Many managers view strategy as a complex subject, but at its essence it boils down to three questions: Where are we now? Where do we want to go? What is a credible path to get there? To successfully use these questions to chart a course, people must be brutally honest with themselves about where they are now. Once a company understands its present situation, it can chart a path to creating a truly differentiated offering that can create economic value.
‘Tis the season for annual strategic planning. For most companies, the process is a spectacle — a ritualistic game of jump ball for budget where emotions run high and departments defend their turf. Marketers cringe as non-marketers dish out “expert” wisdom. Salespeople shake their heads at the mention of “stretch goals.” And every business unit believes it is the chosen one.
