Glossary of Strategic Design, Business Design & Innovation

This glossary explains key terms from the fields of Strategic Design, Business Design, and Innovation. It serves as a reference for anyone involved in strategic business management.

Capabilities

Competencies or specialized skills needed to execute tactics and tools. Capabilities describe what a team or company can actually deliver. In the context of the Engpasskonzentrierte Strategie, focusing on core capabilities is a critical success factor.

KPIs (Key Performance Indicators)

KPIs allow us to measure our success and determine whether we’re on the right track. KPIs are quantitative metrics that should be directly linked to strategic objectives. Good KPIs are specific, measurable, and time-bound. Learn more about strategic goal-setting in our article on strategy development.

Mission

What we do to achieve the vision. The mission describes the concrete purpose of a company — what value it creates for its target audience and how. A clear mission helps with daily decision-making and gives the team direction. It answers the question: “Why do we exist?”

Strategy

The way we use our values and mission to achieve our vision. It ensures everything fits together and defines how our resources are best deployed. A good strategy focuses on a few decisive levers. Various strategy types are explained in our article What Is a Business Strategy?

Tactics

Actions from operational management. They describe how a strategic objective is implemented. While strategy sets the direction, tactics define the concrete steps. Typical tactics include marketing campaigns, product launches, or process optimizations.

Tools

Instruments from operational management needed for the direct execution of tactics. Tools can be physical instruments as well as software, methods, or frameworks — for example, SWOT analysis, Business Model Canvas, or OKR frameworks.

Vision

The future we want to create. The vision describes the ideal state a company aspires to in the long term. It is inspiring, ambitious, and gives all stakeholders a shared direction. A strong vision motivates teams and attracts customers who identify with this future.

Values

What we stand for. They form the foundation for our own actions and those of others. Values are non-negotiable — they define a company’s culture and influence how decisions are made. Companies that consistently live their values build long-term trust.

Goals

The results to be achieved through the strategy. They express what a company envisions for its future. Good goals follow the SMART principle: specific, measurable, achievable, relevant, and time-bound. They bridge the gap between vision and tactics.

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