A strategy is an overall plan that you use to achieve your objectives. It could be short-term or long-term. Sometimes, your strategy may even be for achieving an overall goal under uncertainty. There are four major components of a strategy. These are Goals, Structure, and Communication. Using them together will help you develop an effective plan. To write a strategy, follow these steps:
Structure of a strategy
What is the structure of a strategy? A strategy is a written plan or narrative that is intended to achieve a particular business goal. This plan must be communicated to various levels of the organization, including the executive team and the people who will execute it. It is often helpful to think of the strategy as an algorithm and consider it as the first step in the implementation process. This method is particularly useful for non-technical people and those who do not have the same quantitative or analytical skills as others.
Elements of a strategy
A good strategy has three key elements: a clearly defined objective, a realistic view of the marketplace, and a competitive advantage. The objective should be based on the company’s superior knowledge of its customers and its marketplace, along with a realistic assessment of its own capabilities. The strategy should be able to take initiative and leap ahead of the competition. Its resources should be focused on the best opportunities, and it should be flexible enough to respond quickly to rapidly changing circumstances.
Goals of a strategy
What is the difference between strategic goals and operational goals? Strategic goals are the vision of a company, and they are usually measurable and attainable. To be successful, goals should be specific, measurable, and achievable. They should also be attainable, or they will be interpreted as arbitrarily and ultimately unfeasible. Organizations set strategic goals to increase their productivity, or a combination of both. Some businesses have strategic goals in place for many years, but don’t necessarily have a measurable approach, and instead rely on basic structure and general direction.
Communication of a strategy
A recent experiment examined the impact of different formats in the communication of a business strategy. In this study, 76 managers were exposed to a presentation of a financial services strategy. The visual representation of the strategy was an independent variable, and the effects were measured based on how it affected the audience. Three different representation formats were used, and subjects were exposed to one format or the other. Subjects exposed to the graphic format paid more attention, agreed more, and remembered the strategy better than the subjects who only saw words and no picture.