In the highly competitive economy, small businesses need a strategy to flourish and grow. Creating a successful strategy involves more than just creating a mission statement. Playing to Win is a great book for owners of small businesses because it teaches them how to incorporate strategies into their company.
5 Common Mistakes Developing Company Strategies
1. Leader define strategy solely as a vision. Mission and vision statements are elements of strategy, but they aren't enough.
2. Leaders define strategy simply as a plan.
3. Leaders deny that long-term strategy is possible because of a rapidly changing world.
4. Leaders define strategy as the optimization of what they are already doing in their current business.
5. Leaders define strategy as following best practices, such as bench marking against competition, and then doing the same set of activities.
By just implementing one of these strategies a company will never reach its full potential. For example, Martin and Lafley say plans are not enough:
"Plans and tactics are also elements of strategy, but they aren't enough either. A detailed plan that specifies what the firm will do (and when) does not imply that the things it will do add up to a sustainable competitive advantage."
As a small business owner you need to always be thinking about the future of your company. Developing a successful strategy to gain a competitive advantage in your industry is key. A lot goes into running a business and by taking the initial steps and creating a strategy to set your company apart from the competition, may be the deciding factor in your future success.
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