Many business leaders debunk strategic planning. “The external environment is too uncertain,” they argue. Or, “Strategy is decided at the point of contact with our customers and markets.”
I also hate strategic planning because the decisions from strategic planning are strategic in name only.
We delude ourselves into thinking that we’re planning strategically, when really we’re working at varying levels of the tactical. Year long tactical plans are as wasteful as a one-year plan for parenting teenage girls. Parenting tactics are decided daily subject to vision and values. There’s no other way through the confusion this age presents, just as there’s no other way through rapidly changing markets.
The core strategy decisions for an organization are deceptively simple. The challenge rests in finding answers, as these questions are highly interdependent; and, strong competitors may have already claimed the obvious business model innovations.
- Where will we compete?
- Why will we win?
- Why will we be profitable?
I call the answers to these questions your business model. Collectively, they should carve out a highly relevant, profitable, hard-to-copy and differentiated business model. Great leaders make business model innovation and evolution a top priority.
Challenging and Meaningful Strategic Questions
Do you have a differentiated business model? If it’s not generating the results that you want, what gets in your organization’s way of finding and executing game-winning decisions?
Read an excerpt from my book to learn more about business model innovation.
For insight on business model strategy and business model differentiation, read my recently released book, Beyond Price.