In order to craft a living strategy with digital characteristics, the management should have the ability to engage in meaningful digital dialogues, and embrace the emerging business properties.
The goal of a good strategy is to reach the business vision and create tomorrow’s vision out of today. Every company has to decide what strategic framework to employ and architect the enterprise, its processes, and infrastructure consistent with the dynamic planning they derive from it.
A strategy is the light to guide you through. And a good strategy which supports the proven and interdependent business growth model will provide visibility, capability, and agility.
Visibility: Being able to see within your company as well as your competition in the ever expanded ecosystem both vertically and horizontally: All strategies are intents. Some of them become actionable with plans. Due to the increasing pace of changes, many strategic plans lose viability during their expected window of opportunity. Digital organizations across industrial sectors today are in the state of dynamism, interaction, iteration, and continuum. A good strategy is informative and cascading; modifying a plan does not necessarily change the strategy, it could mean that the strategy has to be re-implemented to a certain degree and lives with a clear vision in a practical everyday way.
To gain the visibility of the strategy, take a hard look at what's going on inside the organization, including its strengths and weaknesses. One of the root causes of disconnected strategy is that top management fails to communicate the plan to the other employees across the organization hierarchy, so they continue working in the dark. Or they fail to create a climate that is collaborative to enable smooth strategy execution. It’s also important to take a wide look at what's going on outside the organization- the business ecosystem and how it might affect the business strategy development, identify and capture opportunities and threats, and increase the discernibility of strategic planning. Achieving the visibility of strategy management provides a viable pathway into process optimization and dynamic competency shaping.
Capability: The capability enabled strategy has a high success rate to reach the well-defined vision. It’s important to create the mapping between capability and strategy. Know what you are able to accomplish and what it will take to expand the differentiated capabilities. The capability-based strategy is not only leading to a well-set destination but also proactively cultivating and optimizing a unique set of enterprise capabilities dynamically.
Agility: Strategy agility is one of the very characteristics of the digital strategy execution continuum with the ability to adapt to a dynamic business environment. The management should plan and budget for “what if “scenarios such as what could be the revenue loss if you are not agile enough and what are your options to deal with emerging problems timely? The step-wise strategy management scenario includes - creating the strategy, aligning all your companies’ assets toward common objectives. Then, defining intermediate goals that work towards achieving those objectives step-wisely?
Agility is important, organizations even have to become agiler than needed at the moment, because changes come faster and faster. In fact, agility is the key success factor in dynamic strategy management because it helps to set business priority right, build up the culture of improvement, and have the ability to adapt to changes, so execution can produce the expected results in the context of the strategic choices. The success of strategy management undoubtedly lies in “timely execution,” agility, and it can only be achieved through persistence, improvement, and following up.
The blurring line of business borders and the uncharted frontier of an organization provides both abundant opportunities and emergent risks. In order to craft a living strategy with digital characteristics, the management should have the ability to engage in meaningful digital dialogues, embrace the emerging business properties, take strategic planning and execution as a continuous cycle to accelerate business performance, maximize its market position and reap as many benefits as possible.
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