The formulation of corporate strategy doesn’t align well with a ‘one size or shape fits all‘ approach. As a consequence, there is no such thing as a ‘best practice‘ guide for defining corporate strategy.
A large and ambiguous lexicon of terminology, definitions, principles and concepts with wildly varying interpretations adds to complexity. It adds complexity to the process of defining a strategy. Individual circumstances often prescribe how a specific strategy should be developed and implemented.
Corporate strategy is based on knowing a few things:
- where business is at today
- where the business wants to be
- how business believes it can get there
Failure to change and pivot the business can present a significant risk that may affect overall plans to develop and grow the business. Your competition is almost certainly evolving and progressing, and one is likely to be left behind in terms of efficiency, reputation and financial success if lessons are not learned. Especially if factors which may influence successful goal attainment are ignored.
These factors impact corporate strategy and business plans.
If the purpose of the plans are business development rather than raising finance, decisions made today should be effected tomorrow.
Defining corporate strategy is a process.
The process objective is to combine the activities of functional areas of a business in a way that will successfully achieve organisational objectives.
Though not always written down or explicit, it should determine how business :
- is organised
- policies set
- resources allocated
- operational processes executed
The output of this process is an overarching strategic plan which will set the parameters for detailed operational and departmental plans.
