The Modern Rules of Solid Strategy Formulation: It is Not Rocket Science! Learn Them Now!
Planning plays an important role for the success of every business!
Why are some businesses reporting explosive returns on investment (ROI) right from the covid_19 crisis to the new normal, while others have closed shop?
This is not a post about the best strategy formulation.
I have decided to begin a series of posts on LinkedIn and this blg, every Tuesday, that attempt to prove to you that your business’ strategy formulation is now more important than ever. Times have changed. Covid_19 has had a devastating impact in the lives of people and enterprises all over the world.
Note: This Tuesday’s post has been delayed due to the Eid Al Adha Holiday.
If you took the initiative to quickly pivot your business, you are among the few reporting outstanding results that have never been witnessed before because you did not drop the ball. You listened to your audience and provided services and products the way the customer wanted them (even in tough times).
Which firm does not want to see a higher ROI today, than yesterday?
Sorry. One-size-fits-all does not apply here.
This series of posts is for you if your enterprise is grieving because you are in the woods, and worse still, not finalized developing the process of adopting the most apt strategy to alter your business.
Strategic planning is your ticket to a solid strategy formulation process that is extremely successful. In strategic planning, you first have to identify the exceptional and unique drivers of your business.
You start by answering very simple questions:
- What is the size and complexity of your business?
- Where is your business now?
- Where do you want to go?
- Can you reach there with your current team?
- What are your priorities?
- What is your competitive advantage?
- What can you create now to influence your business in the future?
Of increasing importance to the success of any enterprise is the choices made by the organization among two or more alternatives. When choosing a strategy, the firm decides to pursue one course of action instead of others.
These choices are influenced by the opportunities and threats in the businesses’ external environment as well as the nature and quality of its internal resources, capabilities and core competencies.
Best Business Strategy Quotes: Shape the Lives of Epic Entrepreneurs Like Steve Jobs – Nobody Tells You About the Power of Competitive Execution
The fundamental objective of choosing one strategy over another is to gain strategic competitiveness and earn above average returns. Strategies are therefore purposeful, precede the taking of actions to which they apply and demonstrate a shared understanding of the enterprises’ vision and mission.
“Tactics is knowing what to do when there’s something to do. Strategy is knowing what to do when there’s nothing to do.”
– Savielly Tartakower
An effectively formulated strategy marshals, integrates and allocates resources, capabilities, and competencies of the business so that it will be properly aligned with its external environment. A properly developed strategy also rationalizes vision and mission of the organization along with the actions taken to achieve them.
Strategy formulation can be defined as the development of long term plans for the effective management of environmental opportunities and threats, in light of corporate strengths and weaknesses. It includes defining the corporate mission, specifying achievable objectives, developing strategies and setting policy guidelines (Wheelen & Hunger, 2012).
Purpose of Strategy Formulation
The purpose of strategy formulation is to cause strategic thinking that conceives the future of the business and how that future may be secured.
New strategies increase the chances of success of an enterprise securing its future. Successful businesses adopt a formulation process that matches the business, organizational culture, and the specific issues in context.
The strategy formulation process must be tailored to the current needs of the organization, the task of the manager being to understand the process that has generated strategies in the past in that business and to consider how to develop that process in the future (Shimuzu & Hitt, 2004).
Value of Strategy Formulation
Strategy formulation process trigger new ideas, capture ideas for discussion, and clarify ideas for implementation. The process must lead to ideas about how the future can be secured and must lay the ground for effective action. The solid strategy formulation process should lead to good strategic thinking.
Covid_19 has changed, and is still changing the strategic landscape of running businesses. For example, McKinsey & Company reported that Coronavirus is accelerating digital-strategy formulation (COVID-19 Digital Strategy, April 2020.) Any organization that is ready to pivot and adapt will weather all types of disruptions.
Could the focus on efficiency, efficacy and business agility help guide organizations in the next five to 10 years?
Watch the three themes of Gartner’s Top Strategic Technology Trends for 2021; i.e., People centricity, location independence and resilient delivery.
The unprecedented socioeconomic challenges of 2020 demand the organizational plasticity to transform and compose the future.”– Brian Burke, virtual 2020 Gartner Symposium IT/Xpo®
Are you tired of lousy business plans rejected by thought leaders and other Investors that matter to your business?
What to tantalize your stakeholders with a barbed business plan?
Let’s master how to develop the solid strategic business plan that works for your business. Drop me an email, with the subject line “Solid Strategy Formulation Process” to skyrocket and dominate in your business.
- Strategy: ideas and actions to conceive and a secure the future of an enterprise.
- Strategic Management is as a process by which top management determines the long-run direction and performance of the organization by ensuring that careful formulation, effective implementation and continuous evaluation of strategy takes place.
- Competitive Advantage: A superiority gained by an organization when it can provide the same value as its competitors but at a lower price, or can charge higher prices by providing greater value through differentiation. Competitive advantage results from matching core competencies to the opportunities.
- Strategic Management and Business Policy: Toward Global Sustainability (Wheelen & Hunger, 2012)
- Strategic Flexibility: Organizational Preparedness to Reverse Ineffective Strategic Decisions (Shimuzu & Hitt, 2004).
- Strategic Management: Formulation, Implementation, and Control (Pearce & Robinson, 1991)
- Strategic Management, 7th Edition (Lynch, 2015)
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Be sure to follow me not to miss out on the next post, this coming Tuesday, in this Solid Strategic Formulation Process series titled: ‘Key Strategic Questions and the Elements of the Strategy Formulation Process (Part 2)’
This article first appeared on ThExtraordinaiOnly Company page on LinkedIn here https://www.linkedin.com/pulse/introduction-solid-strategy-formulation-part-1-thextraordinarionly/