How do you know your strategy is working? You say no.

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The Separation of the Sheep and Goats,
Basilica of Sant’Apollinare Nuovo, Ravenna, c540AD

A good strategy sets out our priorities. Priorities, however, are only valid when we know what we won’t do.

In my experience, organisations are full of managers willing to claim that “…X is our top priority.”

It is much harder to find managers willing to say  “…X is our top priority, so we won’t do Y.”  Which is funny, because this is what top priority means: other things won’t get done. And this is OK, because we are putting our resources and attention into the things that matter most instead..

What tells us what matters most?  Our strategy. If our strategy is clear, we know which markets, customer, products, services and capabilities are most important to us. By implication, we also know which are not.

For those of us interested in customers (and I assume that is pretty much all of us), then if our strategy is any good, we have to make some tough calls.

For example: Are all our customers equally important?

For most organisations, the answer is probably no.   So the next question follows. What are we doing to make sure that our most important customers get the service they need and expect?  And what are doing to make sure that lower priority customers do not get service or resources at the expense of our top priorities?

This is often a tough call. But organisations which genuinely answer these questions can be very successful. Apple, as one example, do not seem interested in mobile phone customers on tight budgets, and they are doing all right. Low cost airline Ryanair, as another, are interested only in the budget customer – and they are one of the most profitable airlines in Europe.

Setting strategy is easy. Doing it is hard. And our willingness (or otherwise) to use strategy to set high and low priorities is one of the one of the reasons why.

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