It's surprising how often strategy planning processes don't define the required outcomes or objectives, despite the fact that strategy is little more than finding the optimal path to get to outcomes.
In this video, we explore the first step in successful Strategy Planning: defining outcomes. These outcomes are why we do "strategy" in the first place. Outcomes must match the needs of shareholders, owners and/or the board, and must adhere not to a strict timeline, but a rough time horizon.
Be sure to watch the overview of all 6 steps here.
Presented by Kut Akdogan, Partner at Gaussian Holdings.
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All leaders know that strategy planning is rooted in our objectives. Yet so few organizations concretely define these objectives before strategizing. This is the first step of strategy planning: Defining outcomes.
Outcomes are the measures of success in an organization and are the cornerstone of strategy planning. For example, hit $100 million in annual run rate revenue or reach a 50 million dollar valuation. Some tech leaders call these audacious goals.
Outcomes define how big our strategy needs to be. For example, a company targeting $10 million in revenue will have a vastly different strategy to one targeting $10 billion within the same timeframe. For that reason, outcomes do not need to have a strict timeline, but rather a time horizon. For instance, two to five years.
Outcomes are a reflection of the goals of the shareholders or board. For a public C-corporation, the owner goals are clear cut: maximal valuation. For other companies, you might need more nuance and consideration to arrive at the right outcomes.
Defining concrete outcomes is critical to a good strategy for more resources or services for defining multi-year strategic objectives at your organization, contact us here or shoot us a note by email or on LinkedIn.
In our next video, we'll look at the second step of strategy planning: Research and diagnosis.
Many companies work with us to achieve the best practices and outcomes mentioned in this article. Our services focus on clients' most pressing opportunities and challenges, no matter the industry.
