What is a strategy, and why do you need one?

Good questions -- glad you asked! Let's take them in order. What is a strategy? Broadly, a strategy is a plan for setting long term goals and putting in place the actions (tactics) for achieving them. A corporate level strategy would include the following types of items (this is not an exhaustive list): • Mission of the company (why it exists); • Vision for the company (what is the desired future state); • What products and/or services to offer, now and in the future (a roadmap); • How to make money (business design); • Growth targets (if any); A marketing strategy fits within an overall corporate strategy. It is the process of: • Determining who your customers are (or should be); • What is important to them; and • What sets you apart from your competition. Why do you need one? Most people think of strategy at one of three main points in the lifecycle of a business: The start-up phase; when things are stagnating; or when growth has run amok. A strategy provides focus to a business -- which is particularly important at each of these stages. Strategies are developed as part of a discrete planning process. Take that mission and vision thing to heart -- that will provide the illumination for the strategic plan. It will help you see the customer needs; the changing environment; competition (existing, emerging, and potential); trends in technology; and forces affecting people and hiring. Once the company strategy is in place, the marketing strategy can be developed. How to position your offerings, how to generate awareness of and demand for them, and what you need to deliver a complete solution to the customer will come from that strategy. The most important part is the execution. There are far more great strategic plans than there are corporate success stories. Putting the right actions into place, and then measuring the right performance elements, and adjusting based on this feedback are essential to the bottom line -- where the money hits the bank account. I recently had the opportunity to meet with executives at OVO Innovation (www.ovoinnovation.com), who make some very interesting software to help the innovation process. Their motto is "Innovate on Purpose" (TM)-- what a great thought! Many businesses are reasonably successful without a well-defined strategy. Just like innovation, it can happen without a process. However, a good strategy can help you become successful on purpose.