A successful and sound strategy is vital for businesses to thrive in their industry, and organisations spend a great deal of time and money on developing and executing these strategies. But did you know that around 90% of business strategies fail?
No matter the size or goals of your business, there are a few common mistakes organisations make when it comes to strategy development.
Here is a look at five business strategy mistakes your organisation could be making:
Allowing profit to be your main focus
The goal of every business is to make a profit. However, a common mistake businesses make is thinking that the growth of an organisation is limited to profit, which then becomes the main focus of the business strategy. While “increasing revenue” is a great goal to work towards, it is crucial to remember that this form of growth can only happen when there is an effective strategy.
When designing your business strategy, you need to go beyond profit and think about your company’s strengths, weaknesses and which aspects of the organisation are filled with opportunities to soar to new heights. While including financial KPIs in your strategy is useful, it should not be the main focus when looking at the overall vision for your business.
Not thinking about culture
Having an effective business strategy is great, but it’s pointless unless you have the right tools to implement it – people. Your employees are the driving force within your business, and creating a transparent and engaging work culture ensures the execution of your strategy is seamless.
Innovation culture has become intrinsic to developing a successful strategy as this enables employees to feel comfortable sharing their ideas and feedback on what does and does not work. This allows you to understand whether the business strategy is working or not. It’s important to address any issues regarding culture and transparency in order to ensure your business strategy succeeds.
Placing too much emphasis on the ideation stage
A common mistake businesses make when it comes to strategy is placing too much energy in the development phase, leaving your tank empty when it comes to the long and often difficult implementation stage. In order to ensure success, your strategy needs to slowly be built into the foundations of your business over time. Therefore, you will need to be practical about your timeline for achieving goals and allow your business the space and time to execute your strategy.
Not letting data guide your strategy
Never underestimate the power of data. The digital revolution is in full swing, and big data is ready and available for organisations to use to their advantage. Utilising reliable and accurate data provides a springboard from which to create your plan. Gather data from every aspect of your business in order to develop a comprehensive strategic plan.
Your strategy is too complex
The best strategies are often simple. While there is nothing wrong with wanting to develop complex strategy models and frameworks (it certainly has its place), a general rule of thumb is not to overcomplicate things and to ensure your is simple enough for everyone within the business to understand.
Creating a business strategy can be simple, effective and valuable – provided you are able to navigate your way past these pitfalls and have the right support. The Strategists help design and execute your business strategy, ensuring you avoid any common mistakes.