After you have developed a strategy, implemented it and given it time to work, you have to review it. You need to know whether or not it attained its objectives. This review is intended to give you lessons from which to learn from and create better strategies the next time round.
While you are reviewing strategies, you need a few metrics from which you can measure the effectiveness of the said strategy. These metrics are the key performance indicators. They include profitability, return on investment and value proposition, just to mention a few. These lay bare the answers of whether or not you are doing well in your business. The essence of key performance indicators is to help you, in part, to craft really powerful strategies.
So which areas should you focus on during your strategic review conference? Below are the main areas:
Examine Trends On ProfitabilityAside from providing value for their customers, another main aim for businesses is to be profitable. Not only that but also to be consistent in their profitability. Achieving such profitability is no mean feat. It requires constant invention and hard work to pull it off.
In examining the profitability of a company, you must look at the returns on investment, ROI. Have you broken even, fallen short or exceeded ROI? Depending on the answers, you can develop the plan that will get you where you need to go.
Every plan you formulate must have specific goals and objectives that must be accomplished. From time to time, you need to check on your list of objectives to find out if they are being met. If they are not, change up the aspect that is not working. If it works, stay the course until the next review.
Profits are never guaranteed in this volatile economy. There will be several threats that you will put profits in jeopardy. Remain focused on the goal and work to neutralize and overcome these threats.
Dissect The Value PropositionFrom time to time, you need to sit down with your directors and talk about the value propositions the company has. What do they think they are? Are they in line with what the customer think they are? This introspection section is designed to offer all the parties involved clarity. Most companies that offer misfiring strategies are often unclear about the values or benefits their products bring to their customers. It is the reason they buy from you. They must be as clear and as vivid as possible so as to provide you with something to push vigorously until the goals are attained.
Clarity is important because it gives direction. Since one of your core mandates as a company is to offer value, you must first know what the value is first of all. Then you can dispense the product that brings value to your customer.
Identify And Maximize Competitive AdvantageValue is why your customers buy from you and no one else. After establishing your value proposition, it is time to focus on how to stand out from your competitors. This is where you must develop those value propositions and frame them as unique advantages that only you can offer. Customers are a picky lot and will only choose something they feel will meet their unique need once and for all. That is how loyal customers are drawn into your company.
Once you have framed those advantages, it is time to package your products in a very unique way. It must capture the attention of the masses.
How you deal with customers is important. Most companies that undervalue good customer service suffer the misfortune of losing customers. You must work doubly hard to ensure that your customer service is beyond great.
The unique values you bring to the table matter a lot to your customers. So bring them out as clearly and as differently as possible.
Compartmentalization And SelectionDuring your strategic review, you must examine the products you are currently dealing with. You must focus on what the customers are saying about it and whether or not they are moving in the market. Resources must be used carefully and maximized on areas that will bring huge value to the company. If a product is not moving or the units set for it are not achieved, it is time to move on.
Successful businesses focus primarily on products that are a hit with its customers. That is how they make a bulk of their money. Identify those products and focus on making them sell more for enhanced profits.