Why having a business strategy is critical to business success?
Not having a business strategy is like sailing rudderless into a storm. How do you know where you are going? Or how to change direction when things become difficult.
Crafting, developing and announcing a strategy makes excellent business sense. It gives a business direction and employees feel engaged and enthusiastic about what and why they are achieving.
Before a strategy can be developed several key elements need to be considered:
(i) what are the strengths, weaknesses, threats and opportunities facing the business;
(ii) a critical analysis of the businesses current and historical performance should be undertaken
(iii) An analysis of the macro and micro factors impacting on the business need to be considered
(iv) An evaluation of the key businesses resources
An effective business strategy will clearly identify where the business is headed and why. The strategy document will define the destination and what are the strategic resources that will be utilised to reach that destination. It will outline the best route the business will undertake to reach that direction and provide the tools and metrics to be used to critically analyse progress towards the strategic direction.
It is essential to continually assess progress towards the strategy and to realign strategy and direction if required.
An experienced accountant and business adviser will be able to assist in all aspects of strategy development and formulation, together with providing reporting in the continual monitoring of actual business performance against the metrics that have been established in the strategy document.