Can you say what your strategy is? by David J. Collis and Michael G.…
Can you say what your strategy is?
by David J. Collis and Michael G. Rukstad
Conversely, companies that don't have a simple and clear statement of strategy are likely to fall into the sorry category of those that have failed to excuse their strategy, or worse, those than never even had one.
Leaders of firms are mystified when what they thought was a beautifully crafted strategy is never implemented. They assume that the initiatives described in the voluminous documentation that emerges from an annual budget or strategic-planning process will ensure competitive success
What goes a good statement of strategy?
Lays out the characteristics of strategy in a conceptual fashion, conveying the essence of strategic choices and distinguishing them from the relentless but competitively fruitless search for operational efficiency
Elements of a strategy statement
Any strategy must begin with a definition of the ends that the strategy is designed to achieve.
A hierarchy of company statements
Vision: What we want to be
Strategy: What our competitive game plan will be
The basic elements of a strategy statement
Values: What we believe in and how we will behave
Balanced scorecard: How we will monitor and implement that plan
Mission; why we exist
Defining the objective
It should be specific, measurable, and time bound. It should also be a single goal.
Defining the scope
A firm's scope encompasses three dimensions: customer of offering, geographic location, and vertical integration
Defining the advantage
It's the most critical aspect of strategy statement. Clarity about what makes the firm distinctive is what most helps employees understand how they can contribute to successful execution of its strategy
The strategic sweet spot
It isf a company is where it meets customer's needs in a way that rivals can't ,given the context in which it competes
Developing a Strategy Statement
It's finding the sweet spot that aligns the firm's capabilities with customer needs in a way that competitors cannot match given the changing external context