Good companies have nearly all the same ideas and competitive intent as the great ones. Studies have shown that 80% of management teams also believe they can deliver a superior proposition, yet only 8% of their customers think so.
The problem is they never execute everywhere, every time. Big initiatives launched are wildly successful in a few places, but fizzle out most everywhere else.
A second element of achieving profitable growth is that these strategies are based on some kind of repeatable model that strengthens and expands the core business. The power of a repeatable business model is its simplicity. Everyone in the organization, in effect, knows the business’s priorities, and has the skills and capabilities to make the core as strong as it can be. They can move fast when opportunities arise. In a slow growth economy, all that is invaluable.
Actually living your strategy day in and day out, is one of the most important challenges today.
Strategy is less about the big new thing and about delivering on the goals you set.
1. A well-differentiated set of frontline activities that reflect the company’s core business. These include how the frontline employees (sales, customer service) support the customer and the activities that enable and support those employees. The company should be able to identify and measure these activities objectively, and demonstrate exactly where, why and how much the front line outperforms the competition.
2. Regular, systematic feedback from customers, key operations and frontline employees. The steady flow of information allows the company to adapt its model to changes in technology and the larger environment – customers and competitors. The most successful companies develop processes and mechanics to ensure they maintain their adaptability. Customer feedback as with a NetPromoter type scoring system to include follow-up with dissatisfied customers, solicitation of quick feedback on new products and User Groups are examples.
3. Encouraging employees throughout the organization to help define the strategy for themselves and buy into it – living the strategy day in and day out. Effective execution comes about only when the people understand the strategy, believe in it and incorporate it into what they do every day.
Achieving and maintaining success is less about the new big idea, and more about buying into and executing a few simple and repeatable ideas that are maintained as the core strategy for multiple years. A successful strategy must be translated into front-line activities that are delivered well, everywhere, every day.
Combining Vision and Innovation to Create the Future
© Rich Kohler 2017. All rights reserved. For copies, please contact Rich at firstname.lastname@example.org.