Strategy: Corporate Jargon or Competitive Advantage?

More than ever, businesses need to get their strategy right. The strategic management process is an approach to business which dictates everything from planning to execution and ensures that strategic thinking is at the forefront of all operations. Predicting the future is a risky business that can ruin your career or business. The fear of the unknown moves managers to rather choose lower risk over increased odds to be successful. It seems that true strategy is becoming more about increasing the stakes and making hard decisions; it seems strategy making is becoming an uncomfortable zone.

So before you can consider how, where, or when your employees will be working, you have to start with the question “to what end?” That’s your destination. You have to set a clear destination for your strategy.

From here on, a common mistake usually takes place: strategy is seen as merely putting some plans that is dictated by cost, into action. Starting with a destination allows you to get out of your current world and start expanding your thinking. Continuing from there it would be best to establish the value of your company by asking yourself how you add to the experience of the end user. If you can’t precisely identify what value you add and deliver on it, it’s going to be hard to sell your future strategy. Success necessitates progression – so, start thinking about what worked, what could be improved, and what could change or be done in more innovative ways.

At the end of 2021, we find ourselves in an ongoing pandemic on the cusp of a fourth wave. Therefore, it is vital that what business strategy you are looking to create or revise that it takes and continues to take into account both the direct and indirect effects of Covid-19.

More so, organisations that have yet to complete their digital transformation should do so in light of continuing and increasing digital transactions. While the world may seem to be “returning to normal” for now, the future is all but certain to be one that happens online.

Both domestic and global economies continue to look fragile and hence, it would be only appropriate to prepare for the worst case scenario due to the ongoing uncertainty, market fluctuation and volatility.

In 2020, businesses had to be able to reach their customers at home if they wanted their attention. In 2021, customers were more eager than ever to get out of the house and head to businesses directly. Which of these routes is more likely for 2022? What about the 2020s in general? How can businesses expect to cope with the uncertainty of consumer behaviour?

Social media usage is booming across all platforms. However, that doesn’t mean you can just post-traditional content and expect higher levels of engagement than before. As users grow, social media trends and practices evolve. The posts that accrued big engagement in 2019/2020 will probably not make the same kind of impression in 2022.

Another important consideration is that of your employees. It’s not just consumers and markets who have had their trajectories changed by the past year. Your employees have likely undergone a few changes themselves. Quality of life is increasingly privileged over big salaries and flexible work over traditional office setups.

In recent weeks we have noted how foreign countries have closed their borders to South Africa due to fears of transmission of the mutant variant of Covid. In turn, it would be wise of you to not to abandon your local operations in the hopes that your business’s horizons will broaden in the near future. Instead, continue to nurture any and all existing customer relationships. And, do so while waiting for a good time to begin expansion further afield.

Managers find it safer to supervise planning than to inspire strategic choices to implement.

Rules to apply for strategy making and execution

Let me know what your thoughts are on strategy making. Tell me more about your successes, failures, and lessons learned.

Next week we are addressing the importance of leadership in organizations.

Cheers!

Jeanie