Four pitfalls in strategy execution

Executing business strategy is not a straight forward task. There could be surprises thrown in the path of implementation process. Moreover in evolving field of business competition changes take place at the most unexpected moment that too with massive upheaval. Here are four such pitfalls a business must be ready to avoid:

1. Losing your cool in the moment of crisis is the first and foremost drawback. Many firms are good at chalking out excellent business plans that are notoriously absent of having the B Plan. This happens where the chosen business strategy has never been revisited at the stage of implementation. General De Gaulle commands “have a good strategy but re-visit it often”. This demands that strategist validates all the underlying assumptions while drafting his strategy and during its execution.

2. In military warfare as well as business warfare a strategist must anticipate how the opponent would react to a particular move the firm is making. The response to such a move vary in the spectrum of deflecting attack to countering attack. Assuming an opponent would blink and meekly surrender is never a reality in business lore may be in fictions. Hence it is vital for business strategist to think through each and every component of his strategy thoroughly before he gives the go ahead for execution.

3. Nothing is conventional these days. Behaviourists come out with all expected scenarios that are perhaps laboratory tested or derived from class room discussion. But the sad truth is no one can predict either human or industrial behaviour occurring within a definitive range. Responses and outcome in business competition could range between conventional to unconventional. A good example is a firm trying price skimming tactics at the time of falling demand for its key product. His opponent go contrarian and hike up the price to indicate to the consumers that his product retains high quality standards.

4. Failing to look at the choices consumers would make over a period of time is the fourth and most damaging flaw that could bring about total collapse of the demand for products a firm manufacture and sell. Fashions change, demands change, and usability changes in fact the entire spectrum changes. The bottom line is we are living in ever changing world where fads and fashions come and go. Unless the product satisfies a known, useful and permanent factor such as electricity generation firms must have their eyes focused on the evolution of the product per se and tweak it in addition to tweak the overall business strategy of creating, delivering and realizing value!

 

Cheers!

 

Muthu Ashraff

Business Strategist

Mobile: + 94 777 265677

E-mail: cosmicgems@gmail.com

Blog:   Business Strategist

 

 

 

Seven pluses of an offensive mind-set

Being offensive in mind-set is something a go-getter has in his DNA. Similarly in business strategy, offensive mind-set gives a firm a great edge as against its competitors in the short-run and if properly managed the gains can last in the medium term too. Here are seven pluses a firm gets when it goes on offensive:

1. Moving first and fast is key benefit that comes from an offensive mind. It basically means that firm is in proactive mood. Firm can identify the weak links in the competitive posture of its opponents and pounce where it can hurt them severely and surely.

2. Attacking is the second most important gain one gets with an offensive mind-set. Firm is always prepared to attack before the opponent gets ready for an attack or a counter-offensive

3. Attacking has a definite companion: speed. Unless you attack with speed and surprise your offensive might peter out. Fast & nimble, undoubtedly are the best boons firm gets when it moves in with an offensive mind rather than dilly dallying.

4. Dominating is the next important plus point. When a firm is in domination position it gets two-pronged benefit: one is command the other one is control. As in military strategy, command & control are twins that are joined in the hip. One gets stuck means the other one fails too. Put in other way, if firm loses command it is certainly going to lose control. Companies that have market dominance not only control the price but commands barring of entry into market by potential competitors

5. Offensive mind is always associated with being positive. Firm is perched on “Go for It’ as the binding mantra which propels it to make right decision at the right moment.

6. Timing consequently is the big plus point. Time is always in essence when it comes to initiate anything. A firm having offensive mind-set wait for the right moment to attack where the competitor is defenceless or his defences are in disarray. In strategy execution time is the more critical aspect. A well-timed move brings the opponent to the knees. More than that, the dividends of an offensive are manifold

7. Finally it is adulation. Be it in military or business the party who makes the first move get much more media coverage, may be little negative things are also published. Yet the fact any publicity, good or bad is good at the final count. Media coverage gives a sense of dejavu to the staff of the firm and high degree of adulation from the market for the firm as a whole.

 

Cheers!

 

Muthu Ashraff

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist

The Five ‘S’s for successful execution of business strategy

Everyone can craft a business strategy but only the ablest can execute it with successful completion. Here are five essentials required for this feat. Incidentally all of these begin with the alphabet ‘S”:

1. Surprise:  The top S in business strategy execution is pre-emptive action by the firm against single or a group of competitors at a point of time when they least expected it. By unveiling new or much improved product, firm must plan to be much ahead of others using technology and improved method of distribution. This element of surprise must astound the competitors powered by high degree of secrecy and unpredictability

2. Speed: The second essential for successful strategy execution is the speed in which a firm moves in putting into action its strategy. This is what General Norman Schwarzkopf practised in combination with the use of overwhelming power and spectacular display of force in order to paralyze Iraqi Army. Taking a leaf out of the General’s repertoire firm must use speed and promotional campaigns to secure an edge over competitors

3. Security:   This S has two dimensions: internal and external. Internal security arises from robust strength that eliminates all weak points that are vulnerable in the case of pre-emptive offensive or counter offensive by the opponent when the firm takes on the attacker first. If such weak points exist then competitors can creep through. External security arises when the firm has done thorough analysis of risk and return and is satisfied that the risk is acceptable and worth taking one

4. Savings: This is the economic part of executing business strategy. Firm must employ its resources in optimum manner to gain its goals stipulated in strategy paper. While carrying on the implementation side it is necessary that there is a trade-off between resources used and the gains garnered. No firm can throw all his resources to a single expedition. Similarly re-usable resources are to be preserved to effect cost-savings.

5. Shared value: Finally shared value is large S because that tells about the prevailing mood & dedication to the purpose among the cadre that distinguishes a successful firm from the laggards. Once the whistle is blown to put the strategy on wheels every staff member shall work with the same level of dedication, loyalty, enthusiasm and excellence in customer service. That is almost half way in executing your business strategy.

 

Cheers!

 

Muthu Ashraff

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist