Whether you’re outlining plans for future growth, determining a product roadmap, or setting new business priorities, you’re going to need an effective strategy to get you successfully across the finish line. Where many organizations fall short in strategic planning is focusing too much on tactics instead of building a cohesive business strategy.
Here are 4 steps in building an effective business strategy:
1. Determine where you are, and where you want to be.
Building an effective strategy begins with understanding where you are in your business currently, and where you want to be in the future. This will not only help you determine your High Definition Destination (HDD), but it will also allow you to take a step back and look at your business as a whole. From here, you’ll be able to identify which practices are benefiting your business, and which are detracting from your potential.
2. Figure out what you’re going to focus your resources on in order to get there.
After you’ve determined your HDD and identified what is and isn’t working in your current business model, you’ll be able to decipher what areas of your business you need to focus your resources on in order to meet that end goal. Your resources aren’t limited to money; they can also include your employees and the knowledge that they possess. More often than not, your employees will know better than you which areas are lacking and which need improvement.
3. Establish how you are going to do this.
Knowing the what and where are vital first steps in building an effective strategy, but execution is what makes or breaks a strategic plan. When determining how to execute the strategy, it’s important that teams prepare for the unexpected by following the six steps to mission planning used by fighter pilots. This ensures that every potential threat to the mission is accounted for so that your strategy is executed flawlessly.
4. Make a plan for when you are going to exit, adapt, or change course.
All good things come to an end – unless you adapt and overcome. Take businesses like Blockbuster, for instance, which failed to adapt when the market began to change. Your strategy needs to involve a plan for exiting or changing course when external threats begin to influence operations.
Having a great strategy that aligns with your High Definition Destination is what separates the great businesses from the good ones. If you’re looking to create an effective business strategy but aren’t sure where to start, reach out to us here. Our team at Afterburner will help you choose the right objective to target, create buy-in, and align success.