When it comes to strategy, it’s good to have an organizational strategy.
It’s far better to have a strategy that is best practice, to allocate resources effectively to the highest value opportunities and ensure your team works on these priorities.
It’s best if your strategy flexes to changing market conditions.
What are the signs that it’s time to rethink your strategy?
1. You’re falling short of the results you want
If your business isn’t meeting its goals, it’s a clear sign that your current strategy, or its execution, aren’t delivering. A strategy acts as a compass, guiding you toward measurable progress. If you’re falling short despite expending significant effort, it may indicate deeper issues such as flawed assumptions or misaligned priorities.
2. The competitive landscape is shifting
When competitors start outperforming you, or new players enter the market it’s a strong indicator that your strategy needs updating. This is even more urgent if entrants are operating on a different business model that can erode yours.
3. Your context is changing
External factors like economic shifts, technological advancements, or regulatory changes can render even the best strategies obsolete. Context is key: if your environment changes but your strategy doesn’t, you’re at risk.
4. Customer preferences are evolving
If you notice increasing customer churn or declining satisfaction, it could mean your offerings no longer meet their needs, and needs a re-think.
5. Strategy and execution are misaligned
Even the most well-thought-out strategies fail if they aren’t executed effectively. Good execution trumps good strategy every day. Misalignment often manifests as unclear objectives, conflicting priorities among teams, or poor coordination across departments.
6. You haven’t stress-tested your strategy in a long time
Strategy is dynamic. It is context-specific, and markets don’t stay still. Even if you’re hitting your numbers, you need to stress test your understanding of market dynamics at least every 3 years. Complacency kills.
Recognizing these signs early allows businesses like yours to pivot before facing significant setbacks. Rethinking your strategy isn’t just about fixing problems—it’s about staying ahead of them.
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