Gain management oversight of business strategy, resources, capabilities, and enable all critical business processes, to improve the success rate of initiative management.
We live in a dynamic environment with information exponentiality, constant changes and unprecedented uncertainty. Running a business is an iterative problem-solving continuum. Business management needs to make insightful inquiries to set the right priority, solve problems that matter effectively.
Strategic initiatives are the vehicle for achieving strategic goals; it is focused on the “how” rather than the “what,” to build a unique set of business competency and improve organizational maturity.
Is the proposed business initiative well aligned with the organizational vision and direction? For strategic business initiatives, a vision provides the guiding light and direction, Prioritization brings transparency to the organization, creating internal competition among business initiative, and assigning resources scientifically. The management identifies what generates the most value for the company and express that in strategic objectives, analyze potential pitfalls, brainstorm pros and cons of different business initiatives, laser focus on the most critical challenge business needs to overcome
Strategic business initiatives require the highest risk-taking at a strategic value chain; including organization, investments, and assets Senior leaders need to be fluent in multidimensional thinking and must participate in creating and shaping a company’s vision, aligning proposed business initiatives with organizational vision and strategic goals, provide the description and articulate the reason for starting an initiative in a structural way.
How does the business initiative differentiate the organization from its major competitors? Strategic differentiation is the foundation on which brands are built. Rather than “keeping the lights on” only, high mature organizations spend significant time on creating strategic differentiations, building and maintaining a strong brand and continuously delivering quality products and services. Business management needs to clarify: Are they competing for best quality, cost advantage or efficient value chain? Can their processes do what they promise? Differentiated from competitors?
The real strategic differentiation is to create true value, look forward, not backward. In specific, business differentiation is an effect accomplished by having a sustainable organizational competitive advantage to the market, rooted in operational excellence which makes it difficult or even impossible for competitors to imitate. So if strategic business initiatives are implemented successfully, there is a significant impact on building differentiated business advantages.
Which business competency can be built via taking such initiatives? The organization’s long-term success is based on a set of differentiated capabilities and its core competency. The organization’s competency is based on a set of cohesive capabilities and how fast and effective they can be built upon. Capabilities that organizations have and are closely related to competencies. Both threshold capability and distinctive capabilities are needed to implement business strategies.
So the business management needs to do necessary mapping of business initiatives and capability development. Business capabilities enable strategic communication and execution’ it’s part of art and part of science. Gaining an in-depth understanding of business capabilities and taking initiatives to build business capabilities are critical to improve strategy management effectiveness.
Every organization is at a different stage of the business growth cycle. The real challenge is to understand your priorities, and know where and how you can and should improve, leverage available resources, focus on the most important things, boost the energy and excitement to achieve the ultimate results. Have a management oversight of business strategy, resources, capabilities, and enable all critical business processes, to improve the success rate of initiative management.