Develop a sound business strategy and you stand a reasonable chance of being successful. Ignore this fundamental step in organizational development and you stand every chance of failing. Your business strategy or strategic business management can be regarded as the process of:

  • Defining the purpose of your organization and the direction you wish to take to achieve that purpose.
  • Defining the goals and objectives needed to achieve business success.
  • Defining the detailed action plan needed to meet those objectives.
  • Following the plan.

How do you develop your business strategy?

  1. Develop the vision you have for your company. How far do you want to go? What will your company look like when you get there? Do not dismiss this step. You will find it more difficult to define the purpose of your company and the direction you wish to take without it.
  2. Define the key goals and broad objectives required to achieve the business success you are seeking.
  3. Define the company’s core values that will underpin your key objectives, explaining why you are in business and what your company’s operating guidelines are.
  4. Create your 5-year plan based on your broad objectives. Define the action plan that will take you where you want to be from where you are now.
  5. Develop a plan for the next twelve months based on your 5 year plan. Specify the exact steps required in the first year to ensure you are heading in the right direction to achieve your longer-term goals.
  6. Define the key result indicators (measures) you will use to monitor progress.
  7. Conduct an in-depth analysis of the health of your company at this time to identify the resources required to achieve your action plan. Use this analysis to identify ways to…
  • Maximize the strengths you have currently.
  • Minimize the weaknesses within your company.
  • Take advantage of the opportunities to develop your company.
  • Deal with the threats you are faced with currently.
  • Consider using a reputable consulting company to assist you in performing this analysis. You will find that this is a cost effective way of developing your action plan and identifying the resources and talents you need. In addition, reputable consultants will be able to provide you insights that you may not have realized. They come from an outside perspective, are not intimately involved in the day to day operations, and can provide varying viewpoints. Look for consultants with a wide range of experiences and a big-picture outlook.
  • Communicate your business strategy with your staff and others who will be involved in achieving your company’s objectives. What you communicate and how you communicate may differ when discussing your plans internally and externally.
  • Put your plan into action and monitor progress using the measures or milestones you defined previously. Develop contingency plans to allow for growth when your performance exceeds your expectations or the steps you need to take when your expectations are not met.
  • Action planning is an iterative process. Be prepared to amend your plans as your business develops in line with your objectives. Follow the steps above, use reputable external resources to assist you and you will create a powerful business strategy that will support you as you develop your company.