What is a Strategy?

A strategy is a specific approach to achieving an organisation’s vision, mission, and objectives. It’s a roadmap that guides the organisation's actions and decisions and helps it to stay focused on its priorities. Strategies can be developed at the organisational level or for specific business units or functions within an organisation.

A strategy outlines the high-level actions that the organisation will take to achieve its goals, and can be developed for a wide variety of purposes and contexts, including in business, government, and non-profit organisations. 

In business, strategies are commonly used to achieve a competitive advantage, enter new markets, improve efficiency, or achieve any other desired business outcome.

Governments use strategies to achieve their policy goals and objectives, such as improving healthcare, increasing economic growth, or addressing environmental issues.

Non-profit organisations use strategies to achieve their mission and achieve social impact, which can involve strategies such as fundraising, community outreach, and advocacy.

Military organisations use strategies to plan and execute military operations to achieve their objectives and protect national interests. Sports teams use strategies to win games and achieve their goals, and individuals can use strategies to achieve their personal goals, such as saving for retirement, improving their health, or advancing their careers.

Link to Vision

The vision of an organisation is its long-term ambition or desired future state. It provides a clear and inspiring direction for the organisation and serves as a reference point for the development of strategies and plans. The mission of an organisation, on the other hand, is its reason for being and describes the purpose and core values that drive its operations.

The development of a strategy starts with the identification of the organisation's vision and mission and the identification of its goals and objectives. The strategy is then derived from these elements, and outlines, at the highest level, the actions that the organisation will take to achieve its goals and realise its vision.

Examples of Strategies

Below are three examples of strategies used by military forces in recent conflicts, followed by six examples of common business strategies:

1. The "Scorched Earth" Strategy: This strategy was used by the Russian army during World War II to slow the advance of the German army. As the Germans invaded Russia, the Russian army would retreat and destroy anything of value in the territory they were leaving behind, including crops, factories, and infrastructure. This made it difficult for the Germans to find food and supplies and slowed their advance.
2. The "Shock and Awe" Strategy: This strategy was used by the United States during the Gulf War in 1991. It involved a massive military campaign to quickly overwhelm the Iraqi military with a display of overwhelming force, with the goal of causing shock and confusion among the enemy and hastening their defeat.
3. The "Pearl Harbor" Strategy: This strategy was used by Japan during World War II. It involved a surprise attack on the US naval base at Pearl Harbor, with the goal of crippling the US Pacific fleet and gaining a strategic advantage in the war.

Other well-known military strategies include ‘Divide and Conquer’, ‘Winning Hearts and Minds’ and ‘Blitzkriegs’.

Business Strategies

1. Diversification: This strategy involves expanding the company's product or service offerings, or entering new markets, to reduce the impact of any one product or market on the overall business. This helps to mitigate risk and increase resilience.
2. Customer-centricity: This strategy involves putting the needs of the customer at the centre of everything the company does. This can involve gathering customer feedback, analysing customer data, and continuously improving products and services based on customer preferences.
3. Cost leadership: This strategy involves becoming the lowest-cost producer in an industry to attract price-sensitive customers. This can be achieved through various means, such as increasing efficiency, reducing waste, and sourcing materials at the lowest cost.
4. Innovation: This strategy involves continuously developing new and improved products or services or finding new and innovative ways of doing business. This can help a company to differentiate itself from competitors and stay ahead of industry trends.
5. Collaboration: This strategy involves forming partnerships or alliances with other companies to access new markets, share resources, and achieve mutual benefits. This can be an effective way for companies to expand their reach and access new opportunities.

Capability Maturity Model

The capability maturity model (CMM) is a framework that helps organisations to assess and improve their strategic planning processes. It is a model that defines five levels of maturity, starting with an initial level of ad hoc planning and progressing to a level of optimisation. At each level, the organisation's strategic planning processes become more formalised and effective. The five levels of the CMM are:

The capability maturity model (CMM) is a framework that helps organisations to assess and improve their strategic planning processes. It is a model that defines five levels of maturity, starting with an initial level of ad hoc planning and progressing to a level of optimisation. At each level, the organisation's strategic planning processes become more formalised and effective. The five levels of the CMM are:

Initial (Level 1): At this level, strategic planning is ad hoc and reactive. It is not formally structured, and there is no clear process in place for developing and executing strategies.

Repeatable (Level 2): At this level, the organisation has a basic process in place for strategic planning, and it is starting to establish some consistency in its planning activities. However, the process is still not well-defined, and there is little to no emphasis on continuous improvement.

Defined (Level 3): At this level, the organisation has a well-defined process for strategic planning that is followed consistently. The process is documented and understood by all stakeholders, and there is a focus on continuous improvement.

Managed (Level 4): At this level, the organisation has a comprehensive process for strategic planning that is actively managed and monitored. There is a focus on measuring and analysing the effectiveness of the planning process and on making adjustments as needed to improve the process.

Optimising (Level 5): At this level, the organisation has a highly mature and effective process for strategic planning that is continuously optimised and improved. There is a strong focus on data-driven decision-making and on using the planning process to drive organisational change and innovation.

Organisations should include strategic planning in their CMM to ensure that they are continuously improving the way they develop and execute their strategies. This involves regularly reviewing and updating the organisations vision and mission, setting clear goals and objectives, and developing and implementing plans to achieve those goals. It also involves regularly reviewing the organisations progress towards its goals, and making adjustments to the strategy as needed to ensure that it remains aligned with the organisations vision and mission.

Five Tips For Creating Effective Business Strategies

Here are five tips for creating effective business strategies:

1. Clearly define your goals and objectives and ensure they are aligned with your vision and Mission. Start by identifying what you want to achieve with your strategy, and ensure that your goals are specific, measurable, achievable, relevant, and time-bound (SMART).
2. Understand your market and industry. Conduct market research to gain a deep understanding of your customers, competitors, and the broader industry landscape. This will help you to identify opportunities and threats and to develop strategies that are aligned with market demand.
3. Engage your team. Involve your team in the strategy development process, and seek input and ideas from a diverse group of stakeholders. This will help to ensure that your strategy is well-informed and supported and that it takes into account the perspectives and needs of different groups within your organisation.
4. Be flexible and adaptable. Be prepared to adjust your strategy as needed in response to changes in the market, competitive landscape, or internal factors. This requires a culture of continuous learning and improvement within your organisation.
5. Communicate and execute your strategy with your organisation. Once your strategy is developed, clearly communicate it to your team and stakeholders, and ensure that everyone understands their role in executing the strategy. Then, develop a plan and allocate resources to ensure that your strategy is effectively implemented. Regularly review your progress and adjust your strategy as needed.

Summary

A strategy is an approach that helps an organization achieve its vision, mission, and objectives. It guides the organization's actions and decisions and helps it stay focused on its priorities. Strategies can be developed at the organizational level or for specific business units or functions within an organization. They can be used for a wide variety of purposes, including achieving a competitive advantage, entering new markets, improving efficiency, or any other desired business outcome. Governments and non-profit organizations also use strategies to achieve policy goals and objectives or to achieve their mission and social impact. Military organizations use strategies to plan and execute military operations, and sports teams and individuals use strategies to achieve their goals. 

The development of a strategy starts with the identification of the organization's vision and mission and the identification of its goals and objectives. The strategy is then derived from these elements and outlines the high-level actions the organization will take to achieve its goals and realize its vision. There are many different types of strategies, including military strategies like the "scorched earth" strategy, business strategies like diversification and customer-centricity, and personal strategies like setting goals and creating a plan to achieve them.