Successful companies have two inextricably linked characteristics in common.  First, they have good people. Second, strategy is not given lip service. These companies place a high priority on developing a strategic plan.  The benefits of having a well-conceived business strategy are numerous and affect the entire organization. The strategy should home in on what the company is good at doing and how it can leverage its strengths into a sustainable competitive advantage.  Having a strategy in place accomplishes the following things:

1. Clearly defines the purpose of the company and sets the direction

2. Provides guidance to the entire management team and employees

3. Establishes realistic goals and objectives

4. Creates metrics and timelines for evaluation

5. Provides focus

6. Determines accountability

7. Sets prioritization of resources

8. Provides the basis for development of financials

9. Enables the company to take advantage of opportunities and respond to threats

10. Provides for more efficiency and better decision making

The essence of any company strategy is how the company’s offerings compare to the competition, how to gain an edge, and how to sustain this edge or difference.  The topic of the next blog will be on the basic types of strategy.