Strategic management is based on an organization’s reasonable understanding of its mission and raison d’être, its vision of what it ought to be later, And the qualities that will control its activities. Strategic management also serves as the basis for every organization’s critical decisions. Note that the ultimate goal of strategic management is to provide organizations with a competitive advantage. Also, a clear and well-defined strategies are essential to business success.
The business can be smooth and aimless with a detailed and thoughtful strategy. Also, in the field of well-defined strategy, three strategies are essential to business success. Although they are distinct entities, it is worth noting that one consideration common across all types of strategies is people, processes, and technology. Without this, strategy is a lofty set of ideas with no basis in reality and not accompanied by a plan of action. Connecting “noble ideas” with well-thought-out action steps is the key to successful strategy implementation.
1. Business Strategy: Customer Experience
The first type of strategy is a business strategy, which focuses on how customers experience it. It is mainly concerned with how the organization deals with the market and asks questions such as:
- What are the customer segments that will be targeted?
- What are the geographical areas that will be covered?
- What products and services will be offered to the market?
- How will the organization’s position be in the face of its competitors?
- What capabilities will be used to differentiate the systems from competitors?
- What unique approaches will be applied to create new markets?
Business leaders usually create a business strategy. Once established, managers play an essential role in clarifying strategy, creating tighter alignment between different strategies, and communicating business strategy across the organization clearly and consistently.
2. Operational Strategy: People and Process
The second type of strategy is operational, which focuses on the people and processes of the organization. It is primarily concerned with accurately translating a customer-centric business strategy into a coherent and actionable execution plan.
Operational strategy answers questions such as:
- What capabilities need to be created or improved?
- What processes need improvement or a complete redesign?
- Does the organization have the people it needs, and do they have a suitable skill base?
Most managers currently work in the area of operational strategy, accessing the area of business strategy and reaching out to leadership for direction. They work to bring clarity and coherence to the organization’s operating model. They usually work vertically within a single business unit while solving problems. Managers who succeed in one role must actively develop the skills they need to move into other strategic areas.
3. Transformation Strategy: Technology Platform
The third type of strategy is transformation, which focuses on how technology can enable and transform the organization. We’re not talking about automation, we’re talking about true digital business paradigm transformation. It is seen infrequently because it represents a transformation for an entire organization.
This type of strategy goes beyond the typical business strategy and requires dramatic changes in people, processes, and technology.
Not all business strategy is the same. Note that some strategies are essential to business success, as each type requires a unique set of skills, resources, diverse methods, and plans to implement that strategy.
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