Five reasons why every business should have a strategy and how it will lead to faster and more sustainable growth

measurement

Something that comes up time and again is how many businesses, including seemingly successful ones, don’t have a strategy that underpins their business plans, or even strategies that support the major functions within the business or for business development projects.

Without a strategy there’s no clarity for the people planning and delivering the activities, some will feel there’s no cohesion and as if they were on a rudderless ship whereas others will go and do their own thing so there’s no consistency or true understanding of what actions are being taken and how they contribute to the overall plan

So why have a strategy and what difference does it make?

  • A business’ strategy sits at its very core and encompasses the why, the what and the how of the business (check out Simon Sinek’s Golden Circle). Unless you’re clear on these then your strategy is likely to fail because it’s not aligned to the business.
  • Undertaking SWOT analysis may sound old hat but it’s a great way to find the strengths to leverage which will move the business forward both faster and in a way that can be fully supported and so more sustainably. And it highlights the areas in need of greater development to fully support the business. But only choose a few of each to retain the focus.
  • Many businesses including those in your sector and aiming for the same target market don’t have a strategy. If your business has a strategy it’s more focused, it says no to those distractions but at the same time uses its strategies to ensure that true and valid opportunities are not lost.
  • Ensure that the management team meets at least once a quarter to review and evaluate – understanding what’s working and what isn’t, what factors may have changed and lessons learnt. Don’t let these meetings drift and use the findings to make informed decisions.
  • And remember, “Where performance is measured, performance improves. Where performance is reported, performance improves dramatically. Where performance is reported publicly, performance improves exponentially.” Attributed to both Thomas S. Monson and Clate Mask, CEO Infusionsoft. So be open within the business, measure what is needed but no more and report back at least every quarter.

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