Demystifying the - Why, What, When and How of Business Strategy

Have you ever wondered how certain brands and businesses always manage to stay relevant, even with the changing times and scenarios? And some companies find success even when their competitors are failing??

Well, what is it that they are doing right and others are not??

Most likely, these companies have a strong business strategy!

What is a Business Strategy?

Before we understand What is a Business Strategy, let us understand What it is NOT!?

It is not the ‘mission’ of a company that its leaders put forth to understand what the business is about. It is also not its ‘resources’ with whom the mission will be achieved. It is not the ‘vision’ to understand why the business continues to run.?A strategy is the ‘how’ of a business.

A business strategy, therefore, is the plan a business needs to follow, in order to achieve its ‘mission’. It is a set of guiding principles for the desired action by its ‘resources’. And a good strategy is expected to keep the company financially stable to continue working towards its ‘vision’.

To allow for a better understanding, let us understand the – Why, What, When and How of a business strategy! I would insist on following this chronology to make a fine, well-aligned strategy for your business. Let’s begin:

“Why” does your business need a strategy?

Let me just begin by saying that defining the ‘why’ gives purpose to your business. It helps identify the problem for which your business will provide the solution. Business without a strategy is like gambling. When the process of an organisation is detailed out in ink and paper, everyone in the system knows what to do. It makes the entire team in every department work more efficiently and effectively on auto-mode.

“What” should your business strategy do?

To answer this question, let me simply remind you of the Pareto Principle of 80-20. An effective business strategy should let you focus on 20% of your business to get 80% results. Rest 80% of the tasks can be managed by other efficient employees and managers of the company. Your business strategy should also help you to identify the core areas that need your attention, pertaining to marketing, finances, production and operations.

An effective business strategy details out the flow of action for you as the leader and also the rest of the employees for each department. It helps create a roadmap for everyone in the organisation – the decisions they must make and prioritize to reach their targets.

“When” should you devise a business strategy?

The answer to this question is ‘now’. If you have been thinking about creating a business strategy then the right time to start working on it is right NOW. Whether you are starting a business or restructuring an existing one, you will need a strategy that helps you model a guideline for the functioning of your business

For those looking to start a new business, I would suggest looking for an industry that is currently on the downside but is expected to rise soon. It would yield higher results than starting in a sector that is already at an all-time high right now. For example, it might be more fruitful in the long run to choose sectors like FinTech, AgriTech than probably the Steel industry to start your new venture.

Let me also address another aspect of “when” to revisit your strategy. We live in a highly dynamic world that needs constant readjusting to the changing lifestyles. I would recommend reviewing your business strategy every quarter and check for desired parameters on a weekly basis. This will help you keep on top of your game and be competitive and stay relevant to your customers.

“How” to draft an effective business strategy?

My mantra to draft an effective business strategy is

• To note down each and every detail
• Dig deep into the working of your industry, business model, business mission and practical requirements of the functioning of each department.
• Elaborate stepwise, on all your policies and SOPs for each department
• Disengage with your regular world and dedicate 2-3 days while working on it
• Keep your mobile phone away for the duration you are preparing the draft
• Revisit what you have written and revise to improve its efficiency

Coming to “how” to execute your business strategy, I would suggest that you start as soon as you are done drafting it. Don Shula, an American football coach used to say, “Start is the biggest Stop”. Do not wait for the perfect time to start. If your vision is clear, your roadmap defined, then every time is a good time to start.?

Having a Dynamic Business Strategy

Business strategies cannot be fixed; otherwise, your business may stagnate. Business strategy is an ever-evolving document that requires continuous refinement. No great business has had the same strategy since the beginning. Building a business strategy is like riding a bicycle, you need to keep riding it in order to maintain the balance.

In the end, I just want to leave you with this John Doerr quote that I love – “Ideas are easy, execution is everything.”