Strategy can be defined as:
“The direction and scope of an organization over the long-term, which achieves an advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholder expectations.”
The above simply means:
- what do I need to do over the long term to achieve my goals?
- What are the key steps I need to take now and in the future?
- Which decisions are important and which ones are less so?
Strategic planning is crucial to the success of any business because it provides criteria or benchmarks by which we can judge the usefulness and success of our actions. It also forces managers to think and act proactively.
The Strategic planning process is complex! Here at AA Accountants UK Ltd, our approach is to break it down into three main stages:
1. Strategic Analyses:
- Where do we want to go?
- What constraints exist on our resources?
- What are the key threats from the external environment?
2. Strategic Choice:
- On what basis do we decide to compete?
- Which direction should we choose?
- How are we going to achieve the chosen direction?
3. Strategic Implementation:
- How are we going to unfreeze, implement the change and then refreeze?
- Do we need a corporate restructuring or appropriate organisational structure?
- How are we going to manage our resources?
Planning can be too rigid and not allow you to take advantage of emerging opportunities. On the other hand, free-wheeling opportunism with no long-term strategic plan allows managers to quickly exploit the changing circumstances and react quickly to a changing environment. But it runs the serious risk that you compromise the long term viability of your business by chasing opportunities and losing sight of your long term goals.
What you need is balance. We help you to create a balance between strategic planning and free-wheeling opportunism. That way you get best out of your strengths and resources while at the same time enabling you to take advantage of opportunities arising from changing the environment. It gives you a reasonable assurance that your objectives will be met, and will continue to be met long into the future.