Any strategy statement must begin with a definition of the ends that the strategy is designed to achieve. “If you don’t know where you are going, any road will get you there” is the appropriate maxim here.
David J. Collis & Michael G. Rukstad, Harvard Business School
Defining objective, scope, & advantage requires trade-offs and is fundamental to strategy.
Defining the Objective – the single precise objective that will drive the business over the next 3-5+ years; not to be confused with statements of values or mission.
Defining the Scope – encompasses 3 dimensions: customer or offering, geographic location, & vertical integration; should provide clarity re: which activities to concentrate on & which should not do; may vary in relevance.
Defining the Scope – encompasses 3 dimensions: customer or offering, geographic location, & vertical integration; should provide clarity re: which activities to concentrate on & which should not do; may vary in relevance.
Bonus Nugget:
Before developing strategy and crafting statement, the key is to find the sweet spot where capabilities & customers’ needs align in a way that competitors cannot match…
- segment customers – whom do you serve.
- identify unique ways of delivering value.
- analyze competitors’ current strategies and predict how they might change.