I encounter many strategies in my day to day work. Some of them are brilliant, of course. Others, less so. The worst of them tend to fall into three categories:
1. Waiting for the environment to improve.
Your strategy should be robust across a range of environmental conditions. Preferably, your strategy should even shape environment conditions. But your strategy should not be to wait passively. Strategy is an active process. And even if the environment does improve, all ships rise with a rising tide. So your competitors are likely to benefit just as much as you are. Even more so if they have adopted a more proactive strategy.
See also:
- How to do a PESTEL analysis to learn how to understand your environment.
- Scenario Planning for Business Strategy to learn how to plan in the face of uncertainty.
2. Hoping your competitors will falter.
Hoping your competitors will falter lays yourself open to three risks.
- What if they don't falter? What if they actually have competent staff who are able to respond to the challenges you thought you had spotted but they would miss.
- Your competitors are not sitting idly by. They are hungrily eyeing your lunch. While you are waiting to see if any crumbs fall from their table, they may be planning a direct assault on your business.
- How do you know you're not going to make a mistake before they do? Can you be that convinced of your superior insight and ability to execute? If you genuinely had that superior insight, how come your competitors are still in business?
See also:
3. Listening to your customers.
Don't get me wrong:- listening to your customers is essential. Every business should do it. And you should take what you learn from your customers into account when formulating your strategy. But listening to your customers is not a strategy in itself. Customers want to be led. They are drawn to businesses with products and services that solve their problems and exceed their expectations. They are looking for solutions and answers, not problems and questions.
Yes, customers may be willing to participate in crowd-sourcing from time to time. But they don't want to be your R&D department. They are looking for someone else - you - to apply the creativity and engineering. Oftentimes, customers don't even know what they want until they see it. If your strategy is simply to listen to your customers and respond to them, you will always be behind their expectations. And sooner or later, some competitor will come out with the product or service that your customers never knew they wanted. And that is where they will go.
Yes, customers may be willing to participate in crowd-sourcing from time to time. But they don't want to be your R&D department. They are looking for someone else - you - to apply the creativity and engineering. Oftentimes, customers don't even know what they want until they see it. If your strategy is simply to listen to your customers and respond to them, you will always be behind their expectations. And sooner or later, some competitor will come out with the product or service that your customers never knew they wanted. And that is where they will go.
See also:
Does your strategy suffer from any of these shortcomings? Perhaps it's time you called for some independent assistance.
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