Listen carefully the next time “strategy” comes up in communication. It’s arguably one of the most mishandled words in business.
Going to the dictionary we find strategy defined as “a plan of action or policy designed to achieve a major or overall aim.” Many definitions also have a strong military component around operations during a war or battle – something that most businesspeople wish to avoid.
Sometimes strategy is distinguished as “big picture” or “long-term” as opposed to the tactical details for the here-and-now. However, separating big picture and the supporting tactics is dangerous. If the big picture doesn’t have a robust plan that clearly defines who will do what by when and with what resources, the long-term big picture is nothing but a dream.
To the cynic, “strategic” describes an initiative or project that doesn’t make much financial sense compared to alternatives, yet is done anyway. “It’s strategic” they say. “Therefore, we should do it.” This needs to be avoided, of course.
There is a lot to strategy. Heck, it has its own semester-long course in MBA programs. Many experts focus on the topic exclusively.
Famous Harvard Business School professor Michael Porter defines strategy as “the creation of a unique and valuable position, involving a different set of activities.” There are key words in this definition that disqualify a plan from being a strategy if they are left out. Unique – the only one of its kind. Valuable – worth the investment of discerning customers. Activities – taking actions that back up feel-good marketing messages. This all involves diligent analysis of the situation and making difficult tradeoffs. In short, Porter has said, “the essence of strategy is choosing.”
Great strategic plans describe the chosen path to realizing the vision and mission of an organization. It will be supported by a tactical action plan and suite of metrics that inform whether adjustments are required to stay on track. Ideally, it all fits together like a sturdy step stool in a tidy outcome hierarchy aligned to who your best customers are, why they give their money to you, and how they naturally prefer to interact with your organization.
Care to apply this to your situation? SMP Alignment offers services to make it so.