the key components of a business strategy

Business strategies come in all shapes and sizes (see some examples/resources below) and can vary significantly in their depth. Most business strategy documents will however contain the following:

1. Vision and objectives

A business strategy is intended to help you reach your business objectives. The vision element of this provides a clear direction for the business. This enables you to develop tactical instructions within the business strategy for what tasks need to be completed, and which of your resources are responsible for completing them.

2. Core values

A business strategy guides leaders, as well as departments, about what should and should not be done, according to the organization’s core values. Defining the organizations core values helps to ensure that employees are on same page, and with the same goals.

3. SWOT (strengths, weaknesses, opportunities and threats)

For any business, understanding its strengths, weaknesses, opportunities and threats is critical. This is a core part of any business strategy, and ensures that humility, and self-awareness are present. Understanding this helps to define where the organization can win, and areas that must be addressed in the future.

4. Tactics and operational delivery

The tactical element of a business strategy will set out the operational details that define how the work should be delivered. Tactical delivery is critical for the success of any business strategy, and managers who have responsibility for tactics understand what needs to be done. This ensures that time, and effort is not wasted.

5. Resources and resource allocation

Generally the resource element of a business plan will cover the allocation of existing resources, as well as where additional resources will be found. Most businesses rely on many different resources, people, technology, financial, and physical resources. Having a clear picture of these, and future requirements enables leaders to see where to add more resources in order to achieve their goals.

6. Measurement and analysis

The evaluation phase places emphasis on how a business is performing in relation to the business strategy. Measurement, helps you to stay closely aligned to the strategy, define deadlines and goals and address things such as budget concerns. Nowadays, data and business intelligence platforms play a crucial role in this phase.