Wednesday, December 5, 2012

Firm: years to build, Strategy: months to build, Strategy Statement: Priceless


By: Lauren Selleck
Organizations work hard to create a strategy which hits the “sweet spot” between their capabilities and the customers needs [1]. We can all agree a strategy that is strategic, meets customer needs, and is clear and concise can launch a company into market success. The organization not only needs to have a successful fluid strategy, but also convince employees to get on board and understand the direction of the company.

To do this they must develop a strategy statement to assist every stakeholder in understanding the company’s strategy. This simple sentence takes time to craft and is anything but easy to put together.

Creating a statement helps a firm grasp the core of their strategy [1].  First the firm must choose the exact group the statement is directed towards [2]. Through continued conversations with this group, statement refinement will hopefully disallow for any miscommunication [1]. Logic must be used when gathering 3 or 4 most important points of the strategy to communicate the main idea [2].

It is important to have the main objective, how it is reached, timing to be reached, and a specific activity to reach this outcome within the strategy statement [2]. Specifics can be left out because they will be within the actual strategy.

Edward Jone’s Strategy Statement:
“To grow to 17,000 financial advisers by 2012 by offering trusted and convenient face-to-face financial advice to conservative individual investors who delegate their financial decisions, through a national network of one-financial adviser offices.” [1]

While these strategy statements are important for stakeholders alike, firms do not always have a clear statement to lead employees into the future strategy. How can organizations hit the “sweet spot” without a strategy statement?

[1 & picture] Collis, David J., and Michael G. Rukstad. "Can You Say What Your Strategy Is?"Harvard Business Review (2008): n. pag. Print.

[2] Berkowitz, Dan. "How To Write a Strategy Statement” Web. 03 Dec. 2012. <http://www.uiowa.edu/~c019162/strategy.htm>.

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