You’ll remember that last time we analysed the importance of having a well balanced strategy. That strategy has to include respective outlooks on finances, customers, internal processes and staff development.
Today we’ll put that theory into practice and show you how to implement these imperatives.
What’s the purpose of these learning and growth targets? If they truly create value, then they successfully flow up to the next level of the scorecard which is internal business processes; and therefore contribute to your business capabilities. Business capabilities combined with your critical processes are the source of innovation, as well as a key driver for competitive advantage. No, these are not just platitude statements, they really work and have been proven to do so time and time again. It’s plain and simply smart business.
So How do you Develop your Strategy?
● Define what you are in business for. Establish how you will operate in order to achieve maximum impact on your stakeholders. In Biz Talk, this is called your Mission.
● Have a clear Vision of where you want to be in the next 5-10 years. Not 3 years, leave that for others who won’t last as long as you. Be patient and plan for the long term. Something very quantifiable, such as, “By 20xx we will have achieved x, y and z.”
● Your vision requires very clear and quantified objectives. Amazon CEO, Jeff Bezos describes Amazon as “stubborn on vision and flexible on details.” His very clear and stubborn vision has helped Amazon grow to be one of the Big Five global IT companies—together with Google, Facebook, Microsoft and Apple.
● Conduct a review of your Strengths, Weaknesses, Opportunities and Threats. We’ll call this a “SWOT Analysis.” Your focus on Strengths and Weaknesses is always relative to your competitive position. If you and your competition have the same capabilities and the same problems, don’t waste energy on that issue. Ultimately, you are looking for those areas where you can excel and demonstrate a competitive advantage.
● Your examination of Opportunities and Threats is about external factors that you cannot control. Factors such as government regulation changes and how they could impact your business.
● Prepare your “Strategy Map.” A good strategy map shows how the business creates value. It shows how key objectives are integrated in the areas of Finance, Customers, Integrated Operations, and People.
● Finally, the Balanced Scorecard framework is the tool that links the strategies to operational implementation. The scorecard will help you define key objectives in quantified detail.
● Use it. Regularly measure performance against your targets. Celebrate, adjust as necessary, and continue as you go.
What lies behind creating this balanced framework for your own business is a requirement for Thought—that you are able to step back and really work through these steps. Otherwise, as The Goons used to say, you’ll be “galloping off in all directions.”
CEO and Co-Founder
neXtep Business Builder Community Pte Ltd
Singapore ACRA Business Registration Number: 201424522Z
80 Kitchener Road #09-09/10 Singapore 208539