As shown on the chart here, in Discipline I - Decide What's Important, the leadership team examines a summary of the Strengths, Weaknesses, Opportunities and Threats (SWOT), that were produced as a result of Discipline VI - Step Back.
Then, the leadership team reviews the Mission, Values, Vision and Strategic Position - and update them if necessary.
Next, they set the Vital Few Objectives (VFOs) for each of the four key views of the business: financial, customer, production and people (taking the core of the best practice from Balanced Scorecards).
Finally, they decide what initiatives they should STOP investing in, to free up more resources to focus on the VFOs.
BOTTOMLINE: These steps can be completed in a 8-24 hour retreat, held once each year. The first year may take a longer period, depending on whether some of the key strategy elements (e.g., Mission, Vision, Values, Strategic Position) have to be built from scratch.