From Business Strategy to Execution: 5 Things You Need to Consider
A good business strategy does not always guarantee proper execution. Similarly, great execution does not always come from an excellent business strategy. While it is ideal to believe that a good strategy always leads to good execution, this is not always the case. Making educated decisions based on details, while seeing the bigger picture, is still the best marker for a successful outcome.
There are always several factors at play here. When the variables behave expectedly or when factors remain constant, the outcome may be predicted. However, business does not operate in a corporate vacuum. This is most true in business, including online selling.
For example, an unexpected city lockdown may make the business nonoperational. Or perhaps the product is suddenly withdrawn from the shelves because of noncompliance, which forces the company to settle substantial legal fees. At some point, execution will fail—hard. While business strategies precede execution or implementation, here are five principles substantial enough to affect the outcome.
A small hole will sink a ship. This hole may not be significant enough initially, but may become crippling later on. A rapidly changing business climate cannot afford complacency even for the most successful businesses. It’s important to remember that a company that immediately earns big can also incur big losses. Regular evaluations are vital between each stage of execution.
For example, a technology and gadget business industry must always be sensitive to rapidly shifting market trends and political situations. As with most businesses, irrelevance is destructive.
Sometimes, the business owner needs to make difficult decisions when the company is struggling. While a business owner’s initial reactions are to go into full survival mode, continuing the operations could mean more losses for the business. While it’s true that opportunities may be created out of hardships, sometimes the greatest tragedies and opportunities come unannounced. Business decisions should be objectively made or executed based on an acceptable chance percentage of a loss or success.
Having backup plans is a critical part of a business strategy. It is especially important that this part of a business’ strategy is not rushed. All possible situations should be considered at this stage. Executives should be prepared to make revisions to the plan on the fly. A company simply cannot prepare for everything, especially when aspects of the situation may be rapidly changing. Contingency plans should be formulated during the planning of business strategies and goals. Reassessing strategies when a bomb drops on the company may not be the best time to make decisions.
Alignment of Goals
A business strategy must be complimented by thorough execution and vice versa. Business plan executions must always be aligned with business strategies and goals. Decisions founded on fear or arrogance with no well-studied plan of action is harmful. Companies that make rash decisions based on these two foundations are too complacent and will be underprepared. Some companies become successful overnight, while some immediately crash despite planning. A solid business strategy must be founded on sound legal, ethical, and corporate practices. A business with weak foundation will not be prepared for even the slightest market changes.
Learn favorable trends. Unlearn bad practices. Relearn good ones. All of a company’s practices must be aligned with the company goals. A business cannot expect to move forward when it is experiencing serious losses. Resources are limited, and decisions must be made immediately. Here is where accountability matters. Where there are losses, there are liabilities.
Specifically, a company must be able to prevent further losses by not burrowing deeper into the mess it has made. Business strategies and their execution are not always linear. It’s more comparable to a series of interconnected flows in which executives have to return and move forward to specific points of the business strategy to improve or correct a business execution.
There are many factors pulling and pushing the outcome. These factors are like an interconnected series of waterways. Companies simply cannot add or isolate factors to come up with favorable decisions. Even the most prepared and resourceful companies go bankrupt. To increase the chances of a favorable outcome, a company must be responsible enough to prepare sound business strategies and execute these well.
This article has been published in accordance with Socialnomics’ disclosure policy.