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Do you know why a business strategy fails? According to this survey , 67% of business strategies fail due to poor execution.

Looking closer, we understand that “poor execution” can be composed of several factors, such as:

  • shallow or no understanding of the strategy on the part of employees (the survey shows that only 5% of employees fully understand the strategy of the company they work for);
  • little access to strategic positioning.

To help you get around these and other issues related to business strategy, we have prepared this article. You will understand the concept, see some practical tips to implement and 3 bonuses to make your strategic management even more efficient!

What is business strategy?

Corporate strategy is the name given to the set of plans and directions listed by the company to guide the organization’s paths towards the established objective.

This strategy can have the macro dimension—aligned with the company’s DNA—or the micro dimension, aimed at specific goals, such as acquiring a customer or expanding the business. In this case, the business strategy gains subdivisions, such as:

  • growth ;
  • maintenance;
  • reduction;
  • expansion;
  • investments;
  • etc.

Why is business strategy critical to your business? 

The business strategy is fundamental because it ensures the stability and focus of the company even during adverse conditions, such as crises, fierce competition or even market fluctuations.

A business strategy ensures targeted and assertive organizational processes. And the impact of well-designed processes is felt in all spheres of the business: from the board to the sales force .

How to design a good business strategy?

The definition of business strategy is based on a tool known to those who follow the IEV blog: Strategic Planning . Planning should be the starting point for designing strategies. This is because the document contains all the challenges and goals of the business in the short, medium and long term.

Based on these guidelines, it is possible to design strategies that help achieve the targets.

In a metaphor, we could say that goals and objectives are the target. Strategic planning is the bow and business strategies are the arrows.

Here are 5 fundamental steps to understand how to craft a good trading strategy.

1. Evaluate the scenario

All good business strategy design starts with an assessment of the scenario. Strategic planning is, yes, the ideal starting point, but it should not be used blindly.

It is essential to combine the document with a contextual analysis. This ensures that strategies are current and realistic.

2. Set SMART goals

From there, it’s time to start materializing the business strategy. Our tip is to translate it into SMART goals – Specific, Measurable, Realistic and Based on deadlines.

This way, it is easier to understand whose tasks are within the strategy and what the priorities are.

In fact, having clear goals shared with everyone is one of the great secrets for making the company grow in a healthy way. That’s because knowledge is a driver of motivation.

Knowing their goals, employees feel guided and challenged, also becoming more willing to work to meet the goals.

There are even surveys that prove the close relationship between motivation and productivity. This one, for example, from Varejo Brasil magazine , states that motivated workers tend to be up to 50% more productive !

If you’re new to the SMART methodology, watch the video below to understand how to use it in your business strategy.

3. Design a realistic action plan 

In addition to clear goals, it is important that the entire team knows the best ways to achieve the business strategy developed.

A good way to chart these paths is to create an action plan. The plan may contain a checklist of essential activities, tasks assigned to each of those involved or routines that can be followed to bring the company closer to the established objectives.

In addition to helping guide the team, the action plan is also a way to help the leadership in managing the team .

4. Implement the strategy

With action plans in place, it’s time to implement! Our tip is for this process to be carried out calmly and with lots of participation.

After all, we are talking about a process that will lead to business success. For this, it needs to be carefully activated. Therefore, test each of the steps, collect feedback from salespeople and other team members about any difficulties and suggestions for improvement, and so on.

Remember that, although the company’s actions are guided by the business strategy, it should not be put in a plaster cast. In fact, flexibility is critical to the success of a business. It is important to know how to absorb internal and external trends and adjust procedures to flow accordingly.

5. Track the results

No business strategy can be considered successful if it is not accompanied by good measurement. So go back a few places and go over the first step on this list.

Context analysis is a good opportunity to probe and list some indicators that can guide the measurement of strategic results.

Also remember to set a review and review period. After all, it is only possible to perceive progress or improvement needs with the help of 2 variables: goals and comparatives.

Golden tips for strategic business management with the team 

Now that you know what business strategy is and how to implement it in your company, get ready to go even further! Below, you can check out our golden tips to ensure strategic business management in tune with the team!

Share management

A good way to optimize business strategy is to create process monitoring methodologies, such as spot management.

It is a way of organizing goals, objectives and strategies in a visual way, so that the entire team is able to monitor and organize themselves to meet deadlines and complete the company’s action plan.

Visual management does not necessarily need to be a physical picture on the company’s walls. This is, yes, the most popular model, but it is not the only one available.

With the help of digital tools (such as Trello, for example), it is possible to organize the demands in a virtual and collaborative way.

Encourage a culture of innovation

Another tip for optimizing the business strategy is to encourage a culture of innovation in the company . This means giving the team space to assess contexts and think of different solutions to solve daily demands.

In addition to encouraging engagement, the culture of innovation also enables the company to move forward, organically, towards achieving its strategic objectives.

Conduct training 

Finally, our final tip to optimize your strategic management is training and training with the team.

Through these meetings, it is possible to strengthen goals, reinforce protocols, develop essential skills and transform your team into a high-performance team.

If your company is looking for ways to make business strategy more effective and organic, IEV could be the partner you are looking for.

Our company has expertise in sales training for teams, professionals and leaders. We work with essential skills for high quality performance, such as emotional intelligence and negotiation.

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