Businesses that take the time to develop and implement growth strategies can meet both short and long-term goals, even during challenging times. They are also able to capitalise faster on immediate market opportunities or changing customer demands.

The key to long-term planning is to look forward even as you focus on the present.

Strategic Thinking & Planning

To be an effective leader, it is important for you to improve your strategic thinking by:

• imagining the ideal outcomes you want for the business, then
• working backwards to develop steps to achieve your vision

Here are 3 simple steps to get you started:

1. Force yourself to think strategically beyond the tactical thinking you often use to achieve weekly, monthly and quarterly goals.
2. Plan strategically by considering:
   • how your organisation will look like and be structured in future
   • your observations of processes and problems beyond “on the ground”
   • driving forces that will make your ideal outcomes happen, e.g. vision, mission, values, incentives, empowerment, etc.
   • your business intent, e.g. whether to be market leader or follower, a low cost or high value player, key targets and timeframe, etc.
3. Develop your strategic vision by defining your ideal position. This should include:
   • conditions that are necessary for your business to be productive
   • the niche in the marketplace that your business will fill
   • opportunities that exist both currently and in the future
   • strategies you will use to achieve your vision

Good strategic thinking should challenge assumptions about your business. Even more, it should uncover potential or previously unrecognised opportunities.

Types of Long-Term Strategies

There are 2 main categories of strategies:

1. Generic Strategies

   These strategies are basic approaches to strategic planning and can be adopted by any firm in any market or industry:

   • growth (expansion, new products, new markets, diversification)
   • globalisation (moving into overseas markets)
   • retrenchment (cutting back on products/services/markets to focus on what you do best)
2. Competitive Strategies

   Such strategies revolve around doing things better than your competitors by:

   • selling goods at lower prices (usually when a firm is a market leader and benefits from economies of scale)
   • differentiating your product (and being able to charge a higher premium)