A business strategy is a methodology that seeks to achieve an objective through an action plan that is broken down into strategic objectives for each functional area of the organization.
The way that companies have to achieve their objectives, they are called business strategy and is a kind of navigation chart. This letter or map is for a period in which the focus of action and the pillars that will make it possible are defined.
For this, together with establishing the strategic objectives, it is necessary to estimate action deadlines, monitoring indicators, goals and managers.
It is very important to identify what the objective will be to work for the organization. Thus, depending on your current market situation, you may be interested in one objective or another. Since, if a strategic plan is established that is not oriented to what the organization really needs, it will not be a strategy problem, it will be a diagnostic problem and that skill is key before thinking and designing the strategy.
Flexibility in the strategy
The volatility of the market, the environment and contingencies are unpredictable. Therefore, it is never possible to know exactly what factor could be affected by any fortuitous event.
What is possible to define are alternative actions and scenarios in case the original plan cannot be executed as previously thought:
- Extension of deadlines.
- Suspension of activities
- Reservation professionals.
- Modification of goals.
These are some of the flexibilities that could be taken into account to make the strategy reach its objective even if contingencies have arisen along the way.
Another important factor in business strategy is decisions. That is, do it, do not do it or postpone it. They are mainly the alternatives that a scenario has and in this sense you can do an exercise that allows you to succeed in the action.
A decision is more strategic to the extent that its consequences are more irreversible, which we could understand with the following questions:
- What is the consequence of doing so?
- What is the consequence of not doing so?
- And the consequence of postponing it?
If you are not completely sure of assuming each of these consequences, then you will have to evaluate more accurately the alternative to make a decision. How? Calling specialist professionals or meeting with those interested in that decision to address it together and take the risk collectively.
The strategies are usually made as quantifiable as possible, but this is only intended to be measurable. There are mechanisms that make qualitative indicators become quantitative. For example, when it aspires to be “to be the best place to work.” We will develop this example in the end.
A company could design an entire strategy to achieve this objective and transform the “work environment” indicator; totally qualitative and subjective to the appreciation of the workers, in a quantitative instrument if it is standardized in a qualification survey with notes.
In this way the strategy could be described in this way:
- Objective:To be the best place to work
- Follow-up indicator:Labor climate survey – Variation in the number of applicants 2019 to 2020
- Goal:Get the Great Place to Work 2020 year award
- Responsible:Department of people development
Next, a description should be made of the actions that will be carried out to improve the working environment. Therefore, design a program of activities during the year that will improve the perception of workers regarding the place where they work.
To become the best place to work, it is not only important to develop internal activities to improve the work environment, but it is also important to communicate it. The idea is that it is an attractive proposal for future applicants and in this sense a social media campaign will be needed to make visible the climate of the organization, its benefits, development opportunities and even the testimony of a worker who realizes how well He feels part of the company.
It goes without saying that the budget is important, because for any challenging objective resources are needed. Therefore, the strategic plan must have an associated amount for its execution.
The implementation of the strategy should define a plan of activities at all levels involved, so as not to leave loose ends and complement each other; the communications plan, with the marketing plan of the company and in turn, with that of human resources through incentives. Which, in addition, will find financing in the finance department, which will finally report to the general management on the expense associated with the strategy.
Defining a business strategy requires time, analysis and involvement of people to believe in it, so the objectives must also be attainable to ensure that the motivational factor is not diluted in an unfeasible horizon.
In summary, a business strategy is one that defines a field of action and programs the fulfillment of its objectives, through indicators and goals. Although it should also be considered that in such an agile and changing business environment, flexibility is a virtue to act in a tactical way to the unforeseen events that may arise along the way.