Decoding Excellence: How to Spot a Great Strategy?
In the alluringly elusive world of business strategy, where jargon seems to reign supreme and death-by-data is not uncommon, distinguishing between a truly great corporate strategy from the commonplace can sometimes feel like looking for a needle in the haystack.
So, let me offer you the following 7 key indicators that separate a great corporate strategy from a visually appealing yet fundamentally simplistic presentation. Put another way, a great corporate strategy contains clear answers to the following 7 questions.
❶ Clarity of Why: "Why should we exist?"
Essence: A crystal-clear and simple (not simplistic) articulation of the organization's purpose.
Evidence: You know you have a clear "why" when (a) all employees not only "get it", but can also explain it to their friends and family, and (b) there is a sizeable chunk of actionable items in the strategy beyond aspirational statements.
❷ Environmental Awareness: "What are the writings on the wall?"
Essence: In-depth understanding of the environment, both internal and external.
Explanation: Great corporate strategies are rooted in (i) a profound understanding of the value chain your organisation is part of, market dynamics, industry trends, competitive landscapes, and global factors, and (ii) an honest assessment of current state of play.
❸ Focused Prioritization: "What are we saying no to?"
Essence: Disciplined prioritisation of objectives and initiatives.
Explanation: Great corporate strategies avoid spreading resources too thin by focusing on a select number of key priorities, and ring-fencing resources to ensure the core continues to be nurtured. Read more about disciplined resource allocation here.
❹ Distinctive Strengths: "What can we do better than our competitors?"
Essence: Identifying and leveraging distinctive capabilities for a unique market position.
Explanation: Great corporate strategies seek to differentiate the organisation from competitors by emphasizing its distinctive strengths and offering unparalleled value to customers. Note that strengths need not be unique/differentiated, i.e., done well, imitation can be powerful.
❺ Adaptive Flexibility: "How fast and comfortably can we change direction?"
Essence: Not set in stone, i.e., flexibility to adapt in response to changing circumstances.
Explanation: Great corporate strategies recognize the inevitability of change and build in mechanisms for flexibility and adaptation. Thus enabling organisations to pivot when necessary without losing sight of their overarching why. Read about micro-practices to build this culture here.
❻ Risk Management: "Do you know what to do when (x) happens?"
Essence: Systematic identification and management of risks.
Explanation: Great corporate strategies involve a thorough analysis and stress-testing of potential risks, both internal and external, and the development of proactive risk management strategies to safeguard against potential setbacks.
❼ Simple Language: "Do we have a strategy if no one understands it?"
Essence: Clear and simple language, transparently communicated.
Explanation: Great corporate strategies require effective communication to ensure that all stakeholders understand the direction, the rationale, and their roles. Hint - If your strategy document reads like a dictionary of buzzwords, you might want to have it debugged.
Note: Simple while these 7 indicators may seem, keep in mind that recognising a great corporate strategy takes practice. And to create a great corporate strategy, one need first recognise it. To increase your chances of creating a great corporate strategy, you may be interested in first learning how to end your strategy team's love affair with your organisation's sacred cows.
To find out how I can help you and your organisation co-create a Me-Only corporate strategy, click on the button below to connect with me.
So, let me offer you the following 7 key indicators that separate a great corporate strategy from a visually appealing yet fundamentally simplistic presentation. Put another way, a great corporate strategy contains clear answers to the following 7 questions.
❶ Clarity of Why: "Why should we exist?"
Essence: A crystal-clear and simple (not simplistic) articulation of the organization's purpose.
Evidence: You know you have a clear "why" when (a) all employees not only "get it", but can also explain it to their friends and family, and (b) there is a sizeable chunk of actionable items in the strategy beyond aspirational statements.
❷ Environmental Awareness: "What are the writings on the wall?"
Essence: In-depth understanding of the environment, both internal and external.
Explanation: Great corporate strategies are rooted in (i) a profound understanding of the value chain your organisation is part of, market dynamics, industry trends, competitive landscapes, and global factors, and (ii) an honest assessment of current state of play.
❸ Focused Prioritization: "What are we saying no to?"
Essence: Disciplined prioritisation of objectives and initiatives.
Explanation: Great corporate strategies avoid spreading resources too thin by focusing on a select number of key priorities, and ring-fencing resources to ensure the core continues to be nurtured. Read more about disciplined resource allocation here.
❹ Distinctive Strengths: "What can we do better than our competitors?"
Essence: Identifying and leveraging distinctive capabilities for a unique market position.
Explanation: Great corporate strategies seek to differentiate the organisation from competitors by emphasizing its distinctive strengths and offering unparalleled value to customers. Note that strengths need not be unique/differentiated, i.e., done well, imitation can be powerful.
❺ Adaptive Flexibility: "How fast and comfortably can we change direction?"
Essence: Not set in stone, i.e., flexibility to adapt in response to changing circumstances.
Explanation: Great corporate strategies recognize the inevitability of change and build in mechanisms for flexibility and adaptation. Thus enabling organisations to pivot when necessary without losing sight of their overarching why. Read about micro-practices to build this culture here.
❻ Risk Management: "Do you know what to do when (x) happens?"
Essence: Systematic identification and management of risks.
Explanation: Great corporate strategies involve a thorough analysis and stress-testing of potential risks, both internal and external, and the development of proactive risk management strategies to safeguard against potential setbacks.
❼ Simple Language: "Do we have a strategy if no one understands it?"
Essence: Clear and simple language, transparently communicated.
Explanation: Great corporate strategies require effective communication to ensure that all stakeholders understand the direction, the rationale, and their roles. Hint - If your strategy document reads like a dictionary of buzzwords, you might want to have it debugged.
Note: Simple while these 7 indicators may seem, keep in mind that recognising a great corporate strategy takes practice. And to create a great corporate strategy, one need first recognise it. To increase your chances of creating a great corporate strategy, you may be interested in first learning how to end your strategy team's love affair with your organisation's sacred cows.
To find out how I can help you and your organisation co-create a Me-Only corporate strategy, click on the button below to connect with me.