It’s a fairly intangible thing, this “strategy”, is it not? And yet so solid once it is crafted.
Some call it a roadmap for your business, which is apt. I think of it as the list of your guiding principles.
Your strategy gives you direction to navigate the tasks of business success, while keeping you connected to your foundational goals and priorities. Your strategy is not “how” you sell, market or produce. Those are activities, working practices. These will change with evolving client needs, competitive landscape, regulatory requirements, financial impacts, etc. Your strategy is what will allow you to adapt your working practices to those changes.
It is your decision-making process.
No business is static. Over time new competitors will enter the market or established businesses will start to move in to your area of expertise. Regulation is continuously amended with ripple effects on many parts of business. Economics take a turn, for better or worse, affecting people’s ability to buy or resource allocation. Your client needs will change, affected as they are by these same external forces and their own business decisions.
Your strategy allows you respond to those shifts without betraying your company goals and culture. Your activities will need to adapt to these external changes, and your guiding principles – your strategy – will inform what to change and how.
On my homepage I make a brief note of various departmental needs of a business – whether these are managed in house or outsourced, they are all necessary in some form. The way in which these are both structured and managed will impact your business.
Explaining your needs, goals and priorities to your employees, clients and business partners will create a cohesive experience throughout all touch points with your business. All these people will understand why they are doing something and the parameters within which to achieve those goals, assuring you – the business owner – that all parts of your business are pointed toward success. They will be able to adapt along with you as and when needed, and you can focus on growth with the assurance that all your moving parts are working connected.
This is your brief introduction as to why strategy matters. Follow me on this blog as we delve into details of strategy impact, as well as how to craft a strong strategy and implement it for growth.