Market Research and Strategic Planning: Tools for Strategic Management

Over the past several years, much has been written about the value of teams and the positive impact a successful team culture can have on an organization. We believe that to be true, and conduct employee surveys all the time to assess the health and climate of organizations. Greater levels of involvement and empowerment have resulted in statistically supported levels of enhanced productivity. But what about at the leadership level? That is a different ball game. Balancing traditional executive leadership behavior with the elements of successful teaming can be frustrating. A number of actual case studies show that team failures can result in detrimental effects to an organization's overall competitiveness. Where do these initiatives often fail? Typically, they are flawed from the start. You cannot approach a management team the same way you approach a project or functional team. The level of responsibility is obviously different, as well as the nature of the work for which the team is responsible. Successful management teams are created with these differences fully understood from the start by all team members.

A model for high performance teams at the management level is essential because a strong management team "at the top" can be a tremendous source of competitive advantage. In addition, a strong management team is extremely enabling to an organization looking to leverage leadership from a designated individual to a natural team. It takes time, but starting correctly can improve the probability of success.

Developing a game plan
When it comes to strategic planning, it is hard to avoid sports analogies. This is perfectly logical. Business, like sports, requires scouting, planning, skill and execution – all performed in a competitive arena. You could never imagine a professional team in any sport sustaining a winning tradition without a well-constructed, well-executed game plan. A strategic plan is your organization's game plan for winning. When the management team has defined its primary role as providing effective guidance and leadership for the organization, it recognizes strategic planning as the tool. The following are three basic actions that need to be taken in order to develop winning organizational "game plans."

#1 – Involve your management team in discovering what is truly going on in your competitive arena.
Perform a meaningful market analysis that includes a significant level of customer input. This is critical for two reasons: 1) you can't develop a sound plan based on intuitive hunches alone; and 2) your management team needs to develop a consensus relative to what is going on out there. In order for a management team to perform its primary role, the elements of market awareness and urgency will be essential. A purposeful information gathering activity will help address this requirement.

#2 – Develop long-term objectives and define strategies to accomplish those objectives.
It is critical to know where you are heading. Are you looking for a 20% growth in sales with a minimum 12% net profit? Are you looking to increase market share by 50% in a specific area? Are you determined to establish a dominant position in a given market? Whatever you determine, make it a stretch, but attainable. Defining the strategies to get you there depends upon your organization’s source(s) of market advantage. The five sources of market advantage are low price, product differentiation, unrivaled service, niching, and partnering. Upon which source(s) will you base your organization’s growth? In order to determine your organization’s sources(s) of market advantage, you will need to reference the findings of your market research and your team’s assessment of your organization’s internal strengths and weaknesses.

#3 – Communicate the plan and implement the strategies.
Communication is key for successful implementation. Winning companies have a large percentage of employees that understand the mission, vision, values, and strategies of the organization. This common understanding directs their actions. It is extremely important to work towards making communication a more efficient process. Keep in mind that effective communication is an ongoing process which takes discipline.

Bringing it all together
Implementing a strategic plan is an ongoing effort, one that involves the alignment of people and processes behind defined objectives and strategies. We believe this is the responsibility of the management team. Successfully addressing this issue will require your management team to make (and truly believe) the assumption that the large majority of people in the organization (if not all) would rather do a good job than a bad job. People need direction, guidance, feedback, and appraisal in order to work in an effective and efficient manner. Providing this ongoing support should be the responsibility of the management team, and the process and appropriate skills should be developed in order to provide this support effectively. This aspect of managerial performance is often overlooked. Professional management behavior does not naturally evolve, it is developed purposefully. Accountable organizations are those that recognize and act on this principle.

Conducting research and developing a strategic plan is not as daunting as it may appear. If you believe it has merit, it is probably best to talk to someone who has experience in helping similar organizations through the process. Doing this will help you increase your level of awareness and understanding about the requirements, benefits, and potential pitfalls. As you and the people of your organization approach the end of 2013, ask yourselves whether you are ready to make a significant change to take your business to the next level. If the answer is yes, then you will need to do something significantly different, and we can help. Call us toll-free at 1-800-999-6615, email us at mail@tweedweber.com and/or visit us on the web at www.tweedweber.com. Also, be sure to follow us on LinkedIn (Tweed-Weber, Inc.) and Twitter (@TweedWeber). We would be glad to share our experiences with you and help you decide the right plan of attack for your organization.