The Importance of Corporate Strategy
Let’s talk about strategy. A lot of companies that we work with spend too much time focusing on tactics and execution and not enough time really determining what their overall strategy is as a business and the impact on spending enough time at the strategic level can really have an stunting impact on a company’s overall ability to accelerate its sales, gain market leadership, and really power up its revenue growth. A lot of CEO’s get bored when it comes to spending time on strategy and they view strategic work as being theoretical or hypothetical exercise that doesn’t add a lot of value to a company. But when you look a little bit more deeply, companies that execute really well usually start by having a strong foundation in their strategic objectives and their strategic plans.
Many companies that do well in strategic planning actually formalize this process and conduct it on a periodic basis and make sure that their strategy is updated and aligned with changes in the market, changes that are going on with their competitors, changes that are going on with their customers in terms of specific needs, preferences, and overall requirements. So, a company that does good work on strategy has a much better change at being successful than a company that neglects this important area. Strategy is all about setting the foundation for understanding how to be successful in a market and how to win.
Companies that have a good go to market strategy or strategic marketing plan are in a much better position to execute, according to a company’s overall vision and to leadership’s overall vision, than companies that don’t. It’s the job of leadership to provide this vision and set the framework for building a go to market strategy that can allow the company to be successful in its target markets and achieve its revenue and profit objectives over time. Strategy is also important in terms of being able to align the different elements of a business together and make sure that all of the people in your organization clearly understand where the company is going and what’s required in order to get there as well as what role they will play in executing the company’s overall successful strategy.
When leaders don’t spend sufficient time defining their go to market strategy, often times the company suffers and resources are wasted. Members of the team don’t understand what exactly it is they are trying to accomplish. Resources are wasted as sales people hunt for opportunities that don’t fit with the company’s core strategic objectives. And in general, a company that doesn’t have alignment on strategy, is under-optimized and wasting time and effort on needless things that don’t contribute to the company’s overall bottom line success and leadership in the market.
It’s the responsibility of a company’s leadership to set the overall strategic direction for the company and make sure that they are keepers of strategy as the company moves forward and evolves. Second of all, to set that and to develop it as a vision for the company that can be projected and communicated outwards to its market place as well as internally with its employees. Good leaders plan. Good leaders have a strong focus on what the company’s strategic direction is and work to align all of the companies constituents, including internal employees, as well as clients, business partners, channel partners, etc. with the company’s overall strategy.