By: Kenny G. – November – 2014 (Adapted Version)
Let’s say you’re getting together with other managers and employees to develop your organization’s or unit’s strategy. No matter how much discussion and enthusiasm you bring to the task, you’re likely to emerge with a list that looks like this:
- Superior operational outcomes through efficient work practices
- Becoming competitive in an existing market
- Increasing product sales to take market leadership
- Expanding into other regions
- Optimizing ROI
- Developing a service delivery model that incorporates tactical projects
When you’re done, you might scratch your head and reflect: I think this looks OK. It doesn’t. It contains what might be called goals, objectives, actions, and vague statements of intent — but alas, no strategies.
So how do you really create strategy, rather than end up with a hodgepodge list like this? By following these steps:
Identify which stakeholders you depend on for success. It might seem obvious that you’d need to start here. But most managers, even at the world’s largest companies, don’t take this basic step. Instead, they focus on a narrow set of key performance indicators and wade right into developing solutions that feed those metrics, burrowing deeper and deeper into the details. Very quickly they lose their “helicopter view” and get stuck in fix-it mode. Suggestions come one after another: Engage sales outlets. Devise an advertising program. Attract, retain, and develop capable people.
Recognize what you want from your stakeholders. Because most management teams don’t identify key stakeholders, they don’t even get to this point. And those that do often launch right into what they need to do for customers, for employees, and so on, without thinking first about what they want from them.
Although objectives and clear targets aren’t a substitute for strategy, you do need to design them, stakeholder group by stakeholder group, before you can develop a smart strategy for each group. Otherwise, any old strategy will do. Unfortunately, strategies are often created in a vacuum. They won’t be meaningful if you haven’t decided what you want them to achieve.
Recognize what your stakeholders want from you. When management teams delve too quickly into problem-solving, they make assumptions. They think they already know what’s good for their stakeholders. As a result, their companies end up with products and services that don’t sell.
When you articulate what key stakeholders want, you’re defining what I call “strategic factors.” (They’re not the same as “critical success factors” — a term you might already use. Those are generated by your management team, whereas strategic factors come from your stakeholders.) Strategic factors bring an external perspective. They are those few things that you must excel at if you are to achieve a competitive advantage and, simultaneously, meet your corporate objectives.