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What Does "Strategy" Really Mean?

At the beginning of this new year, many leaders are working on their business strategies for the upcoming term.  This article by my friend, Leanne Hoagland-Smith, may help answer some questions.

Strategy is a much often word used in businesses and organizations. "We need this strategic approach" becomes almost a mantra for many in business. However very few people truly understand what strategy means.

The origin of the word strategy was all about a general who wished to deceive his enemies. In today's business environment, strategy should be about out thinking the competition. This is the beginning for any organization.

Unfortunately, many small business owners, single office home office to even C-Level executives fail to invest the time to think strategically. As Michael Gerber of the E Myth has been so often quoted, these folks are too busy working "in" the business instead of working "on" the business.

In an earlier column, I shared one of the best models that not only serves as a guide for execution of goals, but can also be a quick diagnostic tool. Organizational expert Jay Galbraith developed this 5-point star model. For a quick review, at the top of this star is strategy with structure, processes or systems, rewards and people following clockwise. In the center of the Star resides customers or results.

By adopting this model helps organizations to truly understand that thinking must come first. Spraying and praying your actions all over the place when you are in the role of Captain Wing It just will not stick and consequently drain your limited resources of time, energy, money and emotions.

Even though strategy is the starting point, this does not mean to ignore the other points of the star. For example, an organization embarks on a strategic plan. Then one of their first actions is to conduct focus groups among both stakeholders and shareholders. The data is collected, the recommendations made and decisions implemented.

Several months later the desired results are not being achieved; additional resources are invested and still no results. Instead of looking to the structure, the systems, the rewards and the people, a new strategic initiative is implemented ignoring the data from the focus groups. Now the stakeholders and shareholders are upset because they believed their views have been summarily dismissed. The organization now has to contend with a new challenge along with not achieving their results.

One of the best examples of someone who understood the Star Model before it was developed was President and General Dwight D. Eisenhower. His expertise was logistics. Eisenhower was appointed the Supreme Allied Commander because of his ability to strategize, understand structure, work with processes/systems, leverage rewards and deploy people. Through his efforts, he did deceive the enemy and lead to the beginning of the end for World War II.

Now as the small business owner to independent sales professional to CEO what would happen if you embraced strategy within your existing talents? Of course that would mean you might need to know what those talents really are. Here are what I believe are three critical areas; the necessary talents to think strategically; and to "Make it so" as said so often by Captain Picard of Star Trek Enterprise saga.

First is overall leadership is where you analyze your leadership skills and competencies. Talents within this category would include:

* Accountability for Others

* Balanced Decision Making

* Developing Others

* Leading Others

* Understanding Motivational Needs

Second area is overall organizational being the big picture. Areas of focus would include vision, use of resources, quality, succession planning and production management. Specific talents would be:

* Concrete Organization

* Integrative Ability

* Practical Thinking

* Proactive Thinking

* Results Orientation

The third and final area is time management or what I prefer to call it is Overall Self-Management because no one can manage a constant. The talents for better self-management include:

* Attention to Detail

* Consistency and Reliability

* Project Scheduling

* Realistic Personal Goal Setting

Yes strategy is the beginning, but it is truly not isolated. Isolation only ensures that the desired results will not be achieved. So if you are thinking about engaging in any strategic planning process remember the Star Model and make sure that you have the right talents to "Make it so!"

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