Bridging the Strategy Gap: The Overlooked Key to Business Success

In the realm of business strategy, countless resources offer guidance on formulating and executing winning strategies. Yet, amidst this abundance of strategic advice, a critical step often remains in the shadows: the diagnosis of a business's current status.

This phase, akin to a medical diagnosis before prescribing treatment, involves a comprehensive assessment of your organization's internal and external environment. While tools like SWOT and PESTEL are widely known, they often fall short of providing a complete picture.

The Challenge

The challenge lies in the limited availability of resources and expertise dedicated to this vital step. Even with strategic frameworks, accurately diagnosing your business's current reality can be complex. As Leinwand and Mainardi highlight in their book "The Strategist's Toolkit," understanding the present state is paramount, yet the focus often shifts prematurely to strategy formulation.

This creates a knowledge gap, a disconnect between strategic aspirations and the tools needed to achieve them. It's the "strategy gap" – the chasm between where your company is today and where you envision it in the future.

Why Accurate Diagnosis Matters

Accurate diagnosis is the foundation of successful strategies. It empowers you to:

• Set realistic goals that align with your capabilities and resources.

• Identify hidden opportunities for growth and innovation.

• Uncover potential threats to your business's success.

• Make informed, data-driven decisions.

Without a clear understanding of your current state, even the most brilliant strategy may fail.

You may know your destination but if you don't know where you are your still lost.

Overcoming the Challenge

While resources solely dedicated to diagnosis may be limited, tools like SWOT, PESTEL, and the Balanced Scorecard offer structured methodologies for assessment. However, their effectiveness depends on the expertise and objectivity of those conducting the analysis. Group think and insular thinking can hinder accurate diagnosis.

Data analytics and market research offer valuable insights into customer behavior, competitor activities, and industry trends.

Key Considerations for Effective Diagnosis

• Objectivity: Be willing to confront uncomfortable truths and challenge assumptions.

• Industry Awareness: Stay informed about trends and competitive dynamics.

• Continuous Monitoring: Reassess your diagnosis regularly as the business environment evolves.

• What is the Current and future business model, your go to market model.

• What is your current existing Customer and future Potential customer bases look like. 

• What is your capacity to invest at the right time. 

• How effective are your sales and marketing functions. 

• Do you have the right enablers in place.

• Do you have the resources available to take the journey ahead. and what excess is there that can be re-deployed.

How Egress Australasia Can Help

At Egress Australasia, we offer a suite of products and services to help you bridge the strategy gap. Our Business Health Check is a comprehensive tool that assesses your company's commercial and board functions, identifying areas for improvement and strength. We also provide consulting services to guide you in developing and implementing strategies aligned with your current reality and future aspirations.

Don't let the strategy gap hinder your business's growth. Take the first step towards bridging the gap by visiting our website to learn more about our Business Health Check. Gain a clear understanding of your company's current state and set the stage for developing a winning strategy.

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