The function of strategy is to ensure that the organisation's human, physical and financial resources are consistently placed in the most profitable position to provide the chosen customers with what they want when they want it.

The strategic process

Step 1: Goal setting (Overview)

Vision, mission (business purpose), business idea and corporate objectives need to be established as the essential theme of the business. They need to be constantly fine tuned and/or reviewed as part of the balancing or positioning process (see Step 3 below).

Step 2: Situation review (Where are we now?)

Detailed research and analysis:

  • external factors and business intelligence
  • market statistics/dynamics and segmentation
  • SWOT (strengths, weaknesses, opportunities, threats)
  • competitor analysis
  • establishment of strategic assumptions
  • personal goals and objectives.

Step 3: Position and balance (What could the future look like?)

Strategic statements that are strong, consistent and reflect the close interrelationships between them:

  • vision, (2) business purpose, (3) business idea, (4) perceived value
  • (5) driving force, (6) distinctive competence
  • (7) segmentation, (8) competitive stance
  • (9) collective behaviour (or culture)
  • (10) financial reward.

At this stage,

  • (11) branding

may also have emerged as an important opportunity.

Step 4: Strategy formulation (Strategic intentions)

At this point it should be possible to summarise:

  • the strategic and implementation critical success factors and the gaps and weaknesses in the position that have to be closed
  • short-term and longer-term strategies and intentions
  • alternative plans for the mix of activities and resources needed (the four Ps: product, promotion, price, place).

Step 5: Implementation (The action plan)

For each time horizon (e.g. twelve months, two years, five years), produce a framework that can be easily communicated and monitored:

  • Intentions
  • Actions
  • Measurable (goals/targets)
  • By when.

Step 6: Monitoring and adjusting (The review process)

  • Quarterly reviews of action plans
  • Key performance indicators
  • Adjust as necessary – bringing forward or emphasising/de-emphasising, depending on progress.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.