A Closer Look At The Five-By-Five Framework

The success of any enterprise hinges on having a shared goal that all stakeholders can work toward. Whether it’s a definitive objective or a vision for success, this goal should be shared by the organization’s leadership and support personnel.

Having a shared goal is crucial for the decision-making process. Without it, even the best-planned campaigns and efforts are futile as the collective’s ability to prioritize tasks becomes ineffective.

In many of the most successful organizations I’ve worked with, this shared goal is referred to as the “North Star“. It essentially defines the company’s overall aspirations and serves as a beacon for sustainable growth and development.

Maintaining this North Star is a common thread in my lengthy experience guiding companies that cater directly to end users. Focusing on the North Star consistently ensures an optimum end-to-end customer experience while increasing revenue, driving innovation, and sustaining operational excellence.

The Five-by-Five Framework Strategy according to Barry Litwin

One of the most effective ways to maintain focus on the North Star is by adopting the Five-by-Five framework. This structure consists of five strategic pillars designed to foster growth over three years.

The creation of the pillars is based on a detailed process that combines the Board’s objectives, insights gained from executive offsite meetings, employee feedback, and findings from external market research.

Using Customer Input to Guide Decisions

A strategy that integrates the customer’s voice helps companies avoid the common misstep of misallocating resources. Surveys drawing heavily on customer input can be especially effective for defining the purchase journey.

Furthermore, they can reveal key opportunities for improving product availability, the digital experience, supply chain efficiency, and pricing.

Oftentimes, what ultimately matters is delivering value to customers. I’ve found that incorporating customer input into the Five-by-Five framework is crucial for formulating an effective strategy toward achieving that goal.

Focusing Strategy on Five Actions per Pillar

After defining your five strategic pillars, the next step is to determine which one to prioritize. I’ve found it best to limit each pillar to no more than five initiatives, each with definitive ownership, milestones, and financial objectives.

For example, you have a pillar focused on leading digital and AI experiences. In that case, your two main initiatives may be redesigning the web and mobile UX experience and adding new kitting functionality. The rest may involve enabling ship-from-store across the retail network, integrating AI automation into the service experience, and traffic-driving investments.

By honing in on five clearly defined initiatives per pillar, you will be better able to maintain focus, foster accountability, and speed up your results.

Linking Strategic Goals to Financial Outcomes

It’s always advisable to draw up a financial roadmap for each initiative. Financial roadmaps should include the initiative’s owners, financial planning and analysis, and accounting. Also, remember to account for revenue impact, cost efficiencies, and required investments.

Your overall financial model and budget planning need to include the financial goals. The objective is to create a Five-by-Five framework that connects these goals to tangible financial outcomes.

Translating Strategy into Measurable Results

At some point, you will want to track your progress with KPIs and scorecards. Having a corporate scorecard in which KPIs are defined for each pillar allows you to track progress in real-time. Incorporating these metrics into your compensation packages as performance incentives for your leaders and teams is also a good idea.

Embedding Strategy Into Company Culture

Strategic alignment relies on clear communication as much as practical execution. Employees often benefit from having a memorable way to connect with company direction.

For example, you can name your strategies FOCUS (For Our Customers and Us), ACE (Accelerating the Customer Experience), or LCX (Leading Celebration Experience). Doing so helps establish a shared language and reinforces alignment within your organization. This in turn fosters cultural engagement and helps employees feel invested in the mission.

Turning Strategy Into Action

Although the executive team typically has ownership of the Five-by-Five initiatives, continuous oversight is often necessary. In many organizations, the Chief of Staff or Strategy Lead is usually tasked with monitoring initiatives to ensure they’re on track. They also play a key role in resolving roadblocks and overseeing problem-solving sessions with initiative owners. This can be crucial for translating strategy into measurable impact.

Reinforcing Strategic Delivery

Finally, remember that strategy is an ongoing process, often requiring discipline, adaptability, and continuous engagement. By adopting the Five-by-Five framework, organizations will be better able to align priorities, focus resources, and drive measurable outcomes while fostering accountability. Just as importantly, it empowers every employee to take ownership of the company’s success.

Written by Barry Litwin.
Have you read?
The World’s Best Medical Schools.
The World’s Best Universities.
The World’s Best International High Schools.
The World’s Best Business Schools.
The World’s Best Fashion Schools.
The World’s Best Hospitality And Hotel Management Schools.