Get a Competitive Edge by Setting a Clear Strategy
A clear strategy gives organisations a competitive edge. Without one, organisations flounder in the cut and thrust of the market.
Why? Because a clear strategy, which has understanding and evaluation as a starting point, provides a plan for reaching objectives. It keeps people focused on those activities. It helps prioritise scarce resources to maximise returns. It is how you give yourself the best possible chance of building the foundations of enduringly effective business and organisational operations.
So what is a strategy in more detail? A definition from business theory runs: a series of decisions which together form a process for achieving a particular goal or result.
In practice, any effective strategy must have the following components:
- Performance targets, in whatever terms these are to be measured (e.g. income, volume, quality, but set against measurable, understandable and achievable targets).
- Agreed and achievable deadlines, which represent a balance between commitment, resources and contingencies.
- Contingencies to cover unlikely events and emergencies.
- Consideration of the short-term impacts and results, and the long-term effectiveness of the organisation.
- Consideration of the organisation’s products and services in terms of value and quality, and utility to customers, clients, consumers and end-users.
Clarity is the key factor in all successful strategies. A crucial first step to achieving this clarity, before you start setting anything out, is defining the organisation’s core foundation. This is the essence of what the organisation aims to deliver and how it will go about it – in terms of products, services and results. It is your competitive advantage.
There must only be ONE core foundation. It is having one central idea which will give clarity to your strategy and to those who do business with you – suppliers, customers, backers, staff and the community within which the organisation works. When people are unclear about something or someone then they will gravitate towards those who do have this clarity.
Strategy is just one element you’ll learn in our Leadership Management course. If you want to understand your organisation in detailo, set strategies to follow and make the right strategic decisions then check out our Leadership & Management course.