The Researched 3 Tests of a “Winning Strategy”
Believe it or not, whether you’re an individual, a company, or even a sports team, you can be great at what you do, have excellent skills, products, and/or services and still fail or come up short. The difference is in the strategy (And of course execution of the strategy – which we won’t cover in this article).
There are key, well-researched elements to a winning vs. a losing strategy.
THE QUESTIONS DEFINING A WINNER:
- How do I position the firm in the marketplace?
- How will I attract customers?
- How do I compete against rivals? (What sets me apart?)
- What are the measurable performance targets?
- How do I execute on and achieve the firm’s performance targets?
- How to capitalize on opportunities to grow the business?
- How to respond to a hostile, ever-changing economic, political, and social environment?
- What is the best way to position in the market that is not too crowded with strong competitors?
- Who will accomplish these tasks (Do I have the right skill-sets or where will I find them)?
- What is the organizational chart and rules of engagement?
THE 3 TESTS OF A WINNING (VS. A LOSING) STRATEGY?
- THE FIT TEST: Is it the right fit for space and time my region is in or society is experiencing and do I possess the resources to bring to market successfully? To pass the fit test, the company’s strategy must show that it works in attracting people externally while thriving with the managers and teams internally. As conditions are ever-changing, the company must show that it’s dynamic; able to succeed through challenges like Covid, evolve, and pivot over time.
- THE COMPETITIVE ADVANTAGE TEST: A sustainable advantage. Better strategies are those that allow for impact over the longest course of time. Does the way you’ve positioned your philosophy, technique, or approach consistently produce predictable and growing income? If it is inconsistent and variable, it fails this test.
- THE PERFORMANCE TEST: The ultimate evaluation of the strategy is whether or not it is producing numbers. Will it produce superior performance as indicated by the firm’s profitability, financial and competitive strengths, and market share? Key performance indicators significant in assessing a winning strategy are 1) Competitive strength – Are you crushing your competitors? 2) Profitability and financial strength – are your economic numbers strong? If a strategy is leading towards strong economic performance, increased market share, and a clear leg up on the competitors, it is an indication of a winning strategy.
Psychic issues that lock people, businesses and even whole professions into losing strategies:
It’s not the dogma you believe in, your preferences, and doing it the way that the people around you do it that make for a winning strategy. It’s passing the 3 tests.
People, businesses, and entire industries lose by constantly complaining that society, rules of the game, some evil big brother, or demonic outside force is holding them back – rather than taking a hard look at their limited or losing strategy.
Companies spend millions bringing in strategists and invest countless resources to BREAK-FREE from the way others in their industry do business to create a competitive advantage and a winning program.
You might be the greatest, most skilled person on earth. Yet, if the strategy is lacking crisis and troubles will always knock you off track, you’ll only go so far, only win so much, or always find yourself on the losing side of the ball. May be time to build a winner.
(Missing from this article: Porter’s types of strategies and core needs for proper execution to be seen in future segments)
Need help – that’s what we’re here for.
Have fun saving the world
Dr. Ben
