As a consultant, I recommend this simple three-fold test to validate whether or not the strategy (s) you have crafted and executed are working.
First having reviewed the strengths, weaknesses, opportunities and threats probably using a SWOT (BLOG- Little Red Tool Box- SWOT Analysis | Terry Power’s Strategic Thinking Concepts (terrypowerstrategy.com)) and TOWS (BLOG-Little Red Tool Box- TOWS Analysis | Terry Power’s Strategic Thinking Concepts (terrypowerstrategy.com)) analysis you asked the question …. Does the strategy fit with the company’s competencies and resources?
Managers are entrusted with the assets both material and human and have a duty to maximize shareholder’s value by determining the appropriate balance between efficiency and effectiveness of their strategic initiatives. Recall the Rosebush analogy— prune the suckers! – (BLOG-Rosebush Organizational Analogy | Terry Power’s Strategic Thinking Concepts (terrypowerstrategy.com).
Second it is important that strategies adopted and subsequently executed maintain the organization’s competitive position in the marketplace.
The Third and final test is to ask the question … will the strategy enhance the firm’s performance. Often you can undertake a value chain (BLOG -_Little Red Tool Box – Value Chain Analysis | Terry Power’s Strategic Thinking Concepts (terrypowerstrategy.com)) analysis. Compare your activities with similar activities found in the competitor’s value chain in order to determine whether or not you have the competitive advantage. It is not sufficient that you’re simply ‘competitive’ rather you must have a sustainable competitive advantage. Today “the quickening” presents disruptive innovation that that permeates the ecosystem of all businesses and organizations. You must sleep with one eye open!
If you can answer ‘yes’ to all three questions, then you have selected the right strategy. If you fail on any one of the three you have the wrong strategy and you need to revisit.
The question then becomes …. Does your strategy need ‘retail’ or ‘wholesale’ change? Are you’re just missing “the mark” requiring only minor ‘tweaks’ (with an analogy to a sailboat adjusting the jib); OR will you require a wholesale change — scrap the plan and start with a fresh page. Reset the sails for new setting!
I will discuss this topic further in the weeks ahead…
Blue Ocean Strategic Workshop- (Short Online). A good place to start if you determine ‘wholesale’ changes are required is by undergoing a Blue Ocean Strategic Workshop.
We anticipate being able to offer in a few months a short online practical and applied Blue Ocean Strategic Workshop.
The workshop will examining some emerging trends, innovation within specific industry/organizations. Attendees will be required to do some ‘directed’ research prior to the workshop. This will include examining the organization’s current value proposition.
The participants will be expected on completion of the workshop to have identified for further analysis potential Blue Ocean Strategy (s) that will enable them to reposition their organization to emerging red oceans.
The program will be designed for small groups of attendees from selected organizations in specified industries. In this new industrial age of remarkable transformative innovations and the accompanying disruptions organizations struggling with maintain margins and facing fierce competition should consider undertaking this workshop.
Watch for a notice on BLOG the site later in the summer. Subscribe and we will notify you the details.