Strategic struggles: faulty thinking
So far, we’ve spent three weeks talking about strategy struggles that all are prone to take place before you even start thinking strategically, but once you actually get into the process you still aren’t home free. Here are three tips for keeping yourself on a firm footing when thinking strategically:
1. Don’t forget your competition. You are not building strategy in a vacuum. The strategy you employ must take into account what the other players in your industry are doing. Your performance is going to be marked relative to theirs.
2. Know your data. Benchmarking and forecasting are critical components to strategy, but you have to know where the data came from and the possible flaws in your models. What start off as positive tools can become major hazards if taken out of context or if used as a reason to reject new intelligence that arises through the strategic thinking process.
3. Know yourself. Your mind is your greatest weapon, but it’s a double edged sword. Three common strategy errors involve looking for data that confirms what you already believe to be true and rejecting data that counters it, falling into group think and deferring to the status quo.
Keep these struggles in mind and you are well on your way to developing an effective strategy.