategic Problem & Issues
STRATEGIC PROBLEM
SUPPORT:
To support a given strategic problem, you must present convincing evidence to do the following:
1. Show that it is a strategic problem. This means it must be cross-functional in nature and have major long-term consequences for the organization's success. For example, "Production is not automated enough." is not cross-functional. On the other hand, "Products have higher prices (or lower quality) than our main competitors." is cross-functional, even though you may feel that the main cause is lack of automation in production.
2. Provide convincing support that it is the MOST IMPORTANT problem currently facing the organization. This can usually be approached by presenting reasonable (not emotional) arguments about the consequences to the firm if the problem is not "fixed."
ANALYSIS:
Analysis means presenting information in an analytical manner that assists in better defining the problem scope or narrowing down its causes so that solutions may be more effectively created. This includes such things as determining: what caused the problem, why does it continue to exist, will it go away on its own, how long has it existed, how serious is it, how soon does it have to be solved, and what internal and external factors contribute to the problem. The specifics will vary considerably depending on the particular case situation.
Sometimes, the use of a strategic theory (not a functional theory) will be beneficial. For example, has a change in the phase of the product life-cycle for one of the organization's products caused a permanent change in the basis of competition for that product?
Beware, problem analysis is NOT the place for your solutions. This is analysis only, not prescription. Any of the words, "should," "must," "have to," or similar phrasing are completely unacceptable.
STRATEGIC ISSUES
An issue is something major, internal or external, that limits or expands the alternatives available to the organization in solving its primary strategic problem. Since issues are strategic in nature, they must be long-term (for example, a recession is not normally an issue). Issues may, however, be functional in nature (for example, lack of financial strength to finance expensive alternatives). Issues should not be random; they must clearly relate to the strategic problem currently facing the organization. Additionally, they must be specific to the particular organization (or possibly, its industry).
To test your issue ask, "Can I name a specific alternative that would solve this organization's strategic problem, which is not reasonable solely because of this issue?" Or, for an expanding issue, "Can I name a specific alternative that would solve this organization's strategic problem, which would not be available except for this issue?"
To further test your issue ask, "Should the organization do what the issue states or not?" If you can answer this yes or no, it is not an issue, but an alternative.
- R. S. Kulzick - 4/92 -