Defining Strategy

Strategy was once defined as “the art of planning and directing large military movements and the operations of war”. In business, a strategy maps out the future, setting out which products and services you will take to which markets – and how.

Why have a strategy?

Having a strategy enables you to ensure that day-to-day decisions fit in with the long-term interests of an organization. Without a strategy, decisions made today could have a negative impact on future results. A strategy also encourages everyone to work together to achieve common aims. Most organizations have a strategic plan at the highest level, but some do not communicate it all the way down. A strategy is equally important whether you serve external customers (those outside your organization) or internal customers (those in departments or sections within your company).

Looking to the future

Today’s business environment puts pressure on people to complete urgent tasks, meet day-to-day objectives, and overcome short-term problems. This is operational, or short-term, planning – and it often tends to take precedence over planning for the future. Strategy concerns itself with what is ahead, looking at where you are going, and how to get there. Even if you already know which products and services you are taking to which markets, you will still need a strategy to make it happen.

Points to remember

• A strategy defines which products or services are sold and delivered – and to which markets.

• A strategic plan establishes how to sell products and services to specific markets excellently and competitively.

• The success of a strategy must be measurable by, for example, financial results or the excellence of service given to customers.

Being a good strategist

Effective strategists look at what is happening now in the context of where they want to go. They react positively to problems, can inspire and motivate people, and communicate well.

• Is a team player

• Sees problems as opportunities to improve

• Balances short- and long-term needs

• Keeps calm when the unexpected occurs

• Is a skilled communicator

Involving the team

To get the best from your people, it is important to work within a clear framework that clarifies how they will be expected to help you to develop and then implement a strategic plan. Think of the methods and processes involved as a “map” that the team can follow to achieve success. By creating such a framework, you encourage the team to pull together and work to a common goal. You also promote their personal development by teaching them to think strategically.