Less is more: Creating a simple business strategy statement.

 Does strategic planning  remind you of junior high school?

In the January 2014 issue of the Harvard Business Review Roger Martin writes about "The big lie of strategic planning" where he outline three rules that will help companies succeed in their planning efforts. Rule # 1 is "Keep the Strategy Statement Simple."

I am amazed when I interview senior business teams and ask them to summarize their firm’s strategy in a single sentence.  Often I get very different answers. Imagine a football team or military unit going into action without a common objective. Their chances of success are obviously not too good.

Many companies suffer from a “silo mentality” with various departments viewing their job through the lens of their respective disciplines. For example IT teams can view their efforts as highly technical and as an end in itself. I support the idea that IT is a means to an end, like improved efficiency, better data capture / analytics to helping deliver enhanced customer experiences. 

Brings to mind an IT and Marketing department meeting I recently attended. The CIO and CMO seemed to be from different planets, but carrying the same business cards. Modern marketing makes this collaboration key – from sourcing analytic data to leveraging the process discipline of IT professionals in helping develop better user experiences for customers, from billing to order fulfillment.

Another way to say "Brand Advocate"

I often remind our clients to think about their customers, the nice people who “make the cash register ring” Does the business strategy focus on what the customers want? Is it stated in “benefit-based terms?” Is it different from what other firms are offering?

One of my business school marketing professors once said “Sears sells lots of Craftsman cordless 3/8” variable speed reversible drills.” But “people don’t buy the drill, they buy the hole in the wall.” It’s the end benefit that people seek.

And the strategy should highlight points of competitive difference. Sadly the most unique thing that most businesses offer is that there is nothing unique about what they offer. So the challenge is finding a simple, tangible, and relevant unique selling proposition.

The Ikea Concept: Doing it a different way.

In a recent HBR Blog post Alessandro Di Fiore made the case for crafting a 15 word strategy statement and cited the clarity of furniture retailer Ikea's strategy statement. It targets consumers: "At IKEA our vision is to create a better everyday life for the many people." IKEA states its retail concept as "Doing it a different way." Short and brilliant, a unique shopping experience with great furniture and housewares, with the best Swedish Meatballs around, bar none.

Putting customers first really worked.

I saw this approach work equally well in a B2B context  when I was at MetLife - which sells a pure commodity: Employee benefits including group life, dental and disability insurance. We came up with a strategy - “MetLife is Easier”  - which promoted superior customer service in B2B group insurance. It was adopted throughout the organization, from staffers promptly returning calls to easy to understand group insurance quotes, to an effective “once and done” problem resolution process.

This simple strategy helped grow the business by leaps and bounds. It got the business out of competing purely on price by giving customers a tangible point of difference and real value: reduction of administrative burden by the HR management target. This was a major pain point for the target audience that we discovered through primary research.

Drive profitable growth by keeping it simple.

Forget the 2 MB strategy documents. All great business strategies should ideally be summarized in a single statement. Hopefully one that is easy for every employee to remember, and that is relevant and different enough to get the attention of the prospects and generate consideration, invite a conversation, or encourage a purchase.