STRATEGY IS AWESOME…I can’t say enough about how important this is to an organization. When I started helping companies develop their Business Strategy over 20 years ago I realized this was the heartbeat of every business. And I never minded doing the 3 day retreats in some nice location and getting in a little golf on the side either. I digress…this isn’t about the golf…it’s about your future.
The reason Business Strategy is so critical is one simple reason…it says what you believe in and where you are going to invest your resources (people and money) for the long term (which can be as short as couple years to maybe 5 in today’s fast changing world). It tells the two most important people associated with your company (customers and employees) what you are going to do and how you are going to do it. It is the “rudder on your boat” that allows you to steer it in the direction you want.
Companies that don’t believe in setting a strategy (Vision, Mission, Values, and Goals) have essentially made a decision as well…following the famous quote, “If you don’t know where you are going any path will get you there.” These companies are essentially saying we will let the market determine our path and future rather than us…certainly a choice, but one I feel is destined for failure. Using the boat example once more, it’s like the canoe going down a river…if you want to go where the river takes you, do nothing…if you want to go where you want, start rowing and steering.
But this isn’t a discussion of the Strategic Planning process…this is about one vital reason WHY YOU SHOULD PLAN and WHAT SHOULD BE IN YOUR PLAN. There are many reasons why you want to do a strategic business plan for your company (more on that in future posts)…but one I want to zero in on is an “external reason” for planning…YOUR CUSTOMERS.
There are two incredibly critical aspects to a Strategic Business Plan…
- HAVING A PLAN…what does it say to your customers (and employees) if you don’t have well thought out and documented strategic business plan? It says you are willing to roll the dice and go in whatever direction looks good at the time. It is saying you aren’t really sure of the future and where you want to go…you aren’t putting a stake in the ground and telling them this is where you want to head. This is very dangerous in my opinion…it communicates either you don’t know or you don’t care.
- WHAT DOES THE PLAN COMMUNICATE…if you have decided to create a plan, what is it saying to your customers and employees? If the plan is about growth and expansion, new products and services, operational efficiencies, or other such aspects, what do your customers think? They might initially feel these are great and you are really trying to improve your company…but then they stop and say, “But what about me, the customer?” They want to see them in your plan…how you are going to help them in their business and their lives…how you are going to treating them…how IMPORTANT are they to you. This is what the customer wants to see in your plan…maybe selfishly, but it is the reality of today. Without them specifically in your plan, they will assume you don’t care…that they aren’t the center of your world…that you are simply using them as a means to make money. This too is a very dangerous position…leaving them out communicates either you don’t know or you don’t care.
We will ignore reason #1 above for now and just leave it that if you don’t have a plan, we need to talk…you need to create a business strategy and have a plan…it’s just something that needs to get done.
We will focus on reason #2 above…what is the MESSAGE that is being sent to your customers when they see your Vision, Mission, Values, and Goals (MVVG) when you get back from your retreat? In the Internet Revolution we live in today, one thing is for certain, “IT’S ALL ABOUT ME.” Everyone wants to know what’s in it for them…how is this going to help them…what are you going to do to make my life better. If they read your MVVG and it isn’t about them, they have just labeled you as another COMMODITY company. They may continue to buy from you, as long as your price and terms are the lowest, but certainly won’t have the passion or loyalty towards your business. This, too, is very dangerous for your future survival.
Today, the customer has told us over and over and over again, if I am not the center of your business and you don’t build it around me, you won’t get my LOYALTY AND ADVOCACY…which are the holy grails for businesses today.
“Customer experience is the new battleground for companies that can no longer win customer loyalty based exclusively on product features (too easy to copy), selection (‘I can always find an alternative product or service online’), or price (‘At any given moment I can almost certainly find a lower price’).”
— Harley Manning, Forrester Research
The Customer has made it very clear that if they aren’t at the CENTER of your business and you don’t give them an awesome customer experience, they won’t reward you with their loyalty or advocacy. They will merely stick around until there is “the next best deal” and then they will leave.
OBSESSING OVER YOUR CUSTOMER is the new foundation for Business Strategy. It is about building your ENTIRE BUSINESS around the customer…something the vast majority of companies have not done. The Industrial Revolution allowed us to build companies around our products and services…the Internet Revolution is demanding we build our company around our customer.
This doesn’t mean just “including” your customer in the verbiage, but building every process and interaction in your company around doing something special for your customer. This takes work…it takes incredible focus…it takes relentless execution…it takes a CUTOMER OBSESSED BUSINESS STRATEGY.
So the next time you and your leadership team decide it might be time to revise your even build a new business strategy for your future, think about the message this strategy will send to your customer as a place to start. If your strategy is about OBSESSING OVER YOUR CUSTOMER then your customers will hear this, see it being built, and feel it impacting their lives. NOW they will reward you with their LOYALTY, ADVOCACY, and WORD-OF MOUTH to all their friends, connections, and colleagues.
This is the BOLD MESSAGE you want to be communicating to your audience with your STRATEGIC BUSINESS PLAN. This is what will set you apart…this is what industry leaders do…this is success.
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