Strategy execution essentials – Diversification Strategy
Strategy execution best practices / essentials : Diversification Strategy
Most Organizations have their Business Goals neatly scripted to see impact on Business Outcomes driven by Targets or Delta Increases in:
- Top and Bottom Line: Revenue, Growth, Sales, Profitability, EBITDA
- Traditional/Digital Marketing Metrics, Virality, Lead Generation, Conversion
- Business Process Efficiency: Productivity, Quality, TATs, Revenue per Employee
- Employee Engagement Scores, Attrition, Training (L&D) Hours and Outcomes
- Customer Satisfaction Scores, Customer Retention or Customer Churn Rate
The above targets are driven by relentless efforts implemented by the Organization’s Assets with continuously improving efficiency in Organization’s Product Market Fit, Market Share, Organization Branding, Business Processes and Development Methodologies.
As a Business Leader you might want to be asked.
Are you missing a “Game changer” Goal?
Where is the Big Hairy and Audacious Goal that would inspire your Organization’s Ecosystem?
There are many if you are a Radical thinker, one of these many radical Questions:
Do you have a Diversification Strategy?
And, do you have Goals driven by this Diversification Strategy?
A Diversification Strategy can result in new tactics, out of the box thinking and Disruptive thought process across the People in the Organization. The moment you bring in Diversification as a ‘must have’ strategy, the opportunities are multiple right from:
- Disrupting the existing market with new Products/Services, Pricing and Marketing Strategies
- Inorganic Growth through Partners and Mergers and Acquisition for Diverse Product/Service Portfolio & New or Larger Markets
- Innovation of new Products/Services with New Capabilities, Technology and Processes towards creating New Markets
Is everyone in the Organization aligned and accountable for executing your Diversification Strategy?
Alignment of all the key stakeholders in the Organization’s ecosystem is the vital first step. As Business Leaders, it’s extremely important to communicate the awesome possibilities of the Diversification Strategy with passion and beliefs and by painting a Vision that would inspire the Organization.
Once the Stakeholder buy-in is in place, Empower the People with Accountabilities that would drive their day to day operations in completely redefined and inspired perspectives.
Execution of the Strategy has to be a cultural element and Execution as a Culture can happen when the day to day activities transition from the mundane to purposeful; thereby being part of the big picture, where each action contributes to the desired Organization Change.
Intrapreneurship has to be a key trait among the people, this would disrupt the existing culture for long term sustained benefits as you would be witnessing a larger pool of Leaders empowered with Decision Making, Business Acumen, Risk Taking and Strategic thinking for the benefit of the Organization.
How are you channelizing your Top Internal Factors to implement the Diversification Strategy?
Formulating a Strategy is one thing, however Execution is what separates Successful and Sustainable Organizations from Organizations that are reactive and inconsistent. We all understand the ever existing gaps between Strategy and Execution.
As Business Leaders of different persona and leadership styles, it’s very common to focus on Business Factors in isolation or partially, which is often based on perception focus and subjective decision making.
In implementing a Disruptive Strategy for the intended business outcomes, we believe all the 13 Business Drivers of the Metis Business Execution Engine “m” play a huge role, when planned and executed with continuous monitoring and tracking of progressive data driven results.
Let’s take 5 of them to see how a Disruptive Strategy can be executed by you as a Business Leader collaboratively in your Execution Teams:
Is your Capability good enough to execute the Diversification Strategy?
The Capability Map of an Organization executing a Diversification Strategy, has to look radical, and disruptive. As a Business Leader, you need to revise the competency framework (encompassing the Framework of Functional and Behavioural Competencies) and the desired competency level benchmarks across the Roles to ramp up and meet the needs of a Diversification Strategy. The deployment of Assessment Centre and Development Centre and highly experiential learning methods can go a long way in Building the Right Fit Talent for executing the Disruption and Radical outcomes of a Diversification Strategy.
Is your Organization’s Environment conducive for executing the Diversification Strategy?
Execution to be successful and sustainable is greatly influenced by the prevailing Culture of the Organization. Organizations normally get up with tactical and operational activities driven by “urgency”, and in the process pre-empting the Essential “priority” activities originally intended for the Execution of Formulated Strategy. Daily Execution of “Priority” Activities relevant to the Strategy must take precedence, and this can be instituted by the constant reinforcement by the Leadership across the Execution Teams. It’s also important for you as a Business Leader to create Business Environment that is inclusive across diverse elements of gender, beliefs and nationalities. The benefits of the variety and unique value brought by diverse population can result in improvised and innovative thought process which can benefit Diversification across the functions.
Do you have Innovation as a Culture and Practice to execute the Diversification Strategy?
Innovation Accounting and Innovation Management need to be formally setup and mapped to the Employee Engagement Practices in terms of making innovation a part of the KPIs and sustained by platforms to share and innovate, and motivating innovation as a cultural change by suitable rewards and recognition. As a Leader, you should invest in creating strategic initiatives or special focus area teams or Independent autonomous teams lead by ‘intrapreneurs’ across the year, with the sole goal of innovating new products, services, approaches and best practices. These teams should have no restrictions in terms of Budget and policies as their only objective is to think “out of the box” and implement their Disruptive ideas into the Business portfolio.
Do you have the Knowledge of Customer to effectively execute the Diversification Strategy?
It’s important to go beyond Product-Market Fit and increase in Market Share, as products can become irrelevant with the changing market needs and trends, which can ultimately bring down any Business. Customer Satisfaction is a metric of what has been done and dusted in the past, whereas the knowledge and voice of customer in terms of what additional features they may wish for, what needs they want your product or service to cater to can fuel proactive “innovation’ and diversification of portfolio with new / improved products and services.
Is Risk Management a Culture and Practice, to optimally execute the Diversification Strategy?
Disruptive thinking can lead the execution champions to discover unforeseen risks in the Business. An out of the box thinker would be ready to convert these risks into opportunities that can be built upon into Revenue generating & Ecosystem creating new or alternate Business Models / Products / Entry to New Markets. In the course of implementing the Diversification Strategy, As a Leader you have to make Risk Management a formal routine, since these Risk Management Plans either through Contingency or Mitigation can be stage gates to validated Diversification for the Business!
At Metis, we believe that you as a Business Leader knows the solutions of your problems and we believe in getting you closer to your Solutions by asking you what we call as Simple and Good Questions. We hope you found your answers to them. Do reach out to email@example.com or call us at +91 80887 21921 so that we can collaboratively get your Solutions implemented.