Strategy Offer Growth & Potential to Your Business:- An unsatisfied customer, a departing employee, a regularly defective product … you never stop solving the problems that are flowing. Your horizon is limited to the short term. Your involvement is not in vain because, alongside these emergencies, your business is well managed: your customer portfolio is loyal, you hold strong positions in your market, your margin is sufficient to meet your costs, your profits are substantial…
But what about the medium and long terms?
Your situation is not without danger: the arrival of a new competitor, the appearance of a technological breakthrough, a sharp drop in volumes bought on your market … The salvation comes from a renewal of your growth potential. Have you wondered how to create new opportunities for the development of your business?
Why Create Potential?
As quoted in the introduction, the “well-managed” companies that exploit their market perfectly without worrying about the renewal of their customers present a risk in the more or less long term … That of seeing the source dry up without having anticipated this uncertainty in seeking new sources of growth. So, of course, focusing on the operational side, the benefits are important because investments are limited and costs are generally tight. But here it is: you do not invest in the long term…
For your business to be successful, you have to mix the two imperatives: operational excellence and development of new potentials.
It’s a bit like a gold mine. On the one hand you make the best use of the existing vein to make a maximum profit; on the other, you are looking for new deposits to secure your future.
How to Create Potential?
This is the purpose of the strategy. The long-term goal is to identify activities with potential that the company can exploit.
It is therefore necessary to conduct a strategic diagnosis based on questions such as:
- What do you want to become? What projects do you want to lead? What is your job?
- What are your basic skills?
- How is your portfolio of activities distributed? How to segment them? What are the potential unexploited crosses?
- What are your competitors? Your strengths and weaknesses vis-à-vis them?
- What is your investment capacity?
Strategic matrices are interesting tools for managing a portfolio of activities. The purpose is precisely to obtain a balance between the activities to be developed and those to be exploited. The best example is the BCG matrix, which clearly shows the policy to be adopted depending on the situation. Note that this matrix is relevant in a volume industry, where the biggest is the strongest.
Why the Operational seems easier than the Strategic?
The operational is confronted daily with the problem solving. It involves applying known techniques to identified situations. On the contrary, the strategy is part of a process of questioning and innovation. The solution is not known, it must be invented according to the singularity of the characteristics of your company and its environment. Experts will say that the first is complicated, the second complex. In conclusion, to drive your business towards performance, you must know how to get out of the handlebars, stand back and project yourself to open new horizons!