Strategy establishes both the destination and the roadmap for a business to ensure that goals will be realised and value is created.
Strategy is about making informed choices to guide an organisation’s future direction and to maximise its value. It prepares you to make the most of the opportunities that present and to manage through volatility and market disruption.
A financial forecast is a fundamental component of the strategy. This informs the capital requirements, the expected returns and the cash flows. It also allows different assumptions and scenarios to be viewed, highlighting a range of possible outcomes.
Planning is a vital ingredient of developing and implementing strategy. Involving more of your management team offers them empowerment and the confidence they can execute on an organisation’s plans. It captures all their knowledge which adds broader and richer insights to future options and the inherent risks.
An implementation plan is also a vital component of the strategy. It is imperative to understand what resources are required for execution and to allocate sufficient resources. Otherwise the strategy is at real risk of failing.
A good strategy will derive from a comprehensive understanding of the external environment, ensuring the choices to be made are well informed about which markets to play in, and how to win against the competition. This external environment and its needs should align with your internal environment, being your resources and capabilities. Only then will a strategy really succeed and value creation will be maximised.
Many businesses still succeed despite not developing and maintaining a documented strategy. This is invariably the case in boom phases, but in the absence of a well thought out strategy, questions to consider are:
Are you sufficiently prepared to manage in volatile times and downturn phases?
Have you missed opportunities or left value on the table?
We understand the desire and ambition to create value and generate shareholder wealth. More importantly, we recognise the imperative that your performance must be sustainable and that growth is a fundamental driver of your success.