STRUCTURES & RESPONSIBILITIES
Structure promotes the culture leaders seek to put in place. A flat structure encourages a low power index culture and greater collectivism. Whereas in a control-led culture, the responsibility for major decisions rests with functional leaders. In collaboration or competence-led cultures, unit managers have greater responsibility as functional leaders provide advisory services. Instances exist where a matrix structure is practiced and differences in cultures exist within the matrix.
Structures enable resource flow, decision-making powers and reward systems to flow into an organizational policy document. In matrix structures, a deliberate strategy will allow project heads to negotiate with functional heads for their resources. The functional employee now reports to two superiors and are appraised by both for their contributions and response to the market. That means employees who are less collaborative may be re-assigned or allowed to leave the firm.
PROJECT EVALUATIONS AND MONITORING
All strategies have in-built projects that must be broken down and managed along core business activities. Success requires the right projects to be implemented in the best sequence and timeline that yields the best value.
Strategy projects can be segregated into internal and external projects. Internal projects involve all activities meant to implement data strategies, communicate strategy and build a structure that aligns with the culture and values sought.
External projects include the market and product expansions, franchises, strategic alliances and etc. to be carried out. The delivery timelines, costs of implementation and expected revenue must be monitored and evaluated for their viability.
INADEQUATE RESOURCES
Competencies and competitive capabilities must be intentionally built in strategy. Documenting the efforts meant to develop contingent resources for the strategy is critical to cater for: staff absenteeism due to bereavement or illness, broken equipment, supply chain issues leading non-availability of materials, resource redirection following changes in executive priority, major learning curves related to changed technology and some financial distressing situations.
To avert such challenges, leaders must appreciate resource availability, schedule limitations and delivery timelines. The strategy, split into various phases, can be easily monitored to identify such risks. Where alliances with outsourcing partners or governmental agencies are needed, these may be engaged earlier so their resources can be committed earlier.
Resource inadequacies is a common managerial problem. However, to employees it can be demoralizing to pursue high targets with inadequate resources. Resource trade-offs in certain periods may be required to satisfy employees.
RESEARCH & COGNITIVE BIAS
Leaders tend to lean towards strategies that have paid off well in the past than to strategically deal with new challenges. Strategy, as a way out of any obstacle, cannot be rejected as bad or improved upon when the challenge is undefined.
A fast follower strategy may have pitfalls created by industry leaders that are differentiating or pursuing cost leadership. Choosing what to follow will help a small business avoid a "do everything" strategy substantially drains resources.
With an arms race strategy, leaders seek greater market share by undercutting prices or pursue disruptive innovations so they can "hit another home run". Such cognitive biases may end up hurting the financial abilities of the company.
ALTERNATE STRATEGIC OPTIONS
Alternate strategies are mutually exclusive strategic objectives for carrying out the same vision. The action plans therein must be feasible, acceptable and suitable for present externalities. Milestones are set in line with present market conditions and regulations. Such was the scenario planning required to mitigate the anticipated shutdowns during the pandemic.
Avoiding consensus traps in the midst of influential executives is critical to the development of alternate strategies. A shadow strategic committee could play a devil's advocate bearing in mind the present challenges the firm must overcome and actions outside the main strategy needed to deal with imminent opportunities and threats.
As we bring down the curtains on a subject that often deny many success, we are particularly glad that strategy documents will no longer be treated as a template-filled report. Again, much of the fluff words that do not exist in policy will be set aside and the document will be actively used to evaluate and monitor all business projects at all levels.
