Business Strategy and Planning

Every business needs to have a strategy, but how many actually do? How many start ups set out with a view of simply satisfying customer needs and making money as a result? Business strategy and planning are key to success.

As a business grows though, it should have a clear goal and sight of what the business should look like in 5 and 10 years time, then once defined, know how it is going to get there.

This article looks at a 4 stage process on choosing and implementing a Business Strategy that is right for your business and provides a clear road map on how to get there.

1 Why are you in business?

Work out ‘why’ you are in business. This is not to make a profit, that is an outcome, it is always an outcome (S.Sinek). Why does your business exist?  What purpose does it serve? Why does it enthuse you?

2 Choose a strategy that aligns with the ‘why’

Once you are clear why you have your business, educate yourself on the different business strategies that are possible. Simply purchase some best-selling books on contrasting strategies and choose one which aligns with your beliefs.

Example – ‘This is LEAN, resolving the efficiency paradox’ by Niklas Modig and Par Ahlstrom, is an excellent book which contrasts the business strategy of ‘Resource efficiency v Flow efficiency.’

Resource efficiency – where a business focuses on maximising its resources or having no spare capacity above everything else – even customer satisfaction – thus getting maximum value for its resources. E.g. NHS

Flow efficiency – where a business focuses on processing a customer need from start to finish above everything else – thus maximising customer satisfaction. E.g. Private healthcare.

3 Communicate the strategy to your staff and customers

Once chosen, decide how you are going to communicate the business strategy to your staff and your customers.

For you to achieve your goals you want all your staff and all your customers to be aligned to your strategy.

Staff – your strategy should be reflected in your Company values.  Are these clearly communicated to your staff?  How do you encourage them to live these values and discourage actions that contrast with these? Are these values reflected in their annual appraisals?  Are these values clearly communicated to potential staff during recruitment?

Customers – your marketing should reflect your Company values and you should be proud to highlight your values with potential customers as a reason why they should do business with you.

4 Establish tactics to deliver the strategy

Constantly evaluate your tactics that help deliver your strategy.  The strategy may remain fairly constant, but the marketplace and opportunities are constantly changing.  Your tactics for business strategy delivery need to reflect the opportunities that exist today.

Start your Business Strategy journey with training from Unlock Staff Potential Ltd. We can build and deliver a bespoke Business Strategy training course to ensure consistent understanding amongst your Senior Leadership Team or to support other staff throughout your business.