Sound Business Advice: How focused are you on your strategic journey?

Successful firms are those who put their customers at the heart of their strategy and develop a plan to drive the way forward. 

It is important for companies to develop differentiated propositions targeted at particular customer segments and to focus on improving efficiency in delivering these propositions to customers. 

This includes differentiating their brands through enhanced customer service and maximizing the value of what they offer to customers.

The risk of not focusing on improvement and evolving is significant. Your competition is assuredly moving ahead. Without a defined and well implemented strategy, you are likely to be left behind — in terms of efficiency, reputation and financial success.

Why now?

Most companies have been in survival mode over the past few years, focused on enduring the financial crisis and the resulting turbulent market conditions. 

Management talk has been about cost-cutting, eliminating inefficiencies and increasing operational effectiveness. The goal has been to survive in a marketplace made up of more cost-conscious customers. 

As a result, management has been diverted from focusing on a wide-ranging strategy for the company. 

However, there is a strong argument that now is the time to take a look at the company and to set it on its path for success in the future. It is time to establish and implement your strategy. 

When you have a deep understanding of your customers, relationships and customer loyalty are strengthened, customers become your campaigners. 

New technology and media present opportunities and create positive customer outcomes. Delivering great customer experience maximizes your profitability. 

To achieve all this requires an articulated vision, a focused strategy, a plan and thorough implementation. 

Moving from vision to implementation requires continual fine-tuning. It is an iterative process driven by changing technology and evolving customer demands. 

Your vision and your strategy

Your strategy defines how you are going to be different from your competition. It defines how you will deliver a unique mix of value to your customers. 

The strategy must be in line with the company’s vision. The vision is your aspiration. 

It should inspire all stakeholders and create a shared sense of purpose. 

Your vision should define what you stand for and why you exist. It should also define what you aspire to become, to achieve and to create. 

Your strategy is then defined to describe how you will achieve your vision, in accordance with your guiding principles. Your strategy explains how you will attract customers and how you will serve their needs. 

All decisions made by the company from this point must consider the strategy. This will require you to make trade-offs and agree on what you will do, as well as what you will not do. 

What does a good strategy look like?

A good strategy is often made up of a single strategic statement and a set of underlying strategic objectives. 

The strategic statement is a memorable and actionable phrase that refines your company’s strategy into its unique essence, and communicates it throughout the organization. It empowers employees to operate and even innovate within the boundaries of the strategy. 

The strategic objectives translate the strategy into action. Your strategy will:

• Define how you will address the rapidly changing needs of your customers; 

• Ensure that you meet the needs of your shareholders and your regulators; 

• Address how you will embrace technology to succeed; and 

• Define what your operating model should be, and it will ensure you recruit, train and reward your people to deliver against the strategy.

The effort involved in developing and implementing your strategy should not be underestimated. Developing your strategy will require significant time of your management team. The implementation of your strategy will likely require transformation of part — or maybe all — of your business model.  

Now is the time to embark on your strategic journey. 

Alexandra McInnes is a senior manager at KPMG. She may be contacted at [email protected]