Saturday, January 30, 2021

How to Win Primary Objective of Strategy for Competitive Advantage

Everything is interlinked nowadays and business leaders cross-functionally should stay on the same page when sharpening business strategy and sharing information.

Today we are inextricably linked in real time and in ways far more imminent than most realize. Running a modern business is not just about crunching numbers, but also needs to connect the dots and paint colors. 

Organizations today need nothing less than a paradigm shift in their thinking about the fundamentals of how organizations work, as well as how to leverage information, evolve rapid changes and catalyze innovation.

How to win the primary objective of strategy for competitive advantage: Every business is different, they are at a different stage of its organizational maturity cycle, they have their own unique strengths to delight customers and gain the market shares. Organizations need to discover and develop their “innate strength,” keep it relevant and timely, and achieve competitive advantage by creating unique value which is difficult to imitate. It’s important to make a seamless alignment of reliable information, rigorous processes, flexible structures, efficient technologies, and talented people, etc to build differentiated business capabilities. So the organizational management can keep one eye on today’s performance and the other eye on the future performance of the business.

In reality, organizations today face unprecedented uncertainty, they have limited resources, needs to laser focus on what is good for the business, and what defines success. Opportunities and threats cannot exist without a context of interactions, which constitutes an implicit system. It is essential for developing a company strategy that encourages realistic innovations which will prove successful in the market. Business management needs to do the periodic state check and analyze the current state of the business by asking: What is the current state? What are the concerns with the current state (costs, efficiencies, top-line impacts, etc)? What are current policies/procedures/practices, values, and resources associated with the current reality. It’s also important to imagine: What is the proposed state? What is the cost, time; other resources needed to get to the proposed state? What is the financial impact of the proposed state in terms of ROI? How to seek new ways to maximize business potential?

Define the business value proposition and build a strong value chain:
The purpose of business is to create customers. Value propositions should be customer focused, and define the ideal business model, distribution, products & services, and business brand. The management needs to clarify: Can our management approach drive the enterprise and business strategy? Do we have common values and a dynamic enterprise business model that takes into account initial customer investments, life cycle of customers, products, services, economical cycles, market shifts to ensure flexibility and positive results throughout? How balanced and effective is our value chain? What value does the investment provide the business," and how to improve ROI? Etc.

The goal of business model development is to create value. Businesses value is multi-faceted and it’s interesting to see how business value is in the eye of the beholder. Not all business value is directly related to ROI. To perceive the value of the business model and make an objective assessment of an investment, you need to have a very clear idea of the new product/service - its life cycle, the overall "value proposition," where it fits into the overall "product/service portfolio" of the company. The whole value chain needs to be aligned, engaged, contributing by sharing the value so customers and stakeholders - from suppliers, to factories, employees, shareholders, get their fair share.

Leverage invaluable assets to build business advantage: In the business world, most relationships are nonlinear, change is continuously happening and spiraling up in such a dynamic environment. To lubricate strategy management, people are the most invaluable human capital to invest in and soft skills such as motivation, creativity, intentions, trust, relationships, informal dialogues, engagement are the most invaluable assets of the company to build solid sustainable value propositions. Organizations are social realities that emerge from the communication patterns of people. Communication is the coordination mechanism that makes a group of people as a cohesive team to achieve more, keeps the digital business flow and brings harmony, enabling clear linking of strategy from the boardroom to the shop floor. Strategic problem-solving is everyone's responsibility and therefore a clear communication to all levels of an organization is indeed a tool that may guarantee successful execution and achieve desired results.

Today’s business leaders and professionals need to be open-minded, resourceful, and learning-agile, harness communication, and build trustful relationships to overcome common challenges. They need to be discerning, but not overly judgmental in managing relationships; be flexible, but not too rigid in the outlook or too static to sense changes; be truly curious about cognitive difference or culture diversity, not getting stuck with conversational wisdom. When strategic complexity can be “visualized” in a better way, individual contributors can for the first time see where they fit in the universe of work and it can bring a great sense of purpose to their work as well as their role in the strategy management. The key is engaging at the right level and about the right things with clarity of the strategic goals, and leaders' commitment must be clearly and completely communicated for engagement of all stakeholders.

Everything is interlinked nowadays and business leaders cross-functionally should stay on the same page when sharpening business strategy and sharing information, Business teams innovate, create, research and resolve problems indefatigably. Anything that a leader does that does not advance the strategy is the wrong thing to do, and he or she needs to set the right priority, leverage the most invaluable business assets, do the right things before doing things right and get things done more effectively.


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