What is strategy? It is more than a statement or slogan; true strategy is a living, dynamic process. It reflects the organization’s daily practices, routines, and structure. It is an ongoing process and an organization’s unique way of creating value. The following article will describe the four key components of strategy:
Strategic planning
Strategic planning involves selecting measurable goals and determining how to achieve them. Most planning utilizes SMART goals – specific, measurable, achievable, realistic, and time-bound – which enable business leaders to determine the overall mission and measure progress. In other words, a business might choose to launch the first version of a virtual classroom platform in two years, or increase sales by 30% in the next year. However, this strategy is not the same for every business.
Tactics
Marketing planning begins with defining the audience you’d like to target. You’ll then use these insights to create a strategy, or tactics, to target these audiences. Tactics are the specific methods of communicating with your audience. While they’ll involve some planning and research, they won’t include a strategy review of what audiences best fit your product or service. Using tools such as the BCG Matrix, you can review your portfolio and determine future priorities for growth. You can even use tactics to recruit underrepresented communities, which may not be represented by traditional channels.
Goals
The most effective way to set strategic goals for your business is to have specific goals. Setting specific goals helps equip your organization with specific objectives, and it can help you define success measures and metrics. Choosing goals and measuring progress can be a lengthy process, and the decisions made may conflict with one another. To set strategic goals for your business, first determine the purpose behind them. Aligning everyone around one common purpose will help you outperform your competitors.
Value creation
In the current climate of disruption, organizations need to develop a strategy for creating enterprise value. The role of shareholders and other stakeholders has shifted from merely financial productivity to taking societal risks, as well as tackling issues like climate risk. Companies need to be more socially responsible and build a resilient culture to ensure their future. The following five actions can help navigate the emerging value-driver ecosystem. Read on to learn more about them.
Measurement
Many businesses think of measurement as a discrete, static process, but that is not the case. Rather, measurement should be viewed as an evolving system, with goals and data constantly changing. In fact, every business has measurable goals, and their business charters reference data and measurements. OKRs and SMART goals are two common examples of measurable goals. But how does measurement fit into the business strategy? This article will discuss how to create an effective measurement strategy.