BUSINESS TALK

A culture of CRITICAL STRATEGIC THINKING

Do we understand the basic nature of a strategic framework for our business and do we know how to think strategically about growing the business in a competitive marketplace? The absence of an ongoing critical strategic thinking process within a business is very often the reason for a good business suddenly losing its market share, or even worse, being forced to down scale or close the business.

In the first place we need to think critically about our businesses and actually understand the market's perception. In order to do that, we need to fully understand what strategy is all about so that we can sensibly apply our minds as to how the business can strengthen its competitiveness in general.

In its simplest form, strategy is all about what we do (In other words, what we offer to the market as products and/or services), how we sell it (referring to the different types of distribution channels), to whom (our target market) we offer it; and finally, at which price we take it to the market. Therefore, to cultivate a positive sentiment in the business towards critical strategic thinking, it is required that the management team remains very actively involved in challenging its current ways of doing business - and to adequately perform this most important management role, the business needs to have a high awareness of the latest market trends and also possess a deep understanding of the main competitor's relevance in the market.

To continue the strategic challenge within the business, the management team also needs to be sure that its existing infrastructure realities and leadership abilities actually make it possible for the strategy to be successfully implemented. Both these elements need to support the businesses strategic drive and with either one of both of them being under potential or even just on par, might just be the reason for a relatively sound and even most dynamic strategy ultimately failing on the management team.

Therefore, be extremely careful to neglect the ongoing challenge of the businesses infrastructure and leadership dimensions in the context of the businesses agreed strategic framework.

Ultimately, a well developed culture of critical strategic thinking is to remain focused on the competition and even more importantly, on your own ability to compete with a well developed infrastructure and a supportive leadership team being up to the task!

Never stop thinking!

Reinier Matthee
Marathon Group

Licensed as a financial services provider in terms of section 8 of the Financial Advisory and Intermediary Services Act, 2002 (Act No. 37 of 2002). FSP No. 6003