It is worth considering as to whether our businesses have instigated a business strategy!
At the outset of starting a business most owners would have developed a business strategy, probably without even knowing it!
What is Strategy?
The term Strategy is originally a military imperative to succeed against the enemy in battle.
The first uses of this was the use of the term “Generals Knowledge”
The Generals before going into battle formulated a strategy to overcome the enemy, using the Generals Knowledge.
Example:
- The positioning of the troops
- Selecting best times and terrains to commence battle
- Essential supplies for troops (eg. Ammunition)
- Formation of military alliances.
So what does Strategy mean in business terms?
No doubt at the start of our business adventure we created some form of strategy, such as:
- Sourcing Supplier
- Customer Acquisition
- Recruitment
- Startup funds
This being a short-term strategy, basically to get the business up and running.
However, it would make sense to define a set of actions for the long-term direction of an organisation, aimed at strengthening the long-term wellbeing of the organisation.
When creating a Business Strategy, the first questions we should consider are:
“What is the organisations current state?”
“What is the organisations desired target state?”
So, the formulation of the strategy would then be to get our organisation to the desired target state.
What techniques can we use for our Business Strategy?
Using well-known techniques to build a business strategy provides a proven framework for success. These methods offer structure, clarity, and reduce risk by drawing on tested principles. They also allow for better communication among teams and stakeholders, ensuring alignment, consistency, and a solid foundation for making informed decisions and driving growth.
One technique that enables to identify and assist the process would be:
VMOST ANALYSIS.
VISION: Define the target state without considering how it will be achieved.
MISSION: Describe what the business does or aims to do.
OBJECTIVES: The specific objectives or outcomes the business wishes to achieve.
STRATEGY: The long-term approach to achieve the Vision, Mission and Objectives.
TACTICS: Like the Generals Knowledge, the detailed and specific means by which the strategy will be executed.
This is just one technique among many.
Like all techniques such as this, progress must be measured.
If the strategy is ineffective and not achieving the desired outcome, then the overall strategy requires reviewing and alteration.
What techniques can I use to measure the performance of my strategy?
Measuring the performance of your business strategy is essential for understanding what works and what doesn’t. It helps track progress, identify areas for improvement, and ensures goals are being met. With clear metrics, you can make data-driven decisions, stay focused, and adapt quickly to keep your business moving forward.
The objectives/outcomes/vision therefore must be measurable for performance, in other words
SMART
SPECIFIC
MEASURABLE
ACHIEVABLE
RELEVANT
TIME-BOUND
How can Tandem help with my Business Strategy?
This is just a short overview of some of the business analysis we assist our clients with on a daily basis.
You may also find our blog Planning Your Business Development an interesting read.
If you would like to discover more about how our business analysis service could enhance your business objective please click on the button at the top of our website to book a Discovery Call.