I enjoyed twitter chat today about Creating a Long Term Business Strategy today. We had a great conversation, with a total of 22.6 M impressions, 53 contributors and a total of 709 tweets within the hour. Here are my answers.
What is the difference between a business plan and a business strategy?
The difference between a business plan and a business strategy is its content. A business plan documents your business and it’s objectives, whereas a strategic plan documents how you plan to achieve these goals.
What are the basic steps in creating a thoughtful and realistic business strategy?
A thoughtful and realistic business strategy tells the story of HOW you will achieve your business plan — the initiatives you will undertake, who will do them and when they’ll be done by.
At what phase should a company consider creating a long-term business strategy? How early is too early, and when is too late?
It’s never too early or late to create a long-term business strategy because planning increases your odds of success. by allowing you to take a coordinated, systematic and informed approach.
How long in the future should a business strategy plan for? How often and when should you review and potentially revise your strategy?
3-year strategic plans are the new norm for small to mid-sized businesses however 1-year is sufficient until the business model is proven. For best results, strategic plans should be reviewed and tweaked regularly once a quarter.
Why is it important to have a company purpose in your business strategy? How do you develop a company purpose and how do you bring it to life?
A mission statement is what we do, a business purpose is why we do it and not only helps employees understand the organization’s direction, it is the driving force in decision-making & should be in a business strategy to bring it to life.
How important is culture in supporting the execution of your business strategy?
Culture is a critical factor in the execution of your business strategy as it drives people’s behaviour, innovation and customer service directly affects retention and can give your business a competitive advantage.
When should a small business consider creating a board of directors? How can this be a strategic development for business growth
I believe every small business should create a board of directors or advisors to assist in the strategic development and assist with business growth because no one knows everything, and you don’t know what you don’t know!
How can you include risk mitigation in your business strategy? What tools can you use to identify risk as part of your strategy?
Your business strategy should identify all known risks, analyse consequences, evaluate/rank potential impact, review treatment e.g. risk avoidance, acceptance, transference and limitation and how you will monitor and review.
It’s important to have realistic goals. How can leaders create strategic objectives? What KPIs should be tracked?
It’s key for businesses to write down SMART (specific, measurable, actionable, realistic & timely) goals KPIs (key performance indicators) that can gauge the success of strategic objectives around financial, customers, internal & learning objectives.
What is strategic communication and why is it essential for developing a long term business strategy? Who is responsible for this on the team?
Communication is deemed strategic when it’s consistent with the mission, vision, values, purpose & enhances the strategic positioning & competitiveness between competitors. Responsibility typically lies with Communications director.