SEPTEMBER 2017 / NO. 2
TAGS: CYCLES, BUDGET, PLANNING
Test your company’s Strategy
“After the summer holidays, the majority of management teams make their business plans which consist mainly of next year’s budget and related KPIs, using SWOT-analysis and extrapolation, and they do this as a team-effort, often in a nice, remote area”
Most of us recognize this ‘annually recurring ritual’ in the company planning cycle which in most cases is based on an inside view. It becomes a breeding ground for all sorts of biases that subconsciously give more weight to facts that back management’s view than inconvenient ones that don’t. Being inwardly-focused and not anticipating competitors’ moves is remarkably superficial and is another breeding ground for competitive surprises. To overcome this, management is forced to think ‘strategically’ and needs evidence-based strategic intelligence.
Four drivers that affect your strategy
What are the main trends that will reshape the business environment? (1), how will these trends disrupt your industry and your business? (2), which trends have the highest impact, and what are the most uncertain issues that these disruptions might bring; what possible future scenarios do they suggest? (3), and what are the implications of these scenarios and what will your company’s future courses of action be as a result? (4). An inside view can never give you the answers, only strategic intelligence efforts are able to provide the inconvenient truths of what is really going to happen in your competitive arena.
We challenge you to test your company’s strategy by answering the following ten questions listed below (adapted from McKinsey).
Test your company’s strategy
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Will your strategy beat the markets?
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Is your strategy based on authentic sources of competitive advantage?
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Is your strategy clear as to where-to-compete and how-to-win?
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Does your strategy drive you ahead of trends?
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Is your strategy based on privileged insights and foresight?
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Does your strategy embrace uncertainty?
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Does your strategy balance commitment and flexibility?
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Is your strategy affected by biases?
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Do you have Is the necessary conviction to act on your strategy?
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Have you transformed your strategy into a ‘course of action’?
“New strategic competitive insights and foresight are one of the differentiating drivers to create sustainable competitive advantage. Strategic Intelligence gives you these evidence-based facts”
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