As we respond to intensifying competitive pressures and challenges, we ask more and more of our employees. But overwhelming our organizations can result in too little to show for the efforts of our talented and engaged workers. According to this HBR article on eliminating strategic overload, we would be wise to select fewer initiatives with greater impact, we can make our strategies more powerful. A strategic initiative is more worthwhile if it does one or more of the following:
- It creates value for customers by raising their willingness to pay. As we find ways to innovate or to improve existing offering, we can maximum price people will be willing to pay.
- It creates value for employees by making work more attractive. Offering better jobs lowers the minimum compensation that we have to offer to attract talent to our businesses.
- It creates value for suppliers by reducing their operating cost. If suppliers’ costs go down, they can offer us a more cost-effective price for their goods.
Do you consider value-based criterion to your strategic initiatives? As we expand the total amount of value created for our customers, employees, and suppliers, we can hopefully position ourselves for enduring financial success. Click here more information and resources on strategic planning and execution.