TLDR;
This video features Dale Mador from Cadence Growth, who shares a strategic planning framework designed to provide clarity for businesses, especially when integrating AI. The framework consists of six key questions that help businesses define their goals, success metrics, and strategic position. By answering these questions, businesses can create a strategic context that guides their AI implementation and other initiatives. The six questions are:
- What's your end date?
- What will your fiscal measures be?
- What are your units of delivery?
- What will your company be?
- What capabilities do you need?
- What do you want to be known for?
The Strategic Context Problem [1:21]
Most businesses are rushing to implement AI without a clear strategic context, which is compared to strapping a jet engine to a bicycle. This framework of six questions helps businesses gain clarity on their direction before integrating AI. These questions serve as an approachable starting point for teams of any size to generate clarity. It's useful for startups, established organizations lacking clarity, and even those with just an idea.
The Six Clarity Questions Framework [1:21]
The six clarity questions are designed to provide a structured approach to strategic planning. These questions help businesses define their goals, success metrics, and strategic position. Some questions may seem obvious, while others require more explanation. The framework is designed to be accessible and applicable to businesses of all sizes.
Question 1: What's Your End Date? [1:47]
The first question focuses on setting a specific year-end date three years from now. While seemingly simple, this question forces decision-makers to align on a concrete timeline. The value lies in the collaborative realization of this date, making it a shared decision. Establishing this date provides a clear starting point for strategic planning.
Question 2: What Will Your Fiscal Measures Be? [2:22]
This question addresses the financial metrics that will define success. It emphasizes the importance of cash flow, as running out of cash is akin to running out of oxygen. Key fiscal measures include cash in the bank, revenue, gross profit, net operating profit, EBITDA, and after-tax income. By determining the desired cash balance three years from now, businesses can work backward to determine the necessary activities and decisions.
Question 3: What Are Your Units of Delivery? [4:38]
This question focuses on identifying the units that drive the company toward its fiscal measures. Units can include units of product, service, delivery, or growth. For product companies, this might be units sold; for service companies, it could be clients served or billable hours. Defining these units clarifies how the company measures the actual delivery of its offerings and achieve financial goals.
Question 4: What Will Your Company Be? [6:59]
This question shifts from objective metrics to a subjective statement describing the company's identity in three years. The statement should be free of numbers and reflect the company's strategic position in the marketplace. Answering this question allows for testing the alignment between aspirations and numerical goals. It encourages a brainstorm of possibilities, which can be refined later.
Question 5: What Capabilities Do You Need? [9:46]
This question focuses on the practical capabilities required to achieve the goals set in the previous four questions. A capability is defined as the combination of capacity and ability. For example, content creation might be a capability, and the question then becomes how to increase the capacity and ability to create content to meet the set goals. Instead of asking "how" to develop these capabilities, it's more effective to ask "who" has done it before.
Question 6: What Do You Want to Be Known For? [14:09]
This question addresses the external perception of the company. It focuses on what the world will experience as a result of the company's success. This question also serves as a check to ensure alignment between the company's actions and its desired reputation. The answer should be concise and reflect the essence of the company's identity.
How to Use This With AI Tools [16:34]
The six questions are not exhaustive but represent a starting point for strategic planning. The answers to these questions can be used to provide context to AI tools, such as master prompts or LLMs, to improve the quality of their outputs. It's recommended to insert the initial answers into the context of the AI tool to leverage this strategic clarity.