The success in the business is solely dependent on the strategy and minds of the management working behind it. For a sustainable and highly profitable growth in the business, it is imperative that the business houses works with discipline and dedication and bring out a strategy to begin with the business endeavors and keep on reviewing the strategy once in each quarter of the business.
Once you have successfully carved out the strategy, you must put it through the following 10 pointer test. Even the big corporate houses have confessed that their strategy does not pass more than 3 of the pointers. Thus, evaluate the health of your business strategy with the help of following pointers:
1. Is Your Strategy Competitive Enough to Take on the Market?
In order to ascertain success with the business strategy, it is imperative for you to perform a thorough market / industry analysis of the same. Your strategy must have a differentiating factor, which will put your business house right out side the league and give you the edge.
2. Is the Competitive Advantage Still Feasible and Sustainable?
Is the competitive advantage that you have gained is sustainable enough? Are you placed uniquely in the minds of the customers? Can your competitors easily include your unique features in their strategies or is it something unique and limited to your organization?
3. Is Your Strategy Out Rightly Focused?
While developing the strategy for the business house, it is necessary to remain focused and not be swayed with the decision making. Thus clearly define and organize the strategy of the business house and make sure that it is concentrating on the narrowest level of the target audience.
4. Can You Out Smart the Trends With Your Strategy?
While developing the strategy for the business house, one sure has to pay attention to the current trends in the market, but in the words of Peter Drucker, a good strategy is not what keeps a track of the trends but is expansive enough to confound within itself all the predicted shifts and changes in the trends. More often than not, the changes in the trends are so slow and gradual, that the untimely response to the same may cause losses in terms of money and resources.
5. Is Your Data Apt and Meaningful Enough?
The data that a business form utilizes for the purpose of developing the strategies and taking decisions could be quite confusing and over whelming. It is required that the data you use is reliable and provides with meaningful insights on the scenario. Also, make sure that you don’t only see the figures, but the customer’s experiences behind it, which will empower you to come up with sound strategies.
6. Are Commitments and Trade Offs, a Part of Your Strategy?
Be clear that hedging is not a part of making the strategy. A good strategy requires commitments and convictions.
7. Is Your Strategy Strong Enough to Cushion in the Uncertain?
This point calls for a detailed SWOT analysis. Acknowledge your strength, ascertain your weaknesses, explore the opportunities and be wary of the threats. Your strategy must be based on your strong points, at the same time should be strong enough to cushion in the worst predicted scenarios.
8. Are you Being Biased Towards While Making Strategy?
Don’t get swayed by any factor while formulating the strategy, instead work towards the process with serenity and equanimity.
9. Do You Get the Full Support of the Leadership Team?
In any organization, there are a few believers and a few non believers. What an effective execution of the strategy requires is the enthusiasm and diligence of the believers. Make sure the leaders of the organization are believers and fix up the non believers.
10. Do You Have an Operational Plan Ready Out of the Strategy?
Any good strategy requires a working plan of action. Clearly define the goals and the ways to get there. Take the budgetary decisions and allocate the resources in order to turn the strategy into reality.