Strategy development is the process of researching and identifying strategic options, selecting the most promising and deciding how resources will be allocated across the organisation to achieve objectives.
Strategy development involves assessing your business within its environment, considering both internal and external factors. It covers:
- Tailored business strategies
aimed at value creation
- Comprehensive mitigation plans based on identified risks, scenarios, and trade-offs
- Clear communication and execution of plans using defined strategic goals and success metrics.What are some key reasons strategy development is important in business?
Strategy development is essential for several reasons. It:
- Establishes clear direction and purpose, helping employees understand the ‘why’ behind their work
- Identifies organizational strengths and weaknesses, aiding in effective resource allocation
- Allows your business to adapt to changing environments
, repositioning it to suit shifting markets and circumstances
- Enhances decision-making
, serving as a framework for evaluating performance and progress
- Promotes innovation, fostering a competitive advantage through continuous improvement based on feedback loops.
- How do you develop a strategic plan?
The development of a strategic plan involves several key steps:
- Analyze: Assess your business's current state to understand its strengths and opportunities while minimizing weaknesses and threats
- Develop strategy: Create a strategic plan that navigates your business toward its desired state, identifying strategic options for risks and outlining financial planning concerning resources, budgets, and trade-offs
- Align and communicate: Communicate your business's vision, mission
, and long-term goals, aligning these using a goal-setting framework
like OKRs
- Create action plans: Detail execution plans, establishing responsibilities and timelines for accountability
