Corporate strategy is commonly defined as a long-term plan that outlines clear goals for a company or organization with the purpose of improving results. There are four primary attributes in getting started with developing a successful corporate strategy: vision, mission, values, and strategy.
Vision: Where are you going as an organization?
Vision refers to the aspiration of what the organization hopes to achieve or become. The below are examples of vision statements from a few well-known and successful companies:
- Sony: To use our passion for technology, content and services to deliver kando, in ways that only Sony can.
- Google: To provide access to the world’s information in one click.
- Tesla: To create the most compelling car company of the 21stcentury by driving the world’s transition to electric vehicles.
In order to develop an effective vision for your company or organization, it must be clear and concise. The statement should be to the point and only contain one primary goal. This will allow it to be memorable and easier to align focus on. Additionally, your vision should be future-oriented. It should refer not to where you are, but to where you want to be.
While there is no one template to creating a vision for your company, the below are some additional factors to keep in mind:
- Stable–regardless of market or technological changes
- Challenging–shouldn’t be easy, but be realistic
- Abstract–general enough to capture interests and direction
- Inspiring–rallying cry, however, be ready to commit
Mission: Why do you do what you do?
A mission statement is an action-based statement that declares the purpose of an organization and how they serve their customers. Check out the vision statements from the companies mentioned above:
- Sony: A company that provides customers with kando–to move them emotionally –and inspires and fulfills their curiosity.
- Google: To organize the world’s information and make it universally accessible and useful.
- Tesla: To accelerate the world’s transition to sustainable energy.
When developing a mission statement, reflect on the reason for your company’s existence. What does your company do? Consider the purpose of your product or service. Think about how you do what you do and create a value-based description of how your company operates. Next, ask whom do you do it for? Provide what problems or challenges you address. Finally, think about what value your company delivers? Consider what your unique value proposition is and why customers should choose your product or service. Your mission statement should support the vision you have articulated.
Values: What do you stand for?
Values are beliefs and behaviors that you consider non-negotiable that further guide your planning, decision-making, and operations. Below are some important factors that should be considered when discussing your company’s values:
- Tone at the Top –culture and values are “Leader Business”
- Importance of alignment–supports vision and mission
- Celebrated –shared experiences of success
- It matters –connects the what we do with the why
So how do you develop values within your company? It is crucial to understand your organization. To do so, you must take the time to understand what motivates your employees and drives their success. Is it the same as what you think it is? Does it align with leaderships’ vision/mission?
Strategy: How are you going to get from here to there?
A strategy is a plan of action designed to achieve an overall aim. In other words, the strategy actually describes how the ends (goals) will be achieved by the means (resources).
In order to determine what you need to do to get to where you want, you must know where you currently are relative to your goals. The following tools can help with this:
- SWOT Analysis
- Porter’s Five Forces
- Growth-Share Matrices
- Scenario Planning
- Value Chain Analysis
Now it is time to actually develop your strategy. Once you have gathered the facts—financial, customer, internal processes, etc.— you should develop specific objectives. It is best to create objectives that have specific outcomes with quantifiable or qualitative results.
While this may seem daunting at this point, it is important to remember that you cannot do everything at once. You must prioritize and budget to find out what resources you are willing to invest.
Creating a new corporate strategy will require an organization-wide effort, so be sure to communicate necessary information with all stakeholders. Additionally, you must provide monitoring and scoring solutions for your strategy. Lastly, be sure to hold yourself accountable and create systems for assessment and correction.
If you need further guidance or have any questions on this topic, our strategic advisors are here to help. Please do not hesitate to reach out to our trusted experts to discuss your specific situation.
This material has been prepared for general, informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Should you require any such advice, please contact us directly. The information contained herein does not create, and your review or use of the information does not constitute, an accountant-client relationship.