A successful strategy can keep your organization on track for years to come — but building one is often easier said than done. According to a recent survey by Bridges Business Consultancy, only 68% of professionals believe their current organization is good at strategy execution, down sharply from 80% in 2012.
Five Keys to Successful Strategy-Making
1. Start with Purpose
When building a strategy, the first question to ask is: what does my organization stand for? The Lipton brand under Unilever illustrates this well — by placing sustainable tea production at the core of its strategy, Lipton found the intersection of “doing good” and profitability, creating shared value.
2. Account for Global Events
Business is shaped by politics, policy, law, and international relations. Political decisions can affect taxes, labor law, raw material costs, and transportation infrastructure.
3. Leverage Data, Case Studies, and Trends
A successful strategy must draw on your knowledge of your organization, other companies, and fundamental economic theory. Analyze financial statements and review historical strategies — both successful and failed.
4. Set and Communicate Goals Effectively
Harvard Business Review research shows that 95% of employees do not understand their company’s strategy. It cannot succeed unless communicated clearly to all employees, making them feel empowered and accountable.
5. Treat Strategy as an Ongoing Process
According to Professor Clayton Christensen, 93% of entrepreneurs with successful strategies had evolved beyond their original plan. “Most people think of strategy as an event, but the world doesn’t work that way.”
Disruptive Innovation
Clayton Christensen coined “disruptive innovation” to describe the process by which a smaller company moves upmarket and challenges larger, established players. Understanding this framework helps you develop a strategy to either disrupt your industry or protect yourself against disruption.
