Five tips for building an effective business strategy

A strategy refers to the goals an organisation, or team, has and the methods used in order to achieve them.

It addresses a number of key questions, including: 

1. What goals will be achieved over a defined period of time?
2. How will these goals be achieved?
3. Who will be responsible for delivery of the overall strategy, and each individual goal?
4. How will success be measured?
5. What are the barriers to success and how might these be mitigated?

Working to provide answers to these questions can position organisations, and teams, for sustainable success in terms of developing their strategy and implementing it effectively.  

In a survey carried out by Cascade (Strategy Execution Platform) in 2022, the difference between a Leader’s ability to define their strategy, versus their success in implementing it was stark: 

67% of leaders asked thought that their organisation was good at developing strategy, whereas only 47% felt that their organisation was good at implementing it. 

This article provides five tips that enable strategy development and implementation to be equally successful. 

Tip one: Start with the end in mind 

Starting with the end in mind is a habit identified by Stephen Covey in his book; ‘Seven Habits Of Highly Effective People’.  

Although focused on individuals, this can be a really useful technique for helping those tasked with developing a strategy to use their imagination to visualise what their organisation, or team, could be. It helps to define the ultimate destination, (sometimes documented as a mission statement) and provides a focus from which the ‘nuts and bolts’ of a strategy can be created.  

Tip two: Consider a top down/bottom up approach to strategy development 

Traditionally the development of strategy would be the preserve of those in leadership positions. They would shape a strategy based on their view of the world then communicate it to their employees, customers and other stakeholders.  

Of course their input will always be valuable; their position is likely to give them an insight that will be critical to developing the right strategy, and implementing it successfully.  

There is only one view though, engaging with those lower down the hierarchy, those who are often at the ‘coal face’ of what happens now, can provide useful data as to what the future might look like and the best approach to get there.  

As an additional benefit, seeking input and opinions will also increase employee morale as they feel they are adding value to the organisation, or team. They will feel that they have been part of creating something and are more likely to be invested in its successful implementation.  

The survey carried out by Cascade showed that 95% of employees don’t fully understand their Organisation’s strategy. Involving them in its creation is certainly one way to address this.  

Tip three: Ensure strategic goals are clearly defined and communicated 

It’s vital that all stakeholders clearly understand what the strategic goals are, and how their individual contribution supports successful delivery.  

Doing this will provide a sense of purpose for all that builds engagement that is more likely to be sustained as the strategy moves from concept, through to implementation.  

A full communication plan should be developed which includes; methods of communication, frequency, owner, success metrics.  

Tip four: Align strategy with values. 

The ‘how we do things round here’ is an essential part of strategy implementation. Many organisations will have defined values that showcase the behaviours expected of their employees.  

Ensuring that these are clearly aligned with the strategic deliverables help those involved in delivering the ‘what’ to have total clarity on the ‘how’.  

Tip five: Don’t be afraid to be flexible. 

A well-researched, documented, and communicated, strategy can be a framework for real organisation, team, and individual success.  

It should never be so rigid, that any deviation from the original plan is treated as some kind of failure. The world turns, businesses adapt, they innovate, they change direction.  

The strategy may, for example, cover a five-year period. Build in regular reviews to ensure it’s still the right path to success. If good foundations are in place, then the need for dramatic change might be unlikely (although certainly not impossible) but smaller amends to the strategy and/or approach are likely to increase the chances of a genuinely successful implementation.  

Of course, the tips above aren’t everything you will need to build a business strategy, but not giving them proper consideration will create risk to its ultimate success. 

Phill Slater 

IMechE trainer 

To help engineering managers achieve their strategic objectives, the Institution has launched a new training course: Business strategy for engineering managers. 

For more information, or to discuss specific training requirements, contact us at training@imeche.org or by calling + 44 (0)20 7304 6907.