Strategic Options Development and Analysis
Strategic Options Development and Analysis (SODA) is a method used to tackle complex problems or formulate strategy by creating cognitive maps. These maps organise ideas, making it easier to build consensus within a group. Initially, cognitive maps are based on individual perspectives, these are then combined into a collective map for a unified understanding.
Key concepts in SODA include:
- Cognitive Mapping: Visualising thoughts and ideas to clarify complex problems. This can start with mind mapping but is often moved into the SODA pyramid when merging cognitive maps.
- Laddering: A technique to explore issues in depth by either laddering up (asking “Why is that important?” to clarify higher-level goals) or laddering down (asking “How might that be done?” to identify actionable steps).
- Goals: The broad, overarching objectives to be achieved. There are positioned at the top of the SODA pyramid.
- Strategies: The methods or approaches developed through analysis to achieve the goals. These are positioned in the middle of the SODA pyramid.
- Options: The specific, actionable steps that chosen to implement the strategies These are positioned at the base of the SODA pyramid.
The results
- A visual map of goals, strategies and implementation options
- A better understanding of stakeholder perspectives
- Prioritised actions
When to use it
Complex Problem Solving: When addressing complex problems
Stakeholder Alignment: When gathering and reconciling diverse perspectives
Strategy Formulation: When developing long-term strategies that involve exploring various scenarios and their potential outcomes
Strengths
Visual
Structured
Facilitates Consensus
Explores different scenarios
Weaknesses
Time-consuming
Strong facilitation is required to be effective
Can be complex
Heavily reliant participant insights being well-informed
Not very data-driven
How to use it?
What do I need to start?
To effectively use SODA, it’s important to gather insights on the challenge area. This may include:
- Historical and current data about the challenge, such as performance reports and stakeholder feedback
- Insights on internal and external factors that may influence the challenge or the strategies chosen. For example SWOT and PESTEL analyses
It’s helpful to circulate any existing insights to stakeholders before starting SODA to ensure alignment and a shared understanding.
How to use it?
Who to involve?
SODA is best done with a team. Consider involving:
- People who possess deep knowledge of the challenge area
- People who can provide diverse perspectives
- A facilitator who can guide the process effectively and maintain focus during discussions and mapping sessions
Step by step
1
Define the challenge
Write a challenge statement. Be prepared for this statement to change as insights are uncovered.
Ensure the statement is specific enough to guide the process. Ask questions like:
- What is the main challenge we are trying to solve?
- Why is this important to address now?
- What are the potential impacts if this remains unresolved?
3
Gather internal insights
Conduct interviews
Conduct interviews with stakeholders to collect their views and insights. Use open-ended questions to encourage detailed responses and uncover underlying challenges.
Ask questions like:
- What do you see as the main challenges?
- What external trends or shifts might influence our approach?
- Can you provide specific examples or experiences that illustrate these challenges?
- What solutions or changes do you think could address these issues?
Create cognitive maps from collected data
Convert the insights from interviews into visual cognitive maps that represent the challenges and its components. This can be done using mind mapping. When building the cognitive maps, highlight the key connections between concepts, as these relationships often reveal underlying patterns and root causes.
Analyse for patterns and connections
Analyse the individual maps for key patterns and connections. This step is crucial for identifying common goals and revealing potential leverage points for action.
Ask guiding questions like:
- What are the key elements of the challenge as identified in the interviews?
- What patterns or trends are evident across the maps?
- Are there any recurring issues or connections that reveal underlying challenges?
- Are there external market or industry shifts that need to be factored into the analysis?
- Which areas seem to have the greatest influence on the rest of the map?
- What elements are linked to potential root causes of the challenge?
This detailed analysis will form the foundation for the development of goals, strategies, and options.
4
Facilitate group sessions to merge and refine maps
Organise group sessions with stakeholders to combine individual cognitive maps into a unified SODA map.
When mapping the SODA pyramid, facilitators can use laddering techniques to explore an issue in more detail. There are two types of laddering:
Laddering Up: Ask “Why is that important?” to move from specific actions to broader goals.
Laddering Down: Ask “How can that be done?” to break down broader goals into concrete actions.
Define goals
Define goals—the broad, overarching objectives that will drive the strategic direction.
Ask questions like:
- What is the primary issue or challenge we are trying to solve?
- What outcomes are we aiming to achieve?
- How do different stakeholders define success, and are there any conflicting goals?
- What long-term objectives should we set to guide our strategy, considering external factors?
- What measurable impact do we want to have on the organisation?
Strategies
Define strategies that can address help the organisation to achieve the goals.
Ask questions like:
- Where can we intervene to create the greatest positive impact?
- Which strategies are most feasible given our resources and constraints?
- What are the potential benefits and risks associated with each strategy?
- What strategies best align with long-term organisational priorities?
Options
Define specific options. These options represent the concrete actions that can be implemented aligned to the strategies.
Ask questions like:
- What specific actions can we take to implement the strategies?
- What are the pros and cons of each option?
- How will these options affect stakeholders and address the root challenges?
- What resources and timelines are needed to successfully execute each option?
5
Prioritise
Evaluate the proposed options based on criteria such as impact, feasibility, and alignment with organisational goals. Consider using RICE or Impact/Effort to support prioritisation
Select the most promising options for implementation.
Ask questions like:
- Which options offer the greatest potential impact?
- How do these options align with our strategic objectives?
- What resources are required to implement each option?
6
Document and communicate the findings and decisions
Create an artefact that documents the SODA process, findings, and selected strategic options. Communicate the outcome to all stakeholders and ensure a common understanding of the next steps.