Competitive Advantage - Get Your Strategic Plan launch pad

The development of a competitive advantage in the market is not the easiest thing to accomplish.

According to Wikipedia,

"The competitive advantage is a position that a company occupies in its competitive landscape. A competitive advantage, sustainable or not, exists when a firm makes a profit, that is, their earnings exceed the costs .. This means that the normal pressures of competition will not be able to reduce the company's earnings to the point that it covers all costs and just provide minimum sufficient additional return required to keep the capital invested. Most forms of competitive advantage can not be sustained for some period of time because the promise of profits invites competitors to duplicate the competitive advantage held by any single company. "

"A company has a sustainable competitive advantage when it has value creating processes and positions that can not be duplicated or imitated by other firms that lead to the production of above-normal rents."

Wow .... This is a mouthful and rather simplistic. However, to achieve this goal and create a sustainable competitive advantage, which means creating sustainable profitability, I think it starts with a well thought out strategic plan, a plan that has the potential to substantially improve the performance of a company. A strategic plan is a distinguishing feature in today's volatile and competitive economy that can function as a springboard to create a competitive advantage by exploiting the difference. What you do makes you different and defines the value proposition?

Vision

Creating a well thought out strategic plan starts with a vision. The most important thing, however, as a leader that must be able to turn this vision in a case. A vision without a cause is simply a dream day. This means that, as the leader who must be able to document this vision into a fine game - a destination that you want to reach the company.

A critical factor and the first step in developing a strategic plan is turning your vision into a cause, developing the final game. Exactly what you want your company to be when you grow up? Ask these questions from the point of view of looking at five to seven years in the future.

1. Which markets should your company be serving five years from now?

2. Which products should be the distribution?

3. Who are your main competitors?

4. What are your strengths?

5. What are the strengths of your competitors?

6. How has your marketing strategy changed?

7. What are your core competencies?

8. What is the size of the revenue stream?

9. How is your revenue stream segmented?

10. Have a plan for human resource development?

A creative process

Strategic planning is a creative process begins with the visionary creativity of the owner or CEO. The fresh insight it generates may well alter past initiatives. Planning consumes resources that are valuable assets. It can be an overwhelming and daunting task, but it is a process that eventually defines the direction and activities of the organization .. Despite its overwhelming nature, the benefits of planning far outweigh the hard work and pain involved in the process. Strategic planning is a key process that regulates the direction of an organization in response to a changing environment. Supports the fundamental decisions and actions that shape and guide an organization. A sound strategic plan can help define and focus the efforts of a distributor to transfer the company in the right direction, with the best methods. It can and often do not create a competitive advantage.

A well thought out strategic plan is essential for a successful business. Unfortunately, many companies fail when it comes time to implement their plans. The result can be wasted time and money, and many missed opportunities.

The strategic planning team to create a culture that is necessary for success. Working together effectively is not automatic. It takes a specific effort and the development of a culture that is supported by executive management. Shared experiences create unity and value. The transfer of knowledge is essential for an organization to grow. Without knowledge transfer and sharing of experiences of planning is difficult for the group to share the vision and work toward common goals.

Some "experts" can be encouraged to hold a weekend retreat in which all sing the same songs, drinking the same Kool-Aid and come away with a long list of initiatives that are never made. Other experts may say, as published in one of the most important in our industry newsletter:

"The strategic planning process itself is simple enough for most companies to do work on their own. An external facilitator with the right experience and skills can accelerate the process, helping to ensure viable results. An ideal plan can be reduced to a 'one page strategic plan,' a simple summary of all employees can understand and apply in their everyday work. "

Not true, not true. Oh, it is certainly important for every employee to have a crisp, brief explanation of what your strategy is all about, but this is simply part of creating ownership and buy-in. We call this the "Core Strategy Statement".
Implementation is the key

Absolutely essential, but standing alone, without precise outlines plant, responsibilities, objectives and deadlines makes it nothing more than a slogan or mission statement. And ...... Report does not create mission success. Actions to achieve success.

Develop a strategic plan for success that creates competitive advantage is more than a short page. There are a number of important factors that must be considered, if a strategic plan must be implemented successfully. There are several ways to ensure that the company really change behavior as a result of the strategic planning process.

A strategic plan that creates competitive advantage must be built on the following:

actual or specific targets should be set. These goals and objectives must be measurable.

or objectives and actions should be compared with the priorities and resources available to support the initiative. The aim is the realization that you can not do everything at once. Listing fifty initiatives to be carried out in a year is delusionary. Consequently, the first 12 to 18 months must be spent focused on four to six initiatives which will have the greatest bang for your buck in the shortest period of time. Other initiatives should be postponed for the annual review or at the end of a priority initiative.

or The objectives should be specific so that there is no ambiguity about what is required. Expected timing and personal responsibility must be specified in each objective. Ideally there should be an individual who is responsible for corporate management to achieve each objective.

o A monthly strategic review meeting should be held to assess progress on achieving objectives. These meetings are very powerful tools to ensure that the proper focus is placed on achieving the goals that are part of the strategic planning process.

or Key performance indicators must be defined for each specific objective. Business performance should be measured. If important performance metrics are not found there is no way that the management company can work towards achieving the targets were set during the planning process.

The strategic planning team to create a culture that is necessary for success. It 's necessary to create a competitive advantage. Working together effectively is not automatic. It takes a specific effort and the development of a culture that is supported by executive management. Shared experiences create unity and value. The unit value and create competitive advantage. The transfer of knowledge is essential for an organization to grow. Without knowledge transfer and sharing of experiences of planning is difficult for the group to share the vision and work toward common goals. And .... Achievement of common objectives integrated into your strategic plan is the "springboard to gain a competitive advantage."