The 4 Pillars of a Successful Business Strategy
November 2, 2012 § Leave a comment
If you look at closely the workings of successful companies and market leaders, quickly come to the conclusion that all of them have a business strategy based on this four fundamental pillars: values, mission, vision and value proposition for the customers, all those clearly developed. while this is not news, it’s amazing how there are still organizations that do not consider these points when creating business strategy.
What are the basic components of a strategy
1. Business Value
The values represent the shared basic beliefs that govern individual and group behavior in any organization. Define and represent the way to do things and, consequently, form the basis of the strategic objectives. Every action carried out by an organization must be aligned with its core values established. In fact, the difference between success and failure of organizations is that their successful values considered all the time in everything they do. Importantly Company Values remain stable over time.
Every day the employees of an organization take into account the values, you need to develop a short list. That list must not only identify the core values of the organization but also to describe.
In defining their values in terms useful, provided to employees making decisions and helps them to behave in alignment with the core values of the company.
The Mission of the organization defines its rationale, ie for which there is the same. Describe what it is about the business and says its value added. A good mission not only communicates the purpose of the organization but also aligns with their center values. The mission statement may last over time and not change, unless a change in organizational direction results in a change in the nature of the organization’s purpose.
The vision of an organization is built on its values and is an extension of its mission. It should include a clear time and act as a signal on the way to achieve the mission. It is a clear and measurable what the company wants to achieve in the future. As a result, the Vision provides a tangible way to evaluate its strategic progress in a specific time period.
The vision is a picture of the organization and help them understand why and how employees related to it can support it to achieve its objectives and goals. Achieving the Vision involves progress in achieving the mission of the organization. And because time is limited, the vision statement can change after completing the period covered.
The Vision should be the most important goal of an organization, as it marks the union to achieve. It is so important that drives the strategic direction that deserves to be the mathematically validated to ensure they really create value.
4. Value Proposition
A value proposition is the great promise that customers recognize an organization from its competitors. The key to success of a value proposition is to know your target customer and value propositions of the competition, so to be able to differentiate.
There are three classical value propositions, which vary slightly depending on the business sector. But generally revolve around the same three ideas:
– Operational excellence (offer products and services at a lower price)
– Leadership of product or service (continuously updated products and services to stay ahead)
– Personalization (personalization of products and services to meet the unique needs of each client)
Successful organizations clearly identify your value proposition and every employee in the organization knows it. Moreover, the value of proposition aligned with the Mission, Vision and Values to define and implement a successful business strategy.
Written by Vishal Shah, His writings are useful to everyone, from a large scale business to a small niche company. He is currently working for a website development company which is specialized iPhone application development.