The objective of this phase is to gain a comprehensive understanding of the organization’s current strategic capabilities and resources from various perspectives, including sponsors and key stakeholders.

The Purpose of this phase, Formulate Strategy, often referred as “strategic planning”, is to design the organizational strategy.

Formulate Strategy entails, amongst other activities, the analysis of the external and internal environments, the development of a shared vision, the formulation and analysis of several strategy alternatives as well as the selection of the most appropriate, and the preparation of the strategic plan.

A considerable number of enterprises fails to achieve their strategic objectives due to misalignment between the way they use to operate in the past and the need to adopt a new operating model aligned with the new strategy and the company vision.

The purpose of this phase, Transform Organization, is to transform the organization to align its operating model to the new strategy by transforming the functioning of the organization.

Transform Organization entails, amongst other things , Model and document the current Enterprise architecture ( the current Operating model ) , Design, model and document the Target Enterprise architecture (TEA) , evaluate change impact and Organizational readiness, developing a comprehensive transformation plan detailing and sequencing the projects required to align the operating model to the new strategy, executing these projects properly when the time comes and institutionalize the new operating model within the organization system and culture.

The purpose of phase 4, Execute Strategy, is to deliver value to the organization’s stakeholders, as defined by the strategy.

Strategy execution involves executing all of the primary (e.g., inbound logistics, outbound logistics, marketing and sales, and service) and supporting activities (e.g., procurement, technology development, human resource management and firm infrastructure) in alignment with the strategy to deliver value to the organization’s stakeholders.

The purpose of the phase 5, Engage Stakeholders and Govern strategy, is to do all that is necessary to secure buy in from the various stakeholder groups, to commit themselves to make the new strategy succeed.

Engagement also requires building employee commitment, removing barriers to change, conducting training to ensure understanding and action, and providing incentives that motivate the right actions and behaviors.

The purpose of Govern Strategy is to oversee all the related strategy Process groups: Formulate strategy, Transform the organization, execute strategy and engage stakeholders and make sure the strategic objectives and outcomes are met.