Wednesday, March 29, 2017

Better Strategy for Better Strategy Planning

Who doesn’t wish to be successful? Is everyone wishing to be successful are successful or achieved their goals? What is the difference between a successful company and one who is not? There may be many reasons for not succeeding but we can surely say one of the main reasons is strategy. By stating that can we say that there was no strategy by the other companies? No, they did. Where did they go wrong? We will discuss few things that need to be done to carry out a successful strategy planning.

The strategy is often considered difficult to make because business is unpredictable. The companies are unprepared are not well prepared for change in market. In these situations the strategies are usually based on opinion than facts. Therefore, the top-level decision makers should understand the business and come to common decision based on important assumptions. One can actively participate in the discussion given he has knowledge of the market. So it is important have prepared minds. When everyone is prepared the discussion is healthy, a two way conversation and challenge one another. At the end of the day everyone is well informed about the facts and they know what preparation must be done to achieve the goals.

The companies are often unsure about who and how many people should attend the reviews. When I was searching optimal solution, I found Amazon’s founder and CEO Jeff Bezos rule very easy and understandable, the two pizza rule. According to him the team must not be bigger than where the two pizzas cannot feed the entire team. He wanted a decentralized organization where employees can think independently. The rule holds good for other organizations too. As number of participants increases it is difficult to consider and discuss all the viewpoints. Hence it should be limited to only decision makers and who have sound knowledge about the market.

Not every industry is same hence finding a right strategic style is important after deciding on how the strategic planning should be carried out. We can decide on two critical factors predictability and malleability. We can use these two factors on deciding the strategic style. The strategic styles can be broadly divided into four categories classical, adaptive, shaping and visionary. However, in the market we find most of the companies adopting either classical or visionary. Adaptive and shaping are beneficial strategic styles if you have control over your productivity.


Finally, we can say that the key to make the right strategy is to know your organization, identify strengths, weakness and market trend and use the key players and decision makers in your organization to come up with a better strategy and grow to be a leader!

Reference:
[1] Sarah Kaplan & Eric Beinhocker (2003),"The Real Value of Strategic Planning", MITSloan Management Review
[2] Martin Reeves, Claire Love and Philipp Tillmanns (2012),"Your Strategy Needs a Strategy", Harvard Business Review

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