Company strategy – how to develop it in a large organization?
A company strategy is fundamental, regardless of the size of the organization. For large organizations, the process of developing a new strategy can be extremely complex and require coordination of multiple activities and involvement of various stakeholders. Whether we are talking about a corporate strategy or one dedicated to a specific area, such as digitization, innovation or ESG. In this article, we will discuss the key steps that need to be taken to start working on a new strategy in a large organization.
Appoint a project leader
A key aspect of the process of developing a new strategy is the appointment of an unambiguous project leader. This leader should be competent and experienced in strategy management. His or her task will be to oversee the entire process, coordinate the activities of the internal team and external advisors, and report progress to the board and stakeholders. Unambiguous and strong empowerment will allow such a person to effectively create strategy.
From Innovatika’s perspective, it is also important that the project has a strong leader on the client side, who ensures that all activities are integrated and knowledge is consistent.
In large organizations, there are many stakeholders, from employees to suppliers and customers. It is important to involve these groups in the strategy development process. This can be done through meetings, surveys or consultations. This allows you to get a variety of perspectives and include the different points of view that a company’s strategy should take into account.
The first tool we always use at Innovatika is to create and analyze a Stakeholder Map. This method allows you to include all the necessary people and the sequences of activities that involve them in the project planning from the very beginning.
Communication and employee involvement
Employees play a key role in implementing the organization’s strategy. Therefore, it is important to clearly communicate the goals and action plan and involve employees in the strategy development process. Authentic understanding and support of the team is crucial to the success of the strategy. Employees and grassroots management are the source of the most valuable observations about the actual state of the company. Quite often we see that boards of directors and top management do not realize that they do not know what the real picture of the company looks like.
The most common mistake made by organizations in the process of creating a strategy is insufficient involvement of employees in the process. If your company’s strategy was created by members of the board of directors or, at worst, one selected person, then know that the chances of its success are close to zero. In such a case, it’s hard to talk about strategy at all.
Setting priorities and action plan
Once the information has been gathered and the opinions of key stakeholders have been taken into account, it is time to prioritize the work and define a concrete action plan when developing the strategy. The action plan should be consistent with the company’s expectations and take into account available resources. Giving a high enough priority to the strategy creation project is the only way to ensure that the company’s strategy is created efficiently and is ready for implementation as soon as possible.
Defining goals and vision
The first step in developing a new strategy is to define clear goals and vision for the organization. It is worth considering where we want to go as a company and what goals we would like to achieve in the long term. It is also worth considering the organization’s mission, or its fundamental reason for existence. Mission and vision statements are tools to anchor strategy into long-term plans, often implemented over many years.
Analyze the environment
Another important step is to conduct an analysis of the environment. This means understanding the market in which the company operates and the competition. Industry trends, legislative changes, as well as customer needs and expectations should be studied. A SWOT analysis can be helpful in understanding the opportunities and threats to the organization. In studying the environment, a comprehensive view of the world is important. This is where a classic PEST analysis comes to the rescue. However, in our experience, it is worth the effort to create a LoNGPESTEL analysis.
An important step is also to conduct an internal analysis of the organization. This means understanding your strengths as well as your weaknesses. It is important to identify what resources and competencies are available in the organization and where improvements can be made. In addition to the obvious analysis of internal documentation, or processes, it is worthwhile to conduct internal exploratory research with employees, whether in the form of surveys and/or in-depth interviews.
Working on a new strategy in a large organization is a complex process that requires the involvement of many activities and stakeholders. The key to success is a clear definition of goals and vision, analysis of the environment, stakeholder engagement, prioritization and an action plan.
Collecting sizable amounts of data whether internal or external requires informed and comprehensive analytics. The conclusion of the work in this part of the project should be a strategy workshop with key stakeholders to confirm conclusions and prioritize further work on the company strategy.
Company strategy is the foundation for further action
Working on a strategy is an investment in an organization’s future. A good strategy can help a company achieve success and stay in the market in the long term. That’s why it’s worth taking the time and attention to set up well the entire process of its creation.
From the following articles you will learn how to proceed, including:
- how to define the right company strategy?
- how to effectively implement the strategy?
If you are wondering how to start working on a strategy or would like to talk about your strategic challenges – we invite you to contact and schedule a free consultation with Jerzy Kurgan, Managing Director of Innovatika, who has many years of experience in co-creating strategies for large and medium-sized organizations. To schedule a consultation click here.