Your strategy should be the North Star that your organization is shooting for. The strategic direction resonates with the employees and provides guidance in day-to-day work.
While you have to be flexible and reactive to today’s dynamic events, the overall direction remains the same even when you pivot short term. To build value, it is your ability to be agile and make quick decisions in order to deliver great customer experiences, optimize new technologies, improve quality and reduce costs. It is NOT the “improvement fad of the day,” which produces non-sustainable gains.
The challenge is when you must (and you will have to do this) re-prioritize allocations. As an example, Siemens reinvented their portfolio when they transitioned from machines/telephones/manufacturing to high-tech medical instruments with big data providing preventative maintenance (Source: McKinsey). Or, Philips who transitioned from a consumer electronics (commoditized) to a health care company (growing market) (Source: BCG).
What is your company’s North Star?
