The speed of which technology changes coupled with massive global competition has made the truth for each and every business daunting: choose the proper strategy and allocate the proper resources to pursue it, or watch your business wither away or get completely stepped on.
Those same technological and competitive realities that produce good decision-making so critical also make it certainly hard. Take for instance Garmin and Magellan. It had been recently that the portable GPS devices were along with the world, making excellent profits and selling at high margins, along with generating recurring revenues from on-going software and map updates.
Then, bam! The wide adoption of Google Maps on smartphones made stand-alone GPS devices redundant for some consumers. The effect: Garmin’s stock price lost a lot more than 70 percent of its value from its highs and Magellan’s parent MiTAC’s stock price plunged a lot more than 50 percent.
India BPO, an India-based business process outsourcing firms is another example. Not long ago, the business was along with the world, with new multi-thousand seat call centers and programming shops being setup around the country. However the core of this business was eroded by lower-cost competitors from places like the Philippines, SOUTH USA and Eastern Europe.
In both cases, the strategic and competitive threats came quickly and unpredictably. The managers of the businesses were either slow to respond, or their responses were sub-optimal at best.
How would you recognize and accept there are some things you cannot know but still make high-quality strategic decisions?
Concentrate on the near future. When an entrepreneurial team gets together to go over strategy, especially one which spent some time working together for awhile, the tendency is to target an excessive amount of on current services and products.
They are of course important, but an excessive amount of focus on just what a business does and sells now can simply distract and distorts the larger strategic picture. Instead, practice Clean Slate strategy. Imagine the near future was empty and you could fill it with whatever you chose.
This is difficult to do and may sometimes feel silly, but this is how breakthrough strategies are born.
Look away from industry. Among the great blessings of our modern day may be the easy opportunity most of us need to expose ourselves to experts and ideas beyond our industry and functional competence.
A customer of ours is CEO of 1 of Los Angeles’ largest hospitals. He gets a few of his best healthcare client service ideas from the hotels and restaurants he frequents. Similarly, service businesses can study from online retailers in terms of how fast and simple it really is for customers to get their products. Companies selling online can study from the emotional connection established by the most used social media bands and personalities.
Be confident in your decisions. Never let incomplete information or fear stop you from just making the decision.
The right mindset is to assemble as much data and intelligence as possible, analyze it intently and decide.
Once you have decided, walk with a solid and resolute step down that chosen path. After doing this for a good time frame, look up and have if that decision gave your business the results you were seeking.
Focus on the near future, look away from industry and make decisions confidently. Then watch the caliber of your strategy, as well as your business results, sky rocket.