At the beginning of the year, many managers begin financial projections and resource planning. While doing this work, I’ve seen too many leaders confuse tactics for strategy. Implementation planning around your strategy is about tactics, and strategy sets the nature and direction of your business, defines your vision and determines how to differentiate yourself in the marketplace.
You need to ensure three key areas of strategy have been addressed before implementing tactics crosses your mind:
1. Vision
Vision is your picture of the future for your business, not numerical targets. It defines what success looks like and serves as a guide for decision-making.
- How well-defined is your vision?
- Can your team articulate it effectively?
To create a future-focused, achievable blueprint, you can use collaborative workshops, customer feedback, scenario planning or a one-on-one visioning session with a strategic growth coach.
2. Marketplace Divergence
A robust strategy identifies how you stand apart. Conduct third-party interviews with key customers to identify your points of:
- Competitive uniqueness
- Advantage
- Equality
- Weakness
Dollarize the unique value you bring to your customer. Validate your claims with examples and testimonials from customer depth interviews.
3. Innovation
Innovation keeps you and your business ahead of the curve. Epoch Times recently reported more than 2,000 CEOs of larger companies resigned last year. Many, if not most, had failed due to stagnant innovation.
Regularly assess if your business is adapting to increased competition and changing customer needs. Create a process for vetting and implementing new ideas that align with your strategic vision.
Implementing Strategy
As your strategy becomes ever clearer, continually refine your implementation planning. Here are some steps:
- Prioritize Constraints and Opportunities:
Find areas with the highest potential to grow the business. - Customer Segmentation:
Rank customers by profits and potential growth, and estimate growth potential. - Untapped Potential:
I am conducting a survey of CEOs, and the 70 replies I’ve received so far have revealed:- Avg. company revenue: $38M
- Avg. untapped growth potential with existing customers: 65% and $36M
- Total potential growth: $2.5B across respondents
Where to Start
The first steps in strategy and self-assessment often fund the next investments in growth initiatives.
If you want to assess and confirm your business’ growth potential, then call me for a pro bono strategic thinking coaching session. Privately, we can prioritize growth levers and identify blind spots.
A third-party assessment of your strategy doesn’t just pay for itself. It also sets the stage for your long-term success.
Mark Faust
(513) 621-8000
mark@em1990.com
@markfaustsr
