It is not uncommon to see companies fail and businesses shut. To many, it seems as purely bad luck, but when looking from the eye of a business consultant, it is the failure to avoid mistakes and falling into the common strategy traps.
To Fahim Moledina, it is frustrating to see companies and organizations, regardless of industry and size, repeating the same few mistakes over and over again. It is for this reason, Fahim Moledina points out the top mistakes that you should avoid when creating a business strategy.
Failing To Differ Between Strategy And Budget
If your business strategy is all about budgeting and financing, you need to start all over again. You have to look at the bigger picture, which includes an understanding of the purpose and goals of your company. It also involves knowing what your services or products aim to achieve.
A strategy is a framework that guides you in making decisions. It is through a thorough strategy that you are able to create plans or conform your business into the constantly evolving and changing business environment.
Reimplenting Previous Plans
Despite the success you must have witnessed during the previous years, repeating a similar strategy or business plan is a flight bound to crash. Even if your objectives remain the same, you need to work out a different plan to achieve those objectives. It helps create a business that adapts to the changing times and remains firmly rooted to the ground despite hardships.
Company strategies that seem to come straight out of a corporate dictionary is hard to understand by the employees. You must ensure that your strategy is drawn using simple English that is easy to comprehend by the workforce. Buzzword bingo is not only frustrating but looks made up with no actual effort in implementing the strategy.
Overlooking The Competitors And Market Trends
Your competitors are next important to your customers. You have to be diligent in your market research and your competitors progress. Enlist all your competitors, know them, the nature of their work, and who is offering deals better than you. Your market analysis will help in spotting key themes and identifying new opportunities.
Underestimating Human Capital
Businesses are operating in times where financial capital is cheaper and more abundant compared to human capital. Although it is very important to your business, human capital should be more central to the company strategies. You need to recreate or dump a strategy that misses building, nurturing, and retaining the right talent.
Not Planning The Execution Of The Strategy
Whatever plan you create, you need to make sure you are able to deliver it. It means you must look into your business and assess the skills and capabilities you have or lack. Draw out a methodology to use for plugging the missing gaps and ways to hire talent that will help in achieving the goals.
Neglecting The Importance of Time
It is not unusual for CEO’s or those in a higher position to point out flaws in strategies. However, spending months tweaking and tinkering strategies can be very costly. As much as proper research is important, not getting tied up in the process is crucial. You must quickly move to the follow-up phase.
Your business strategy is not just a mix of words. It needs to have clear goals and milestones that can be measured by actual metrics and data. Without these metrics that serve as navigation tools, you will lose direction. Therefore, you should define your key performance indicators and create systems, processes, and dashboards that can are monitored regularly. Paying attention to the numbers will help you know your course.
Failing To Look Ahead
The purpose of a strategy is to plan the future. If you will become imprisoned by historical data and the status quo, you won’t be able to paint a vivid vision of the future.
Not Having Reviewing Sessions To Point Out Flaws Or Miscalculations
Any business that learns to iterate quickly and not get hooked to a single idea soon sees success. Therefore, you need to place processes that help you learn and fail fast! When launching a new strategy, it is essential that you keep on monitoring the progress and listening to the feedback. In case you feel things are not spanning out as planned, you need to figure out both the reasons and the remedies. If an idea fails to work out, quickly move on to another one.
If you are practicing any of the above method, know that these are a perfect recipe for disaster. It will set you apart! Avoid them to create a business strategy that is effective, simple, and valuable so that everyone in the company can work towards them!