Concreting and communicating the strategy
The formulation of a strategy starts as soon as the strategy team finds mutual agreement about the strategic direction of impact. A strategy can more simply be described as “a way to the vision”. Therefore, strategy contains visionary aim descriptions as well as concrete actions.
Clear positioning requires determination and distinction
One of the main challenges in formulating a strategy is the necessary understanding and clearness. Therefore, one does not only has to describe what has to be done – but especially recognize what is not visibly part of the strategy. At this point, strategy scenarios might help to demonstrate alternative possibilities and to motivate the strategy team to come to a coherent determination.
Central elements of a companies’ strategy
These are the following coarse elements of identifying a company or business strategy:
- Mission Statement: The formal short explanation of a vision is made in a mission statement, which might be a statement for a company, a business or a further, more specific form of a mission statement. A mission statement is more than a summary of operative aims. Mission statements contain three elements which can be differently combined : the mission, aims and core values
- Strategic positioning: Being successful in the competition can especially be accomplished with a clear positioning within the competitive environment. Whilst the mission statement describes the consistent objectives on the long run, the strategic positioning gives answers to the following questions: Which products and services are we going to offer on the future market? Who are the users of our offers and on basis of which demands is the usage made? Who are the buyers and intermediaries of our offers – or other said: Which distribution channels do we use to reach our End-User?
- Strategic competencies: Strategic leadership contains the setup and the care of specific ability or skill bunches. Such strategic competences serve for bundling particular interests and for aligning all business activities in the sense of focusing consequently on the setup or extension of the core competences.
- Consequences: If the development of the present direction of the entrepreneurial vision should get going, concrete consequences will evolve for the organization. They determine what needs to be done in order to reach the missions statements requirements, for filling a position or for securing a strategic competence or extending it. Due to their bridging function between vision and implementation, consequences are rated high.
How far actions are still part of a strategy needs to be discussed for every individual case. In general actions build the bridge to strategy implementation.