If you go for the exit strategy, there is a significant risk that you try to approach the world we had a few months ago. You might get close, but you will never succeed. Because our world has changed. Choosing for the entry strategy means accepting this new world. No matter how difficult, you will start looking for new opportunities.
To survive as an organisation on the long term, I believe that adapting to the new circumstances is crucial. For any organisation. Even if you are one of the lucky businesses that flourishes during this world-wide crisis. Because the playing field is different.
But how to define your entry strategy? And how to make it actionable instead of only a great idea? The following 7-step approach can help you to achieve this:
Creating a sustainable organisation means that your business should have a positive impact on all stakeholders. On the long term, only focusing on profitability and shareholder value is not sufficient anymore. Think about the well-being of your employees. Your contribution to society. And how your business will take care of our planet. Map all your stakeholders, their stakes and to which level you are currently these.
2. Organisational strengths & weaknesses Do not draw conclusions yet! Start looking at your own organisation. What makes you unique? What are your strengths? And be transparent and honest about your weaknesses.
3. External trends & challenges Besides the internal strengths and weaknesses there are also external trends and challenges to consider. Define all these factors that might influence your business. Like corona, environmental change, energy transition, digitisation, etcetera.
4. BHAG The Big Hairy Audacious Goal. A clear and compelling target for your organisation to strive for. Your ultimate dream. Not something you can achieve in a few years. But something you might achieve at least 10-20 years in the future.
5. Picture of success With the given input imagine what your successful organisation looks like in 3-5 years from now. Describe this in one sentence.
6. Strategic initiatives You know what your picture of success, but how to get there? Think about all initiatives that you need to deploy in the upcoming years to make it happen. Every idea is good. You do not have to make choices yet. Use your creativity and create a full list of strategic initiatives.
7. PGIM The PGIM framework stands for “Picture of success”, “Goals”, “Initiatives”, “Measures”. This will help you to quantify your strategy. You described your picture of success in words. Now it is time to quantify it with specific and measurable goals. What defines whether you achieved your picture of success? Same for your strategic initiatives. First you need to quantify the impact of every initiative. Then you prioritise them based on fast impact. And for the priority initiatives you define the measure that indicates whether it has been implemented successful.
Do you have tips & tricks for others to make their entry strategy? Leave a reply!
Interested in our view on how to set clear goals? Read our blog “Don’t look at the tree to get things done!”