Each time I work with clients, even large companies, they ask me “What really is business strategy and why is it important to business success?”
The problem is that people use the term incorrectly all the time and so everyone has become confused and that confusion gets inh te way of business success.
Definition of business strategy
In simple terms:
Business strategy is process companies go through to develop their ability to choose the best market options and work out in which ways they needs to excel for the greatest business success.
Business strategies are the few big areas of focus that a company chooses to focus on. This focus will extend over several years so the company can close the gap between where they are today and where they want to be. For example, strategies can be building strong market awareness, deepening customer insight, dramatically improving the commercial success of certain products, developing a customer experience to attract far more customers and removing wasted cost across a business.
Consider a military battle such as Bannockburn – Robert the Bruce knew the English army would outnumber them ten times over. So he planned his strategy very carefully. For instance, he used the land very carefully, squeezing them into a narrow area by a stream so they could not use their full force of their troops. He also used his troops in an arrowhead formation, coming downhill with such speed and determination that they ripped a huge tranche out of the opposing army. His strategy was so effective that the English army fled and the battle will be remembered for centuries for its amazing success.
Tactics, on the other hand, are the actions that are taken to bring about the agreed strategies. For example, this would have been the way The Bruce’s Captains trained their men to ensure the strategies would be effective.
Why is strategy essential to business success?
Developing business strategy is essential to your success because it is the only way to:
- Align your people. This article explains why this is essential.
- Ensure the business is focused on the areas where you are most likely to excel
- Develop to maximise the best opportunities
- Give yourself and your staff the confidence to engage fully in making your business a success
- Avoid rabbit holes that will simply waste time, effort and money
- Work out how to provide the value that will attract customers in droves – like bees to a honey pot – and keep them coming back
Your dream for your business deserves to become reality.
You live one life and you have a gift – that will be magnified as your company becomes increasingly successful. The world needs that gift to become reality. It needs you to be successful . . . . . and you deserve that success one hundred times over.
A well thought through business strategy that will get you there faster and far more effectively. So what are you waiting for?
What examples of good and bad strategies have you seen? I would love to hear your thoughts.