I found this article written by Aasish Jindal very informative and interesting as it reflects the rich experience of the author in the market. Looking at the negative side of an issue gives greater insight and clarity.
By [http://ezinearticles.com/?expert=Aashish_Jindal]Aashish Jindal
Business Strategy is one of the most glamorous terminologies in the corporate world. On one hand there are countless individuals who vie for such job profiles and on the other there are many who ignore even the simple basics, giving strategizing a bad name..
Ask business leaders why strategies don't succeed and they will enumerate market conditions, economic instability and a host of macro issues which would prohibit even the best strategies to blossom. But often, the truth is closer to home and the solution lies within the organization itself.
Here are some elementary issues that plague organizations today -
What strategy?
Statistics show that across industries, less than 10% of the workforce has an acceptable idea of the organization's vision and less than 2% can correctly articulate the goals.
Strategies are the highways on which companies can travel to reach their goals, but if the employees aren't in sync with the final objective, strategies will prove useless. While not every strategy will work directly to accomplish the organization's goals, every strategy must be aligned to contribute to the overall achievement of one of the goals.
Also, all individuals associated with a particular strategic initiative should see the linkage and impact of their work in terms of the bigger picture.
The success of a strategy depends on the quality of its execution. Often great ideas fail because the implementation is fraught with poor planning. Having a well-defined and detailed project plan coupled with regular progress checks is vital to ensure that the overall direction does not stray. While it may not always be possible to draft task level details, charting out key milestones with timelines will help to maintain focus.
There is another set of great strategies that don't see the light of the day because management defines the 'what' without the 'how'. Any business that is serious about a strategy should make sure that action steps are defined with their respective owners.
Why should I care?
Most great ideas are spawned within the confines of a meeting room where management collaboratively agrees on the next big concept. The problem arises when the strategy find no takers outside the meeting room.
A key consideration is finding the right people for the job. Right people put on the wrong job seldom succeed; it is critical to build a team that has the required skills and understanding to actualize the strategic concepts.
Individuals who do not relate to the strategy or have an I-don't-care attitude can have a negative influence on other team members and jeopardize chances of success.
New leadership, new ideas
Although attrition is a harsh reality, organizations regularly look to acquire new talent to grow their services. Human nature dictates that all new hires, irrespective of seniority, have an urge to prove themselves immediately after taking up the job.
A large number of strategies fail because the team composition changes somewhere during the course of implementation and new members begin to drive the strategy in a different direction. Freedom of thought and expression should always be encouraged but those responsible for key strategic moves should be specifically guided so as to keep in line with the already finalized thought process.
Conceiving a potentially profitable strategy is extremely challenging and truly commendable, but given the high stakes, it becomes even more important to guard against basic tripping points. A great strategy unrealized will never be a match for an average strategy that has been implemented.
As a management consultant Aashish has had an opportunity of working with giants in the Investment Banking, Credit Ratings, Mortagage, Insurance and Logistics Industries.
Business strategy, budgeting, prioritization, feasibility studies, efficiency analysis, team formation, resource identification, on the job motivation, stakeholder management, business development... the list seems to be a proverbial lexicon of key resume words, but as a management consider Aashish is lucky to use these skills on a regular basis while at work.
Article Source: [http://EzineArticles.com/?Why-Does-A-Business-Strategy-Fail?&id=7125460] Why Does A Business Strategy Fail?
No comments:
Post a Comment