Many industry giants often have clear, brief, and comprehensive statement strategies. The statement strategies provide an opportunity for the organization’s employees to incorporate and refer as they work to meet the organization’s objective while advancing the organization’s mission. The article offers an example of Edward Jones firm strategy statement and how it has helped generate the firm’s success through simplicity, standardization, and profound experience. To develop a good strategy statement, the executives begin with an objective definition, a definition of the business’s scope, and a detailed plan stating how the company intends to achieve its competitive advantage. However, before developing the strategy statement, the executives must evaluate the industry landscape. The evaluation includes grouping customers according to their unique needs. Secondly, it involves identifying innovative ways to ensure the effective and efficient delivery of services and value to the target population. Thirdly, it entails analyzing the strategies competitors use to remain on top. Lastly, it involves forecasting how competitors may change their approach in the future. Collis and Rukstad (2008) emphasize identifying unique ways of creating value for the customer needs the business intends to serve so that competitors cannot replicate; in other words, finding the sweet spot.
One critical issue is when managers assume that strategies outlined in lengthy and detailed documents result in competitive success. These lengthy documents occupy more shelf space in the office because people become demotivated to read through wordy documents.
The second critical issue is understanding that the strategy statement helps big businesses and helps small businesses. When statement strategies are clear, they promote easy decision making, which is good for business.
The third critical issue is acknowledging that a successful strategy statement has three components; the objective definition, a definition of the business scope, and the competitive advantage. The objective entails desired outcomes that the strategy should achieve. The scope also entails the landscape where the business will compete. According to Collis and Rukstad (2008), “the scope encourages experimentation and initiative.” The advantage involves business activities that make the company different from its competitors.
One lesson learned is that executives should ensure that their company’s abilities align with the customer needs; otherwise, the competition will be too high, hence rendering the company redundant.
The second lesson learned is those clear statement strategies are essential because they strengthen employee relationships and promote customer engagement. Therefore, increasing the rate of employee productivity.
According to Bain and Company (2018), “a mission statement defines the company’s business, its objectives and its approach to reach those objectives, while a vision statement describes the desired future position of the company.” Therefore, the third lesson learned is that so long as the business sticks to defining and considering its whole set of company statements, the statements complement each other toward its success.
The first best practice is to help employees understand all parts of the strategy statement by clarifying the specific aspects that make the firm unique. In turn, it will help the employees contribute towards a successful implementation of the company’s strategy.
The second best practice is to involve all the business stakeholders in the development of the strategy statement. The participation encourages debate among individuals and ensures that proper words are used in the strategy to address gaps (Collis and Rukstad, 2008).
The third best practice is to choose the best objective that would guide the company towards maximizing shareholder value; the objective should also be clear to avoid ambiguity—thus enhancing employee understanding and overall success of the business.
This article is related to the topic which is covered in class. For instance, executives should better understand their companies during the strategy statement creation and identify opportunities for promoting teamwork (Collis and Rukstad, 2008). Executives should also communicate and draw together their employees to implement and achieve collaboration. Therefore, the strategy statement is a great tool to direct employees to achieve collaborative success through teamwork compared to the success achieved through individual effort.
The ideas in this article collaborate with the concepts discussed in class. For example, the article emphasizes the need for all stakeholders to understand its strategy (Collis and Rukstad, 2008). In class, we discussed why it is essential to circulate the strategy statement throughout the company. It enhances an understanding of how employee activities contribute to the overall success of the business. Besides, when all the stakeholders understand the strategy, it becomes possible for the company to fulfil its objectives successfully. However, one misalignment is that the article did not focus on is the involvement of stakeholders in the decision-making process. In class, we mentioned that stakeholder involvement and participation are critical during the decision-making process because they motivate them to achieve company goals as a team.
Bain and Company. (2018, April 2). Mission and Vision Statements. Retrieved September 29, 2019,from https://www.bain.com/insights/management-tools-mission-and-vision- statements/ (Links to an external site.).
Collins, D. J. & Rukstad, M. G. (2008, April). Can you say what your strategy is?Order Now