Strategic Management Is The Why And What That Defines An Organisations Desired State And The Means By Which It Will Be Reached, Governed By An Overarching Purpose And Core Values
Strategy is a pattern in a stream of decisions and the essence of strategy is choosing what not to do
Strategy often fails to deliver meaningful contribution towards an organisations future because its doesn’t touch all the people responsible for making it so.
It could be that it fails to tap into the values of its people within, or it lacks the clarity needed to define why it actually exists for the people it delivers value too, or it doesn’t get acceptance from all stakeholders involved and is void of the defining principles which should never be compromised and will prevent damaging mistakes.
As these assumptions, upon which the organisation was built and run, fail to meet the present or future reality, then the difficulties faced by the organisation will continue to rise.
Strategic Management
Strategic management is a process of three parts;
- Analysis
- Formulation
- Implementation
Whilst strategy is a deliberate process, typically following a sequential path, strategy is also often emergent and, coming from the resulting activities of an organisation.
Business Strategy
In simple terms a business strategy defines;
- Who the customer is
- What is the customer problem or opportunity and what does the company provide in exchange
- How the organisation creates, captures and delivers value to the customer as efficiently as possible
From this understanding, an ongoing strategy can be developed which will include or be further augmented by a separate marketing strategy and/or sales strategy, amongst others.
It should be open to change as markets and customers evolve.
Lean & Agile Strategy
Doing more with less and reacting faster to change.
Revenue Strategy - Marketing & Sales Systems
There has been a long running debate about how and to what degree marketing and sales collaborate. The simple answer is that it depends very much on the context.
Strategy And Planning
The common theme in both strategy and planning is choice. What makes strategy different is that those choices define the direction of an organisation and its guiding principles based on both internal and external factors, where as in planning choices typically define the actions required to meet that strategy and how resources are utilised.
There is a time to plan and a time to act in business and sometimes not having a detailed plan is as good a strategy as having a well thought out rigid plan. What approach you take will be defined by the context.
When the unknown variables are low, like with an established business then having a detailed plan makes more sense as there is more reliable data and company resources from which to draw and make assertions with higher probable outcomes.
Conversely, where the unknown variables are high and resources and capabilities low, such as in a start-up, having a very loose plan or framework as a guide, which can be moulded as you act, makes far more sense.
Strategy For Scale
Scaling as Part of Strategy:
Strategic Planning:
- Long-Term Vision: Scaling is integral to the long-term vision of a company. It involves planning how the business can grow sustainably over time.
- Resource Allocation: Determining how to allocate resources effectively to support growth initiatives, including investments in technology, personnel, and infrastructure.
Business Model Optimization:
- Scalable Business Models: Designing a business model that can handle increased demand without a corresponding rise in operational costs.
- Revenue Streams: Diversifying and optimizing revenue streams to support scalable growth.
Operational Efficiency:
- Processes and Systems: Implementing scalable processes and systems that can handle growth. This includes automation, supply chain management, and logistics.
- Technology Investments: Investing in technology that can support scaling, such as cloud computing, data analytics, and enterprise software.
Market Expansion:
- New Markets: Identifying and entering new geographic or demographic markets as part of a strategic expansion plan.
- Product Diversification: Expanding the product or service line to cater to a broader audience.
Also see scaling as a part of marketing.
More to come ….