How to assess the potential of your strategy. u5s3p52

Johnson & Scoles suggested three sets of testing critera,

• suitability - does it fit with eg the market key sucess factors and does it adequately address the problem/opportunity, is it based on resource capitalisation and does it fit your objectives/mission
• feasibility - can you do it?! are the required performance measures necessary for the strategy achievable, do you have the resource and can you cope with the reaction of your competitors to your new strategy (will your new low prices spark a price war, for example)
• acceptability - should you do it? what is the cost-benefit? What are the risks? Consider all organisational stakeholders. What is the effect of the strategy on your internal systems and procedures. Will there be knock-on effects?

These are a good set of initial tests, but Rumelt (1995) also suggests considering additional factors.

• Consistency - is the strategy consistent with the other things you do and present a consistent or inconsistent view of the organisation?  Are you sending out mixed messages? Does it create more value than it costs, and does it compete with other organisations that are also trying to adapt and prosper?
• Consonance - tricky concept - Does it create social value, eg benefit all stakeholders appropriately, is it what the market is looking for, is it acceptable to your customers or will it alienate them?
• Advantage - will it allow you to capture the value it creates? It must provide for creation/maintenance of competitive advantage from one or more of superior skills, resources or position.
• Feasibility - as above