Does a perfect business strategy really exist?
For budding businessmen, there are several terms and concepts that seem overwhelmingly complex, and one of them is strategy. In your own experience and opinion does a perfect business strategy is really exist? If so, how are the businesses coping up today.
The quick answer is NO.
There is no such thing as a perfect business strategy. And this is because the global business environment has grown Volatile, Unpredictable, Chaotic and Ambiguous otherwise referred to as VUCA. What is relevant today may be irrelevant tomorrow. The strategy needs to have the ability to adapt.
The world has become VUCA because technology has made us more globally interconnected than ever. What affects one area of the world shall have repercussions on other areas of the world but in varying degrees. Thus, what we have seen the past few years is that with global interconnection, political, cultural and behavioral structures are coming down and these have an effect on world economies.
Who would have thought that an electoral process in Greece would make the rest of the world hold its breath? Or that the ensuing process would shed the spotlight on the strength and stability of Asia as the next big economic hub? Now South East Asia is on the verge of Integration in 2015.
The explosion of social media has given the consumer the power to influence decisions and strategies with a post, an image or a Tweet. At the same time, this has given companies a cost efficient avenue to explore and expand markets.
The models prevalent in today's businesses were crafted at a time when the environment was more predictable. Change brings about volatility as businesses move to adapt. As the world opens up and technology bridges gaps, new markets are created. These are opportunities which can only capitalized if the business has the ability to foresee change and conceptualize strategies to adapt to the changing business environment.
If you look at history's greatest leaders: Mandela, Walesa, Gandhi and today's most influential businessmen: Bezos, Hsieh, Branson what set them apart is not just their ability to lead but that they are VISIONARIES. They saw the world from a different perspective from their peers and steered their countries, companies in the direction of their vision.
In my opinion, businesses should shift their focus away from processes and tools and align their resources toward developing people. Any company can purchase and operate the same processes and tools but the differentiator will always be PEOPLE. To cope with change, businesses need to TRANSFORM. Change is behavioral. Transformation is behavioral. The root remains grounded with PEOPLE.
Develop people. Find the talent to build leaders who can foresee and adapt to the volatility of change.
Ooooo I'm actually glad I came across this thread as I've been wondering this myself (particularly as I feel mine is most definitely not perfect) The thing is I know it sounds like something every business owner should have a handle on, but as my business is so new (it’s only been around properly for a few years) there’s still a lot that I’m quite shaky on! Hence why I’m here googling away! To be honest I was actually considering biting the bullet and getting some advice from a business consultant and sorting out a strategy, but I’m not sure if I should do it or not. Do you, or does anyone reading this in fact, have any experience using a consultant? My friend said at her workplace, her boss saw one under a company called Keystone ( this is the link she sent me: https://www.keystonetrainingltd.co.uk/ ) has anyone used them before? They look good but I’d ideally like a second opinion if I did go for them! Any advice or suggestions here would be massively appreciated! Thank you for the help everyone! (And I really am very sorry for babbling on!)
A strategic plan is a living document that is used to guide the company forward. The only way to know if it is performing and meeting the goals and objectives is to measure against it. The strategic plan should be updated on a regular basis. Most strategic plans have a shelf life of around 3 to 5 years before needing to be looked at again. The plan may have goals for as far into the future as 20 years.
To answer your question, while a perfect strategic plan may not fully exist, strategic plans help to keep an organization moving forward and hitting their targets.
Perfect business strategy? No.
Most of the time, the problem isn't the strategy, it's the execution.
YES!!!... there's literally over 6 Billion perfect Business Strategies........ one for each human being on Earth..... it's just up to them to discover it and dig it out of theirself and eventually understand it...
We all have our own arsenal of strengths that allow us to do particular things on a miraculous level.... while we also have "non-interests" that we haven't focused on and therefor haven't gotta all that good at.... this varying range of expertise in different areas gives each of us a slightly different perspective on what we're able to do and what we need help with..... From there we do what we can and find clever ways to fill in for what we can't whether it be hiring employees, bringing in a partner or outsourcing to somebody outside the Business....
So overall we thrive to make a solid and sustainable mechanism rooted within our own being and built according to what can come from us and what needs to come from others and smoothed over into a fluid system... Trying to mock another's system is the same as trying to wear one of their custom tailored suits..... it just isn't going to fit you perfectly even if you're the same height, width, weight and muscle/fat ratio.... they could have longer legs that you.... you could have a slightly thicker neck... their shoulders might be more squared than yours... there's just too many minor differences for it to work out right. So it's all on you taking a personal journey within yourself and finding your own tricks to capitalize on what you're able to see that nobody else can see because they're not you..
Every business strategy has that possibility with the right tweaking. For example a lemonade stand that has a realistic expectation of it's reach, could theoretically achieve a "perfect strategy." Most businesses stay too enamored with whatever doesn't work once they get it in their heads that it "should" and stay attached to the bitter end.
No but if there was, would it then be perfect!
Yes perfect business strategy really exists. If planning is not perfect then execution is also not perfect. So we have a strong plan for execution. In every kind of business a proper work strategy plays a vital role.
I think not.
Let’s face it: strategy is exciting. Strategy is fun. Strategy gives us a chance to be creative. In fact, when CEOs are frustrated that they’re not growing fast enough, consistently enough or profitably enough, they tend to focus on their efforts on debating which new strategy will take them where they want to go.
• Should we modify our business model?
• Are we playing in the wrong sandbox?
• Should we focus on new products? New markets? New geographies?
• Is our value proposition strong enough?
These are all great questions. I work with my clients to answer all of these strategic questions and more.
The problem is that traditional strategic planning happens once a year or once every few years. A smart, dedicated team spends a few months analyzing their business, discussing key strategies and setting goals for the organization. Then, the beautiful document they’ve created sits on a shelf and gathers dust. Why is that?
Because 3-5 months after the plan is created, the world has changed and the plan is out of date. Leaders stop holding each other accountable for the plan - as they should.
So does that mean strategic planning is a waste of time?
No. In fact having a set of strategies and plans that provide focus, clarity and alignment within the organization is more important than ever.
But here’s the truth about growing your business…
A great strategy with the wrong people and/or undisciplined execution will fail EVERY TIME.
A mediocre strategy with the right people, executing with discipline will blow away your competition.
Because without effective execution, nothing happens.
Strategic thinking and long term planning are important processes in any organization, but things aren’t accomplished in five years or three years or even a year. Things get accomplished in 90-day sprints. Things get accomplished when a sense of urgency and a high level of accountability are combined with a strong, passionate team.