Innovative Strategies for Building Your Leadership

Archive for October, 2012

STRATEGY FIRST

Posted on: October 10th, 2012 by Doug Treen

Strategies are time sensitive. Assuming you have a good strategy just because it worked in the past, without a strategic renewal is dangerous. Hard work and enthusiasm are futile without a sound current strategy. Like an efficient road to nowhere, a great execution by skilled people of a poor strategy undermines value. This results in frustration, conflict and poor morale.

Winning starts with a sound strategy! The shortest, fastest amd least costly path to success is starting with a fresh strategy that uniquely differentiates and fits your company and current situation. Poor choices of a new strategy are costly. Money will be spent going in the wrong direction. Missed opportunuities are even more costly. Most of all righting the direction can become a turnaround struggle.

Many companies believe that they have a fully developed strategy but given the velocity of change, many are not just dated but fundamentally incomplete. External environmental and competitive changes make existing strategies ineffective and misaligned with the current organizational capabilities, financial capabilities and management assumptions for the future. New competitor strategies aim to undermine your strategy. Failure to be on top of external changes can creep up and hit a company’s bottom line quickly, creating a death spiral of non productive reactive change. Incentives like profit sharing result in frustration as managers are motivated to continue in the wrong direction. Piecemeal programs like team building, customer service, acquisitions, pricing, the balanced scorecard, new add-on marketing initiatives fail to create value, unless based on an overall updated comprehensive strategic plan which differentiates the company. Strategy comes first!