A business strategy is the foundation of a business and without a good one, the business could flounder.
A business plan describes in detail the company’s goals, the reasons the goals are attainable and an action plan for reaching the goals. It contains background information about the organisation and about the team responsible for reaching the goals, says Elsabe Manning, CEO of the Success Factory. “It allows your staff to know where they are going, how they will get there and what resources are needed.”
She adds that the following are signs that your business strategy isn’t working:
• You're not achieving targets
• You get negative client or customer feedback
• Absenteeism from staff
• Very little repeat business
• Demotivated staff
• Gossiping and backbiting among staff
• Constant conflicts
• Disloyalty towards the organisation or management
• Major cash-flow problems – you can’t pay your suppliers and you won’t get supplied until you do
• Can’t pay salaries and/or wages on a regular basis
• High staff turnover – you just can’t seem to keep staff and you don’t know why. It is costing the company a lot of money to keep training new staff
• Low productivity
• Different divisions are working separately and there is very little communication and teamwork between divisions
• Poor performance reviews
How to change or improve your strategy
• Your strategy should be achievable. If goals and objectives are set too high, it's demotivating for staff.
• The strategy needs to be clearly communicated to the team.
• The team’s strategy should be aligned to that of the organisation.
• Individuals should each write their own goals and objectives, which are aligned to the team’s strategy, which is, in turn, aligned to the organisation’s strategy.
• Measures should be put in place to determine the efficacy of the strategy – measure results regularly and compare with the strategic goals and objectives to determine whether you're achieving what you set out to achieve.
• Resource planning should be checked and rechecked before it's allocated. Without the necessary resources, your plan will fail.