It may not be a surprise that business owners often juggle multiple strategies when planning for the future. What I have found is that having many strategies can create inconsistency, ambiguity and misalignment within an organization. As an Alliance Partner at Trilogy Partners, I urge owners to focus on one single idea to drive decision making and growth.
In his book, Good to Great, Jim Collins supports this approach stating that organizations are more likely to succeed if they focus on one thing and do it well. Collins contends that answering three questions is essential to creating an effective, unifying strategy for any company. They are the keys to making a great company out of a merely good one.
#1 – What are you deeply passionate about? All of us know that to succeed in any business, you must be passionate about it, particularly in the competitive world in which we operate. But what specifically are you passionate about as you lead your company? Is it customer delight? Creating a great place to work? Designing unique products? Achieving operational excellence? The task here is not to create or inspire a new passion – it is to discover what truly makes you passionate about your business.
#2 – What can you be the best at? No business leader wants to be “pretty good” at their business, but few have a deep understanding of their company’s strengths, core competencies and, most important, potential for greatness. As you create a strategy for your company’s future, you must come to a deep understanding, not only of what you want to be the best at, but what you can be the best at. This awareness will provide the unique competitive advantage that can propel your company’s growth and prosperity. It will require honesty, courage and determination to make the changes necessary to achieve “best in industry” performance.
#3 – What drives your “economic engine”? There are countless benchmarks for measuring your company’s economic and financial performance. What is most important is that you must select the single driving economic denominator from which all your strategies and tactics will derive. Is it pure bottom line profit? Profit per product line or per customer? Many possibilities exist based on your operating model, financial resources and long-term goals. Selecting your economic denominator is an essential step in building your growth strategy as your future investment and tactical decisions will be made accordingly.
Trilogy Partners can help you answer these questions to shift your company from good to great. If you need guidance unifying your strategy, contact me at (609) 688-0428 or firstname.lastname@example.org.