What is the SFA Matrix?
The SFA Matrix is a strategic decision-making tool devised by Kevan Scholes and Gerry Johnson. This method is built upon three key parameters:
- Suitability assesses whether a strategy aligns with the organization’s overall direction, leveraging its strengths and mitigating its weaknesses. It answers the question, “Does this strategy fit with our strategic purpose?”
- Feasibility investigates the practical aspects of the strategy – whether the organization has the necessary resources and capabilities to execute the strategy. The question here is, “Can we pull this off?”
- Acceptability measures the expected performance outcomes of the strategy and whether they meet the expectations of stakeholders. This answers the question, “Will stakeholders support this strategy?”
This threefold approach ensures that a strategic option is not only conceptually sound but also implementable and agreeable to key stakeholders, providing a comprehensive view of potential strategic moves.
What is the Outcome of the SFA Matrix?
Utilizing the SFA Matrix results in an in-depth understanding of potential strategic options. By scrutinizing suitability, feasibility, and acceptability, an organization can identify the strategies most likely to drive success and resonate with stakeholders.
This framework enables businesses to distinguish viable strategies from non-viable ones, ensuring efficient resource allocation and increased potential for success. Additionally, it fosters stakeholder alignment, promoting strategic decisions that satisfy key stakeholder interests, and ultimately enhances strategic execution.
Who’s the SFA Matrix for?
The SFA Matrix is intended for anyone involved in strategic decision-making within an organization. This includes business executives, strategic planners, project managers, and change managers. The SFA Matrix is a particularly valuable tool during periods of strategic change or when evaluating strategic initiatives such as new product launches, mergers and acquisitions, or market entry strategies.
How to use the SFA Matrix?
Fill in the SFA Matrix:
- Identify Strategic Options
Begin by listing all potential strategic options.
- Assess Suitability
Evaluate each strategy against the organization’s objectives, market conditions, and internal capabilities.
- Evaluate Feasibility
Determine whether the organization has the resources and capabilities necessary to implement each strategy.
- Measure Acceptability
Analyze each strategy from the perspective of key stakeholders.
- Score and Rank Options
Assign scores to each strategy based on the three criteria, and rank them to identify the most viable option.
What does it take to use the SFA Matrix?
Employing the SFA Matrix requires a clear understanding of the organization’s strategic purpose, knowledge of its internal capabilities and resources, and insights into stakeholder expectations. The process can be facilitated by a team of strategic planners or managers, and typically requires a few hours to a few days, depending on the complexity of the strategic options being considered.
Frequently Asked Questions
The frequency of usage should align with your strategic planning cycle or whenever a significant strategic decision needs to be made.
In case of conflicting stakeholder expectations, priority should be given based on the level of influence and importance of each stakeholder group.
Yes, the SFA Matrix is applicable to any organization that needs to make strategic decisions, regardless of its size.
Absolutely. The SFA Matrix is often used alongside tools such as the SWOT Analysis or PESTLE Analysis to provide a comprehensive strategic evaluation.
Once the best strategy has been identified, the next step is to develop an implementation plan and allocate resources accordingly.