The strategic hierarchy is an essential component of a strategy. The terminology, possible structure and naming of the strategic hierarchy is dependent of the selected strategic framework that is governing the strategy (e.g., Objectives and Key Results or Pillars and CSF).
We use the word strategic entity as a generic terminology used regardless of your choice of strategic framework. A strategic framework could be compared with the chart of account in your finance system. The strategic hierarchy is a logic structure that helps to keep overview, monitor and ensure agility in the decision making.
If the available Strategic Frameworks do not fit your organization – you can create a custom framework. A part of defining the framework is to decide, what can be attached to what and how the business logic is.
An example:
Define parent strategic entities. In this example called Create pillars.
Define child strategic entities in this exampled called Critical Success Factors (CSF).
You can add more levels to the Strategic Hierarchy – as an example: sub entities like “Sub CSF” or a new level called Must Win battles.
The names in the strategic hierarchy can be defined by you.
You have now created your strategic hierarchy.
You are ready to add strategic initiatives, Actions or KPI´s.