It’s often been said that we’re in the agile phase of strategic thinking – the stage of strategic thought that focuses on flexibility in planning and rapid, quickly responding iterations - and it really can’t be emphasised enough just how important it is to build a responsive and agile FP&A strategy. It makes all the difference between an efficient and high-performing strategy and one that’s dead in the dust.
We’ve all heard the phrase, “Culture Eats Strategy”. This quote often attributed to Peter Drucker is seared into the minds of many as the reason why Strategy often fails. But for some reason, I’ve never been able to fully buy into this statement. Am I alone in this thinking?
Similar to a conductor of an orchestra, the finance team looks at all different functions, allowing some to grow faster at times but never taking eyes off other functions so that every function in the company always performs as one to achieve the best results possible.
Suppose you were asked to distill down your entire business strategy into a single graph or visualization, how would you choose to show it?
Although there have been a large number of publications on the topic of strategy, only a small number of business leaders are confident that they can achieve 80% or more of their strategic goals. Why is this the case and how do we tackle this gap?
In finance, we’re constantly chasing various financial metrics. But focusing on a narrow set of metrics often causes problems. For example, a Market Share growth strategy sounds great, but it often forces you to discount price or significantly increasing acquisition costs.
As a result, the strategic outcome is often short-lived and can even result in decreased financial performance. What can be done to prevent bad strategy and why are we so surprised each and every time we repeat these same strategic mistakes?