It is believed that a business exhibits strategic intent when it relentlessly pursues ambitious or stretch objectives, concentrating on a full force of resources and competitive actions in achieving desired objectives.
In simple words. Make sure you have a kick-ass plan to perform and outperform competitors.
Well, if only that is how easy it was. Humans overcomplicate things as a shortcut to conserve mental energy. Overly complex actions are seen as out-of-reach and therefore we surrender the need to 'understand', regardless of the prize.
What we do understand is business strategies mostly fail. According to studies, 60–90% of strategic plans never actually fully launch. Execution often bears the blame, which is often the case, however this is not always the reason.
Here is the failing strategy lifecycle:
1. Idea or need for change is developed
2. Enormous number of hours are spent building an overcomplicated strategy
3. Early enthusiastic approaches to the strategy dwindle and excitement dissipates
4. Team actions fail to satisfy leadership or the strategy owner
5. The leadership or strategy owner begins to question the strategy’s viability
6. The strategy is quietly abandoned, without a review of WHY
7. The strategy cycle resets
Here are my thoughts. The employer, manager, or whoever is responsible for the strategy should be blamed for the employee failures to a strategy.
If an employee doesn’t understand the actions within the strategy completely, regardless of if it is kick-ass or not, an employer might resist. Sure, on occasions employees are not up for the assigned task due to lack of knowledge, skill, or will. If this is the case, don’t assign them actions within the strategy. Whatever the reason, the problem is often assumed to be the employee's fault. This is an employer demanding blind obedience.
Accountability breeds response-ability.
Leaders, sort your shit out. Stop blaming your staff.
There are other points and reasons for a failing strategy, however, we are moving on.
Traditional strategies are harder to modify. Agile strategies prepare and allow for tactical changes in approach ahead of time, or quickly when required.
Here are the five steps an MBA will teach you in developing a strategy:
1. Develop and understand the business path and direction. This involves understanding long term direction and what product-market-customer mix is optimal.
2. Setting objectives. The key purpose of setting business objectives is to apply and convert the vision and mission into specific performance targets. Well stated business objectives are quantifiable and contain a deadline for achievement.
3. Crafting the strategy. Crafting a strategy entails how to compete against competitors as well as how to position the business in the market.
4. Executing the strategy. Strategy implementation is the most time consuming and demanding part of the process which involves converting strategic plans into actions and results.
5. Most critical importance in the steps is evaluation of the strategy. Monitoring new external developments, evaluating the strategy progress, and making subsequent corrective adjustments is the trigger for deciding to continue with the vision, mission, objectives, and or strategy execution methods.
Let’s make these typical MBA steps simplified… the basic strategy steps are easy:
Step 1: Determine where you are...
Step 2: Identify your goals and objectives...
Step 3: Develop your plan...
Step 4: Execute your plan...
Step 5: Revise as needed...
Step 6: Recognise and reward the team… this one I added
Why do we constantly overcomplicate things? When strategy implementation loses momentum, it’s typically a result of uncertainty. Leaders must assess the state of company culture and how it will potentially impact the strategy, while accounting for those internal barriers as part of the implementation.
Just because you have a kick ass strategy, with innovative ideas, and hundreds of hours of planning, this does not mean it is ready to be executed. Or it doesn’t mean it will be executed. Predicting barriers will save you thousands of dollars. Strip away any assumptions to avoid failure. Ensure you have the right team, and ensure your team are confident with the tools to deliver results, with an objective of fastidiousness, and execution. Leaders, take responsibility for the strategy and adjust your usual project management methods, and you will experience vastly improved results.
Or hey, you can at least aim to reach for the stars and hit the top of the light pole…
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