What is Strategy and do we need all this stuff? First of all, let’s give definition of strategy (find more of them at google):

Strategy is a pattern of activities followed by an organization in pursuit of its long-term purposes

There’re 3 important components (source: B713 Fundamentals of Senior Management (2003), Open University):

• Strategy is concerned with the broad pattern of organizational activities, not day-to-day detail
• Long term here is a period of time of 3 years and more;
• Purposes may change over time as a response to changes in internal and external environment.

I would suggest Strategic would mean something in general, looking forward and at the same time achievable.

We may argue that we do not need strategies – world is changing so fast that we are simply unable to plan our time and actions long-term forward. At some extent this statement is true – we may not be successful with strategy chosen, or someone else can be successful without explicitly stated strategy. This reveals two points:

• Strategy is not constant. It is required to review it regularly, and adjust it to the conditions of internal and external environment;
• If someone says s/he does not have a strategy – do not believe it! It may be a “trade secret”, as well as being implicit and not realized consciously.

Now why strategies? Do we really need them? Yes, we do. Human nature does not like many things, and one of them is uncertainty. We may be concerned about the future, not even realizing this fact. What helps people to become more self-confident and subsequently successful is a long-term planning of major steps and milestones within their lives. As plan is being executed, people put checkmarks, or if something is not achieved or overachieved – review plan and correct it.

This plan described above could be seen as strategy, with clearly defined final goal, and milestones. You can have developed plan for yourself (e.g. with final goal to get position of CFO and milestones of getting various financial assignments requiring various skills in finance and business – as one my friend did). Family members may create “strategy of growth”, defining milestones when is the best time to replace small house with larger one because of family growth. You may unconsciously create strategies for other people – deciding for your children which education they to take, and which occupation to select. You may be a member of trade union and influence life of co-workers and workers of other organizations, and finally you can be a CEO who is caring about overall strategy of whole enterprise and life-work of thousands people.

Are there different types of strategies exist? I would say so – depending on purposes and strategic (long-term) goals. I see examples as marketing strategy, aiming attracting customers from specific segment towards consuming products or services; operational strategy, highlighting how can operations excelled; financial strategy, aiming profits in commercial organizations and cost efficiency for non-profit organizations; brand and community targeted strategies, seeking increasing value of organizations, creating goodwill and improving loyalty in the community.

Which strategy we all do certainly have? Financial one! And it does not matter if working as entrepreneur, in large corporation or in hospital. We surely plan how wealthy we want and could be in the future. Let me surmise that in our days setting of many other goals and strategies depend on financial strategy, and success is lies in having financial strategy up-to-date.

Which future strategies will be required in our world and what is currently hot? There’re some words appeared in the press and scientific research last decades: information (which is a most required asset and can be of dearness), leadership (technological or behavioral) and talent (a capability to earn millions for Uncle Sam or draw masterpieces). Who knows what they exactly mean? How many definitions did you see? A lot – and you may have your own.

The main prerequisite to successful strategy is clear answer to the question “do you know and understand yourself and others around you well?”. Implication of this question is you looking at yourself from other’s point of view – and learn. As you learn, you apply changes to yourself and to your environment, and statement “you can change the world” becomes true.

Post of July 12, 2007