It is important that businesses develop their
strategies for the future, particularly in challenging times. Read on to find
out which seven basic values should feature in every practical strategy.
1. Integration
A corporate strategy must address many aspects of a company and must therefore
be carefully thought out. It needs to take into account both the soft and hard
factors. Indeed, the material and immaterial levels of a business form a unit in
the same way as a person’s body and soul.
2. Balance
A clever strategy balances the needs of customers with the needs of the
business, taking into account the fact that these can frequently contradict
each other. Although “maximizing benefits before profit” sounds good, it is
unrealistic as both are important in business. To quote Peter Drucker: “Profits
are the cost of survival”. What he means is that profits result from achieving
higher-level company goals which should be geared towards offering benefits for
customers.
3. Energy
All companies have a finite amount of time and money. The Energy principle
means not wasting resources. Instead, companies should use energy efficiently,
focusing on what is important as regards achieving business success.
4. Clarity
Making a large number of decisions is a fundamental part of business
management. Strategic work is particularly beneficial if it helps
businesspeople to make these decisions. The word “NO” is an important indication
of clarity. What do we not (!) want to offer? Which customers do we not (!)
want to work for? If a company can answer these questions clearly, the “YES”
answers will come more easily too.
5. Continuity
It takes time for a new strategic orientation to show results. It is therefore
dangerous to change the strategic orientation too quickly. However, not
changing it for long periods can be equally risky. This example alone proves
that an “either or” attitude is always wrong and should always be replaced by a
“both and” approach.
6. Understanding
Implementing a strategy always involves teamwork. However, the “both and”
approach applies here too as there are situations where individual work is
essential. On the whole though, a company is still a team and as many employees
as possible must be able to understand its strategy.
7. Changeability
Strategy work is a continuous process. When circumstances change, a company’s
strategy must change too. Making this clear is an essential part of management.
The arguments against making changes (“We’ve always done things this way” or
“We've never done things this way”) are well known. After all, no one likes
change. Encouraging staff to embrace change is therefore a permanent management
task.
back
top
