Can you summarize your company’s strategy in 35 words or less? If so, would your colleagues put it the same way?
Defining the Scope
A firm’s scope encompasses three dimensions: customer or offering, geographic location, and vertical integration. Clearly defined boundaries in those areas should make it obvious to managers which activities they should concentrate on and, more important, which they should not do.
Defining the Advantage
Given that a sustainable competitive advantage is the essence of strategy, it should be no surprise that advantage is the most critical aspect of a strategy statement.
The value of rhetoric should not be underestimated. A 35-word statement can have a substantial impact on a company’s success. Words do lead to action. Spending the time to develop the few words that truly capture your strategy and that will energize and empower your people will raise the long-term financial performance of your organization.
Read the full HBR article by David Collins here.