Do you know some companies are very successful than others because their strategy is tightly tied to their vision. A strategy is a long-term plan that you create for your company to reach the desired, future state you envision. A strategy includes your company’s goals, values and objectives, the business / businesses you want to enter, the type of products/services that you plan to build, your target market, your channels, your partners and so on.
A strategy is substantial when all the assumptions you make at the time of its creation have been validated and approved for accuracy with clear facts and evidence. It is important to ensure that your strategy aligns with your company’s objectives, your business offering, its channels and its environment.
A good strategy will help you make wise business decisions of money and time, like how and where you would like to spend . It also helps to provide guidance on project prioritization and other activities within your organization. Allocate and optimize resources, set functions, best practices, which make profits that generate substantial returns.
1. Clarity – Prepare a strategic plan that is having clarity, long-term and realistic. What type of products/services would you like to build? Who will be your end customers? What markets would you like to serve, and what activities would you like to carry on to get to your desired future state?
2. Opportunity: Carefully analyze what opportunity exists in the future and how it might evolve over time. Gather more data and facts associated with it before finalizing any decisions. Clearly diagnose the risks and challenges anticipated in pursuing this opportunity and come up with the mitigation plan to address them.
3. Innovation: Ensure that the products/services you plan to build are future ready, unique, with clear value proposition– and that they are aligned with your business and at-least with a foresight of 5 years. Keep an eye on possible disruptions happening in your line of business.
4. Competition: Ensure that your strategy remains competitive. Choose a market that is either not served or undeserved with little or no competition, and be the first one there. This way, you capture the market share, build your brand and position your company well in that marketplace, making it harder for any new entrants. (Read the blue ocean strategy)
5. Time to market: Carefully evaluate the options of “build versus buy” for the products/services that you plan to offer your customers. Sometimes, it might be cheaper to buy part of the products or solutions that are already available or outsource to a third-party vendor to save some cost of producing your goods/services and getting them out in the market.
6. Digitalize and Automate processes – Digitalize your business and Automate and Build processes using digital technologies. A robust digital strategy is critical any new businesses in the current scenario.
7. Evaluate : Periodically review and update your strategy to ensure that it’s valid at all times and meets your company’s objectives and market needs. Test it out in small phases. It’s better to fail fast when it is less expensive and recover from mistakes.
8. Risks and failures: Factor risks into your plan and allow your organization to accept failures. Use unique insights gained from successes and failures to learn from your past experience and improve your future.
9. Stakeholders: Once your plan is finalized, share it with stakeholders both internal and external. Listen to their feedback, Let them know what you are doing, why you are doing it and how it affects the company’s forecast in generating revenues and impacting shareholders’ value.