Where are you on the strategy and execution axis with your business?
It has often been said that an average strategy well executed will always outperform a superior business strategy which is poorly executed. In fact in terms of effort, the development of thebusiness strategy is 10% of the effort and the execution of the business strategy is 90% of the effort.
In our experience we have found the following steps are critical to the development and the execution of the strategy
Strategy Development
- OWNER OBJECTIVES – what are the owner’s expectations in terms of profit growth, dividends and ultimate exit?
- $ TARGETS & GAP – based on the owner’s expectations of growth determine the profit targets for the next 3 to 5 years and the GAP in profit if the status quo is maintained
- SWOT – review the internal environment for strengths and weaknesses and the external environment for opportunities and threats
- SCA – determine the sustainable competitive advantage “SCA” for the business i.e. the space where the business’ capabilities are able to meet the target customers’ needs in a way that the competitors cannot compete.
- KEY STRATEGIES – determine those key strategies which address the SWOT, further enhance the SCA and bridge the $ GAP
Execute the Strategy
- SCOREBOARD – develop a scoreboard which measures the execution of the strategy including the input and output drivers for each strategy
- FOLLOW UP – put in place a process to rigorously follow up on the execution of strategy, including at a minimum, meeting each 90 days to review the scoreboard and the performance against $ targets and check if there are any barriers to execution of the key strategies.
At Brentnalls WA, we are practical in our approach and recognise the challenges faced by business in developing and executing strategy. We have helped many businesses work through this process and would be pleased discuss how this process can be integrated into your business.
