What gives a company a development strategy: 8 key benefits
In the article “How to Develop a Business Development Strategy: 8 Key Elements”, which was published on November 21, 2016, I tried to give an algorithm for implementing projects to develop business development strategies.
During the preparation of the article, which will present the key elements of one of the projects for developing a company’s development strategy, I came to the conclusion that you must first answer the question: “What gives the company a development strategy?”.
The presence of a development strategy gives the company a series of competitive advantages, both direct and indirect. For clarity, I will give 2 illustrative examples, of which there are many on the market.
“The world is giving way to someone who knows where he is going.”
Ralph Waldo Emerson
Example 1. What happens when a company does not have a development strategy. On the example of a design company (IT company).
I’ll start with the main thing. Every day, the management of any company, solving current, important and key tasks, one way or another, is faced with the results of the presence / absence of a development strategy.
Beginning and the end. Whoever wrongly fastens the first button will no longer fasten properly.
Johann Wolfgang Goethe
In the absence of a company development strategy, there are many more questions than answers. Namely:
1. The company can get the project “X”. But the question immediately arises: “Does the company need this project now?” No resources required. Of course, resources can be found, but what to do later, after the completion of the project? Dismiss all new employees? And the project, in general, is not entirely on the profile of the company.
2. The second question immediately arises: “What are the projects on the profile of the company?”. And then the third question arises: “And what is the general profile of our company?” Let’s say no answer was found. Need money. Project received. People were hired. The project is done. It is clear that with this approach it’s not always high quality and not always on time …
3. Soon, there was an opportunity to get the project “Y”. Then the same chain of questions arose, and approximately the same actions were taken.
A year has passed. The company remained approximately the same in size and turnover. Even a little less. Why? The answer is obvious.
4. Arising and constantly repeating questions, of course, more. For example, it is completely incomprehensible how to effectively work with the 3 key services of modern companies – the marketing service, personnel service (HR) and the tender preparation service. Because the:
The marketing service is completely unclear whether it is necessary to calculate new niches (sales markets)? Do I need to look for (calculate) new solutions? What materials about the company need to be prepared, because it is not clear what the company is strong in? What events do you need to participate in? What solutions should be promoted to the market? These questions can continue to be asked endlessly. Yes, and why? The “Z” project will appear and the company will start all over again …
The staff service is completely unclear what kind of specialists to look for? Whom and what to teach? And most importantly, why?
The tender preparation service is completely incomprehensible in which contests to participate, and in which it is not worth it? What contests, and for which customers to track? What are the strengths and weaknesses of competitors?
The following questions: “What are the“ keep ”rates and margins?”. And why? There are many questions. There are no answers.
In fairness, it is worth noting that the above example is not very typical for medium-sized (from 300-500 employees) and large (more than 1000 employees) companies with developed sales services and significant production resources. Although, if desired, a large company can be “torn to shreds.”
The given example is more typical for small companies from several tens to 100-150 people, in which the production resource must be disposed of (a bad word!) – involved in projects (!), At least 70% -75% per year. And do not be in a permanent expectation of “their” projects, while the company implements non-core projects by the forces of quickly hired new employees.
The remaining 25-30% is pre-commissioning, training, preparation of materials and other work required by the company.
I want to strengthen this example with the logic “from the contrary”. In a previous article, I talked about the Intention (Idea) of a business.
Therefore, the “logic of the contrary”: there is no plan – it is not clear what we will do. “In the head” there is only a “goal”: “One must somehow earn money!” Suddenly, the “Design” appeared: “We will build houses!” “Peered”, none of the team can do this. The “goal” remained a “Wishlist” (an unattainable goal), but there was no real achievable goal, either. Therefore:
1. If the company does not have a development strategy, then the company does not have a new clear and standing level of intent, and therefore there is no new clear and substantial strategic goal.
2. If there is no strategic goal, there is no strategy for achieving it (development strategy).
3. If there is no development strategy, there is no concrete action plan for implementing the strategy.