Without a clear action plan that can be shared and carried out across the entire organization, even the best strategy cannot guarantee success in the market.
Everyone involved in managing strategy needs to be on the same page, according to Andreas Birnik an Richard Moat. Literally.
How many companies fail despite having a sound business plan? How much commercial potential has been squandered as a result of corporate leaders’ inability to translate successful strategies into effective actions?
We believe the figure to be embarrassingly high. For the majority of management teams, creating a pertinent and implementable strategy is a major difficulty. Most business owners are fully aware of the difficulty of success. Instead, managers frequently discuss “paralysis through analysis,” which refers to spending so much time formulating (or comprehending) a new strategy that putting it into action is either an afterthought or the execution effort is shoddy, half-hearted, or off-course. Managers have admitted to such corporate sins far too frequently for us to count. Such comments suggest that there is still room for innovation in the strategy area to offer frameworks and tools that can assist practitioners in developing strategy that is truly important to their enterprises. More importantly, we believe that what is most needed is an organized approach for gathering important strategic insights and distilling the business strategy into a useful one-page summary, or, if you prefer, a “strategy grid.”
Don’t Fall For ‘Actionable Strategy’
The other day, I noticed a headline. I cannot recall where it was or what it said. I just recall it having the words “actionable approach” in it. I’ve been tormented by it ever since.
What then might “actionable strategy” mean? What does having an ineffective plan actually mean, and is that more significant?
A strategy is not the same as a plan, to start. Actions, responsibilities, and deadlines make up a plan. Plans can be carried out. An approach is not. Not until plans are made in response to it.
This is not a minor issue, either, as planning and strategizing are frequently confused. A significant contributor to this misconception is the term “strategic planning.” Executives lose themselves in planning before they have formed a strategy as a result of this confusion.
That is equivalent to attempting to pack for a trip before knowing where you are going. The plan must come first. Extensive wishlists competing for scarce resources emerge from planning without a strategy to inform your choices. I don’t know how many times I’ve seen this happen. I truly hope the phrase “actionable approach” doesn’t catch on and worsen the situation! Strategy, bye-bye. Hello, haphazard behavior.
But let’s put that misunderstanding of the differences between strategy and plans aside and think about what it means to have a non-actionable strategy. Here are the five worst-case scenarios I encounter most frequently: 100 percent Sky Blue.,
Overly optimistic thinking only results in black holes. black holes that eat up resources without a visible end. A plan must be grounded in reality.
- What does this mean for your workforce, products, services, sales channels, production processes, and means of delivery? How are market needs, customer expectations, technology, demography, and the economy shifting?
- What do your current customers require or want that they aren’t currently receiving?
- How can you expand the market reach of your current products, abilities, and/or channels?
We Rule the World as Champions!
We are regarded as the world-class leader in our industry,” cue the music. We want to be the best, or at the very least, we are the best. We don’t have any fresh ideas, but who cares? Forget the fact that our vision is uninspired and sounds identical to every other business on the street. And forget about the fact that we are unable to adapt. That despite our best intentions, lofty rhetoric, and exhortations to everyone to work smarter rather than harder, we continue to do the same things year after year. However, we are the winners. We frequently say that because we believe it.
The leaders can collectively recite the organization’s purpose, vision, values, strategy, and key objectives! I remember! For rapid identification, everyone has plastic cards. Whether it is necessary or not, the content is recreated on a regular basis. Since no one is aware of their goals, it stands to reason that no one can determine whether it is necessary. This is strategic planning in the form of a pointless calendar exercise. At a pep fest, new cards are distributed. opulence and circumstance utter sizzle Everyone then resumes their jobs. Steak is not present. Nothing is altered.
Nothing to Commit
A booklet contains the strategy. Exactly that. The company recruited a huge consulting firm from outside the area to create the eye-catching, glossy booklet. In order to justify the price tag and persuade the executives that buy-in exists because everyone and their brother, sister, mother, father, and in-laws participated, it praises the process used to develop the strategy. Nobody actually knows what’s in the pamphlet, though. It was created by consultants. Some conclusions and suggestions are hidden in all of their marketing materials. not the findings of the organization. Not suggestions that anyone in the company accepts. Just the advice of consultants. In a charming dust collector.
Flavor of the Month
The leadership team is in favor of this approach. They adore it. They claim to do so, at least. The only ones are them. Everyone else is aware of the best-selling book that is the flavor of this month’s plan. Great to Good. Hugely ambitious objectives. Lean. Blue Ocean Approach This is the solution!
“Do it now! You have the power!”
“To what end?”
“It should be apparent, right? To get things moving, you might need to work weekends for a while, but it won’t take long.”
The workers are not that dim. They remain still. This will also pass. The next flavor of the month will appear and the path will change once more long before any meaningful adjustments can take place.
Avoid Being Duped by “Actionable Strategy”
There are several reasons why businesses fail to develop and implement strategy. The answer isn’t to make your strategy more implementable. You should:
- Be sensible. No matter how ambitious you are, you must provide them something that they will pay for and that you can deliver profitably.
- Get through the tired cliches. Wishful thinking is insufficient. A strategy is a set of choices that governs how you will approach the business game. Every corporate choice is driven by a solid strategy.
- Do not view strategy as a cyclical task to be completed. Get outside assistance if you are unsure of your actions.
- Never subcontract your plan. Not a written deliverable with someone else’s viewpoint, but the result you require. The conclusion you require is a steadfast dedication to the important choices that will inform all of your strategy.
- Find a genuine commitment. Yes, you must be committed. A compelling, well-defined approach encourages commitment, but that is insufficient. The new priorities must be demonstrated by top management by their words, actions, time, and support.
Productivity, revenues, performance, and engagement all rise with a clear, appealing plan. Try it! You’ll enjoy it.