Business Strategy can seem very complex and difficult. Many people struggle even to agree what it is.
But at its heart, it is about 4 things:
- Future
- Focus
- Alignment
- Results
Let's look at each of these in turn.
Future
Our business strategies must succeed not in the past, but in the future.
Unfortunately, as Nils Bohr famously said: "Prediction is difficult. Especially about the future."
There are some things about the future that we can know with reasonable certainty, however:
- The future will be different from the past.
- The things we will need to do to be successful in the future will be different from the things we needed to do to be successful in the past.
So strategy inevitably involves change in preparation for a different future.
How can we prepare for a future we can't predict?
Well, whilst we can't predict, we can certainly anticipate.
Studying history can help. It teaches us how, why and how fast things change and helps us to identify things that don't change.
We can also simply look at the world around us with curiosity. William Gibson noted: "The future is already here; it's just not very evenly distributed." The things that are about to disrupt your industry may already be available in a laboratory somewhere, or perhaps even operating in another industry. A lot of change is not entirely new, but rather the combination of existing things, or their application in different contexts.
StratNavApp.com's Analysis and Scenario tools will help you make sense of the world around you and anticipate what the future might bring.
"I skate to where the puck is going to be, not where it has been." Wayne Gretzky - Canadian Ice Hockey Player.
Focus
"You can do anything, but you can't do everything!"
Strategy inevitably requires choices. Choices of what you will do, and equally importantly of what you won't do.
Vilfredo Pareto famously posited that 80% of effects come from 20% of causes. (The so-called Pareto principle or 80:20 rule.)
Given limited time and resources, our job is to work out what is the 20% of things that we can do that will make 80% of the difference, and then focus on those.
As Confucius said: "The man who chases two rabbits catches neither."
StratNavApp.com will help you to lay out your key focus areas in terms of the Goals on which you want to focus and the Initiatives by which you will achieve them, in a clear and transparent manner which explicitly links to your analysis of what the future is likely to hold.
Alignment
"Building a visionary company requires 1% vision and 99% alignment." Jim Collins & Jerry Porras.
Imagine if everyone in your organisation worked together like a well-drilled rowing team - everyone pulling in the same direction in unison. Imagine how much more you can achieve.
You can have the best strategy in the world, but if people don't understand it and what they need to do to implement it, and if they don't commit to working together to do so, it will be for nothing. And if you don't keep them in the loop about how things are progressing, they will find it difficult to deliver their best effort.
StratNavApp.com allows you to agree exactly who will do what and by when, and then to track your progress in doing so and keep everyone in the loop.
Results
Winston Churchill remarked: "However beautiful the strategy, you should occasionally look at the results.
It's easy to convince yourself you've got a great strategy and you're delivering it. You've no doubt heard the phrase "drinking the Kool-Aid" referring to an irrational belief in a shared narrative. But how do you know if that is really the case?
It is essential to break your strategy down into measurable outcomes and then to track your progress against those. It's the only way to know if it is working. Equally importantly, given that circumstances change and your strategy will inevitably need to adjust in response to them, it is the only way to know when and how to change your strategy.
StratNavApp.com's strategy scorecard translates your strategy into measurable outcomes and lets you track them in a simple, consistent and transparent manner.
When it comes to strategy, Jim Barskdale nailed it when he said "If we have data, let's talk about data. If all we have are opinions, let's go with mine."
Frequently Asked Questions (FAQs)
What is the essence of business strategy?
Business strategy focuses on four key elements: anticipating the future, concentrating efforts on critical areas, aligning the organization towards common goals, and measuring results to ensure success.
Why is focusing on the future important in strategy?
The future will differ from the past, and strategies must evolve to address upcoming changes. Anticipating future trends and disruptions allows organizations to prepare and adapt effectively.
How does focus contribute to an effective strategy?
Effective strategy requires making deliberate choices about what actions to prioritize and what to forego. Concentrating on the most impactful initiatives ensures efficient use of resources and maximizes outcomes.
What role does alignment play in strategic success?
Alignment ensures that all members of the organization understand the strategy and work collaboratively towards shared objectives. This unity enhances efficiency and effectiveness in executing the strategy.
Why is measuring results crucial in a strategy?
Regularly assessing outcomes against strategic goals allows organizations to determine the effectiveness of their strategies. This evaluation helps in making informed adjustments to stay on course towards achieving objectives.