How to identify a strategy for business?
To assess if you have a viable strategy or not, ask yourself these 4 questions:
- What is your winning aspiration? A grand vision is just the starting point of your aspiration. You will also need to define what winning is to you, what action it requires and what to avoid.
- Where will you play? Identify your playing field. This includes defining your preferred geographical location, product type, customer type, price tier, distribution channel, and stage of production. This is the heart of your strategy.
- How will you win? Make decisions that help your customers pick your brand over and over again because you sustainably add more value to their lives than your competitors do.
- What core capabilities must be in place? Play to your strength. You can’t leverage on your weakness.
Upon answering these 4 questions, you’d have a better idea of what your business strategy should be and will be able to come up with a plan to execute it.
Developing a plan
Plans are the detailed “blueprint” that should be followed throughout a project or strategy’s execution phase. Typically, each project will require a tailored plan to accommodate the strategy’s nuances.
Plans convert top-level strategies into detailed, step-by-step actions. All plans must indicate:
- What needs to be done
- Who will do it
- When it will be done
- How much it will cost
While plans are directly tied to the execution of strategies, they are also great for:
- Reconfirming objectives
- Validating the thoroughness of the situation analysis
- Developing contingency plans, should a preferred strategy fail
Since the level of detail and the format/approach varies from one business unit another, there isn’t a “right” way to develop plans. However, getting started with a basic plan will be your first step towards better understanding of business strategies.