Strategy is a term that originated in the military world, where it's primarily defined as the distribution and application of military resources in order to meet the objectives of a plan. In Service Management the strategy also has to maintain the link between policies and tactics.
The goal of Service Strategy is to identify the competition and to compete with them by distinguishing an organization from the rest and by delivering superior performances. ITIL cites the following building blocks of well-performing service providers:
Market focus: Know where and how to compete
Distinguishing capabilities: Create distinctive and profitable assets that the business appreciates
Performance anatomy: Organizational standpoints that are measurable and feasible, such as viewing services as a strategic asset in which constant improvement is necessary.
The four Ps of strategy
If a service provider really knows its service objectives and understands the distinguishing factors of its product, then it is ready to begin the Service Lifecycle. The Service Strategy constitutes the axis of the cycle. We can begin with what we call the four Ps (based on Mintzberg, 1994); strategy is perspective, position, plan and pattern:
Perspective - have a clear vision and focus
Position - take a clearly defined stance
Plan - form a precise notion of how the organization should develop itself
Pattern - maintain consistency in decisions and actions.
Objectives
Service Strategy assists organizations to think and do business in a strategic manner. The implementation of the strategy takes place through the use of strategic assets.
Finally, a multidisciplinary approach is necessary in order to answer questions such as:
What kind of services must we offer, and to whom?
How do we stand out above the competition?
How can we justify strategic investments?
How can we actually create value for the customer and our stakeholders?
How can we efficiently allocate resources in a Service Portfolio?
How can we use financial management to ensure insight and control over value creation?
To survive, organizations must understand how they create value for themselves and for the customer. The mission of the Service Strategy phase is to develop the capacity to achieve and maintain a strategic advantage. The associated objectives are:
Defining strategic objectives
Determining the direction for growth opportunities
Setting investment priorities
Defining outcomes, learning about effectiveness
Creating strategic assets
Identifying the competition
Surpassing the competition by delivering distinctive performances
Devising plans that will ensure dominance over the competition now and in the future.
The development and application of the Service Strategy requires constant revision, just as in all other components of the cycle. If the strategy is effective, then the efforts that are expended in all of the other phases of the lifecycle will be successful.
