How to Develop Strategy in the Right Way?

Much has been said and written about strategic planning. However, the problem remains the same – there are still many managers and business owners who have the wrong concept of company strategy and strategic planning in general. It often happens that the developed strategy either doesn’t work or it has nothing to do with reality. Sometimes, strategies remain on paper, being favorite toys of top managers. In such a case, however, strategies have nothing to do with what is going on in the company, on lower managerial and production levels. Sure thing, strategic planning is not only about design of strategy maps and making presentations for shareholders and top managers. It is easy to set unrealistic goals and say: “We are going to be the best!”

Recent survey has shown that only 20% of top managers and midlevel managers directly participate in strategic planning. However, very few of them have the right concept of company strategy. If a top manager understands strategy in his own way he will interpret it in the wrong way to lower level managers. Thus, employees are the lowest level will have no idea of what the company’s driving at. It’s an interesting question what is worse: to be ignorant on company strategy or to participate in strategic planning but have the wrong concept of the strategy? Still, there is no definite answer. However, it is possible to say that The Best Option is to get the entire personnel involved in discussion and adoption of a strategy.

How to develop strategy in the right way? Most believe that development of a strategy is only about setting strategic goals. This is not so. Company owners, shareholders and top managers should answer some questions “Where will we be in several years?” “What are our values?” “Who are our customers?” “What do our customers need?” There are even more important questions like “How can we implement strategic goals?”

One of the most common mistakes in developing and implementing strategies is designing of unrealistic strategic goals. Of course, a strategy should be ambitious but at the same time realistic. It is impossible to win a 50% market share in one year is at the moment the company has only 3 or 5 percents. So, it is very important to make you a realistic strategy and goals that can be achieved. The same time top management of a company should always look to the future and set new goals otherwise the company will not develop.

Strategy is also often confused with short-term goals. Some managers want to get immediate profits and instead of developing a comprehensive strategy the design short-term goals to get immediate cash. This is also a very common mistake with regards to strategy development. Most experts recommend using services of external advisors. At the same time, one needs to be cautious because somebody else’s experience is still somebody else’s experience. Something that is perfect for one company can be devastating for another. The best way is to involve top managers, company shareholders, business owners, external advisors and ordinary personnel in discussion and development of a strategy.

Business Development Strategies That Work

As a manager, one of the foremost concerns to an organization is developing and exploiting business opportunities that are presented to you and your company. In order to grow, you need good knowledge and best management practices and strategies. It comes to down to whether as a business development manager, you are revolutionary or evolutionary. Any strategy that you undertake, no matter how small or insignificant it may seem will revolutionize your company or will evolve it.

Successful business development takes a multi-disciplinary approach in that it involves financial, advertising and legal skills. It is not enough to reduce activities to a simple template that can be applied to all situations faced by real-world enterprises. Being creative in this regard goes a long way in ensuring that any new and unforeseen challenges contribute to sustainable growth of a company rather than its demise.

There are several areas where business development strategies can help your organization to grow and succeed. Development strategies based on a strategic marketing plan for example will address a changing customer base and market dynamics, help one to understand horizontal and vertical target market opportunities and how to develop the right products, services and solutions to meet the target market needs. This plan should not just be an accident. Most successful business owners will tell you that a carefully planned business strategy was involved. A plan can take either a ‘bottom up’ approach or a ‘top down’ approach. A bottom up approach is where the employees make suggestions and the best are passed up the management while the top down approach is where top managers create the business development strategies and implement them down the chain of command. Another approach is the use of collaborative process where managers and employees work together.

In order for a business development strategy to work, you will need to evaluate its weaknesses, strengths, risks and growth potential. If possible, a strategy consultant may be included. Several factors will need to be taken into consideration, depending on the complexities that come with implementation. These include assigning responsibilities, sufficient resources and establishing a chain of command. A timeline will also need to be developed to evaluate if the desired goals are being achieved. Obviously, no one type of business development strategy is going to work for every business. Find out what works for you and your organization and the benefits of sticking to it.

Establishing an Online Business Development Strategy

If you have any aspirations of earning an income online you will need to establish a business development strategy. The reasons are simple, your business venture will have to have a product or service, a way to promote it to the public and a plan to make improvements as needed. In this way your chances for online success will increase dramatically. When working online you will need to adapt to an ever changing environment by adopting new and improved strategies as you move forward, you must evolve!

Here are the 3 stages of any successful online business venture you will need to address when working online.

Creation Stage

Perhaps the most critical stage of developing any business venture is the creation of the ideas and/or concepts upon which the venture is to be based. Without a viable product or service all other efforts from this point forward will be futile. It is this point of the developmental process that will ‘dictate’ the strategies and direction of all other future efforts!

Innovation or creative energy can make you a shining shine and a tidy profit. whether it is a new product, new marketing tactic, new niche or something other!

Application Stage

Applying your innovations or creations takes another type of energy which involves more patience and diligence. Although not the flamboyance of the previous ‘creative genius’ stage this energy takes your idea and builds it into something that can deliver you financial security and online success.

Creativity is great and obviously required but until it is applied it is merely a dream. The actual application is what turns your ideas into a reality and what can actually make you money. At this point you are now bringing together your product idea(s) and blending them with your marketing strategies. Here is where you begin to enact your plan and make your creations available to the marketplace.

Refinement Stage

This stage of the business building process is ongoing as alterations will need to be make to adjust to changing demands and the marketplace in general. Refinements will likely need to be made to not only your marketing strategy but also quite possibly to your original creation (product) itself. This is a very natural and expected part of the ‘evolution’ of your business venture and what will make it grow stronger. You are merely adapting to the changing environment!

When starting out online to earn an income it is advisable to have some sort of business development strategy. A plan like this will enable you to put together and grow your business venture from the early stages into an income earning juggernaut. In fact your long term online success is dependent upon establishing and implementing such a plan! As you can see from the 3 stages reviewed above these tactical measure are not complicated, but do not let their simplicity fool you. For anybody with the aspirations of earning a good income by working online a strategy like this will be critical in terms of the degree of success achieved!