Framing your strategy is the first step toward defining how your organization will navigate its path to success. A well-structured strategy provides clarity, direction, and alignment, ensuring that every team member understands their role in achieving business goals.
At the heart of strategy framing lies the Vision, Mission, and Values (VMV) statement, a guiding framework that ensures your organization’s strategy is purpose-driven and aligned with its long-term aspirations. Additionally, leveraging situational analysis tools and a True North Statement can help reinforce this strategic foundation.
A strong strategy frame is especially crucial when applying the OODA loop (Observe, Orient, Decide, Act) in a business environment. Without a well-defined vision, mission, and values, the OODA loop lacks clear direction, making it difficult for teams to make aligned decisions quickly and effectively.
Understanding Strategy Framing
Strategy framing is the process of structuring and articulating an organization's approach to achieving its goals. It involves defining the purpose, analyzing the environment, and outlining key objectives to guide decision-making and execution. Effective strategy framing requires answering three fundamental questions:
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Where are we going? (Vision)
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Why do we exist? (Mission)
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How will we behave? (Values)
These elements ensure that strategy is not just a set of goals but a clear roadmap that aligns teams and drives performance. When used before an OODA loop, these elements serve as the strategic foundation, ensuring that observations and decisions are evaluated within the right context.
The Role of Vision, Mission, and Values in Strategy Framing
1. Vision: Where Are We Going?
Your vision statement defines the long-term direction and aspirations of your organization. It serves as the ultimate goal—what you strive to become in the future. A strong vision statement is:
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Inspirational and future-focused
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Clear and concise
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Ambitious yet achievable
For example, Microsoft’s vision is "to empower every person and every organization on the planet to achieve more." This provides clarity on their overarching goal without detailing the specific steps to get there.
2. Mission: Why Do We Exist?
Your mission statement explains your organization’s purpose, who you serve, and how you deliver value. It should answer:
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What do we do?
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Who do we serve?
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How do we do it?
For instance, Tesla’s mission is "to accelerate the world’s transition to sustainable energy." This provides a clear and actionable purpose that drives their strategic decisions.
3. Values: How Will We Behave?
Your core values shape your organization’s culture and decision-making. They act as guiding principles that influence behavior and strategy execution. Strong values are:
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Authentic and deeply embedded
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Actionable and decision-driving
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Communicated and reinforced throughout the organization
For example, Google’s core values include: "Focus on the user and all else will follow" and "You can be serious without a suit." These values guide the company’s culture and strategic choices.
Using the True North Statement for Strategic Alignment
The True North Statement is a powerful tool that ensures alignment across your organization’s vision, mission, and values. It provides a single guiding principle that helps teams stay focused on what truly matters.
In our blog post What Is a True North Statement?, we explain how organizations use this concept to maintain strategic focus. A True North Statement ensures that all initiatives, projects, and decisions support the overarching goals of the business.
For example, Toyota’s True North is centered around "eliminating waste and maximizing value", shaping the company’s lean management practices.
By establishing a True North Statement before applying the OODA loop, teams can ensure that their observations (O) and orientations (O) are shaped by the right context, improving the effectiveness of decisions (D) and actions (A).
Situational Analysis: Understanding Your Strategic Landscape
Before finalizing your strategy framework, conducting a situational analysis is essential. This helps you assess internal and external factors that influence your strategy. Common tools include:
SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats)
A SWOT analysis helps identify internal strengths and weaknesses, as well as external opportunities and threats that may impact your strategy.
PESTLE Analysis (Political, Economic, Social, Technological, Legal, Environmental)
This framework examines macro-environmental factors that can shape your business strategy over time.
Competitor Benchmarking
Analyzing competitors’ strategies and market positioning provides insights into differentiating your approach.
Why Strategy Framing Should Precede the OODA Loop
The OODA loop, a concept developed by military strategist John Boyd, is a powerful framework for making rapid and informed decisions. However, in a business environment, applying the OODA loop without a strong strategy frame can lead to misaligned decisions, short-term thinking, and fragmented execution.
Here’s why a well-defined Vision, Mission, and Values framework should precede the OODA loop:
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Observation (O) Becomes More Focused – With a clear strategic frame, teams know what factors to prioritize when gathering data and insights.
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Orientation (O) Is Aligned to Core Principles – The strategic foundation ensures that perspectives and analyses are in line with long-term goals.
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Decision-Making (D) Is Faster and More Effective – Decisions can be made more confidently when they align with the organization’s True North.
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Action (A) Reinforces Strategic Direction – Instead of reactive or short-term actions, teams can take deliberate steps that contribute to the vision.
By framing your strategy before engaging in the OODA loop, your organization creates a structured decision-making environment where teams can move faster, act with confidence, and stay aligned with strategic goals.
Practical Steps to Frame Your Strategy
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Define Your Vision, Mission, and Values – Clearly articulate your organization’s purpose and direction.
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Develop a True North Statement – Identify a core guiding principle that aligns strategic decisions.
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Conduct a Situational Analysis – Assess internal and external factors using SWOT, PESTLE, and benchmarking.
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Align the OODA Loop with Strategy – Ensure each phase of the OODA loop is grounded in strategic principles.
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Set Strategic Objectives – Define key goals that drive progress toward your vision.
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Monitor and Adjust – Continuously measure performance and adapt based on insights.
Conclusion
A well-framed strategy is essential for organizational success. By defining a compelling Vision, Mission, and Values statement, aligning with a True North Statement, and conducting a situational analysis, you create a strategic foundation that drives sustainable growth.
Most importantly, framing your strategy before applying the OODA loop ensures that your decision-making process remains focused, intentional, and aligned with long-term goals.
To explore how a True North Statement can refine your strategy, check out our full guide here.
Framing your strategy effectively ensures clarity, alignment, and a strong sense of direction. Start by defining your VMV, integrate a True North Statement, and leverage situational analysis to stay ahead of the competition.
