The Need for Strategy Development
Understanding current competitive advantages, capabilities, and core competencies is critical to the planning process and serves as a springboard to the future. Before determining where the business will go and how to grow it, it is necessary to have an accurate assessment of the internal rate of change to ensure that the company has the capacity and agility to exceed the external rate of change. It is also essential to understand the organization’s current vision, goals, and aspirations (the “as-is”) so the vision, future goals, and aspirations that will guide the journey can be defined or refined.
Successfully developing strategy requires organizations to be clear about what winning or success means to them. They have to define the future outcomes they want to achieve and their key measures of effectiveness. A clearly defined structure and organized set of strategic disciplines that go along with the strategy gives people in the organization greater clarity about what is expected of them, as well as how they fit and why they matter. Ultimately, businesses exist to create value for owners, customers, and stakeholders, so they too must understand the context of the strategy, dilemmas and issues, objectives, and opportunities that will help the organization transform and get to a better place, or a better position in the future.