INTRODUCTION
Strategy plays a big role not only for the business system within an organization, but also for the human resource. Researchers have found that strategy usually fails not because not because of the wrong formulation, but rather because of insufficient implementation and research. It is therefore obvious that strategic formulation is a key challenge in today’s business world. This being many factors influence the successful formulation and implementation of strategy. In this study, we will firstly review the process of effectively executing strategy. Secondly, we will discuss the power of design versus the power of fucus. Lastly, we will analyze decision traps to avoid. This study will be done with supporting citations.
The process of effectively executing strategy.
Even though we often see organizations experience growth and success with strategy, some others struggle with this process. The process of executing the right strategy begins with communication, and management style. Gamble et al (2019) stress that the organization should turn the strategy into actions that produce positive results. Organizations must focus on key options that would influence and dominate the market. The customers once they notice that the company’s value proposition is higher that other competitors, they would come for them (Martin, 2013).
Samaddar, (2019), discussed that effective execution of strategy entails focusing on the product rationalization. Improving on the quality of service provided to the customers is an important strategy as it empowers the customer with the freedom to pick the right plan and the right organization to do business with. The organization also must change their strategy into one that represents the future of the organization by creating new paths of working through various methodologies. The new agile environment with create more flexibility and adaptability for customers.
The power of design vs the power of focus
The power of design and the power of focus all strive to solve customer’s problems. Companies must continue to enact authenticity so that the customers have as authentic of a brand voice as possible (Reynolds, 2016). An organization which applies lateral thinking increases both its power of design and focus. Focusing on the objectives, the products, and the solution we provide to the customer is vital for the growth and success of the company. However, the power of design would come from fresh solutions picked or stolen from other industries and other sources of inspiration.
Zook (2007) stress that it is dangerous to underestimate the power of focus. Profit from the core comes from strategic focus of the business. Most organizations loss their opportunities because of distractions and loosing track of the important aspects within their area of focus. He further argues that the best way to reduce risk as well as organize the business environment to become profitable is to learn to focus. The real power of focus should be external; that is focus on competitors is crucial. Focus on new technologies, new customer dynamics will increase awareness and profitability.
Decision traps to avoid.
The most important job of management and executives is making decisions.
Hammond, et al (1998) consider it the toughest and the riskiest. A bad decision can ruin a company and move it from bright to bleak. The first trap to avoid is the status-quo trap. Most organizations think that their decisions are objectively made, but the truth is that there are usually some biases that influence the choices they make. The executives possess a strong bias toward alternatives that perpetuate the status quo. Hammond, et al., (1998) stressed that breaking this status-quo means acting, accepting responsibility for the actions though accepting critics and suggestions.
Another trap to avoid is the framing trap. Organization must avoid solving the wrong problems because this creates a mental framework for the decision -making process. This also cause the decision makers to overlook the best options or loose sight of important objectives (Russo, & Schoemaker, 2017). They further argued that the first step of deciding is to frame the question. This step is a risky step as the way the decision is framed can highly influence the choices made. To avoid this trap, management should not immediately accept the initial frame, but rather analyze and reframe in different ways. They must rethink the decisions they make to know how it can impact the organization. Lastly, the decisions must be examined, the problem must be reframed, and other alternatives must come to play prior to making the decision.
CONCLUSION
As executives in an organization, it is important to apply all necessary strategic formulations for the success of the organization. When the organization becomes comfortable with the choices they make, they start missing on important environmental changes that happen within and outside the business milieu. If an organization wishes to improve the business sector and start building a better business, they must improve their decision-making ability. Ironically the focus should start internally before moving outside. It is important to understand the business, the products, the solutions before deciding on the next steps. Understanding and profiting from te core business will open room for business growth.
References
Gamble, J., Peteraf, M., Thompson, A., (2019). Essentials of strategic management, (6th ed.). New York: McGraw Hill Higher Education.
Hammond, J., S., Keeney, R., L., Raiffa, H., (1998). The hidden traps in decision making. Havard business review. https://hbr.org/1998/09/the-hidden-traps-in-decision-making-2
Martin, R., L., (2014). The big lie of strategic planning. Harvard business review. https://hbr.org/2014/01/the-big-lie-of-strategic-planning
Reynolds, R., (2016). The power of strategic design thinking: Four principles for your business. A forbes article. YEC omen council post. https://www.forbes.com/sites/yec/2016/06/21/the-power-of-strategic-design-thinking-four-principles-for-your-business/?sh=6d64003751a2
Russo, J., E., Schoemaker, P., J., H., (2017). Decision traps. Ten barriers to brilliant decision making and how to overcome them. A John Olivant article. https://www.johnolivant.com/2017/11/14/decision-traps-ten-barriers-to-brilliant-decision-making/
Zook, C., (2007) Don’t underestimate the power of focus. Harvard business review. https://hbr.org/2007/08/dont-underestimate-the-power-o