What is strategy? I have run across several clients who feel this is a daunting subject or have all out confused strategy for some other function of a business plan.
We know that to be a successful organization, there needs to be a clear and sound strategy in place. In addition, successful execution of that strategy is equally important to win in the market place (We will discuss this and the many pitfalls in later posts). Let’s define strategy by first defining what it is not but often confused with.
Vision: This is where you will end. This is the aggressive aspiration that if you accomplish the strategic goals year in and out, your organization will become.
Mission: Your purpose for existence, why you have a product or service and deliver it to the public on a daily basis.
Business Strategy Defined
Now, these are important and should align with your strategy, however, these are not strategies or executable goals themselves. No matter how brilliant you are at producing a product or executing a service, without a skillfully executed strategy, you will not remain successful as other organizations will often find ways to do it cheaper and better.
Strategy is the way your organization chooses to deliver products and services to your customers. It is the unique way you do this, as opposed to the competition, in the market place. You are stepping back from the day-to-day, identifying key issues your organization faces today, analyzing your goals vs your capabilities, and breaking down executable steps to get there. Now, a good strategy will consist of two main elements: the value proposition and the value chain.
Value Proposition is what distinctively sets you apart from rivals and makes customers want to do business with you.
Value Chain is the organizational structure and activities that make the value proposition possible.
Once these two key factors have been identified and developed it is now time for you to head into the Strategic Planning Phase.
© 2016 Armour Martin Consulting, LLC