Seven strategy questions that every manager should ask and answer

The key to successfully implementing a corporate strategy is to continuously ask the right questions, says Robert Simons, professor at Harvard Business School. In his many years of research, teaching and consulting in the areas of strategy implementation and organization design, Simons has identified seven common and industry-independent problem areas that can undermine the successful implementation of corporate strategies.

From this, he has developed a questionnaire that helps managers identify weaknesses in their corporate strategy and its implementation and make smart decisions. The questions encourage us to critically rethink and review existing strategic assumptions. Simon's approach is therefore not a tool for strategy development, but an assessment tool with which you can “stress test” the strategy implementation, so to speak. Based on the questionnaire, it is possible to determine how well an existing strategy is working.

7 Strategy Questions

The seven questions that Simons developed and published in his book “Seven Strategy Questions: A Simple Approach for Better Execution” may sound simple at first, but answering them is by no means so easy. This is because they present managers with difficult decisions whose implications cannot always be immediately foreseen.

The questions are all logically based on each other. The first two serve to determine whether a strong basis has been formed for strategy implementation. The third and fourth questions address the company's ability to focus the attention of all employees on the strategic agenda. Answering the next two questions helps to show whether enough has been done to support and facilitate action that is necessary for success. The last question helps to look to the future and asks about the company's ability to adapt its strategy to market changes.

1. Who is your main customer? Is your company structured in such a way that it offers maximum benefits for the customer?

One of the most fundamental strategic decisions for any company is to determine who they want to serve. Only when you define the main customer can you bundle resources and use them in a targeted manner for the benefit of the customers. This is the path to competitive success. However, this important decision is often circumvented by saying that you have different types of customers. According to Simons, this is a recipe for poor performance. In this way, the competitor who has clarity about his main customer and focuses all resources on satisfying their specific needs will ultimately always be ahead.

2. How do your core values prioritize shareholders, employees, and customers?

‍The core values of a company should clearly define whose interests come first when there are conflicts of objectives. Is it the shareholders, employees, or customers? The answer to this question may vary from company to company. However, it is important that the priorities are clearly set.

3. Which critical performance indicators are being tracked?

‍Successful implementation of a corporate strategy requires regular monitoring of the set performance goals. Since it is impossible to monitor everything, one should focus on key performance indicators. These should be transparent so that employees can adapt to the respective requirements. Responsibilities should also be clearly clarified.

4. What strategic “limits” have you set?

‍In order to be able to achieve strategic goals, all employees must work together. Individual action can easily lead the company to deviate from the defined course. In order to keep strategic risks as minimal as possible, it is therefore necessary to set certain limits for employees when it comes to designing and implementing the respective corporate strategy.

5. How do you create creative excitement?

‍It is an unwritten rule that only those who are innovative remain competitive in the long term. Insisting on old structures and thought patterns is completely out of place in strategic planning. An important task of managers is therefore to create an atmosphere that encourages employees to break out of their own “comfort zone” and to break new ground again and again.

6. How committed are your employees to help each other?

‍Team spirit is an important success factor for implementing corporate strategies. Managers should always keep an eye on how engaged employees are with one another. If the team spirit is high, its continuation should be actively supported. If there is room for improvement in the helpfulness and cohesion of employees, appropriate steps should be taken to improve this.

7. What strategic uncertainties keep you awake at night?

‍Nothing is as constant as change. To ensure the long-term success of a company, it is essential to adapt quickly to changing market conditions. The manager's role should be to identify changes, analyze their effects and act as a “source of peace” for employees in times of major upheaval. In this way, no one has to lose their well-earned sleep for fear of an uncertain future.

Simons' questionnaire is ideal as a checklist for regularly monitoring the corporate strategy and its implementation. It provides a good basis for stimulating discussions with employees and can be used by everyone, regardless of the sector of industry in which you work. Why don't you give it a try!

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Simons, R. (2010). Seven Strategy Questions: A Simple Approach for Better Execution Boston: Harvard Business Review Press.