Rediscover Strategy

By M. Isi Eromosele

It is perplexing as to why so many companies fail to have a strategy, managers avoid strategic options and why managers frequently let strategies crumble. Many companies seem to assume that the threat to strategy originate from outside their organizations because of external factors. While external changes may create some problems, a bigger threat to strategy regularly comes from within companies. A good strategy is weakened by a mistaken view of competitors, organizational failures and especially by the desire to grow without proper planning.

In recent times, managers have come under increasing pressure to produce concrete and measurable improvements. Caught up in the race for operational effectiveness, many managers ignore the imperative of having a sound business strategy. There are other causes why strategic choices are ignored by many companies. The cultures in many companies favor conventional wisdom that regulates their view of the competition. Customer focus is interpreted to mean that they must serve all customer needs by rudimentary means. In other companies, organizational realism works against strategy formulation. They are frightened of trade-offs, making choices is preferred to risking blame for a bad choice, competitors are imitated and there is a lack of vision of the whole.

A number of approaches can help a company reconnect with strategy. The first is a thorough look at what the organization does. Every established company has a core uniqueness within them that would be identified by this thorough examination. Around those core uniqueness are layers of processes added incrementally over time. These layers need to be removed to expose the underlying strategic positioning. The challenge is to refocus on the unique core and realign the company’s activities around it. Customer segments and product varieties at the margins can be sold. The original strategy of the company can be reexamined to see if it is still valid. Can the historical positioning be implemented with new best practices and state-of-the-art technology underpinning? This kind of thinking could lead to a commitment to renew the company’s strategy and may challenge the organization to recapture its distinctiveness.

Deepening a strategy position involves making the company’s activities more distinctive, strengthening fit and communicating the strategy better to those customers who would value it. A company would grow faster and become far more profitable by providing a variety of customer needs in markets where it is distinctive, rather than trying to compete in potential higher growth markets where the company lacks uniqueness. Globalization frequently allows growth that is consistent with strategy, opening up larger markets for a focused strategy. Unlike expanding domestically, growing globally is likely to leverage and reinforce a company’s unique position and identity.

Companies seeking growth through expanding within their industry can best contain the risks to strategy by creating stand-alone units, each with its own brand name and customized activities. Premium and value brands can be organized into separate units with different strategic positions. The challenge of developing and reestablishing a clear strategy is often primarily an organizational one, with leadership playing a crucial role. A sound intellectual framework to guide strategy is imperative and strong leaders willing to consider options are absolutely necessary.

M. Isi Eromosele is the President | Chief Executive Office | Executive Creative Director of Oseme Group - Oseme Creative | Oseme Consulting | Oseme Finance

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