This is a guest post by Ronald Mccarthy.
In the current business environment, where every aspect of doing business is getting tougher by the day, finding the right mix to formulate the perfect business strategy has become vital towards achieving sustained success. Businesses without plans cannot survive in this day and age as things are changing fast and consumers are becoming more nitpicky with their buying behavior.
In this fast-paced scenario where businesses are striving to achieve success, the need to come through with a powerful strategy that aligns the whole organization to a single set of well-defined goals, referred to as “Strategy Deployment”, has increased manifold. And the businesses that are most susceptible to failure i.e. small & medium enterprises, need proper strategy deployment more crucially than ever before
Strategic deployment can be a daunting task for a lot of organizations mainly due to the lack of understanding of the importance of strategy by the higher and lower management causing them to give little time towards addressing crucial issues and the unavailability of the adequate number of resources to build a strategy. Therefore, there are many SMEs which don’t know where to start from, how to avoid pitfalls, and what steps to take from the beginning to achieve success.
To help you cope with such issues, I’ve uncovered the formula of successful strategy deployment for small and medium enterprises in this post that can assist you in determining the core objectives of the business and how to achieve them through proper execution & planning!
Five Steps Strategy Deployment Formula For Small And Medium Enterprises
Strategy deployment ensures all the work procedures and operations of an organization are aligned with the business goals and objectives. The executive team needs to develop breakthrough experiences for everyone involved in the business operations to embrace beneficial changes. It is essential to align day-to-day tasks of the team members with the business objectives to make sure they are moving in the same direction.
So here are five major elements of strategy deployment formula:
Vision – Determine Your Final Destination.
It is essential to determine at what level you want to see your organization in next 3 to 5 years. Hence, to achieve success for your organization, find out ‘what your current standings are’ and ‘where you must be tomorrow’. The major reason to figure out these two points is to estimate your strategic gap. The approach you will adapt to fill out this gap will be your mission.
Mission – Action Plan to Reach Your Destination.
Which everyday tasks do you need to focus on? What actions do you need to take to step forward towards your vision? Your Mission Statement clearly defines your instant action plan that will help you to move towards your company’s vision. If you succeed to create the right Mission Statement, it will progressively assist you to fulfill the requirements of each step which moves towards your vision.
The mission statement will define you and the impact of a having a proper mission statement has been seen countless times in the corporate world. For e.g. the mission statement of Tesla, the quintessential electric automobile manufacturer of our times, is to “Accelerate the advent of sustainable transport by bringing compelling mass market electric cars to market as soon as possible”. This mission statement helps us understand the 4 key driving forces behind the business namely “Acceleration” which means to produce faster, “Sustainable transport” which means transport that doesn’t run on fossil fuels, “Compelling” which means people would love to get their hands on to their products, “Mass market electric cars” which means electric cars everyone can afford.
The Vision and Mission Statement are based on your company’s core values, culture, beliefs and financial stability just like the mission statement for Tesla. Once the Vision, Mission and Values are unified, it will determine the ‘True North’ of your organization which is a process that ensures all the tasks and operations of your organization are aligned.
Breakthrough Objectives – Innovative Approach to Achieve Your Targets.
The Strategy Deployment formula is meant to achieve organization’s short-term objectives and long term goals which need to be aligned together so that the desired results can be achieved. In the Hoshin Kanri methodology, longer term goals are referred as breakthrough objectives which require a period of 3 to 5 years to accomplish. Breakthrough objectives indicate significant improvements in the organization’s day-to-day operations and tasks and show a positive shift in the typical business procedures. They help to address major issues, such as growth, profitability, customer service etc.
But you need to make sure that the objectives that you set are going to enable you to stay on top of your game for a sustained period & that will only happen if you have conducted deep research on the industry parameters. For e.g. in the fashion sphere, to stay ahead of your fashion game, you need to ensure that you know what’s in vogue. Your own opinions don’t matter, but concrete research does. Trends are to be followed if you need to have goals in hand that, if achieved, will add to your brand’s & firm’s progress.
You need to be focused and specific while deciding your breakthrough objectives so that they can be tracked closely by the higher management and do not get mingled among each other. Breakthrough objectives strengthen your organization and improve its performance. Therefore, each objective must be created to measure success and continuous growth.
Develop Strategies – What Changes are Required to Reach the Destination?
Once you create your breakthrough objectives, it is vital to split them into smaller operational pieces to measure performances of individuals, teams and departments. Each breakthrough objective must address specific processes of the organization and must have a certain impact to fulfill the upper-level breakthrough objective and vision.
Also, you need to develop certain KPIs for each objective so that the management can track the progress easily. The key is to develop KPIs that helps you to measure the change you want to bring in the organization.
Reviews – Measuring the Actions and Achievements.
Creating goals, objectives and KPIs are not worth it if they are not getting monitored and tracked to measure the overall performance. Reviews allow higher management to assess which breakthrough objectives are achieved successfully and where they need improvements. If required, certain adjustments can be made to acquire the desired outcomes.
You can develop monthly and annual review system to keep the higher and lower level management engaged in the execution of the plan. Monthly review system keeps reviving the key objectives of the plan in everyone’s mind and helps managers to recognize any issue that arises during the completion of the tasks and improve their performances.
All five elements of Strategy Deployment formula work simultaneously. Each element allows collecting valuable data to improve and bring positive change in organization’s operations and business procedures.
Author Bio: Ronald Mccarthy is an enthusiastic blogger who loves to write on prevailing trends in the fashion and lifestyle forte. He is an avid book reader, dog lover and is passionate about turning this global village into an eco-village. Currently, he is associated with Sophie & Trey, an online clothing boutique in Lake Mary, Florida for their blog operations. Follow him on Twitter @R_Mccarthy7