MOST Analysis. Strategy Analysis Technique for Analysing Internal Capability of the Organization
Published by Pavel Nakonechnyy on in Business Analysis.Analyzing the internal capability of an organization provides insights into its areas of strength and inherent weaknesses. This understanding is crucial for identifying relevant courses of action and ensuring that any changes made have a good chance of success. Business commentators often recommend ‘sticking to the knitting’ when considering business changes, emphasizing the importance of leveraging core skills. There are three primary techniques to examine the internal capability of an organization: MOST Analysis, Resource Audit, and the Boston Box.
What is MOST Analysis?
MOST Analysis, an acronym for Mission, Objectives, Strategy, and Tactics, is a strategic planning tool that analyses the internal environment of an organization. It is used to point out what an organization has set out to achieve (the Mission and Objectives) and how it aims to achieve this (the Strategy and Tactics). A MOST provides a statement of intent for the organisation, and is usually created by organization leadership as part of the Strategy Development. It is also used during the Strategic Analysis, since it can demonstrate strength within the organisation or expose inherent weaknesses.
A variant of MOST is VMOST (vision, mission, objectives, strategy, tactics).
Components of MOST Analysis
- Mission: The mission element summarizes the fundamental purpose and overarching aim of an organization. It answers the question, “What do you do?”.
- Objectives: Objectives are specific, quantifiable, and time-bound goals derived from the broader mission. They measure the organization’s success.
- Strategy: Strategy refers to the medium- to long-term plans and actions that will enable the organization to achieve its objectives. It outlines the broad approaches and plans.
- Tactics: Tactics are the detailed, short-term plans and actions that will deliver the strategy. They break down the strategies into actionable, detailed steps that guide daily operations.
Using MOST analysis
The use of MOST helps the analyst gain an understanding of two aspects: what the organisation wishes to achieve, and how it is going to do it.
When examining the MOST for an organisation, the technique is used to identify strengths and weaknesses of the organization. This is done by considering the following areas:
- Definition: Is there a defined MOST for the organization? Is it complete and consistent, or are there elements missing or out of alignment with each other?
- Clarity: Does the MOST set out a clear direction and plan that will enable the organization’s development and provide a focus for the work carried out?
- Communication: Are the staff of the organization aware of the MOST, and is it available as a context for the work they do?
- Organizational Commitment: Do the staff work to deliver the MOST? Do they agree with the content of the MOST and are they supportive of its intent?
Example of an identified weakness: the senior management may have defined the MOST, but the staff might not agree with the direction and objectives, and as a result might not be motivated to deliver them.
Example of an identified strength: the clear definition and planning as encapsulated in the MOST can help motivate the staff to work towards an agreed set of objectives.
MOST analysis can be a tricky to use when assessing internal capability. It is important to remember that merely defining and displaying a coherent MOST does not necessarily result in buy-in and motivation on the part of staff. The real strength is gained when the MOST provides a clear focus and direction for the organisation. Where there is no clarity or agreement, the MOST may mask some fundamental issues.
Practical Applications of MOST Analysis
MOST Analysis proves valuable in various domains such as sales, marketing, human capital management, and more. It aids in managing change and optimizing resource allocation. Additionally, it helps companies break through communication barriers between various parts of the organizations by bringing them around a common MOST formula.
In sales and marketing, MOST helps companies create targeted marketing campaigns and sales strategies that are consistent with their overall goals by prioritizing projects against MOST formula.
In people management, MOST helps organizations identify the skills required to achieve their objectives. Then aligning the workforce with the strategic goals of the organization, MOST Analysis helps to organize employees to work towards common objectives. This alignment can lead to increased employee engagement and motivation.
In Change management, MOST Analysis helps manage transitions more smoothly by providing a clear framework for what the organization aims to achieve and how it plans to do so reducing resistance and increasing the likelihood of successful implementation.
MOST Analysis aids in optimizing resource allocation by ensuring that resources are directed towards activities that support the organization’s mission and objectives. This leads to better financial performance and more efficient operations.
Another significant benefit of MOST Analysis is its ability to break down communication barriers within organizations. By bringing all parts of the organization around a common MOST formula, it ensures that everyone is on the same page. This common understanding fosters better communication and collaboration, reducing misunderstandings and conflicts.
A notable example of MOST Analysis in action is Morning Star, a food manufacturing giant. The company used MOST Analysis to eliminate the manager role and introduce a new ‘manager-free’ system. Employees now follow missions provided by the MOST analysis instead of following managers’ orders, implementing objectives, strategy, and tactics on their own. This approach has empowered employees to operate and evaluate their jobs independently, leading to increased autonomy and job satisfaction [1].
Comparison with Other Analysis Techniques
MOST Analysis is often done together with other strategic planning tools such as SWOT Analysis, PESTLE Analysis, and the VRIO framework. Each tool has its unique strengths and is chosen based on the specific needs of the business.
Conclusion
MOST Analysis is a powerful tool for analyzing and planning the internal capabilities of an organization. By focusing on the mission, objectives, strategy, and tactics, organizations can gain a clear understanding of their strengths and weaknesses, and develop coherent plans to achieve their goals. However, the success of MOST Analysis depends on its clear definition, communication, and organizational commitment. When used effectively, it can provide a clear focus and direction, helping organizations navigate through challenges and achieve their strategic objectives.
References
[1] MOST Analysis: A Very User-friendly Business Tool (pestleanalysis.com)