Welcome to a new year, a great time for CEOs and business leaders to sharpen their strategic focus.
Through my experience in building wefox and many other companies, I have developed a six-step strategy formulation process that’s both effective and pragmatic. Here’s a guide to set your organization on a trajectory of growth and achievement.
1. Clarify Long-Term Goals
Understanding your organization’s ‘Why’ is the first step. It’s not merely about profits; it’s about purpose and passion. Define your vision for 2030 in detail, including geographic footprint, revenue, profits, size and margins of business lines and valuation. Detail breeds clarity, which paves the way for informed decisions today.
2. Set Clear Mid-Term Goals
Define your 2-3 year objectives to give direction to your team. This horizon should include anticipated challenges and strategies to overcome these challenges. These goals should be a balance of practicality and ambition. If you do it right this will enhance trust in your leadership and the long-term vision as your team understands you haven’t lost touch with the ground and listen to the challenges in the trenches.
3. Define Your North Star for the Year
It’s easy to get lost in daily operations, so go through the exercise to distill your yearly ambition into a single guiding statement. This ‘North Star’ keeps the focus on what truly matters throughout the year, ensuring the entire organization is aligned and driven towards this singular goal. This goal in non-negotiable and needs to be repeated over and over again throughout the year.
4. Establish a Maximum of Five Annual Priorities
There is a million things to do and people have a million good reasons why each one of the priorities is important. Limit your strategic objectives to a maximum of five. This forces prioritization, ensuring resources are concentrated on the most impactful areas. It’s about doing fewer things better. It’s about achieving progress – do less things really well instead of many things in a half-hearted manner.
5. Align Team Priorities with Company Objectives
Your strategy is only as effective as its execution. Ensure every department aligns with the company’s priorities, moving together towards the North Star. This synergy is essential for organizational effectiveness. As a captain you want your team to row in rhythm – if a single team member gets out of rhythm they risk the success of the entire team.
6. Monthly Progress Tracking
Goals should be SMART – Specific, Measurable, Achievable, Relevant, and Time-bound. This framework ensures goals are clear and reachable within a specified timeframe. Regular, honest reviews are crucial. If goals need adjustment, do so transparently, learning from any missteps. A robust tracking system builds trust and commitment, propelling the organization towards its objectives.
As we step into 2024 you can use this strategic guide to help you lead your team with clarity and purpose, and embrace a culture of ambition and ruthless execution.