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If you would like your business to grow, you need to focus on the strategy you would like to adopt for the business to grow. The core of the Strategy function – Structure, Synergy & Solution.
The ambition of the owner of a large business house was only to make more money. He did not have any defined views or thoughts about the business nor its growth. He was busy firefighting the day-to-day business issues. Neither he nor the team had a vision & did not think about the future. This resulted in the business being stagnant and over time slow dip in the growth of the business. It was much later that he realised the need and importance of having a strategy in place for business growth.
Strategy is the plan of action to achieve the results that you want. Hence for an organisation, it is essential to have a clear strategy defining the path ahead.
Strategy is the plan of action to achieve the results that you want. Hence for an organisation, it is essential to have a clear strategy defining the path ahead. All the major aspects of the business like strategy for investment, risk mitigation strategy, customer acquisition strategy, transformation strategy, competition strategy, growth strategy, innovation strategy, blue ocean strategy and other applicable strategies have to be clearly defined. This will act as the base that can later be customised as per the situation the business is facing.
As the business owner / business head, you need to understand
- What makes having a strategy important for your organisation?
- How can having a clearly defined strategy help your business in the long-term?
- How does the future of your business appear to you?
| Your business starts with Strategy & ends with Financial gains. To expand on it – A strategy defines acquiring of customers, through the business operations, supported by Human Resources, with the help of marketing, using Information Technology & transacting with Suppliers for Financial gains. |
The strategy can also be designed by the functions of the business, all of which should be in line with the big picture of the business. For example, the operational strategy of each business function or the business unit should be aligned with the overall corporate strategy.
When you are strategizing to develop or improvise a process, product or service design, a good management method to follow would be the PDCA cycle, where
- P stands for Plan – denoting identifying the problem and finding process inefficiencies & developing potential solutions.
- D for Do – meaning implementing the solution.
- C for Check – if the new process is delivering better efficiencies.
- A for Act – referring to implementing it for the entire organisation.
A great way to build your strategy would be to brainstorm with your senior team and then percolate it to the rest of the organisation.
A great way to build your strategy would be to brainstorm with your senior team and then percolate it to the rest of the organisation.
You can also prepare the Business Model Canvas (popularly known as BMC) for your business as it would help you with defining clear strategies for the main areas of business.
The following is a framework you can adopt for the strategic growth of your business. If strategy is an acronym, it should have the following as parameters
- S – Shareholders’ value to be maximised
- T – Tools and technology for growth
- R – Return on investment to be maximum
- A – Action plan for the path ahead
- T – Team for implementation
- E – Evaluation of performance and measurement yardsticks
- G – Goals to be reviewed
- Y – Year on Year plan for success
(The above is an extract from the book “Where’s The Moolah?”, which is about financial growth hacks for business profitability)
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