23rd International Conference of the

TOC Practitioners Alliance - TOCPA

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21-22 March, 2016, Tennessee, USA

Practical Issues of Constructing

Strategy & Tactic Trees
Jelena Fedurko
TOC Strategic Solutions, Estonia
21 March, 2016

Jelena Fedurko
Jelena Fedurko is a Co-Founder and Co-President of
TOC Practitioners Alliance TOCPA and International
Director of TOC Strategic Solutions.
Jelena has been involved in TOC since 1999. She is a
TOC expert, trainer and consultant, and provides TOC
implementation support in production, supply chain
and project management. Jelena has worked in various
countries all over the world, including Japan, Poland,
Germany, Switzerland, Turkey, Italy, Russia, Ukraine,
India, China, Chile, Colombia, Mexico.
Jelena is the author of four advances books on TOC
Thinking Processes: Behind the Cloud (2011), Through
Clouds to Solutions (2013), Typical mistakes in
working with TOC Logical Tools (2014), A Good
Strategy & Tactic Tree (2016). Together with Oded
Cohen Jelena has co-authored the book Theory of
jelenafedurko.gs@gmail.com
Constraints Fundamentals (2012). She has contributed
to a number of books on TOC, and has many
www.tocexpert.com
publications. Jelena translated and edited several www.toc-strategicsolutions.com
major TOC books.
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Major reasons for difficulties

while constructing an S&T Tree

The WRONG PERCEPTION that the S&T Tree is a tool

to FIND a solution, or that a solution will somehow
emerge itself in the process of adding boxes to an
S&T Tree.
The CONFUSION about what to put in each of the FIVE
DIFFERENT ENTITIES in each S&T box.
The CONFUSION about the VERTICAL RELATIONSHIP
BETWEEN THE BOXES that results in the tendency to
mechanically copy tactics from the parent box into
its children boxes on the lower level.
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Frequent questions while

constructing and
populating an S&T Tree

How do I know what exactly I should write in

each of the 5 entities in an S&T box?
How can I be sure that what I wrote in each
of the entity types is actually this type of
entity?
How do Strategies and Tactics in boxes on
different levels relate between themselves?

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The four areas

of constructing an S&T Tree

The S&T structure

The vertical relationship between the S&T boxes
The relationship between the entities within the
same box
The content of the entities in the S&T boxes
For managers who want to construct their own
S&T Tree, each area has its challenges and difficulties.
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The S&T structure

Strategies on the lower level are Necessary Conditions
and inputs for the Tactic on the upper level

Strategy
Tactic
Necessary
Condition

Necessary
Conditions

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S
T
S S S S
T T

S
T

Necessary
Condition

S S S

Necessary
Conditions

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The S&T structure

Strategy specifies WHAT WE WANT TO ACHIEVE in this
box to enable implementation of the parent box on
the higher level. The deliverable of the Strategy is the
result of implementing the Tactics in this box.
Tactic specifies HOW to achieve the tangible
deliverable recorded in Strategy what actions
the company will take. Tactic is something that
we CAN DO - it is in our area of authority and we
can take active and tangible actions in this area.
Strategies on
the lower level
are Necessary
Conditions and
inputs for the
Tactic on the
upper level
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3.1

Strategy
Tactic
4.11

Strategy
Tactic

4.12

Strategy
Tactic

Strategy
Tactic

2.1

Strategy
Tactic
3.2

Strategy
Tactic
4.13

Strategy
Tactic

2.2

Strategy
Tactic
3.3

Strategy
Tactic
4.14

Strategy
Tactic

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Vertical relationship between the

S&T boxes
Consumer Goods S&T:
Strategies on the lower level are Necessary Conditions and inputs for the
Tactic on the upper level

Tactic 1
The company capitalizes on the decisive
competitive edge on big enough markets
without exhausting the Company's
resources and without taking real risks.

Strategy 2.1
A decisive competitive edge is
gained by providing a
"partnership" that delivers
superior inventory turns (better
availability coupled with
substantially reduced
inventories), when all other
parameters remain the same.
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Strategy 2.2
A decisive competitive edge is
gained by providing a
partnership that secures the
clients an increase in TPS and
provides a realistic chance of
sharing in a much higher
increase.

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Vertical relationship between the

S&T boxes
Consumer Goods S&T:
Strategies on the lower level are Necessary Conditions and inputs for the
Tactic on the upper level

Tactic 3. 1
The company implements the Make-To-Availability (MTA) mode of
operations (implements the appropriate version of S-DBR and
pull distribution and maintains appropriate inventories in the
warehouses).

Strategy 4.11

Strategy 4.12

Strategy 4.13

Strategy 4.14

The Company
holds, in its Plant
Warehouse(s)
(CDC), relatively
small amounts of
inventories which
are appropriate to
service the
partnerships.

RDCs hold
relatively small
amounts of
inventories which
are appropriate to
provide superior
service.

The target levels

of inventories held
at the various
locations are
continuously
monitored and
when needed are
suitably modified.

Better flow is
regarded by
production as the
most important
element, under
their control, to
improve
availability.

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Building the top-down cascade:

Vertical relationship between the S&T boxes:
The Strategies on the lower level are the Necessary
Conditions and inputs for the Tactic on the upper level

HOW do we want to achieve Strategy 1

through which specific actions?
What do we need in order to be
able to implement Tactic 1?
2.1
Strategy
HOW do we want to achieve
Tactic
Strategy 2.1 through which
specific actions?
What do we need in
order to be able to
3.1
implement Tactic 2.1?
Strategy
HOW do we want to
Tactic
achieve Strategy 3.1
through which specific actions?
What do we need in
order to be able to
4.11
implement Tactic 3.1?
Strategy
HOW do we want to
Tactic
achieve Strategy 4.11
through which specific actions?
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The chosen Tactic

determines the
content of the S&T
Tree.

Strategy
Tactic

What do we want to achieve?

4.12

2.2

Strategy
Tactic
3.3

3.2

Strategy
Tactic

Strategy
Tactic

Strategy
Tactic

4.13

Strategy
Tactic

4.14

Strategy
Tactic

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Building the top-down cascade

an example
What do we want to achieve?
HOW do we want to achieve Strategy 1
through which specific actions?

There are several available options

for the Tactic:

1
Strategy: I have eaten an
omelet for breakfast
Tactic: I will cook an
omelet

I will cook an omelet myself

I will ask the family member to cook an
omelet for me
I will go to a diner or hotel restaurant and
order an omelet for breakfast
I will order an omelet from Room Service

The chosen Tactic will determine

the content of this S&T Tree.
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Building the top-down cascade

an example

What do we need in order to be able to

implement the Tactic in Level 1?
What do I need in order to cook an
omelet?
Eggs
Other ingredients: omelet fillings, salt,
pepper, cooking oil
Equipment for cooking: a mixing
bowl, a mixer, a frying pan, a cooker
Knowledge of how to cook an omelet

1
Strategy: I have eaten an
omelet for breakfast
Tactic: I will cook an
omelet
Example

These four elements are the NECESSARY CONDITIONS AND INPUTS for cooking
an omelet and need to be created to enable me to implement the Tactic on
Level 1 I will cook an omelet.
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Building the top-down cascade:

1. Defining Strategies for the Tactic
on the upper level

1
Strategy: I have eaten an
omelet for breakfast

Example

Tactic: I will cook an

omelet

Strategy 2.1
I have eggs

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Strategy 2.2
I have all
necessary
ingredients
for an omelet

Strategy 2.3

Strategy 2.4

I have the
necessary
equipment

I have the
necessary
knowledge

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Building the top-down cascade:

2. Defining the Tactic on the same level
HOW do we want to achieve
Strategy 2.1 through which
specific actions? Options for
the Tactic in 2.1:
1. I buy eggs
2. I collect eggs from my
free range chickens

Strategy 2.1
I have eggs

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1
Strategy: I have eaten an
omelet for breakfast

Example

Tactic: I will cook an

omelet

Strategy 2.2
I have all
necessary
ingredients
for an omelet

Strategy 2.3

Strategy 2.4

I have the
necessary
equipment

I have the
necessary
knowledge

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Building the top-down cascade:

2. Defining the Tactic on the same level
HOW do we want to achieve
Strategy 2.1 through which
specific actions? Options for
the Tactic in 2.1:
1. I buy eggs
2. I collect eggs from my
free range chickens

Strategy 2.1
I have eggs
I collect eggs
from my free
range chickens
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1
Strategy: I have eaten an
omelet for breakfast

Example

Tactic: I will cook an

omelet

Strategy 2.2
I have all
necessary
ingredients
for an omelet

Strategy 2.3

Strategy 2.4

I have the
necessary
equipment

I have the
necessary
knowledge

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Further developing the S&T

cascade into the full vertical
branch
After having developed the skeleton
1
for one vertical branch, we may
Strategy
develop full boxes on this branch.
Tactic
To complete the tree, I recommend
2.1
2.2
filling in the boxes
Strategy
Strategy
from left to right,
Tactic
Tactic
from bottom to top.
3.1

3.2

Strategy
Tactic
4.11

Strategy
Tactic
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3.3

Strategy
Tactic
4.12

Strategy
Tactic

Strategy
Tactic
4.13

Strategy
Tactic

4.14

Strategy
Tactic

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Further developing the S&T cascade into

the full vertical branch
from bottom to top, left to right

2.1

Strategy
Tactic
3.1

Strategy
Tactic
4.11

Strategy
Tactic
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4.12

Strategy
Tactic

4.13

Strategy
Tactic

4.14

Strategy
Tactic

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Further developing the S&T cascade into

the full vertical branch
from bottom to top, left to right
3.1

NA
Strategy
PA
Tactic
SA
4.11

4.12

4.13

4.14

NA
Strategy

NA
Strategy

NA
Strategy

NA
Strategy

PA
Tactic
SA

PA
Tactic
SA

PA
Tactic
SA

PA
Tactic
SA

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While filling in the boxes keep in mind

the content of the entity and its logical
relationship with other entities
Necessary
Assump.(NA)
Strategy

Parallel
Assump.(PA)
Tactic
Sufficiency
Assump.(SA)
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Why this box is a necessary condition to achieve the

parent box and why we will spend managerial
effort and time to deal with this area.
WHAT WE WANT TO ACHIEVE in this box to
enable implementation of the box on the higher
level. The deliverable of the Strategy is the result of
implementing the Tactics in this box.
Why we claim that the strategy is possible at all a
justification.
How we will achieve the strategy actions.
What we should not overlook.
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Necessary Assumptions (NA)

The content of the NA statements incudes:
a significant need of the companys market
something negative in the companys current reality
a threat to the companys future reality that may result from
incomplete implementation of the solution
something in the current reality that is not negative yet, but
if not addressed now, may bring negative in the future.

The logical relationship between the Necessary Assumptions,

the title of the box and the Strategy:
Because of [NA], we find it necessary and worthwhile putting the
managerial effort and time in [the title/area of the box], and as the
result of our effort we want to achieve [Strategy].
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Strategy
The content of the Strategy statements incudes:
achieving a significantly higher target level (specific or nonspecific) of a measurement that company knows and already uses;
a new measurement as a part of the new solution;
any other tangible deliverable of the Tactics in this box.

The logical relationship between the Strategy, the title of the

box and the Necessary Assumptions:
Because of [NA], we find it necessary and worthwhile putting the
managerial effort and time in [the title/area of this box], and as
the result of our effort we want to achieve [Strategy].

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Parallel Assumptions (PA)

The content of the PA statements incudes:
there is knowledge and experience that prove that the desired
Strategy can be achieved through the actions in Tactics;
there is something in the companys reality that plays in favor
of the strategy and can be used in the actions in Tactic. This may
be the result of previous steps in implementation of the solution;
an obvious fact, or a general principle, playing in favor of the
strategy.

The logical relationship between the Tactic, Strategy and

Parallel Assumptions:
In order to achieve [Strategy], we must implement [Tactic],
BECAUSE [Parallel Assumptions].
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Tactic
The content in the Tactic entity speaks about

a mechanism or

logistical performance level that will be built

that the company did not have before.

The logical relationship between the Tactic and the Strategy:

In order to achieve [Strategy] we must implement [Tactic].

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Sufficiency Assumptions (SA)

The content of the SA entity:
defines or clarifies an important element in the Tactic;
give a warning about a challenge in sustaining the outcome of
Strategy and Tactics;
reminds about a condition that must be achieved in order to
ensure successful implementation of the Tactic;
identifies the area in Tactic that, if overlooked or not addressed,
will undermine the implementation of the Tactic;
pre-empts reservations regarding obstacles in implementing
Tactics.
The logical relationship between the Tactic and the SA:
In order to implement [Tactic], we must not overlook the fact that
[Sufficiency Assumption].
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Where from we take the raw

material for the S&T Tree
The UDEs and the assumptions from the UDE Clouds will be
reflected in Necessary Assumptions.
The direction of the solution will be recorded in Strategies on
the upper levels.
The Injections and Intermediate Objectives will be recorded
mostly in Tactics, and also in Strategies on the lower levels.
The Desired Effects will be reflected in Strategies.
The Negative Branches will be reflected in Sufficiency
Assumptions.
The assumptions between an Injection and B and C of an UDE
Cloud will be recorded in Parallel Assumptions.
In the course of constructing an S&T Tree, there will be other
elements developed that do not originate from the work with the
UDE Clouds.
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Where from we take the raw

material for the S&T Tree

1 List of UDEs
UDE1: xxxxxxxxx
UDE2: xxxxxxxxx
UDE3: xxxxxxxxx
UDE4: xxxxxxxxx
UDE5: xxxxxxxxx
UDE6: xxxxxxxxx

UDE

UDE UDE

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UDE

UDE UDE

5
UDE

B
A

2 UDE Map
UDE

UDE

UDE

UDE

D
A

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Where from we take the raw

material for the S&T Tree

8
Assump

Challeng

Inject

D
A

A
C

Inj
C

9
Possible negative
outcome

Neutral

Injection

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A detailed guide on constructing

an S&T Tree

A new book published

in March 2016

Rules
Examples
Detailed analysis
Exercises with answers

If you have questions write to

jelenafedurko.gs@gmail.com
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