By Sandra Janko and Sabine Reisinger
In today’s fast-paced business world, visual communication has become critical to effective strategizing. By using visual communication methods, organizations can optimize the efficiency of their strategy processes and ensure that complex ideas are communicated clearly and engagingly to their stakeholders. In this article, we illustrate how visual communication can serve as an essential component for the success of closed and open strategy processes.
Closed and Open Strategy Processes
Traditional closed strategy processes are defined by a top-down approach involving a limited group of managers, executives, and sometimes consultants. Here, a small elite strategy team analyzes, formulates, and implements strategies in a secretive and exclusive manner. These processes are not transparent, and stakeholders are not involved until implementation. As a result, strategies often lack the necessary input and buy-in from the broader organization, leading to implementation problems, with approximately 70% of such strategy processes failing.
In this type of process, visualizations are an effective method for communicating the strategy itself, the rationale behind it, and the necessary implementation steps to employees and other stakeholders. The objective is to clarify the desired path and ensure stakeholder commitment. Additionally, visualizations such as portfolios, matrices, diagrams, or metaphors can assist the core strategy team in managing the inherent complexity of strategy processes.
An open strategy process involves the participation of both internal and external stakeholders at some or all stages of the strategy development process. Those who advocate this open approach argue for greater transparency within and outside organizations and stronger stakeholder involvement. Opening up strategy processes brings benefits such as wider access to information and greater stakeholder engagement. However, challenges such as information overload, increased complexity, confidentiality risks, and resistance can arise. Relying solely on extensive reports, text-heavy presentations or unstructured discussions can be ineffective in addressing these challenges. It is, therefore, vital to use visualization in open strategy processes to help participants navigate the sheer volume of information and inherent complexity in a meaningful and productive way.
Visualizations facilitate communication, thereby increasing transparency at every process stage. In short, visual representations facilitate the rapid communication of information, ideas, concepts, and plans within a strategy process, ensuring a comprehensive understanding of the subject matter.
Methods of Visual Communication
Many methods can be used for visualization during open and closed strategy processes. These include a) structuring methods to organize and systematize information, such as portfolios and diagrams; b) elaboration tools, such as mind maps and knowledge maps to create a common understanding; c) sequencing techniques, such as Gantt charts or road maps to chronologically order information and d) interaction methods as interfaces to collect, merge, present, and explore information, such as strategy maps, graphical recording, or storytelling. These methods can be applied at different stages of the strategic planning process, as illustrated in Figure 1.
Strategic Analysis: Tools such as portfolios, SWOT analyses, and stakeholder maps are invaluable for gathering and condensing information about a company and its environment. They assist in identifying key areas of focus and potential challenges, making complex information more accessible and understandable.
Strategy Formulation: Tools such as scenario funnels, decision trees, and strategy canvases help generate, evaluate, and select strategic options. These visual aids facilitate clearer communication of strategic alternatives, making it easier for stakeholders to understand and engage in the process.
Strategy Implementation: Tools such as strategy maps, Gantt charts, strategy roadmaps, and visual storytelling are useful for transforming strategic initiatives into tangible outcomes. These tools facilitate the planning, communication, and monitoring of initiative implementation, ensuring alignment of all stakeholders and awareness of roles and responsibilities in strategy implementation.
Figure 1. Methods of Visual Communication in Strategy Processes (created by Sandra Janko)
Benefits (+) and Challenges (-) of Visual Communication in Strategizing
While visualization offers numerous benefits (+), it also presents certain challenges (-).
(+) Trend and Pattern Identification: Visual tools help identify trends and patterns that may not be immediately apparent in text or figures.
(+) Complex Data Communication: Visuals facilitate the communication of complex data and correlations, ensuring a common understanding among participants.
(-) Simplification and Accuracy: Simplifying complex concepts into visual form while maintaining accuracy and completeness is challenging.
(+) Encouraging Dialogue and Creativity: Incorporating diverse perspectives through visual representation fosters dialogue, creativity, and innovation (design thinking).
(+) Enhanced Stakeholder Commitment: Visual representation makes strategies more concrete and emotionally engaging, enhancing stakeholder commitment.
(-) Risk of Misunderstandings: Visual representations may not be universally understood across different cultural contexts or stakeholders, which can lead to misunderstandings.
(+) Improved Collaboration: Visualizations aid in communicating strategic information and fostering collaboration among stakeholders.
Visual communication is a powerful bridge between strategy and success, particularly in open strategy processes. It enhances transparency, fosters inclusion, and simplifies complex information, making it more accessible. As organizations navigate the complexities of modern business environments, leveraging visual communication can provide a significant competitive advantage, driving innovation and facilitating effective strategizing. To optimize effectiveness, it is recommended to integrate visual communication with text and verbal explanations, ensuring continuous feedback and adjustments for alignment and clarity.
Digging Deeper:
[1] Eppler, M. J., & Platts, K. W. (2009). Visual strategizing: the systematic use of visualization in the strategic-planning process. Long Range Planning, 42(1), 42-74. https://doi.org/10.1016/j.lrp.2008.11.005
[2] Hautz, J., Seidl, D., & Whittington, R. (2017). Open strategy: Dimensions, dilemmas, dynamics. Long Range Planning, 50(3), 298-309. https://doi.org/10.1016/j.lrp.2016.12.001
[3] Azad, B., & Zablith, F. (2021). How digital visualizations shape strategy work on the frontlines. Long Range Planning, 54(5), 101990. https://doi.org/10.1016/j.lrp.2020.101990
About the Authors
Sandra Janko is a lecturer at the Institute of Strategic Management at the Johannes Kepler University Linz. She also works as a visual facilitator, using her expertise to support organizations in facilitating and accompanying complex strategic projects through innovative visual methods. Her consulting and research interests include visual communication, especially during strategy and change processes, as well as open strategy processes. You can reach her via LinkedIn:
Sabine Reisinger is a strategist with a parallel background in academia and management consulting. She is deputy head of the Institute of Strategic Management at the Johannes Kepler University Linz. Her consulting and research interests include strategy and change processes, competitiveness, and the human factor in strategy. Her most recent research focuses on the practice and teaching of strategy in a world of AI. She is also the author of one of the top strategy books. You can reach her via LinkedIn.
Author statement on AI: The authors used ChatGPT 4.0 to aggregate their results from former studies, DEEPL as a translator, and to optimize their formulations. They take full responsibility for the content of this contribution.
