Strategic planning is a business practice that lots of companies utilize to determine their critical success factors that establish the course of long-term growth and profits. In this article, I will be outlining the process of implementing a strategic plan.
Business and Operation Analysis
One of the crucial factors of strategic planning is to recognize internal Strengths and Weaknesses along with external Threats and Opportunities. They are referred to as the four factors of an S.W.O.T. analysis.
Involvement from different stakeholders to offer their points of view regarding your organization is vital. During this practice, you will acquire better buy-in from these implementers of strategies and policies.
Customer Marketplace Realities
It’s no more enough to respond to the articulated requirements of the marketplace. If you do not possess a procedure for empathizing deeply with your target customer, profits will ultimately migrate to the first competitor who is in a position to articulate the “silent priorities” of your marketplace and provide for them.
Continuous success these days demands to spend virtually as much time in your customer’s strategic space as you do in yours. If you are a business leader, allocate a team that can maintain the responsibility for delving deeply into the strategic concerns of your customer.
A different strategy is to build a system of continuous customer conversation whereby customers get accustomed to sending you a stream of information regarding their business, their challenges, as well as their plans.
Competitor Positioning and Strategy
The most startling realities of today’s globalized, digitized and fast-changing business environment are the ever-changing meaning of who constitutes your competition. A neighboring spa business that previously had to contend with a few other competitors in a small city nowadays competes with dentists (dental spas), chiropractors, and perhaps even allergists.
As a business strategist, you have to cultivate “funnel vision” – the capability to monitor neighboring sectors both for tips and for the likelihood that a competitor might rise from there. You also need to commit to frequently check value chain neighbors to spot strategic moves that could influence the viability of your business model.
Internal Resources and Ability to Execute
Your company’s strategy implementation practice will fail unless you possess a clear understanding of the capabilities of your company team along with the resources your leaders have available to implement strategy effectively.
Do your product models and service portray the past need or the long-term priorities of your business?
- Does your company possess a culture of performance, responsibility, and flexibility?
- Is your organizational framework updated to the present requirements of the marketplace?
How does your sales force evaluate your competitors regarding the length of time in the marketplace and profile?
Carry out an audit of your company – your core skills, your structure, culture, advertising and primary procedures.
Finally efficient strategic implementation relies upon your capability to incorporate these points into your planning process. Do not allow yourself or other leaders in your company to over look these areas and proceed.