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Are You Using Strategy Planning Correctly?

MP900341397Often times employees, companies, and even C-level executives are confused about the term “strategy”. Unfortunately, many organizations invest their time and focus on improving operational skills and not enough on strategic planning.

Strategy is not implementing best practices, because these practices are widely used and do not differentiate you from your competition. Strategy is not aspiration, because aspiration is about having goals, enthusiasm, objectives, and visions. Strategy is not about playing it safe, because business involves taking smart risks, trade-offs, and decisions in times of uncertainty. In business, if you are not pushing forward you are falling behind.

Rich Horwath, renowned strategist and author of Deep Dive, defines “business strategy” beautifully as “the intelligent allocation of limited resources through a unique system of activities to outperform the competition in serving customers”. These resources include tangible (physical assets and financial resources), intangible (brand, culture, reputation), and human resources (skills, knowledge, competencies).

With strategy, it is not about performing better than your competition, but rather how you differentiate yourself from the competition. Jeff Immlet, chairman and CEO of General Electric, understands this concept and states, “GE must look different… act different… be different… to excel in the years ahead.” The road to business success is paved with differentiation from the competition in the minds of your consumers.

Strategic planning is about designing and developing a way to best position your organization in the market that utilizes your strengths to create a competitive advantage over the competition. How will you create your competitive advantage?

 

 

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