What is the method for designing a simplified one page business strategy?


Puzzled, I asked my manager who these people were? He replied: "They are business strategists for a renowned consulting firm". He then added sarcastically: "These consultants are just repeating what we have already said to management, except that they are paid a lot better than us!"

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The art of business strategy

This interaction led me to learn more about what a business strategy really is and why my manager did not take these consultants so seriously.

Today, I believe that corporate strategy is the art of clearly articulating the action plan necessary for a company to achieve its business objectives in a clear and measurable way.

Strategy is basically the planning process to produce an important goal. Most of the time, this is a crucial step for every organization, whether it is a start-up or a well-established business. As with everything else, these days the strategic process is constantly evolving to reflect the reality which is constantly changing.

So, how do you establish your business strategy?

A simplified model that should not exceed one page 

Business strategy shouldn't be too complicated. It's about concentrating critical information in a clear and concise manner on a single page. The focus should shift from planning to listening to market signals.

What's the point of taking four to five months to complete a business strategy when technology changes faster? Especially since the most effective strategies are those that emerge after a crisis or an opportunity.

What matters is that this strategy can evolve, adapt and pivot when needed. In addition, the simplified one-page technique allows management to stay aligned and avoid any misinterpretation of a vague and generic PowerPoint strategy.

The four essential components of a business strategy

  • Your goal

As with any strategy, everything starts with a goal. Whether it's revenue growth or increasing market share. They must be measurable and defined within a specific time frame, otherwise it is difficult to assess them.

Questions to ask yourself:

- What is our business objective?   

-     What's our schedule?

-     What are the key performance indicators?

  • Your scope of work

The scope of work is where the company will compete. It is based on three main variables: customers, geography and its products.

Questions to ask yourself:

-     Is the offer sufficiently relevant for the target audience? Is there another segment that would be willing to pay for your offering?

-     Are there other opportunities in other markets? Are there opportunities you can take advantage of?

-     Are there ways to optimize production? Does the integration or internalization of external tasks help to reduce costs and improve quality?

  • Your competitive advantage

If you don't have a competitive advantage then don't compete! Said Jack Welch of General Electric .

Competitive advantage is the propellant of success. It helps the organization stay in the game and grow. It is the central pillar of the company's value proposition.

Questions to ask yourself:

-     Do you have a well-established infrastructure and / or supplier network that is better than the competition?

-     Do you have the skills and resources to do the job better than the competition?

-     Do you develop your strategy based on your main skill, on what you do best?

-     Is your offer valuable enough for your audience?

-     Is it easy to copy your offer?

-     Are there any substitutes for your offer?

  • Your value proposition

The value proposition is the strong point of the customer's need and the company's offer which is based on its competitive advantage. Because no business can be good at everything, an organization must decide to compromise. The company must determine the buying criteria of the customer it is willing to sacrifice and those that are worth it.

Below is a sample value proposition model from the top two U.S. retailers that illustrates this concept:

  • The AMAZON case study

The worldwide success of AMAZON is not a coincidence , because this is a well thought out approach to become the world leader in online retail, and perhaps even offline with its recent acquisition of Whole Foods .

The business objective is about growth and market share. Their scope is expanding with new target segments. For example, video / movie lovers can take advantage of AMAZON Prime and programmers / IT specialists can find relevant solutions with Amazon Web Service.

AMAZON has built its business model on its competitive advantage, namely the strength of its infrastructure and its extensive network of partners. AMAZON's value proposition is therefore its ability to offer a wide choice in a practical and fast way.

  • The HILTI case study

HILTI is an innovative company that has reinvented the business model of a traditional manufacturer of construction equipment. She managed to transform her business by creating a new offer for a new and growing market: those looking for rental equipment.

Today, HILTI's value proposition is based on tasks rather than products. In other words, HILTI helps their client do their job by renting the tool they need, as opposed to selling the tool that client could use just once. It was a wise choice when HILTI changed its playing field and opted for a new offering. This helped HILTI later stay relevant in a very competitive industry.

The 3 tips to remember :

  • Business strategy shouldn't be a complicated process; it can be a simple one-page document with the essentials listed above.

  • The simplicity of an easy-to-remember single page strategy requires executives to be concise and to the point.

  • Strategies are not only planned but can emerge after a particular circumstance. So the focus should be on planning the strategy and capturing the strategy. The goal of the single page strategy allows for easy updating as needed.

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