How To Use Business Strategy To Reduce Complexity
COMPLEXITY: THE PROBLEM
For many business owners this is a time of complexity that results in indecision. As we know, indecision is not a comfortable space for business owners.
On the one hand there is economic uncertainty mixed with new, unfamiliar digital tools of competition. On the other hand, business owners are tired of the economic doomsday scenario they've been hearing and are chafing at the bit to explore the new ideas and opportunities that were spawned when they discarded the old, tired, and unproductive ways of doing business in the past.
How can business owners move forward with confidence?
Increasingly, the conversations I am having with business owners revolve around these opposing thoughts and the frustrations they feel about making major decisions that will impact their future business.
These conversations span a wide range of issues. For example, one business owner may ask, "How do I integrate separate business units into a more competitive, branded entity?" Another business owner asks, "How do I relaunch my website?"
STRATEGIC SIMPLICITY: THE SOLUTION
Although at first glance these issues appear to warrant different approaches, they both can be addressed-and the frustrations removed-by applying a 4-step strategic approach.
Four-Step Business Strategy To Reduce Complexity
1. Clarify
2. Focus
3. Process
4. Plan
Clarify: This step seeks to gain clarity by breaking issues and options into individual components that can be analyzed and considered independently. This step also seeks to identify real complexities and details and to remove imagined ones.
Focus: With clarity established, this step seeks to prioritize relevant issues and options based upon core business objectives.
Process: In the process step, we consider various components (i.e. strategies) that are necessary to achieve the core business objectives.
Plan: The planning step aligns strategies with the tactics needed to execute and manage a comprehensive plan. The final business plan includes:
- Objectives
- Strategies
- Timetables
- Budgets
- Tracking and Analysis
Highly Useful
The usefulness of this 4-step approach lies in the simple way it reduces complexity and naturally moves forward to an action plan by examining individual pieces (vs. the whole pie) in a logical sequence (vs. all at once).
LEARN MORE WITH THESE RELATED ARTICLES
Business Strategy for 2011: Moving From Problem-Solving To Growth
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How To Manage Complex Projects-Critical First Steps
HOW DO YOU REDUCE COMPLEXITY AND IMPROVE DECISION-MAKING? Share your experience in the comment box, below.
Mission: To help small and mid-size businesses sell more.