- Is your business strategy up to par?
- When have you done the last “deep dive” into a strategic planning process?
- Do you have a clear picture in your mind as to where your company should be, say, three to five years from now?
- Is it properly documented to communicate with your stakeholders?
Well, there are a variety of factors that may have rendered your business plans either partially or completely obsolete. These factors could be rooted in macroeconomic events, significant changes in technology, or societal trends, to name a few. Here are five potential red flags that should give you pause to evaluate if one of your most important leadership tools needs mending.
Is it time to evaluate your business strategy?
Here are five potential red flags that should give you pause to assess if one of your most important leadership tools needs mending:
- Your corporate vision no longer inspires hope, passion, or enthusiasm
A Japanese proverb best visualizes that scenario: “Vision without action is a daydream. Action without vision is a nightmare.” Without a meaningful destination, how can you effectively lead? Your organization is essentially living the nightmare.
- Changes in the marketplace have invalidated your current business strategy’s key assumptions
If the assumptions you based your strategy plan on are no longer current, you need a new plan. Without an intentional response to marketplace changes, your ability to grow and innovate will be restricted. Let me paint a simple picture: You may be the best typewriter repair shop in your market, but your opportunities to sustain or grow your business.
- The value proposition seized to resonate in the minds of prospective customers
Constant requests for price concessions are the norm today, but it’s still not a good sign having to listen to the five dreaded words: “Your Price is Too High.” If your value proposition can’t differentiate your business from other low bidders, you need to devise new strategies the will do that.
- Innovation and new opportunities have faded away
An effective strategic thinking process will stimulate and energize new ideas for meeting current and future customer needs and requirements. Consider the critical difference between innovation and creativity. Innovation involves applying a creative idea to a current business challenge. Without clarity of direction, innovation disappears.
- New threats have surfaced, and your organization is not ready to respond
Are competitors out there who could potentially put you out of business within the next year? Is there a more pertinent reason to take a new look at your strategic plan? Have new technologies replaced existing ones? Have services or product categories lost their relevance?
Entrepreneurs, business owners, and executives are taking many measures to thrive in any given economic environment.
Why do they often fret over tough decisions to make sure that they are the right ones? What is it that gives them sleepless nights going over the numbers to figure out yet another way to reduce costs and progress in business? A documented business strategy plan can be the ticket…
There is one logical thought which may have been deliberately or instinctively on their mind:
“The situation will change, and I want to be in a good position when that point in time comes.”
Will the economic environment stay the same as it has been? Certainly not. It will be different, maybe better, maybe not, but different for sure! How well are you and your organization prepared?
- Do you regularly ask yourself important questions?
- Are you prepared for the next move?
- Are you in position to seize the opportunities an economic upturn will offer?
- Is your organization geared up to take care of the “new” business effectively and efficiently?
- Is your organization prepared to manage uncertainty and unforeseen challenges?
- Is the leadership primed to lead in an effective manner successfully?
- Is your team equipped to cope with hiring and training people in a way that creates results fast?
- Are you and your organization prepared to do more with less, be more productive without raising the “burn rate” at the same time?
- Do you have a plan to double your output or throughput through increased efficiency of your processes as well as your human capital?
- What are you putting in place to cater to a new reality (i.e. post-COVID work environment) and make the most of it?
I know, questions, questions, questions…
However, be sure you do ask yourself these questions no matter if you are a business owner, entrepreneur, corporate executive, department manager, or front line team leader. Having answers to these questions and taking proactive action to become prepared now will make a difference in how you and your people will be able to define and manifest a new level of success in a changed situation. That is also where strategic planning enters the picture.
Is your business strategy plan up to date?
Consider a comprehensive diagnostic questionnaire which will uncover strength and limitations of your organization. It will make the planning of your business strategy more focused and impactful.
We provide our clients with a highly effective diagnostic tool to assess potential gaps. Developing a purposeful strategy plan will support you to take your business to the next level in an effective and efficient fashion!