The 3 main fundamental areas for creating a business strategy
1. Planning – Creating and tracking progress against an annual operating plan is an essential management tool for any business. What is often missing is the relationship these plans have to the future. Too often annual operating plans are created from the rear-view mirror. What happened last year and where should we go in the coming year? These are all good intentions. However, without a clear picture of what you want the future to look like, it will always be more reactive than proactive. A well-articulated 3
2. Strengths and Weaknesses – At first glance this seems too obvious and you are saying to yourself, “Of course we know what our strengths and weaknesses are!” We cannot disagree. No one knows your business better than you. On the other hand, are you leveraging strengths (competitive advantages) and do you have plans to close capability gaps in your organization (weaknesses)? Strategy creates a higher level of awareness and provides greater focus on activities that will make the organization more successful.
3. Skills & Knowledge – If you know where you want to take your business over the long term, you will have a much better idea of the kinds of capabilities you will need to achieve your goals. Strategy defines and drives decisions in organizational design. Therefore by proactively pursuing new skills and knowledge, you prepare the organization for the intended future state and your odds of success increase.
Think about this route
It starts with understanding what you want out of the business, then it requires a sit-down with the business SMEs to set objectives which is the road map into success, and then most importantly the strategy around achieving each one of those objectives.
- Top Tier sets the vision for the future
- Senior Management sets objectives and defines strategy
- Top Tier sets timelines to achieve those objectives
- Progress meetings are set for monitoring purposes
Weekly progress meetings have to be set so you track deliverables and then people have to be made accountable or the business has no direction. This ends up being the most important meeting in the company as the ship is steered towards success.
By Robert Burrus