To help you prepare for 2013 take the Strategy test below. If you send meyour answers I’ll break out your scores into categories and send them back to you. As a reminder – Business strategy defined:
A business strategy is an organization wide focus on creating value for the customer, the company and other stakeholders through the deployment of resources in such a manner that brings one’s strengths to bear on attractive markets (and sometimes competitor’s weaknesses) to achieve a central set of objectives through a continuously changing set of circumstances.
The Strategy test
- Does your company have a clearly defined strategic plan?
0 – 1 – 2 – 3 – 4 – 5 Your score = - Do managers know how to develop a strategy for their business unit?
0 – 1 – 2 – 3 – 4 – 5 Your score = - In your business team is there a strategy in written form?
0 – 1 – 2 – 3 – 4 – 5 Your score = - Is a strategy being used to drive daily activities?
0 – 1 – 2 – 3 – 4 – 5 Your score = - Is the corporate strategy translated into functional areas of the organization?
0 – 1 – 2 – 3 – 4 – 5 Your score = - Is there a clear understanding of types of potential customers you’ve strategically chosen not to serve?
0 – 1 – 2 – 3 – 4 – 5 Your score = - Are your products /services clearly differentiated or price-driven commodities?
0 – 1 – 2 – 3 – 4 – 5 Your score = - Is strategy discussed and reviewed each month separately from operational meetings?
0 – 1 – 2 – 3 – 4 – 5 Your score = - Is there a formal strategy development process in place?
0 – 1 – 2 – 3 – 4 – 5 Your score = - Is there a 1-2 page strategic action plan to drive your daily activities?
0 – 1 – 2 – 3 – 4 – 5 Your score = - Is your strategic action plan updated regularly to reflect market changes?
0 – 1 – 2 – 3 – 4 – 5 Your score = - If each member of your team were asked to write down the two or three key things that your business unit needs to focus on this year – how similar would the answers be?
0 – 1 – 2 – 3 – 4 – 5 Your score = - Is there a formal communication channel in place to receive competitive and customer information and market insights from all employees?
0 – 1 – 2 – 3 – 4 – 5 Your score = - Are all the various functional groups (sales, HR, marketing, R&D, etc.) aware of each other’s strategies and how they fit together?
0 – 1 – 2 – 3 – 4 – 5 Your score = - Do you have a competitive advantage in the market?
0 – 1 – 2 – 3 – 4 – 5 Your score =
Add up your score:
- 60 – 75 …..you’re in great shape
- 40 – 60 …..needs some work – set up a strategy workshop
- 20 – 40 …..get your team to a strategic planning class and workshop!!
- <20 ……….Vulnerable – be careful for the future – it may not be a long one
