If you ask leaders of an organization, they will say that we had a great strategy, but we didn’t execute that effectively. That is a backout answer.
In most cases, while strategies fail to execute, the strategy itself is a large part of the problem.
For an actionable strategy that strategy must be simple to be understood and remembered along with the organization. Simplifying strategy means, create simple and transparent rules that everyone in an organization can understand and remember them. We can always consider that any strategy that is complicated to implement, is not the strategy it is a book report.
Strategy’s task in an organization:
The simple definition of strategy is how companies create and capture a sustainable Economic Value. The economic value defines as a gap between what customers are willing to pay for your product or services and the cost of producing that service and product. Strategy’s task here is to create a significant impact between customer willingness or price and cost of operation for that service which reasons for achieving Economic value of a company.
How to simplify your Strategy:
There are three aspects that should be considered by an organization to simplify its strategy to capture the key drivers of value creation on achieving Economic Value:
1. Clarify key drivers:
Getting clarity on the key drivers of value creation based on market demands and company’s specialty.
2. Identify critical hurdles and challenges:
That doesn’t mean management team come up with a long list of obstacles, that means they come up with some obstacles which if they solve them, they could achieve and create efficient and sustainable economic value. These obstacles can be internal (Culture and lacking capability) and external (Competitive and dynamic).
3. What are the battles do we need to win?
To turn value and solve obstacles to action, we need to come up with what are the must battles that we face as a company from midterm to long-term to win by identifying critical hurdles to create value by simplifying our strategy.
All in all, the management team in an organization can simplify complicated strategy plans by implementing three aspects which are value creation, critical challenges, and the must we need to win battles to capture Economic Value by bridging the gap between strategic insight and effective execution.
We at DGC help leaders to come up with the simplest and the most effective strategy for their organization.
For more information about our Business Strategy Consulting Services please Contact Us and book your 1-HOUR FREE ONLINE Consultation.