The strategy elements are used to model the capabilities of an organization, and how they are to be changed in order to achieve business outcomes.
Strategy Layer Example
(1) Increase Profit is a goal that can be decomposed into a two other goals: (2) Decrease Costs and (3) Increase Revenue.
(2) The former is related to the (A) Operation Excellence strategy of the company, modeled as a course of action
This is decomposed into two other courses of action: (B) Centralize IT Systems and (C) Standardize Products.
These result in two outcomes: (4) Decreased Costs and (5) Loss of Customers, which influence the goals in positive and negative ways.
This shows an important difference between goals and outcomes: not all outcomes lead to the intended results.
The courses of action are realized by a number of capabilities: (D) IT Management & Operations and (E) Product Management, and appropriate resources: (G) Human Resources and (H)IT Resources are assigned to the former.
The model fragment also shows that these resources are located in the (F) Headquarters of the organization, in line with the Centralize IT Systems course of action.
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