How to improve business performance with strategic planning
A Leader’s Options to Improve Business Performance
The number one job for all executives is to improve their business performance. What methods to employ is the question. Here are a few concepts to consider. Learn more about cylogy wordpress enterprise marketing and business strategies.
At the simplest level, it is about creating the Strategic Direction and then relentlessly Executing a Plan. Let’s unpack each of those elements
Strategic Direction
The first question to answer do we have an effective Strategic Direction. At Hewat Strategic Edge we substitute the term Strategic Direction for something more practical – Strategic Framework. A Strategic Framework is a critical touchstone to drive customer value. It succinctly outlines where we are going and how we are going to get there.
It should help management and staff to “sing from the same song sheet” and focus on results – the right results. The Strategic Framework communicates the value you intend to create for your customers, owners and employees.
Our Strategic Framework has six components:
- Vision Statement
A brief description of your organization of the future - Pillars of Success
The foundation of your organization’s success - Strategic Intent
Clarifies the meaning of each Pillar of Success - Multi-year Objectives
Targets for each Pillar of Success - Measures
– Indicators of achievement- Your dashboard - Key Initiatives
Projects or programs that will drive the achievement of the Strategic Objectives
There are a variety of models that are like our Strategic Framework. Balanced Scorecard is probably the best known internationally. In our practice, we enable the creation of a Strategic Framework through a couple of days of facilitated sessions. To access the full description of our Strategic Framework Program go to https://www.hewatstrategic.com/strategic-framework-program-description/. Here is a link to download a self-assessment of your current strategic planning https://www.hewatstrategic.com/resources/guides-tutorials/seven-questions-assess-strategic-planning/.
Critical Input into the Strategic Direction
Building a Strategic Framework should be informed by a range of considerations, but two critical sources of information stand out –Value Propositions and Business Model.
Value Propositions
The engine of growth is our Value Propositions. We must have a clear understanding of the value that is currently provided or should be provided, to each customer segment, through each bundle of services and products.
This is often a work in progress. We may be at the stage where we have simply identified the need for improvements, in order to create the required customer value. We may have identified the need to find innovative solutions to meet unmet customer needs. Each of these commitments needs to be reflected in our Strategic Framework.
Business Model
Every organization needs to have the ability to create, deliver and capture value. We find the Business Model Canvas a tremendous visual tool to assess nine areas of a business.
