There are four key principles to keep in mind when setting company strategy.

1. The strategy must descend directly from your vision. Remember, it’s impossible to set strategy unless you have a crystal clear idea of what you’re trying to do in the first place. Vision first, then strategy!

1. The strategy must leverage off the strengths and unique capabilities of your company. Do what you’re good at.

1. The strategy must be realistic. It must therefore take into account internal constraints and external factors. Confront reality, even if reality is unpleasant.

1. Strategy should be set with the participation of those who are going to be on the line to make it happen.

The Three Legs of Setting Strategy:

VISION:

Core Values and Beliefs

Purpose

Mission

INTERNAL ASSESSMENT:

Strengths & Weaknesses

Resources

Innovations & New Ideas

EXTERNAL ASSESSMENT:

Industry / Market / Current Trends

Technology Trends

Competitors

Social & Regulatory

Macroeconomy & Demographic Trends

International

Focus versus Diversification

One of the most effective strategies for a small to mid-sized company is to focus on one particular market or product line and, within that area of focus, be significantly better than the competition. A focused strategy ensures that your limited resources are concentrated to create the maximum advantage. This not only applies to financial resources, but also applies to a resource that is far more valuable: management time and energy.

In summary, growing a business is a dynamic process as the leadership team navigates the evolutions and revolutions of growth. And like the growth stages of a child, they are predictable and unavoidable. To deal with these challenges, the company must grow the capabilities of the leadership team throughout the organization; install scalable infrastructure to manage the increasing complexities that come with growth; and stay on top of the

market dynamics that affect the business.

To do this, there are 4 Decisions that leaders must address: People, Strategy,

Execution, and Cash.

But good strategy looks past these issues to what is fundamental. From that perspective, the threats to the company are not specific new products or competitive moves, but changes that undermine the logic of its design.