In previous posts we’ve been through setting the vision, the business mission, values and objectives. Today I’d like to look at the Now elements of the business being the big issues that need to be addressed and how these form the basis of your business strategy.
The Parato Principle, or the 80/20 rule, suggests that 20% of your business issues are directly affecting 80% of the results that you are achieving. Accordingly, we need to focus on those issues that have the greatest impact. So in the strategic planning process I go through the following sequence:
- Brainstorm the issues affecting the performance of the business currently. I like to ask the question, “if you had a magic wand and could change anything within the business without considering the cost or ease of doing, what would you change?” This should give you a bucket load of areas for improvement.
- Next step is to actually apply the Parato Principle and rank all of these issues in terms of importance. We should now have a list with some really important stuff that we can tackle and make a big impact.
- Starting with the most important issue, think about what strategy would directly address and resolve this issue. I use a process (Now/Where) which examines the current issue and projects into the future as to where we want to be with regard to the issue.
So the strategy formulation process is merely the step of working out how we get from our current reality to a better future place. Strategies are statements that drive our thinking forward.
I like to use 5 strategy headings in my plans being, Marketing, Operations, Innovation, People and Finance. All issues identified are categorised within one of these headings. So for instance if one of our issues is an under performing sales team, our strategy for a better future outcome could be “To select, train and retain the highest calibre sales professionals available.” On the basis of this strategy we are then able to develop and implement action plans that provide the desired result and improvement.
Stratagies are high-level choices to determine what future path your business takes. They are vital for your growth plan for a number of reasons:
- Strategies provide a focus on the areas where you need to work to improve your business.
- They provide pathways to follow in order to reach your vision and fulfil your mission.
- A strategic focus helps with employee engagement and ultimately better customer service.
So to recap, identify the the big issues facing your business, brainstorm some creative strategy options and then finally develop clear and viable strategies which will address the big issues and positon you for growth.
Next post we’ll discuss the How component of turning strategies into prioritised and powerful action plans. Until then, have fun with building your strategies!
Richard Coumans
m. 0412 119 232
e. richard@coumans.com.au
