Have you ever wondered how companies like Amazon achieve so much success while other businesses remain small and keep fighting to stay afloat? Well, one of the reasons between Amazon and not-so-successful companies is in the approach they take for business. Companies like Amazon are strategically driven while other companies typically take tactical measures and focus on short term goals.
Companies like Toys R Us, Blockbuster, and Polaroid recently shutdown. If these companies had been strategical in their approach, they would still be operational. World’s most valuable companies
Strategic thinking vs tactical thinking
If you ask business leaders to plan for long –term, it will give them chills. Long-term planning is difficult because there’s a high level of uncertainty associated with it. So businesses focus on short–term goals to increase their bottom line. Long –term planning has its cons. Companies often face organizational and political pressure due to their plans. A strategic approach also makes justifying decisions hard as leaders are under constant pressure to show short-term shareholder value.
Tactical thinking, on the other hand, aims to achieve short–term goals. Strategic leaders act at the moment to secure future profitability and sustainability. Strategic leaders evolve with time and rise up to opportunities.
Becoming strategic takes mental effort and indomitable willingness to become one.
How can companies become strategical in their approach to business?
Companies can become strategical by adopting the following approaches:
1. Aim to become extraordinary
Uncertainty creates anxiety. Positivity can help overcome it. According to the journal Behavior Research and Therapy positivity has a remedial effect on anxiety. A similar situation occurs in business. Customers respond to tom positivity because it makes them happy.
A simple version is: companies should forfeit the idea of failure and aim to become extraordinary. Once this mindset is developed, individuals default to positivity and expect to win. This is out of sheer will and not out of arrogance. Confident business strategists let go of fear and exude confidence to clients. This is an invaluable skill to develop for professionals who want to succeed in a global strategy and leadership role.
2. Zero in on the right talent
Strong business strategists realize the value of a strong team and aspects of human resources. Strategic companies continually invest in both the training and hiring of people. It is also an overlooked area among small companies. While business owners might envision a prosperous future, employees are the ones who take it forward.
Companies that invest heavily in their employees see their success skyrocketing. Invest in the professional development of employees by a workshop, e-learning programs, and other resources that will better align them with the company’s goals. Further, it will prepare employees for the future roles that the company might need.
3. Take your clients with you
Customer centricity is an essential value among strategically thinking companies. It means you go where clients want to go. In business terms, it translates to suggesting ways for clients that gives them long term value instead of focusing on short term goals. This will build a strong bond with clients which results in recurring opportunities for revenue for you while for clients it means more business. If customer’s success is tied to your end, they should know that you are willing to see the strategy till the end. Strategic thinking and planning are as much about you and as much as it’s about your client. If you think through things easily, you will be able to become a strategic business in a true sense. Business strategists understand this very well.
Strategic thinking overall is about being able to think through and execute accordingly. With an end goal in mind, things are easier to execute. However, plans sometimes cannot go as expected. In such times, companies should be ready to change their course keeping the same end goal. Good strategists always have a plan B.
