04 May 2010: Your Business Strategy Yesterday, Today and Tommorrow

By Dr Kenneth J Preiss
Chairman Corporate Outcomes Group

Australia weathered the global economic downturn better than most countries, so if your business survived the economic maelstrom, then it would be easy to conclude that your business strategy of yesterday worked and, therefore, should be followed for tomorrow.
 
Well, tomorrow is another day and a totally different ballgame. A lot of companies experienced considerable pain, some closed their doors, others are in terminal decline, some are injured but not mortally, and the remainder is on the prowl looking for new markets and revenue streams. Simply put, the healthy ones are searching for opportunities to capture market share or gain market penetration: hopefully not at your company’s expense. 

The time is now to re-evaluate your business strategy. Will it serve you well in the emerging economic climate? A totally different climate from a year past: and in six months time, a totally different market from today. Continuing the same business strategies of yesterday and hoping for different outcomes tomorrow is just not a sustainable business model. Furthermore, hope is not a strategy! Simply put, tomorrow's survival and success starts today.

What is the health of your brand? Have you removed the wrinkles from the operations value chain? Have you really maximized your ROE? Is your HR capital optimized? And, will your marketing strategy of yesterday protect you from the survivors of the economic downturn targeting your most profitable client base today – let alone tomorrow?

The mantra when the going gets tough, the tough get going will be more evident than ever before in the coming year. Financial losses need to be recouped, lost ground needs to be regained and the product/market battle front needs to be extended in depth.

Ramping up prices to generate greater revenue - as in the past - is not going to be available as a pricing strategy for the foreseeable future. Revenue and profit must come from better strategies more effectively implemented – strategies that everyone in the organisation must own and value.

The enemy is out there and this time they will not be coming from historical nor traditional competitor bases: they will come from the least expected direction. A flexible and agile organisation is the minimum requirement. Creating the most appealing value proposition will flow from a combination of an agile organisation and smart strategies: smart business strategies that robustly integrate the strategic fundamentals of your business.

The Challenge

As has been stated many times elsewhere, “practice makes perfect”, so why not assign your managers a $90million simulated business and allow them to sharpen their strategy teeth on that, whilst at the same time assessing their performance against the best managers of the future from across the world. As you let them loose in your market place you will know they can compete if not exceed the best challenges your competitor can throw at them.

Dr Kenneth J Preiss is Chairman of Corporate Outcomes Group. Over the years he has created an operated a number of businesses. His research interests and business consulting practice is built around corporate, business and entrepreneurship strategy development and implementation. He has consulted to both large corporations and small businesses around the world and is currently on assignment in the United Arab Emirates.  He is also head of our Boston office, USA.