5 Tips to Building Business Strategy

Consulting 3

Having a business strategy offers a guide to how business decisions are made, from the organizational design to your company’s reward system. It can become the basis for everything that follows if it is developed and communicated thoroughly. Consequently, not taking these steps, you may fail in building a successful business on it. When creating your strategy, make sure it is:

  • Deliberate
  • Simple
  • Actionable
  • Agreed Upon
  • Communicated

Once these five conditions are met, your strategy will become the single source of truth that will bring together your company’s efforts.

Ensure your strategy is deliberate.

Consider how your organization will:

  • Compete and prosper in its environment
  • Delivers on its mission
  • Takes advantage of both external opportunities and internal assets
  • Structures its operations

At the end, your business strategy should be reflective of the market and competitive landscape to ensure its survival. Consistently assess your organization’s strategic intent and vision.

Keep it simple.

A business strategy with too many parts will bring failure. Strategic planning models exist and include:

  • The Balanced Scorecard
  • SWOT Analysis
  • Strategy Mapping
  • Blue Ocean Strategy

Review each and choose the one that best fits your business needs.

Ensure your strategy is actionable.

Express your strategy in actionable ways – in a way that allows your leadership team to determine its execution requirements. For example, if you’re looking to “compete on the basis of innovation,” your leadership team can determine whether outsources or using internal teams will be required based on the sets of assets, behaviors, processes and resources.

The Strategy should be agreed upon and aligned amongst the team.

Business strategies may be interpreted differently. Exercise early on a collective discussion for strategy development. Conducting briefing sessions and holding alignment workshops where stakeholders play back their understanding of the strategy and reconcile differences are two strategies that guarantee stakeholders are in alignment regarding what the strategy is and how it should be executed. The key here is: the simpler the strategy, the less room for differing interpretations.

Make sure your business strategy is communicated.

Communication of the business strategy is important for people on all levels. Employees should be clear on the goals the business is trying to achieve to know if they are helping or hindering the process. With proper strategic understanding, everyone in the company can make quicker, more efficient choices regarding their work, resulting in better outcomes.

Communicate in simple, clear terms everyone can understand – avoid jargon that while sound impressive, may lose your employees. Use surveys and polls to assess employee understanding of the business strategy.

Implementing a business strategy is just the first step and we’re to help. With over 70 years of combined experience, Newland Associates have been able to help companies reach and excel in their business strategies and goals.

Share on facebook
Share on twitter
Share on linkedin