4 Business Strategy Snafus — and How to Avoid Them
By Fallon Consultants
On January 8th, 2015
Strategy is a fundamental tool for navigating your business. Like a compass, strategy guides business leadership in making long-term decisions about the type of products or services the business offers, whom you offer those products/services to, what your value proposition is, and what differentiates your business from competitors.
But sometimes strategy doesn’t work as well as you expect. Implementation problems are often at the root of strategy failures. You can avoid snags in your business strategy by understanding these common strategy snafus — and how to avoid them.
- Accountability is missing — Every employee in your organization, from entry-level workers to leadership, must know what results are expected of them, what they must do to accomplish those results, and which metrics will be used to assess performance.
- Employees don’t understand the strategy — Employees may be confused about what the company’s strategy is or why it’s being implemented. Leadership must clearly and repeatedly communicate the strategy to employees to help them understand it. Company leaders should also be able to anticipate and address employees’ questions and concerns about the strategy.
- Leadership misunderstands what strategy is — Some businesses confuse strategy with other business-guidance tools, such as the company’s vision, mission, or goals. These higher-level principles are important, but they don’t provide the focus and decision-making direction a sound business strategy requires. An organization that relies on an overarching view of its purpose or on long-term goals to form its strategy may find itself adrift, knowing what it wants to do but not how to actually do it.
- Your strategy isn’t flexible — Your company’s product or service was in high demand a few years ago but not anymore; how will your business respond to such changes in the market? Strategy must adapt, and ideally be able to predict and anticipate market changes, enabling the business to evolve and thrive into the future.
By paying attention to these areas or seeking out business strategy guidance from an outside expert such as Fallon Consultants, you’ll help orient your business toward profitability and long-term success. Contact us at 845-624-3504 to learn more.