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Added for You - Secret of Strategy - Part 1
The Web has certainly revolutionized how consumers shop. It has enabled an entirely deeper CRM capability and speed in delivering messages, special offers, transaction data, etc. In fact, marketers have prophesied that the next step in CRM is near total abandonment of traditional consumer advertising, both print and broadcast, and almost total adoption of real-time targeted marketing, a.k.a. inbound marketing, via the internet. An example would be as you enter a Web site, you will be presented with personalized messages, based on data the advertiser has stored on you regarding purchase history, online activity, and promotion participation, along with financial and demographic information, as well. And this will trigger true shopper bliss.Now, as an obsessive marketer myself, I have to say I’m ready to jump on the bandwagon, emotionally. However, as I step back and analyze what is truly meant, here, I have to question the validity of such a claim. Perhaps it is not the objective that troubles me, but the premise. And the reason is simple: to shop is a comfort to real shoppers. It is a safe activity, meaning that you are participating in an activity that you control, you direct, and you make decisions for what you will shop. Oh, and you might want some degree of help at different points in the process.Four short years ago we were working with a company that was attempting to sell an in-store, in-lane system that would provide real-time, personal marketing. The client worked very hard on all presentations, yet failed to achieve adoption with a single retailer. My marketing instinct tells me that they would meet the same fat
Of course, you may already have a vision. If so, now is the time to insure that it is relevant and powerful.
The test of a good vision is if it inspires; not only you and your management team, but all of your stakeholders: your partners, employees, clients, investors, vendors, lenders, your community, your government-and perhaps the public at large. A great vision inspires, and it also provides direction. Every action you take should further your vision. If it doesn't, don't do it.
Step 2. Gather environmental and competitive intelligence.
To develop the best strategies you must understand the world outside your organization. Quantify and qualify, not just absolutes, but trends. And importantly-identify changes in the status quo. Key areas for focus include competitors, tech
Are you looking for simple ways to increase your income without making a major investment? One small way to begin doing this is by becoming a reseller or affiliate for peripheral services that you believe in and already use on behalf of your clients.For instance, if one of your peripheral services is printing, there are several reseller programs available, based on volume. Will this mean higher prices for your customers? Not necessarily. Personally, I only like the types of reseller programs that allow you to make a slight profit while the customer is charged exactly the same price as they would be, had they purchased the services directly from the company.However, some entrepreneurs may choose programs that do allow for a slight mark-up. Some programs are low cost and effective enough to allow you to make a typical markup, as do most businesses, while still offering your customers a substantial savings over comparable services.Many successful small business owners tout the importance of having multiple residual income streams. This can provide a steady stream of income to a small business owner, without any investment. There are typically two types of programs available:Affiliate programs usually offer a small bonus or percentage for each client you refer to the company's website, or to purchase their services. This is usually tracked through a link or banner on your website, which the company will provide, that will allow them to track who comes t0 their site from yours.Dealer or reseller programs allow you to actually brand products or services and sell them as your own. There is usually
I'll bet you think you already have a strategy.
And well you may, but strategy as a concept is just like love: much used and little understood. Many businesses (and that includes small entrepreneurs, large corporations, non-profits, community organizations, governments, NGOs…the works) neither know what strategy really is, nor how to get one.
And even if you do, in fact, have a strategy-is it the right one? The best one? This is so important-marketing guru Jay Abraham says-and I agree-a superior strategy badly executed will beat a bad strategy well executed, any day.
It's easy to say, "This is big company stuff. We know what we need-why should we do all the extra work." While a "strategy-less" group of marketing tactics may work well and produce good results, is it taking your business in the best direction? You may be making money, but are you making the most money possible? Could another suite of tactics implementing a superior strategy produce far better results?
Which brings me to the point of this two-part article: how to formulate strategy. In the next 1500 words, I'm going to present the first half of a basic system for identifying high-impact strategies in your business. (Just the first half? Yes. While I strive to make this as simple as possible, it still takes a bit of explaining, and editors and readers alike detest long articles!) So Part 2 will finish the outline, and in future articles, I will discuss each system component in finer detail.
Let's begin with a working definition of strategy.
Strategy is the guiding principle on which are based a series of interlinked decisions regarding the selection and deployment of resources and tactics, whose purpose is realizing a vision and achieving decisive objectives in a competitive and changing environment.
This definition tells us a few things:
- The purpose of all strategic decisions is achieving your vision and "decisive" or critical-to-purpose objectives.
- Strategy is about selecting specific resources and tactics to get the desired result.
- Strategy is not static; it is decisions in a series, and evolves continuously over time.
- Strategy is broad and all-encompassing. With that in mind, here are the 8 steps to formulating strategy:
- Set your vision
- Gather environmental and competitive intelligence
- Take stock of your organization's strengths and weaknesses
- Select your "grand strategy"
- Establish decisive objectives
- Rate and rank your "SWOTs"
- Match your internal and external factors to identify strategic alternatives
- Select specific strategies for implementation
Of course, there is one last step: turning your strategy into tactics and game plans, and execute. We won't get into that in this article.
Step 1. Establish your vision.
People complicate the idea of vision. A vision is simply a story describing how you want things to be in the future. Some people can tell these stories easily-they know exactly where they want to be and what it will "look" like.
Others need help. The best approach is to answer a series of questions regarding what your organization does, who are it's clients or beneficiaries, what its impact is, how big it is, where it is, how it operates, when all these things will occur, and so on. As a result of answering these questions, your vision will emerge.
Of course, you may already have a vision. If so, now is the time to insure that it is relevant and powerful.
The test of a good vision is if it inspires; not only you and your management team, but all of your stakeholders: your partners, employees, clients, investors, vendors, lenders, your community, your government-and perhaps the public at large. A great vision inspires, and it also provides direction. Every action you take should further your vision. If it doesn't, don't do it.
Step 2. Gather environmental and competitive intelligence.
To develop the best strategies you must understand the world outside your organization. Quantify and qualify, not just absolutes, but trends. And importantly-identify changes in the status quo. Key areas for focus include competitors, techn
"What do you mean you need to push back the launch date?" Says the CEO. Says the CFO. Says the user community. CTOs, CIOs, and all officers who oversee major development projects have had to deliver the dreaded message. But a deadline for the sake of a deadline is a dangerous pitfall that can consume an entire project and stymie it to the point that it never launches. Over the years I've come up with six simple rules that help deadlines become more meaningful, while keeping the developers, the user community, the CFO and the CEO all satisfied.1. Always have minor version control throughout development. Group functional requirements into minor versions so that core functionality is prioritized and so that the entire development team is generally active on the same minor version.2. Always target minor version releases every 2 to 4 weeks.3. Always begin testing immediately once each minor version is complete.4. Always prioritize bug-fixing to the highest level upon the completion of any testing.5. Never allow a problematic functional enhancement to be a showstopper. Negotiate with the user community and the CFO or CEO for a delay in, or removal of, the delivery of that functionality.6. Always launch the product on time - as long as the most recent fully completed minor version is functionally equivalent or better than the current production system. Launch it, no matter how far you are from 100% complete.So I want you to launch an incomplete application? Let's just call it "functionally challenged". This is what I call the 70% solution. The deadline doesn't mov
Which brings me to the point of this two-part article: how to formulate strategy. In the next 1500 words, I'm going to present the first half of a basic system for identifying high-impact strategies in your business. (Just the first half? Yes. While I strive to make this as simple as possible, it still takes a bit of explaining, and editors and readers alike detest long articles!) So Part 2 will finish the outline, and in future articles, I will discuss each system component in finer detail.
Let's begin with a working definition of strategy.
Strategy is the guiding principle on which are based a series of interlinked decisions regarding the selection and deployment of resources and tactics, whose purpose is realizing a vision and achieving decisive objectives in a competitive and changing environment.
This definition tells us a few things:
- The purpose of all strategic decisions is achieving your vision and "decisive" or critical-to-purpose objectives.
- Strategy is about selecting specific resources and tactics to get the desired result.
- Strategy is not static; it is decisions in a series, and evolves continuously over time.
- Strategy is broad and all-encompassing. With that in mind, here are the 8 steps to formulating strategy:
- Set your vision
- Gather environmental and competitive intelligence
- Take stock of your organization's strengths and weaknesses
- Select your "grand strategy"
- Establish decisive objectives
- Rate and rank your "SWOTs"
- Match your internal and external factors to identify strategic alternatives
- Select specific strategies for implementation
Of course, there is one last step: turning your strategy into tactics and game plans, and execute. We won't get into that in this article.
Step 1. Establish your vision.
People complicate the idea of vision. A vision is simply a story describing how you want things to be in the future. Some people can tell these stories easily-they know exactly where they want to be and what it will "look" like.
Others need help. The best approach is to answer a series of questions regarding what your organization does, who are it's clients or beneficiaries, what its impact is, how big it is, where it is, how it operates, when all these things will occur, and so on. As a result of answering these questions, your vision will emerge.
Of course, you may already have a vision. If so, now is the time to insure that it is relevant and powerful.
The test of a good vision is if it inspires; not only you and your management team, but all of your stakeholders: your partners, employees, clients, investors, vendors, lenders, your community, your government-and perhaps the public at large. A great vision inspires, and it also provides direction. Every action you take should further your vision. If it doesn't, don't do it.
Step 2. Gather environmental and competitive intelligence.
To develop the best strategies you must understand the world outside your organization. Quantify and qualify, not just absolutes, but trends. And importantly-identify changes in the status quo. Key areas for focus include competitors, tech
Autologica presents part four in a series of articles that address some of the common problems and situations that arise in family-owned businesses. The articles are based on an interview between Al McClymont, CEO of Autologica Dealer Management Systems, and J.C. Aimetta, an expert and coach who specializes in family-owned businesses and who has ample experience consulting for this type of company.Al McClymont: An essential issue in family owned businesses is succession planning, a complex subject from whichever angle you choose to look at it.A family business owner may feel quite reticent about handing over such a responsibility to a son or daughter. Or it may be possible that there is nobody really prepared or eager to assume that task.There may also be complications, for example if there is more than one sibling, if there are in-laws, if the siblings have diverse qualifications, or if they have varied interest in the business. All of this can affect succession.I recently read a story about an 80 year old dealership owner in the United States who finally decided to plan his retirement, only to find that his son, who he considered his only possible successor, was announcing his retirement as well. A dynamic owner who waited too long to transfer the authority and responsibility of the company’s management.I have no doubt that succession must be carefully planned, with sufficient time, so as to prevent any possible surprises.J.C. Aimetta: Of course you’re right. But first of all, it is necessary to define what we mean by a successor.Because when we speak of a successor,
This definition tells us a few things:
- The purpose of all strategic decisions is achieving your vision and "decisive" or critical-to-purpose objectives.
- Strategy is about selecting specific resources and tactics to get the desired result.
- Strategy is not static; it is decisions in a series, and evolves continuously over time.
- Strategy is broad and all-encompassing. With that in mind, here are the 8 steps to formulating strategy:
- Set your vision
- Gather environmental and competitive intelligence
- Take stock of your organization's strengths and weaknesses
- Select your "grand strategy"
- Establish decisive objectives
- Rate and rank your "SWOTs"
- Match your internal and external factors to identify strategic alternatives
- Select specific strategies for implementation
Of course, there is one last step: turning your strategy into tactics and game plans, and execute. We won't get into that in this article.
Step 1. Establish your vision.
People complicate the idea of vision. A vision is simply a story describing how you want things to be in the future. Some people can tell these stories easily-they know exactly where they want to be and what it will "look" like.
Others need help. The best approach is to answer a series of questions regarding what your organization does, who are it's clients or beneficiaries, what its impact is, how big it is, where it is, how it operates, when all these things will occur, and so on. As a result of answering these questions, your vision will emerge.
Of course, you may already have a vision. If so, now is the time to insure that it is relevant and powerful.
The test of a good vision is if it inspires; not only you and your management team, but all of your stakeholders: your partners, employees, clients, investors, vendors, lenders, your community, your government-and perhaps the public at large. A great vision inspires, and it also provides direction. Every action you take should further your vision. If it doesn't, don't do it.
Step 2. Gather environmental and competitive intelligence.
To develop the best strategies you must understand the world outside your organization. Quantify and qualify, not just absolutes, but trends. And importantly-identify changes in the status quo. Key areas for focus include competitors, tech
This is a great, especially in this day and time, with a new business starting every 12 seconds. With the corporate down-sizing, raided retirement funds, and aging of America, it is no wonder you don’t want to work for someone else. You start thinking of all the things you won’t have to do anymore: you no longer have to ‘punch a clock’, answer to someone else, spend countless money to upkeep a wardrobe, or fill you car with gas a couple of times a week. But, what kinds of things do you have to do? Do you have the discipline to work for yourself in a home based business?Let me tell you a story…this happened to a family member. He bought a service company. He felt great, owning his own company with his name on the door. He bought a new laptop, a wardrobe of casual clothes so he would look cool in the office, supplied all his employees with walkie-talkie cell phones. His plan was to sit in the office and answer the phone while his ‘crew’ worked in the shop. He had no idea that he might just have to get his hands dirty and help out in the shop occasionally. It wasn’t long before those ‘occasional’ stints out in the shop began to happen daily, therefore his clothes were stained, and his employees abused the phone privileges. His idea of owning a small business was to be the ‘boss’ and let others work ‘for’ him. His business died in less than two years, and he lost over $120,000.00.So, what did he do wrong? Mainly, he lacked the self-discipline and motivation needed to see the bottom line in front of him. He thought the kind of money he spent to buy this business would be all he needed to do to be the ‘boss’. It was not tha
Of course, there is one last step: turning your strategy into tactics and game plans, and execute. We won't get into that in this article.
Step 1. Establish your vision.
People complicate the idea of vision. A vision is simply a story describing how you want things to be in the future. Some people can tell these stories easily-they know exactly where they want to be and what it will "look" like.
Others need help. The best approach is to answer a series of questions regarding what your organization does, who are it's clients or beneficiaries, what its impact is, how big it is, where it is, how it operates, when all these things will occur, and so on. As a result of answering these questions, your vision will emerge.
Of course, you may already have a vision. If so, now is the time to insure that it is relevant and powerful.
The test of a good vision is if it inspires; not only you and your management team, but all of your stakeholders: your partners, employees, clients, investors, vendors, lenders, your community, your government-and perhaps the public at large. A great vision inspires, and it also provides direction. Every action you take should further your vision. If it doesn't, don't do it.
Step 2. Gather environmental and competitive intelligence.
To develop the best strategies you must understand the world outside your organization. Quantify and qualify, not just absolutes, but trends. And importantly-identify changes in the status quo. Key areas for focus include competitors, tech
As I have studied a number of books on decision-making, it has been encouraging to find that academicians have validated my own experiences. One example goes back to a time, when I was working in a company that had an incredible product but some problems with delivering products on time. It was complicated by history in that the manufacturer had been behind often over the years as a result of demand out pacing production. The times had changed however and the delivery problem was not widespread in the industry.My job at the time was to grow the sales for the company. It became apparent fairly early on that sales would not improve until deliveries improved. The order entry process was archaic at best with each order being entered, verified and verified again. This process alone required a tremendous amount of time.Fortunately for me, the Customer Service Manager was very bright and when we discussed the situation, she immediately jumped into the data gathering with me. We spent a great deal of time analyzing what happened to the order from the time it came in until the product was shipped. Just as I had enlisted the aid of the Customer Service Manager, she too enlisted the help of people throughout the company who had anything to do with processing the order. Our investigation resulted in a recommendation to the Board that the company buy and install an MRP system that would streamline the information flow, greatly improve the productivity in Customer Service and result in faster turn around time from receipt of order to actual shipment out the door.The proposal eventually grew to include all of the different area
Of course, you may already have a vision. If so, now is the time to insure that it is relevant and powerful.
The test of a good vision is if it inspires; not only you and your management team, but all of your stakeholders: your partners, employees, clients, investors, vendors, lenders, your community, your government-and perhaps the public at large. A great vision inspires, and it also provides direction. Every action you take should further your vision. If it doesn't, don't do it.
Step 2. Gather environmental and competitive intelligence.
To develop the best strategies you must understand the world outside your organization. Quantify and qualify, not just absolutes, but trends. And importantly-identify changes in the status quo. Key areas for focus include competitors, technology, market size and trends, your clients' industry health, macroeconomic trends, availability of key resources (people and materials) government regulations and other political considerations, and changes in demographics and psychographics-like customer taste.
Devise relevant measures for each of these key external areas. For instance, examine your competitors for revenue, profit and market share growth (or decline), product and service changes, shifts in marketing and sales strategy, changes in geographic distribution, strategic alliances, and major customer announcements.
Macroeconomic factors include the obvious such as interest and employment rates and trends, production and consumption statistics, along with finer grained-industry issues such as new home buying-which impacts a wide variety of businesses, or defense spending-which impacts a completely different set of sectors.
Step 3. Take stock of your organization's strengths and weaknesses
Now it is time to shine the light on your organization. Examine each functional area looking for strengths and weaknesses. Identify strengths that will help the company realize its vision, and weaknesses that will impede its goals.
The following is a starter list of focus areas:
- Ability to get new prospects (Marketing)
- Ability to get new clients (Sales)
- Products and services, both existing and those in R&D.
- Finance or Money, including cash flow, access to capital, revenues, profits, ROI
- Leadership, including values and vision alignment, decisive objectives
- People, including skills inventory, staffing levels, employee loyalty, compensation
Other areas to examine include:
- Client satisfaction
- Client services
- Logistics
- Competitive positioning
- Unique Client Proposition
- Management team
- Administration
Step 4: Select your Grand Strategies.
This "grand strategy" approach is based upon industry/product revenue growth rates. It is specific to a business unit with one major industry and/or product focus. If your business is more complex, you may repeat the process for each focus sector.
First, consider your industry and product sector growth rate. Is it growing or declining?
Second, consider your competitive strength within that sector. For this analysis Competitive Strength has two components, the size and trend of your market share, and your organization's financial strength; specifically either cash flow from operations, or access to capital.
To simplify: strong market share + strong finances = strong competitive position. Either strong market share or strong finances = average competitive position. Neither strong market share nor strong finances = weak competitive position.
This defines a two-by-three matrix of strategic choices from which to select your grand strategy.
The exact choice you make will be dictated by the specifics of your situation: sector strength and competitive strength, along with your stated vision and purpose. Choose from the list which best describes your business:
Strong sector, strong competitive position.
This means that you are in a growing market, hold a commanding market position, and have cash with which to maneuver. Your strategic choices include:
- Market strategy to increase demand and sales for existing products and services, in existing a
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