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What
is a strategy?
In
a business context, it's the thing which states in definite
and objective terms the design for your business function or
your organisation; in other words: what you want to do, why
you want to do it, how you plan to do it and what you expect
to achieve by doing it.
The
following scenarios should help to provide a clearer picture
of what this might mean to you.
Scenario
A
For
example, if you want to merge two business functions, your
strategy might be summarised as:
What?
- Teams U and V will be merged to form a
single business function.
Why?
- Both teams provide complimentary
services and will deliver a streamlined
service
if they work as a single function.
How?
- Re-design the teams' business processes so they operate as a
single function.
Objective
- Provide a more cost-effective and
efficient service.
Scenario
B
For
example, research has shown that there is insufficient demand
for your products X, Y and Z.
Your
strategy for discontinuing these lines might be summarised as:
What?
- The business will no longer provide
the products X, Y and Z as of dd/mm/yy.
Why?
- Research has shown there is
insufficient demand for these products.
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How? -
There will be a programme to review the business processes
within the teams involved in supplying X, Y and Z. Existing
customers will be told by letter on a date to be agreed.
Objectives
– Reduce costs by focusing resources
in line with customer demands and to bring ways of working in
line with the revised service provisions.
Using the example in scenario B, the programme to review the
business processes would not be successful without the What?
statement; it specifies the products the company will no
longer provide and leaves no room for misdirection or doubt.
Conclusion
The
heart of it is this: before you overhaul your department,
before you make employees
redundant, before you outsource services and before you make
significant budget cuts, as yourself the following questions:
-
Why
am I doing this?
- Are
my reasons objective and supported by facts and figures?
- What
do I expect to achieve?
- How
will this be done and by whom?
If
you provide vague response to any of the above questions, stop.
Without robust and definite answers which your direct
reports, employees or shareholders can understand, you are not
ready to begin the course of action you’re considering.
If
you begin without a strategy, your course of action will cost
more than you anticipate, will use more staff time than planned,
will create more frustration and confusion than is necessary,
morale will plummet and your programme will fail.
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