Organizational Strategy PDF
Are you looking for a sure-fire way to take your business to the next level?
Developing a successful organizational strategy is a fantastic option. Organizational strategies are one of the most effective ways of identifying and achieving long-term growth and profitability.
Whether you are a small startup or a large corporation, implementing an organizational strategy that plays to your strengths, minimizes your weaknesses, and positions you to stand out among a sea of competitors can supercharge your success.
In this exclusive guide, we’ll:
- Explore the different types of organizational strategies.
- Examine the importance of strategy in an organization.,
- Discuss real-world examples of organizational strategies in action.
- Explain how to write your own organizational and business strategies to set yourself — and your company — up for success.
Let’s dive in and discover how to formulate a winning organizational strategy.
How to Develop a Business Strategy
Developing a business strategy is an essential — yet challenging — step toward securing long-term stability, security, and success for your business.
Unlike corporate strategy, which is concerned with the overall direction of an organization, business strategy seeks to outline a plan for dominating a particular market, industry, or niche.
While every business strategy will ultimately be as unique as the business itself, there are a few key steps nearly every business can take to set themselves up for a fruitful business strategy development process. A few key questions to ask when considering strategies include:
- What are my company’s unique strengths?
- What are my company’s unique weaknesses?
- Who is our ideal customer?
- How are we performing compared to competitors?
- What is our three, five, and ten-year vision?
- What mission are we pursuing as a company?
- What makes us different from our competitors?
- How can we effectively and authentically connect with our customers?
- What level of risk are we comfortable taking on?
After asking these questions, you can begin to methodically build a business strategy that maximizes the impact of your company’s strengths, eliminates or minimizes its weaknesses, and takes advantage of gaps in the market to win solid growth.
How Is an Organizational Strategy Formulated?
Formulating organizational strategies is very similar to creating a business strategy but on more of a “big picture” level.
Organizational strategies impact everything within an organization, including company structure, mission, vision, values, and resource allocation. That means it is essential to formulate an organizational strategy that both aligns with your company’s unique persona and supports your organization’s long-term goals.
Questions to consider when formulating an organizational strategy include:
- What is our company’s vision?
- What is our company’s mission?
- Where do we see ourselves in three, five, and ten years?
- What resources are at your disposal, and how can they be most effectively deployed?
- Which KPIs and performance metrics will be prioritized?
- What external factors may impact the business?
- How does our company’s culture align with our performance goals?
- How can we measure and evaluate the success of our organizational strategy implementation?
The answers to these questions should guide your organizational strategy. The next step in creating your strategy is to pick a framework that aligns with your company’s goals.
What Are the 4 Types of Organizational Strategies?
There are four types of popularly used organizational strategies. Their ability to be applied across industries makes these organizational strategies as relevant as they are popular. Each strategy has a track record of driving sales and securing long-term growth. These four strategies are:
- Product Innovation Strategies
- Revenue and Sales Strategies
- Service-Based Strategies
- And Process-Based Strategies
The Four Most Popular Types of Organizational Strategy
- Product Innovation Strategies
A product innovation organizational strategy is a growth strategy built around the idea of developing, improving, and introducing new or improved products to the market to build brand loyalty, grow market share, and drive profits.
This strategy works best for companies with an “ear to the ground” and a track record of successfully identifying growth opportunities created by desires for innovative products or services in their market.
Product innovation strategies also tend to thrive in business cultures that cultivate creativity, elevate experimentation, and respect risk-taking. Product innovation organizational strategies often feature initiatives like:
- Heavy Research and Development: Innovation strategies require investment in research and development (R&D) to identify new technologies, emerging pain points, exciting product concepts, and innovative features that can differentiate their products from the current offerings available on the market.
- Product Testing: Companies leveraging product innovation strategies often create, test, and iterate new products extensively to ensure they exceed quality standards and performance benchmarks currently on the market.
- Continuous Improvement: Companies relying on product innovation strategies need to continually gather customer data and feedback to guide their next steps and improve product or service offerings.
Overall, a product innovation organizational strategy is essential for companies that want to stay competitive in today’s fast-paced and rapidly changing business environment. By focusing on innovation and continuously improving its products, a company can attract and retain customers, increase market share, and drive long-term growth and profitability.
Revenue and Sales Strategies
Revenue and sales organizational strategy refers to a school of thought that promotes generating revenue and growing profits through the optimization of sales activities.
Revenue and sales organizational strategies involve identifying new potential customers, auditing and improving sales scripts, policies, and processes, and motivating sales teams to meet and exceed revenue targets.
Revenue and sales organizational strategies typically include the adoption of initiatives like:
- Customer Expansion: Revenue and sales strategies often look to boost sales by cornering new demographics in their industry, market, or niche.
- Improving Sales Processes: Companies leveraging revenue and sales organizational strategies almost always conduct an in-depth review of their sales processes. Ideally, companies pursuing this tactic will uncover “hang-ups” in their sales processes that can be eliminated to boost revenue.
- Establishing New Sales Performance Metrics: To keep track of newly implemented updates and sales initiatives, most revenue and sales organizational strategies develop a new series of sales metrics to measure the impact of their changes.
Service-based organizational strategy refers to the idea that companies can widen their market share, win new customers, and earn outstanding brand differentiation through exceptional customer service.
Service-based organizational strategies hinge on identifying common pain points in the customer experience and developing tactics and initiatives to eliminate these issues.
A service organizational strategy typically includes the following key elements:
- Customer-Centric Philosophy: Companies must commit to constantly interacting with their customers to uncover emerging needs, preferences, and more.
- Cutting-Edge Service Design: Service-based organizational strategies require a world-class service design. These designs can lay the groundwork for customer engagement and interaction everywhere from social media to brick-and-mortar locations.
- Customer Service and Experience Evaluations: Companies will need to establish a series of customer evaluations that provide actionable insights into their service policies and programs.
Process-based organizational strategies aim to optimize business processes, reduce costs, enhance efficiency, and support strong, reliable productivity.
Process-based organizational strategies hinge on identifying and improving a business’s current processes to minimize expenses and grow profit margins.
A process-based organizational strategy typically includes tactics like:
- Process Analysis: Companies must begin with a comprehensive examination and analysis of current processes, policies, and initiatives impacting profitability.
- Process Creation: After identifying inefficient, redundant, or obsolete processes, companies need to design and create new, efficient, optimized processes to replace them. Effective process creation can be painstaking, but when done right can alter the course of a company’s finances for years to come.
- Process Roll-Out: After new processes have been designed, companies will need an efficient and effective implementation process that introduces their newly-formed strategies to every asset in the company.
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