1.1 Critique the factors which drive the development of organisational strategy
CMI Unit 704 Developing Organisational Strategy Ofqual unit number T/617/6864
RQF level 7
Guided learning hours 30
Total unit time 90
Credits 9
Aims of unit Leaders must have an in-depth understanding of strategy and how it can be developed if they are to operate effectively in complex local, national and global markets.
The aim of this unit is to enable leaders to know how to develop and influence an organisation`s strategic direction through the development of a meaningful strategy. To support this outcome, leaders will critique the factors which drive the development of organisational strategy and appraise approaches to successfully develop strategy. The unit culminates in leaders developing an organisational strategy to achieve a business goal. To complement this activity, leaders will propose an approach to implement and monitor the strategy developed to ensure its sustained success.
Keywords Strategy, direction, factors, culture, structure, approaches, deliberate, emergent, planning, implementation, monitoring, success.
Learning outcome 1
Understand how to develop strategy
Assessment criteria
1.1 Critique the factors which drive the development of organisational strategy
1.2 Critically appraise approaches for the development of strategy
1.3 Discuss the challenges of developing and leading organisational strategy
Indicative content
1.1 Factors (internal and external):
Internal: Organisational structures and governance. Organisational culture (Schein, 1988; Johnson and Scholes, 2011). Strategic narrative. Cost structures, drivers, financial assumptions. Current resources and capabilities. Big data. Appetite for innovation. Stakeholder influence and power. Current and emerging technologies, markets, customers. Geographical and/or virtual locations. Levels of organisational maturity (Carnegie Mellon Maturity Index ‘CMMI`, 1990).External: Legal and regulatory requirements and governance (e.g. health and safety, environmental standards). Government policy. Political and economic stability (e.g. national, global). Industry structures. Stakeholder influence and power. Competition. Market demographics, break points, dislocations, emerging markets. Disasters and events. Corporate social responsibility and sustainability. Emerging and disruptive technologies/innovations (Armstrong, 2017).Strategy: Growth. New product/service/processes. Retrenchment, consolidation, cost leadership, differentiation. Competitor and competitive strategies. Divestment, mergers, acquisition, partnerships, alliances. Diversification. Business closure. Research and development. Off-shoring, outsourcing/insourcing. Delayering and restructuring. Products, services, customer type needs, demands and expectations.Strategy: Levels of strategy. Corporate. Business. Strategic Business Unit. Departmental. Functional
strategies (e.g. HR. Finance, Operations. Supply chain. Administration. IT. Purchasing. Procurement. Treasury, Quality management. Infrastructure and facilities).
1.2 Approaches for the development of strategy: Deliberate. Emergent. Incremental. Paradigm shift. Step- change. Planned/unplanned. Opportunistic (e.g. Entrepreneurialism, interpreneurialism, intrapreneurialism). Resource based view of the firm. Scenario planning and rational planning model. Strategic planning as a top down/bottom up process (e.g. co-creation, consultation, focus-group testing). Business modelling (Whittington, 2000). The five Ps of strategy (Mintzberg, 2009).
1.3 Challenges: Different perspectives for developing and leading strategy. Organisational design (e.g. Network based organisations, virtual organisations/teams, autonomous team working. Self-organisation). Data management. Use of big data. Changing customer needs and expectations. Implementation of government policy. Current and emerging technology (e.g. social networking platforms). Challenge strategies and operations in terms of ethics, responsibility, sustainability, resource allocation and business continuity/risk management.
Diagnostic approaches to assess challenges: Organisations as complex adaptive systems. (Kaufmann et al, 2000). Use of systems approaches such as soft systems methods (Checkland, 1999). Collective strategy and co-evolutionary theory (Stacey, 2011).
Learning outcome 2
Know how to develop strategy
Assessment criteria
2.1 Develop an organisational strategy to achieve a business objective
2.2 Recommend an approach to implement and monitor the strategy to ensure its success
Indicative content
2.1 Organisational strategy: Growth. Retrenchment. Consolidation. Partnerships. Collaborations. Delayering and restructuring. Diversification. Development of product/service/processes. Recruitment, retention, engagement of people. Competitor and competitive approaches. Divestment, mergers, acquisition. Business closure. Research and development. Off-shoring/outsourcing/insourcing. Legal and regulatory requirements.
Content and structure of the strategy (tailored to the requirements of the organisation/dependent on business goal to be achieved): Alignment to business goal/organisational vision. KPIs. Timescales (milestones). Critical success factors, assumptions, decisions. Selection and application of appropriate tools and techniques to support the development of the strategic plan (e.g. Benchmarking. Value Chain Analysis and 5 Forces Model (Porter, 1980); RAEW/RACI analysis (Smith and Erwin, 2005)). Resource requirements. Implementation strategy. Governance of the strategy. Stakeholder considerations (e.g. Sets a clear agenda and gains support from key stakeholders). Communication strategy.
2.2 Approaches to implementing and monitoring the strategy:
Approach to implementation: Deliberate. Emergent. Incremental. Paradigm shift. Step-change. Planned/unplanned. Opportunistic. Prototypes and pilot implementation.Identification of key processes and activities: Milestones. People and resource needs (e.g. capacity and capability). Costs, funding and budgets. Constraints and risks (e.g. Timescales, finance, contingency planning. Cultural impact, reputation, stakeholders, international trade barriers. Identification of the critical path. Development of a communications strategy and plan, internal and external. Ownership. Governance. Leadership styles and approach (e.g. Transformational Leadership (Bass and Riggio, 2006)).Monitoring: Achievement of objectives. KPIs. Critical success factors. Critical decisions. Timescales (milestones). Resource use. Costs/budgets. Cost benefit analysis (e.g. net social cost benefit). Active reflection on the recommended implementation process.
Recommendations for assessment
Learners may approach the assessment in several ways. All assessment criteria must be met. The following opportunities are recommendations for guidance purposes only.
1. The learner may be asked to write a report on approaches to developing organisational strategy.
Relationship with other frameworks and occupational standards
This unit is mapped to the following requirements of the Apprenticeship Standard for the Senior Leader
Master`s Degree Apprenticeship (ST0480/01):
Strategic Planning Books
De Wit, B. (2004). Strategy-Process, Content, Context: An International Perspective , Thomson.
Grant, R. (2010). Contemporary Strategy Analysis: Text and Cases. John Wiley and Sons.
Johnson, G., Scholes, K. and Whittington, R. (2011). Exploring Corporate Strategy: Text & Cases.
Pearson Education Limited.
Kaplan, R. (2001) The Strategy-Focused Organisation: How Balanced Scorecard Companies Thrive in the New Business Environment . Harvard Business School Press.
Mintzberg, H. (2009). Strategy Safari: The Complete Guide through the Wilds of Strategic Management.
Financial Times/Prentice Hall.
Porter, M. (2008). The Five Competitive Forces That Shape Strategy. Harvard Business Review.
Stacey, R. (2019). Strategic Management and Organisational Dynamics. 6th ed. Financial Times Prentice Hall.
Journals
British Journal of Management
Business Strategy Review
European Management Journal
Harvard Business Review
Journal of Business Strategy
Long Range Planning
Sloan Management Review
Supplementary Journals
Academy of Management Journal
Academy of Management Review
European Management Review
Strategy and Leadership
Management Decision
Strategic Change
ManagementDirect resources require CMI membership, a username and password.
Please note: This list is provided to guide the learner to potential sources of information and is by no means exhaustive. The websites, books and journals cited were correct at the date of publication. All references to legislation stated within the unit may be subject to subsequent changes, deletions and replacements.
Learners may also make reference to other local or national legislation as relevant.
Everything You Need to Know About CMI Unit 704: Developing Organisational Strategy
Organisational strategy is not just about planning for the future; it is about creating a roadmap that aligns business objectives with market realities. The CMI Unit 704 assignment requires a deep understanding of how strategies are formulated, executed, and adapted to ensure sustainable success. This unit is designed to develop strategic thinkers who can navigate uncertainty, leverage opportunities, and mitigate risks effectively.
A core focus of this unit is strategic agility. In a rapidly changing business environment, organisations must be able to pivot their strategies while maintaining operational stability. Traditional five-year plans are becoming obsolete, replaced by dynamic strategic frameworks that integrate real-time data, customer insights, and technological advancements. The assignment will require a demonstration of how strategic agility is applied in various industries.
Another essential element is the role of data-driven decision-making. Leaders today rely on predictive analytics, artificial intelligence, and scenario planning to shape strategic direction. This unit encourages learners to explore how organisations collect, interpret, and use data to refine their strategies. The assignment might involve case studies of businesses that have successfully harnessed data for competitive advantage.
Innovation is also at the heart of strategic development. Organisations that fail to innovate risk stagnation and decline. The assignment could focus on how companies foster a culture of innovation, encourage disruptive thinking, and integrate sustainability into their long-term strategy. The discussion should include practical examples of how emerging technologies, such as blockchain or the Internet of Things (IoT), influence strategic choices.
Ethical considerations in strategy development add another layer of complexity. Modern businesses must balance profitability with corporate social responsibility. The assignment might explore frameworks like stakeholder capitalism, where decision-making prioritises not just shareholders but also employees, customers, and the environment. Ethical dilemmas in strategic decision-making should be critically analysed with relevant real-world examples.
This unit also emphasises leadership’s role in strategy execution. A well-crafted strategy is useless without effective leadership to implement it. The assignment should assess different leadership styles, their impact on strategy adoption, and how leaders can inspire teams to embrace change. Exploring the psychology behind organisational change and resistance could add a fresh perspective to the discussion.
To make the assignment truly unique, consider incorporating unconventional strategic models or lesser-known case studies of companies that have successfully redefined their industries. Instead of focusing on widely discussed brands like Apple or Tesla, analysing niche players or startups that have revolutionised their sectors could add originality.
Ultimately, the CMI Unit 704 Developing Organisational Strategy assignment is an opportunity to showcase strategic thinking beyond textbook theories. By integrating contemporary trends, emerging challenges, and innovative approaches, this assignment can be transformed into a cutting-edge analysis of how organisations navigate the complexities of modern business landscapes.
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