Introduction

Strategy is a term that has been wielded in boardrooms, war rooms, and classrooms around the world. It's a concept that, while frequently used, is often misunderstood or misrepresented. This article seeks to address three fundamental aspects of strategy – the 'Who', 'What', and 'How'. We will explore these facets in an attempt to demystify strategy, focusing primarily on its application in business.

What is Strategy?

At its most basic level, strategy is about setting a course of action to achieve specific goals within a certain environment. It's a roadmap designed to steer an organization from its current state to a desired future state. A well-crafted strategy considers the internal resources and capabilities of the organization, the external environment, and the interplay between the two.

In the context of business, the goals are typically related to gaining a competitive advantage, such as achieving greater market share, optimizing operational efficiency, driving innovation, or improving customer experience. Strategy, then, is the cohesive response to the question, "How do we win?" It brings coherence to the actions and decisions of an organization in its quest for long-term survival and success.

Who is Involved in Strategy?

Traditionally, the formulation of strategy was considered the responsibility of senior executives or the C-suite. This top-down approach relies on the expertise, vision, and judgment of leaders who have a broad overview of the organization and its environment. They define the strategic intent and direction, which then trickle down through various levels of the organization for execution.

However, contemporary strategic thinking recognizes the value of a more inclusive process. Strategy today is considered a cross-functional task, where people from different levels and departments contribute their perspectives. Front-line employees, middle management, and even external stakeholders like customers and suppliers can provide valuable insights that may otherwise be overlooked. Thus, while strategic direction is still provided by the top, there is a growing trend of involving the 'Who' at all levels in the strategic process.

How is Strategy Developed and Implemented?

The development of strategy involves a series of steps that typically start with the evaluation of the organization's current state. This includes an assessment of its resources, capabilities, and performance, as well as an analysis of the external environment. Tools like SWOT (Strengths, Weaknesses, Opportunities, Threats) and PESTEL (Political, Economic, Social, Technological, Environmental, Legal) analyses can be instrumental in this stage.

Following the assessment, the organization then sets its strategic objectives. These are specific, measurable goals that align with the organization's broader mission and vision. Once these objectives are established, the organization develops a strategy to achieve them. This involves making key decisions about where to focus resources and efforts.

Once the strategy is formulated, the next step is its execution. Strategy implementation is often where many organizations falter. It requires excellent communication, ensuring that everyone understands their role in the strategy, and maintaining alignment between strategic goals and daily operations.

Implementation also involves monitoring and adjustment. The organization needs to track progress towards its strategic goals and adjust the strategy as necessary in response to performance and changing conditions.

Conclusion

Strategy, in essence, is about making informed decisions to chart the best course forward for an organization. While the senior leadership typically drives this process, incorporating diverse perspectives can enrich the strategic process. Developing and executing a strategy requires a careful assessment of the organization and its environment, clear goal setting, decisive action, and diligent monitoring. Despite its challenges, effective strategy remains a cornerstone of successful business management.

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By Andrew Constable MBA, LSSBB

Keywords: Business Strategy, Innovation, Leadership