Good strategy is the key to your business winning, even in tough times

There are a multitude of distractions in your business that can lure you away and stop you from focusing on the things that really matter.

But when you take the time and effort to develop good strategy for the future of your business, it will galvanise your team and magnify the force of your efforts and actions.

How can you not take the time and effort to do this?

Diagnosing the key challenges gives you focus. And focus means choosing what to act on and what to ignore.

Do the hard work of developing a strategy and you gain a competitive advantage.  It’s worth remembering that Warren Buffett, one of the world’s most successful investors, said that he evaluates a company by looking for ‘sustainable competitive advantage’.

Good strategy can give you that advantage, but only if you are clear about your significant challenge. It needs hard work.

Your challenge may be internal – perhaps a disengaged team member is limiting your productivity levels.

Your challenge may be external – supply shortages of a key component, new technology or a new competitor.

Good strategy contains 3 key elements:

1. Diagnosing your most significant challenge 
2. Setting out your guiding policy
3. Creating a set of coherent actions to address your challenge