In order to lead the business to its greatest competitive advantage, there must be a mechanism to focus the organization on what it will do best and keep it from getting distracted by other opportunities that come along. This mechanism it the strategic focus of the business.
The strategic focus is an intersection of three key elements of the business model:
- The organization’s passion — its compelling purpose composed of values, mission, vision, and goals which inspire and motivate the members of the organization,
- The value proposition of the business — what the customer values in the offerings and rewards the organization for doing, and
- A distinctive competency — what the organization can be best at in the world
Strategy 1: Inspire with Vision
Several years ago, an international executive search firm surveyed 1500 senior corporate leaders from 20 countries.
The question: “When selecting a CEO, what performance characteristics do you consider to be the most valuable?”
The answer: “A clear vision and the ability to rally people to it.”
The subject of corporate vision has gotten plenty of attention over the past 20 years. These days, many companies, even small ones, have written vision statements, values statements. Obviously, some of these documents serve as the basis for energizing and focusing superior performance, while others are nothing more than frilly window dressing that employees snicker at when the boss’s back is turned.
What constitutes an effective vision statement?
The next generation of market leaders will use motivational vision statements to add bandwidth to all of their marketing and communication programs. We identified five characteristics shared
by the more successful ones.
- It addresses the future:
- It is emotionally compelling:
- It is reality based
- It describes a meaningful deeper purpose
- It permeates everyday work
Vision-driven companies attract better employees, function with more purpose, and are more adept at holding the attention of high-value clients. Unfortunately, this requires that someone actually have a perceptive vision and the capacity to rally others to it. Not an easy task.
Strategy 2: Lead with Values
To be continued…
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For more information on each of these concepts email us at: info@DIADconsulting.com.
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In today’s greedy, short-cut driven culture, values have never been more important or precious. But this study is not about finding companies that do the right thing; it’s about defining those characteristics that contribute to competitiveness. Interestingly enough, companies that genuinely nurture a culture of values, over time, are more effective in the marketplace. Even though we witnessed several brave attempts, this is one of those characteristics that is impossible to fake.
Do you know what your business’s values are?
I believe, and many of the most successful businesses of today agree, that your corporate values may be THE most important asset in enhancing your company’s long-term monetary value.
Your strategies and trends will come and go — your values can be forever!
This paper will help answer the top questions you need to know about corporate values, such as:
- What are values?
- Why are values important?
- How do you determine your values (including a “values exercise”)?
- What are some business examples of values?
What are values?
My definition of values is simple: Values are deeply-held beliefs about the right way of doing things. Each individual operates life with their own set of values…and, of course, a business should as well.
In management, business values are informal considerations that include all forms of value that determine the health and well-being of the firm in the long-run. These include financial considerations, but Business Values expand the concept of value of the firm beyond economic value to include other forms of value such as customer value (companies are often acquired/bought solely to gain their customers), employee value, talent value, knowledge value (companies are also acquired/bought to gain their technology or infrastructure), supplier value, channel partner value, alliance partner value, managerial value, societal and community value, etc. Many of these forms of value are not directly measured in monetary terms.
Business value often embraces intangible assets not necessarily attributable to any stakeholder group. Examples include intellectual capital and a firm’s business model. The Balanced scorecard methodology is one of the most popular methods for measuring and managing business value.
Strategy 3: Attain Strategic Focus
What does it mean to be strategic?
Strategy is the art and science of directing a systematic plan of action toward a specific, intended result. It entails linking clear objectives to actions, evaluated to assess the result.
Most companies are busy employing their business tactics, and fail to put those efforts in the context of a planned strategy. These companies never breakthrough to the next level.
Being strategic is a state of mind — You must constantly think strategically and create a realistic Mission Statement that ties all activities to the Goals of your governing strategy. You must continuously assess, “Does this activity add value to meeting our Strategic Goals?” Your Business Tactics must always support the Strategy.
It’s confusing out there. Attractive distractions are everywhere and strategic focus has never been more difficult to maintain. Tomorrow’s most competitive companies will know their mission and stick to it.
That’s not to say they will ignore genuine opportu nity, but they won’t chase off in various directions capriciously.
To be continued…
Do you want to learn more?
For more information on each of these concepts email us at: info@DIADconsulting.com.
Fill out our contact form to receive 2-hours of free consulting.