Do you want to know a secret?

Most executives cannot articulate the strategy of their business in a simple statement.

It gets worse. Across the entire organisation, no-one else can either!

This highlights a fundamental problem with most organisations today … people at all levels are busy (and working hard) without really knowing why.

In 2008, the Harvard Business Review published a fantastic piece entitled Can You Say What Your Strategy Is? In the opening paragraph, authors David Collis and Michael Rukstad pose this question; “Can you summarise your company’s strategy in 35 words or less?”

I’ve asked this question of business teams dozens of times. The answer is seldom YES. If it is, the follow on question is; “Would your colleagues put it in the same way?” At this point things fall apart.

Why is this a problem?

If you can’t clearly explain your strategy, it’s likely that you don’t have a well-defined one. This is risky for a number of reasons.

  • 1. It’s a warning sign that the overall direction of your business is unclear. This lack of clarity at the highest level leads to talent and resources not been directed at the best opportunities.

  • 2. A clear strategy guides decision-making at all levels. If yours is vague or poorly communicated people have no basis for making good decisions. They decide for themselves what is important. Inefficiency, confusion and the proliferation of objectives are the consequence.

  • 3. A strategy that’s unclear often lacks measurable goals. Without clear targets or benchmarks, it’s hard to track progress, evaluate performance, and adjust your approach when necessary.

All of these problems are perfectly avoidable. Lack of direction, poor decision making, low inability to measure success, and the proliferation of objectives are all things we do to ourselves.

Professor Donald Sull, Professor of Practice at MIT Sloan School of Management, says that in most cases, the problem starts in the C-Suite.

By this he means that senior executives fail to make the hard trade-offs on which priorities are mission critical and which can be delayed. Instead says Sull, they agree on platitudes that do not provide concrete guidance for managers throughout the organisation.

A CEO I work with understands this intimately.

Over 12 years he has guided his company to meteoric expansion and growth. To him it’s all about simplicity, focus and communication.

He is constantly saying no, making trade-offs and narrowing the focus.

He believes that a clear and well-communicated strategy, supported by a straightforward business model and only a few priorities are essential for driving consistent growth. Their stellar results speak for themselves.

So, what can be done?

Creating a proper strategy in the first instance goes without saying.

Then it’s about crafting the statement that captures its essence in a readily communicable manner. Using the method offered by Collis and Rukstad, I’ve created a template for you below.

Have a go. Customise it as you see fit. But see if you can create your own strategy statement. Simple, clear and succinct should be the test once you’re done.

  • 1. What is the primary goal of YOUR COMPANY in the next 3 years?

    • To grow to $X by … (date), from $Y (where the business is now)
  • 2. How will you achieve this? (Your scope and how you’ll win)

    •  by offering … (product / service)
    • to … (which customers)
    • through … (channels / geographies / partners)
    • leveraging these vital core capabilities … (the things your company possesses which makes you different)
  • 3. Key targets you will meet? (These could be sales, volumes, EBITDA, market share etc.)

  • 4. The 3 – 5 Must Win Battles you will focus on to get there.

Don’t be one of those executives who when asked, can’t say what your strategy is.

Use this template to ensure your response is clear, focussed and compelling.

Remember that crafting a clear and actionable strategy is not just a leadership responsibility, it is the foundation for your entire organisation’s success.

If you want to get your C-Suite focussed and fired up for the new year, please contact me to find out how.

The LeadershipWorks Blog

Do you want to build a healthy organisation? Do you want to make teamwork your ultimate source of competitive advantage?

Latest Posts