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WHAT IS STRATEGY?
An organization’s strategy harnesses insight to make the best choices on where it will complete, what it will offer, and how it will win by generating greater value than its competitors.
The essential job of strategy is to create an intense focus on the few things that matter most.
The core of an organizations’ strategy is its Winning Proposition, which answers this question: “What will we do differently or better than our competitors to provide greater value for our chosen customers and satisfactory financial returns for our organization?”
The Output of Strategy
A strategy must provide clear and compelling answers to the following questions:
1. What are our key insights and their implications?
What are the brutal truths about the external environment and our internal realities which will enable us to make the most intelligent choices? How are these truths changing the rules of success?
2. What is our main challenge?
What is the “do or die” issue (or issues) we must deal with?
3. Where will we compete and what will we offer?
a. Which geographies, markets and customer segments will we compete in? (And which not?)
b. What products/services will we offer our chosen customers? (And which not?)
4. How will we win?
What will be our Winning Proposition and Key Priorities?
5. How will we ensure that we maintain a healthy financial position?
What will be our business model (i.e., how we create, promote, and distribute our programs and services) for achieving satisfactory financial returns?
6. How will we execute our strategy?
How will we mobilize our business system and win the hearts and minds of our people behind our strategy?
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