Using an organizational strategy can help your business have guidance and consistency in its actions. This allows your team to prioritize its actions to meet a common goal. When everyone has the same understanding, cross-functional integration can occur with transparency and information flowing freely between departments. Organizational strategies also help businesses simplify their decision-making process by clarifying the best ways to reach their goals.
Key elements of an organizational strategy
Some key elements of an organizational strategy include:
Specific
Organizational strategies are specific in stating what they hope to achieve. When creating your organizational strategy, provide a measurable achievement rather than using words like “better.” For instance, instead of saying, “We want to sell products faster,” consider saying, “We want to sell our products at a 25% increased rate over last year’s numbers.”
Measurable
Measurable organizational strategies help businesses determine whether they reached their goal. By setting a specific amount to work toward, companies can track their progress along the way. Organizational strategies often use percentages to show the amount of increase or decrease they desire, rather than simply saying they want to increase or decrease their metrics.
Realistic
In order to have achievable goals, make sure your organizational strategy is realistic. Consider what past achievements your organization accomplished when determining the potential to strive for. For example, if your company previously raised its profits from $400,000 to $600,000 last year, consider striving to raise the profits to $800,000, rather than $1,000,000, which may be beyond your current trends.
Limited
Organizational strategies are limited, or time-bound, meaning they have a deadline. Businesses choose an amount of time, such as three years, to dedicate to achieving a particular goal. This gives them a way to measure when they meet their target and helps make sure tasks get done.
Types of organizational strategies
Businesses select their organizational strategy based on their vision and position in the marketplace to find one that would give them a competitive advantage. Some types of organizational strategies include:
Focus
Focus strategy is a method involving finding a niche market group. Businesses using this approach target a small, select group. The goal is to provide high-quality products and customer service to generate customer loyalty. For instance, an almond milk company targets vegans and individuals who are lactose intolerant.
