Strategy…Do You Really Need One?

Mid-market companies can be very well served if they have a clearly defined business strategy. Whether your company is 50 years-old or you just started it, you are in a basic industry or a more complex one, strategy, along with a sound business philosophy, are the foundation to any successful business.

Although, I believe every business needs a well defined strategy, this does not have to be a sophisticated process. In fact, the strategic planning process should be free flowing and very fluid. Your business strategy is that thing that matches your internal resources with the market in which you operate or hope to operate. Although the strategic process does not have to be sophisticated, to be effective and a differentiator for your business, it does need to be thorough. Again, thorough does not mean a 20 page document. Most effective strategic plans for mid-market businesses can be done in outline form and will consist of no more than 3 pages.

So why do so many smaller companies avoid the strategic planning process?  It is the thorough aspect of this task that most small business owners decide they do not have time for. They get so busy doing business that they ignore the “how to do business” part of the equation. Developing a strategy or a strategic plan helps businesses outline their goals and also the achievement of those goals. If done properly it can be done very efficiently and as part of your day-to-day business.

I have facilitated the strategic planning process at many companies and I think the biggest surprise to all of them is the types of discussions that go into the process. Most managers come away asking – “was that it?” The topics are rather basic, getting them down on paper is a bit time consuming, but, to be honest the real trick and hard work related to a strategic plan is execution. I will cover execution in a separate article, but, staying with the strategic plan itself, I break it down into 5 areas and although I will lay them out in a particular order, their particular development will be different for each company depending on their particular organization.  Your strategic plan will need to address the following issues:

1. Core Strategy or Mission
2. Management Team and Human Resources
3. Core Competencies and Service/Product Offerings
4. Customer Focus
5. Sales Strategy

I would also like to add that this process can be used in the context of the business as a whole or for a particular business segment, if that is applicable. For more information on how you can refine or develop a sound strategic plan, please contact me.

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