Strategise • Operationalise
Corporations grow and evolve through M&A, organic growth or by restructuring themselves. Often, growth strategies incorporate elements of all three. A well-conceived and executed growth strategy is key to a corporation’s growth, and sometimes its survival, in the marketplace. Without a clear strategy, corporations may find themselves reacting to the marketplace and competition, and end up embarking on initiatives and acquisitions that destroy, rather than create, value for their shareholders and employees.
Far too often, corporations’ strategic plans are dominated by events or milestones, e.g. revenue/profit targets, IPO and entry into certain markets. While these are important markers, corporations should not lose sight of longer-term changes in the market, competition, and technological and regulatory environment. The market abounds with examples of promising corporations that have stagnated prematurely when management appears to run out of ideas or options soon after certain significant milestones are achieved.
Strategic mistakes are often made when things appear all rosy. It is during good times that corporations need to critically challenge their own strategy and competitive positioning to ensure that they are not over-stretched, nor complacent, and do not fail to realise that costs and competition are creeping in. Often, and especially in hierarchical Asian businesses, an objective third-party consultant’s view is helpful to facilitate strategic planning discussions and critically challenge internal views.