Apple. Amazon. Walmart. McDonald’s.
These four companies are household names–you’d be hard-pressed to find anyone who isn’t familiar with a Happy Meal or iPhone. What do some of the most successful companies in the world have in common? What made them so successful? How did they reach where they are today?
There are thousands of reasons a company could reach the massive success of these four companies. While experts believe it is keen planning and a solid strategy, others think it is due to leaders' strategy execution. The answer isn’t always the same for each company, but there’s one aspect that often rises to the top: strategy.
Although each role in an organization plays a significant part in making the company successful, the C-suite –CEO, COO, CFO, and more– leads it towards success. If senior company leaders focus all their energy on execution, including the day-to-day operations, its growth could be minimized.
Anybody can carry out the execution, but only a true leader can strategize. That’s because it is all about making the right choices which ultimately lead a company towards success. Companies should shift senior leadership activity from execution to a higher-level strategy for true success and household name. Here are five reasons why:
Every business needs to be goal-oriented, and a strategy will put you on the right track.
Fulfilling your customers’ requirements and meeting deadlines is good, consistent business. However, deadlines alone won’t accelerate your growth or drive you to success. A focus on the day-to-day duties and responsibilities move leaders away from a company’s fundamental goals and ambitions.
Building up a strategy allows you to create and track the progress of your company. It gives a sense of direction to every member of your company by giving them a roadmap with main goals and objectives to successfully perform their roles–and successful employees equal a successful business.
Provides competitive advantage
Think back on the childhood story about the tortoise and the hare. It’s a wholesome story and a parable of two competitors with very different executions and strategies. In a sense, this tale is a lesson on the importance of strategy as compared to execution. While the hare focused on executing with a straightforward approach –to run fast– the tortoise strategized, focusing its energies to hit the target. And we all know who won!
When senior company leaders focus on the significance of strategy over sheer execution, it’s like the tale of the tortoise and the hare. Like the story, sometimes slow and steady wins the corporate race. With an action plan and well-designed strategy, a company can better achieve its goals before competitors.
A well-made strategy not only gives a course of action to the company but also motivates the team. It allows each member to understand their tasks more clearly, and perform them most effectively and efficiently.
Moreover, strategizing and planning also help with resource allocation, identifying strengths and weaknesses, and creating a positive and healthy work environment. All in all, adopting a strategy-based approach boosts the productivity and operational efficiency levels of the whole organization.
Yes, all companies aim to create a positive experience for their customers. They also want to take their company to maximum heights of success and amplify sales to earn significant profits. With strategic planning, your company rapidly moves towards achieving this goal.
You automatically reduce the risk factor to a large margin when you plan and prepare for the future.
Regardless of the business sector, industry, or company size, the risk is always there! However, when a company and its leaders acknowledge and follow the importance of a strategic approach, the risk factor minimizes drastically.
Execution without strategy is like running a marathon on a treadmill. Employees may feel productive at the end of the day, but the company hasn’t gone anywhere. If you don’t want your resources, time, and energy to go to waste, then a strategy is a must. A well-planned strategy opens countless doors of opportunities for senior leaders to shine in their performance.