Corporate strategyDoes your organization create sufficient added value?
Increasing dynamics and complexity
Organizations are confronted with increasing dynamics and complexity in their external environment. Companies in technology, media or retail have a growing momentum in their external environment. Developments in technology and consumer behavior in many sectors dictate how value chains evolve. The strategy of a company to a large extent determines the position and role of companies within these changing value chains. Achieving better results in the longer term is a major driving force.
Strategy is making choices
Determining strategy is nothing but making choices. What does the organization do, what doesn’t it do? Resources are always finite, therefore making choices is inevitable. Inspiring organizations create added value in their own unique way. Successful organizations combine this with an optimal performance. Without choices no direction and without direction no optimal performance. To be able to make well-considered strategic choices, two things are essential: an understanding of the organization itself and an understanding of the environment the organization operates in. The degree of dynamics determines the importance of considering changes in the external environment.
Looking in and looking out
The business model is fundamental for the strategy of an organization. A future-proof business strategy aims to strengthen the business model of the company and to make it resistant to new situations. A business model analysis provides insight into the strength and vulnerability of the current business model. A portfolio analysis gives you information about where the organization provides the most added value. A scenario analysis gives insight into change in the external environment. Dominant key uncertainties form the basis for a set of future scenarios. By regularly analyzing the dynamics in and around the organization adjustments can be made in time.
Strategic direction as a touchstone
A business strategy is rarely developed from scratch. The organization in the past has chosen a certain path and has ideas at what is value. Eventually in forming strategy there are four key questions:
- Can we do this, given our people and resources?
- Are we allowed to do this, according to our vision and legislation?
- Will the external environment allow it?
- Do we define this as value creation?
During the project you formulate several strategic options, for instance to strengthen the business model or to respond to developments in the external environment. All options are assessed against the criteria above.
The choices that are made on the basis of these criteria we then translate into concrete strategic goals for the years to come. To make the strategy tangible and concrete
we in many cases use the OGSM model. In this model you set goals for each organization unit of which the results can be monitored. Owners will be appointed as well.
The world is changing. What do you do?
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