Strategy
Creating and Executing a Strategy is akin to solving a Jigsaw Puzzle, where it is important to have the Clarity and Awareness of the Final Picture, and thereafter start putting it together piece by piece, the most important pieces first, and then gradually the rest. This is true for Organisations as well as Individuals.
The purpose of Strategy is to enable planning which, can over a period, lead to Positive Outcomes to achieve proportionate improvement in Quantitative and Qualitative Goals and Objectives.
Strategic planning can be at the level of the entire Organisation, or Division or Unit, and can be periodic. It can span across different areas, Business/Growth, Product/Service (Offering), Pricing, Sales/Go-To-Market, Digital/IT, and Finance & Operations.
Many of these are defined in a combination and are based upon the Organisational Aspiration or Problem being addressed and will be in conjunction with the Firm’s combination of expertise and experience of having undertaken previous such strategic planning to deliver Strategic Recommendations / Solutions.
Presented here are a few salient points and questions that mandate coverage as part of Strategic Planning. These are representative in nature and not exhaustive.
Business & Offering
Business Strategy – What is the Strategic Anchor/Position (Product/Service, Customer/Segment, Market/Reach)? Process of Value Creation, Delivery and Capture, Quick & Lean v/s Conservative Approach, Is the Strategic Planning Iterative & Incremental?
Product/Service (Offering) – Who is the Customer and What is being done for or sold to the Customer? What is the actual Value Proposition? What are the Differentiators?
Develop/Manufacture – How is the Offering (Product/Service) being created/produced? What is the Methodology? Resource and Capacity Planning (Human, Location, Machinery, Hardware/Software, etc.), Skills Development, Funding and Investments
Sales & Competition
Sales (Go-To-Market) – How is the Offering being sold to the Customer; What is the Sales Process and the Channels being utilised? Who are the Decision Makers and What is the Decision-Making Process?
Pricing – How is money being made? Pricing Model/Framework, Costs and Margins
Competition – Who are the Competitors, both Direct and Indirect? What is the Differentiation Strategy? What is the view on Competition vs Collaboration?
Growth
Scaling the Business – How will the business grow? What will be the Growth approach, Market or Offerings driven? How is the Ecosystem structured? Should the Growth be Organic or In-Organic (M&A)? How will the Production / Operational Capacity be carried out? How will the Culture be managed? How to turn more Agile?
Finance
Accounting & Reporting – What should be the chart of accounts? What should be the approach to meet reporting requirements? What Accounting Standards are applicable?
Financial Management – What should be the approach for MIS? How to utilise ratios for maximizing benefits for the business? What are prudent budgeting approach? How to effectively manage capital and its related cost? What should be the strategy to save cost? How can one manage cashflows better?
Taxation – Deferred Tax : Balance Sheet Vs P&L approach? What are tax implications of business decisions? Whether taxes are being appropriately accounted for in books?
Information Technology
Digital / Information Technology – What is the Focus Internal or External? What is the Driver – Revenue or Service? What are some of the Target Areas, Customer Engagement, Process Transformation, Data / Information and Transaction? How will Commitment / Ownership be defined?
Risk & Control
Process review / re-engineering – What are the risks associated in a particular process? Are the existing controls adequate to address the risks? Are additional controls required? Are there better alternate controls to help improve the process to bring efficiency and effectiveness?
