Strategy development is not just formal planning, but a complex process that determines the vector of a company's development. Not only the effectiveness of implementation, but also the team's ability to achieve the set goals depends on the quality of preparation. Let's consider the key points that will help avoid mistakes and make the strategic planning process as productive as possible.
- Identify the true purpose of the strategy
One of the common mistakes is a vague idea of goals. Often, companies formulate the task of strategy as “ensuring growth.” However, growth is not always the main goal. Strategy can be aimed at:
- Preparing for the sale of a business. In this case, the key task is to increase capitalization and investment attractiveness.
- Maintaining positions. For example, a family business with a long history may focus not on expansion, but on stability, customer loyalty, and development of the product line.
It is important to ask yourself: What is the key problem we are solving with the strategy? Without a clear answer, the process can become chaotic and ineffective.
- Determine the format of the final document
There is a myth that strategy is a voluminous document filled with complex reports. However, an effective strategic concept must meet three criteria:
- Compactness - optimal volume 5-10 pages.
- Clarity - the document must be understandable to the team and partners.
- Practical applicability - the strategy can be studied in 15-20 minutes, and key indicators and other materials are included in the appendices.
The main goal of the document is not just to record ideas, but to make them a working tool for business.
- Avoid substituting key goals
One of the most common mistakes is mixing up primary and secondary tasks. For example, if a strategic session, as an element of strategy development, is aimed at simultaneously defining business priorities and improving team interaction, the result may be blurred.
How to avoid this:
- Formulate the main goal. For example, developing key strategic priorities.
- Focus on it - 80% resources and time should be directed specifically to it.
- Leave secondary tasks (such as improving internal communications) for later stages.
Clearly defining your goals will help you stay focused and achieve maximum efficiency.
- Rethink traditional approaches to goals
There is a perception that strategy should be focused solely on growth. However, in reality, companies have different goals, and not every organization needs to expand.
Examples of alternative strategies:
- When preparing to sell a business, the key goal is not growth, but demonstrating stability and increasing market value.
- Maintaining positions is relevant for small family businesses or niche players for whom quality of service and customer loyalty are more important.
The key rule: the strategy must correspond to current business tasks, and not to general ideas about the “correct” development.
- How to Set Goals to Make Your Strategy Work
Clearly formulated goals are the key to effective strategy implementation. They must be:
- Enter it into a working document accessible to all project participants.
- Describe in a clear form, excluding complex terms and vague formulations.
- Review regularly to adapt to changing market conditions
The beginning of strategy development determines the success of the entire process. A clear understanding of goals, the choice of the optimal document format and the correct distribution of priorities will help to create a truly effective strategy. Do not be afraid to ask yourself uncomfortable questions and reconsider traditional approaches - this is how strong solutions are born.
Want to know more - watch the video "Developing a Business Strategy: 6 Key Tips to Get You Started" in which Alexander Pankov shares valuable advice for companies starting to develop a strategy.
