Business strategy – What is it? The definition is a business’s working plan for achieving its vision, prioritising objectives, competing successfully, and optimising financial performance with its business model. In other words, it is a plan of how to make your business succeed.
So what drives success? Success is directly linked to reputation, which in turn depends on how satisfied your customers are with your products and services for the price they have paid. Profitability is driven from your price margin, which in turn depends on your cost base.
But what are the pitfalls? Often businesses try to address a downturn by just cutting costs. However, a continuous slicing of costs will eventually impact service levels and quality. By looking at what is important to your customers and what activities really add value, you’ll achieve a virtuous circle of improving service levels and quality while simultaneously significantly reducing operating costs.
Business and Strategy Consultancy is about defining the right Business Model for your company and then the strategy for successfully delivering that Business Model. To understand your business model, you need to firstly determine: why the company is in business; what your core strength is; define your target audience and understand the products/services you should be offering to them. Once you have these, you’ll be able to recognise the strategic direction of the business.
Many different strategies and business models are possible, even for companies in the same industry selling similar products or services. At Acceler8, we have designed an Accelerated Strategy© Approach to defining a business model and strategy that ensures:
- An accelerated definition, enabling early action with the benefit of market feedback.
- The highest Service Levels at the lowest operating costs, driving profitability.
- A defined operating model that aligns your processes and offering to your product/service proposition, driving customer satisfaction.
- An easy refresh, enabling a quick response to changes in the market.
People should always be at the forefront of your strategy when defining your business model, and once defined, your business strategy sets priorities for the company and management team and helps you attract and retain the talented workers you need. Although individuals in your company may focus on different priorities to accomplish specific tasks, these priorities should not conflict with the overall strategic direction of the company.
By setting the right processes in place and having the correct infrastructure, you’ll be able to support your people with the delivery. It’s only by listening to their feedback and your customer feedback, that you will be able to evaluate the effectiveness of your strategy and be in a position to make improvements moving forward and therefore guarantee success. This is also key in refining the execution of your strategy. Watch this space as next month we will be looking at how to address execution.
At Acceler8 Consultancy our processes are compatible to any methodology and can be applied to the maturity level that best suits an organisation’s culture. Want to know more? Contact us today.