StrategyDriven’s Alternative Development articles provide the key principles and practices of developing high quality business cases from which organizational investment decisions can be made.

The Nine Building Blocks of Innovating New Strategic Alternatives

When organizations consider stepping outside of their traditional boundaries to engage with other players in new types of business innovations, they are often a bit lost in how to go about developing such a strategy process. And indeed, multi-stakeholder collaborations often don’t have the luxury of a traditional leader, as there is no formal hierarchy or power structure. They frequently emerge from a conversation between different players and may have an informal initiator who does not hold a formal position of power. When different participants of different organizations participate in a co-creation event, it is indeed supposed to be a meeting of equals.

However, without that leadership function, it can get confusing who is in charge of what and who makes what decisions. Clarity about ownership and process help in such situations that are unusual for most participants who come from hierarchical structures or have grown up in them before. In our experience, it is helpful to have a facilitator present when holding such sessions in order to ensure that decision-making clarity is present. Such a facilitator allows the initiator to participate with his perspective like any other member of the group.

Not every such strategy process looks the same and it is useful to differentiate between nine basic building blocks of co-creation. These can be grouped into five phases: getting started, gaining momentum, the small innovation cycle, scaling out, and rounding off. With exception of the last phase, each phase consists of two building blocks, see Figure 1.

The book “Five Superpowers for Co-creators” outlines the nine building blocks of co-creation in the context of what it takes to successfully work with external stakeholders to develop new business models and strategies (www.5superpowers.org). The book also looks at the challenges at the individual, group and facilitation levels and suggests practical pathways to progress when the process get stuck.

StrategyDriven Alternative Development Article | Strategic Initiatives | The nine building blocks of innovating new strategic alternatives

Figure 1: The nine building blocks of co-creation

A successful multi-stakeholder process consists of a number of building blocks. These cover three specific activities: those of the initiator of the project, those related to co-creation event and those related to scaling and engagement activities. Each of these can be divided into three building blocks for a total of nine.

The facilitator is mostly involved in the co-creation events and may help the initiator in the activities specific to his role. There is a small innovation cycle consisting of a repetition of co-creation events and prototyping. Combining all nine building blocks is define as the large innovation cycle.

A typical co-creation event consists of a multitude of stakeholder engagement and interaction exercises and workshops designed to balance listening, sharing, visioning, brainstorming, ideation and early prototyping.

A more detailed overview of the objectives of each building block is provided in Figure 2. The building blocks serve as a way to render the process transparent and clear in terms of what needs to happen along the co-creation journey. Clearly, there is no need to use all nine steps. We have indeed provided a pragmatic short-cut of these building blocks as a concise business strategy tool we call SDGXCHANGE (www.SDGX.org) which use only the most essential elements required for business to innovative new strategic alternatives.

StrategyDriven Alternative Development Article | Strategic Initiatives | The nine building blocks of innovating new strategic alternatives

Figure 2: The objectives of each of the nine building blocks

The article builds on extracts of the Book “Five Superpowers for Co-creators”


About the Author

StrategyDriven Expert Contributor | Katrin MuffDr. Katrin Muff (www.KatrinMuff.com) is a thought leader in the transformative space of sustainability and responsibility. She is Director at the Institute for Business Sustainability and holds a position as Professor of Practice at the LUISS Business School. She works with leaders, their teams and their boards in the area business transformation towards sustainability. She co-developed the Competency Assessment for Responsible Leadership (). Most recently, Katrin published Five Superpowers for Co-creators (www.5superpowers.org), which features the nine building blocks of co-creation including a pragmatic solution for business organization with the applied strategy tool SDGXCHANGE (www.SDGx.org).

Alternative Development Best Practice 2 – Organizationally Developed Options

It’s hard to find an executive who doesn’t believe that his or her people are significant assets and a competitive advantage for the company. Why then are so few employees involved in the strategic planning process? Engaging employees gains their ‘rubber meets the road’ customer and process experiences and earns buy-in it for the plan’s implementation. Therefore, employee involvement in strategic planning is a win-win proposition; the only question remaining is when and where in the process to involve them.


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Additional Information

For an illustrative model of an organization’s hierarchical roles and responsibilities, see StrategyDriven’s Strategic Organizational Alignment model.

For additional insights to the involvement of managers and employees in the alternative development process, listen to the StrategyDriven’s special edition podcast, An Interview with Nilofer Merchant, author of The New How.

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StrategyDriven is dedicated to providing executives and managers with the planning and execution advice, tools, and practices needed to create greater organizational alignment and accountability for the achievement of superior results.

We help our clients create and execute a clear, forward-looking strategy – translatable to the day-to-day activities of all organization members – that’s critical to their realizing success in today’s fast paced market environment. Not only does a compelling, well executed strategy align individuals to a common purpose, it ensures that purpose best serves the company’s mission.

The StrategyDriven website provides access to a wide array of best practice business planning and execution tools, streamlined process flows, how-to articles, example-rich podcasts, and customizable ready-to-use program management templates. Premium Members receive access to over 200 members-only articles, whitepapers, models, and tools and templates; providing an in-depth look into critical business performance areas; placing specific focus on the alignment of organizational standards, programs, and behaviors to the optimal achievement of mission goals. Sevian Business Program purchasers receive fully implementable business performance improvement processes out-of-the-box, enabling the acceleration of business growth and heightening of operational efficiency needed to significantly improve bottom line results.

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Assumptions: Why Being Right Is Wrong

While researching my new book What? I discovered that when listening to others, we naturally assume we understand what’s meant and don’t question our assumption. Yet the filters our brain uses to hear what others mean to convey preclude accuracy, leading to faulty assumptions. Essentially, here’s what happens that makes accuracy so difficult (for more detail and research references read my free digital book What? Did you really say what I think I heard?):

  1. We only retain words we hear for approximately 3 seconds.
  2. On direct listening, our brain automatically and haphazardly deletes portions of what is foreign to our typical thinking.
  3. Our brain then takes what’s left over after the initial deletion and seeks an historic match (from a prior conversation our brain deems similar), and deletes whatever is divergent from that match.
  4. Our brain then takes the remainder from that deletion and filters it through our beliefs, values, filters, habits and memory.
  5. Whatever is left after deletions in steps 2, 3, 4 is what we adamantly assume we have heard.

A simple example of this just happened today. I was introduced as ‘Sharon Drew’ to a friend’s friend followed by this dialogue:

V: Hi Sharon.
SDM: Actually, my first name is Sharon Drew.
V: Oh. I don’t know anyone who calls themselves by their first name AND last name.
SDM: Neither do I.
V: But you just told me that’s how you refer to yourself!

Because a double first name was foreign to her, she put it in an accustomed category, deleting how she heard the introduction, and then wrongly assumed a typical a first name/last name configuration. She exacerbated the problem by then assuming she was right and I was wrong when I corrected her.

Assumptions Restrict Authentic Communication 

We all do this. Using conventional listening practice, it’s pretty difficult to hear what is meant without making assumptions. As a result, we end up restricting, harming, or diminishing authentic communication, and proceed to self-righteously huff and puff about what we believe is ‘right’, potentially getting the context, the outcome, the description, or the communication, wrong. Or we assume the speaker meant something they didn’t mean at all. In business it gets costly when we wrongly assume a task we were never asked to perform.

I recently got a reproaching note from an annoyed colleague when, among several faulty assumptions he made that were far, far from my intent (and in one case making an assumption about my behavior that in fact was a direct response to something he did!), I didn’t behave according to his beliefs: I had asked if he wanted to ‘preview’ my new book before it came out, and he felt my subsequent behaviors insufficient given my request that he ‘review’ the book. When I pointed out his faulty assumption he got quite bumptious until I sent him back to the original email. It cost us both a possible business collaboration.

Assumptions cost us greatly, harming relationships, business success, and health:

  • Sellers assume prospects are buyers when they ‘hear’ a ‘need’ that matches their solution and end up wasting a huge amount of time chasing prospects who will never buy;
  • Consultants assume they know what a client needs from discussions  with a few top decision makers while ignoring some of the important influencers, causing resistance to change;
  • Decision scientists assume they gather accurate data from the people that hired them and discount important data held by employees lower down the management chain, inadvertently skewering the results and making implementation difficult;
  • Doctors, layers, dentists assume foundational, standard certainties that may not be true in any unique patient/client situation and don’t get to the real issues, potentially causing harm;
  • Coaches assume clients mean something they are not really saying or skewering the focus of the conversation, ending up biasing the outcome with inappropriate questions that lead the client away from the real issues that never get resolved.

Using normal listening habits we can’t avoid making assumptions. But we can supersede our brains by taking the Observer/Coach role and listening for the metamessages – patterns, system, structure – of what is said rather than the story line or content (which is what our brains use to acquire the assumptions).


About the Author

Sharon Drew Morgen is founder of Morgen Facilitations, Inc. (www.newsalesparadigm.com). She is the visionary behind Buying Facilitation®, the decision facilitation model that enables people to change with integrity. A pioneer who has spoken about, written about, and taught the skills to help buyers buy, she is the author of the acclaimed New York Times Business Bestseller Selling with Integrity and Dirty Little Secrets: Why buyers can’t buy and sellers can’t sell and what you can do about it.

To contact Sharon Drew at [email protected] or go to www.didihearyou.com to choose your favorite digital site to download your free book.

Alternative Development Warning Flag 1 – Developing Business Cases First

All business leaders are human and some get overly enamored with and excited about a particular business opportunity. These business leaders then direct either a business case or project plan to be developed which is immediately funded; circumventing the organization’s business planning process. In these cases, the initiative’s ability to meet the organization’s business objectives and goals remains uncertain and consideration of competing opportunities is forfeit. In some organizations, entire portfolios are determined in this fashion; leaving leaders blind with respect to their ability to optimally achieve the organization’s mission goals.


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Additional Information

The following StrategyDriven recommended best practices are designed to reduce the likelihood of circumventing the business planning process:

Additionally, StrategyDriven‘s Strategic Organizational Alignment model reveals the typical executive and managerial responsibilities associated with the business planning process.