Leaders often struggle to define and communicate strategies to their teams. In order to clarify a company’s strategy, along with communication around the strategy, executives should create a simple document called a strategy spine which describes how the strategy translates into specific flows of resources and shows key stakeholders exactly how all the pieces fit. Executives should begin by imagining, as if they were an independent reporter, their company about five years into successful future. What would that success look like? What choices made it possible? Then, based on this imagined future, they can fill out the six elements of their strategy spine: 

  1. Planned sources of revenue
  2. Key operating assumptions
  3. Key goals
  4. Revenue implications of those goals and assumptions
  5. Investments needed
  6. Additional infrastructure needs

The strategy spine should never be regarded as a completed work, but rather a living document to be modified as conditions change.

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Source: Harvard Business Review