The Acceptable Strategy

"Pure strategy is the seed, but the integrated strategy is the flourishing garden." - Işık Deliorman

What do I mean by this? Strategies are the bridges that lead us to achieve our goals. Strategy begins with conscious planning and evolves with the changing circumstances. While our ultimate goal may remain clear, the route and path may need to adapt to the conditions.

The methods of strategy development will undoubtedly vary depending on the organization and its leaders. However, they must all incorporate certain fundamental elements, such as the external environment, organizational capabilities, customer requirements, goals and action plans, and performance criteria.

A strategy that cannot be implemented is meaningless. A strategy that does not lead us to the desired outcomes is inefficient. And a strategy that does not produce the desired results is unnecessary. It wastes time and effort for both organizations and the individuals affected by it. It leads to a loss of focus, energy, and efficiency. I believe that the world is as filled with unimplemented ideas and projects as it is with unfulfilled strategies.

It is essential to align thought with action and action with results. Let our strategies support our purpose and vision so that our journey to the horizon is successful and lasting. Let us thoroughly understand what is happening in the external environment, the competition, and our customers so that we can make effective decisions.

Take, for example, a textile company looking to understand its customers' preferences: they sent their designers to Milan, engaged in sales at stores, and ensured direct contact with customers. This likely resulted in decisions such as not introducing certain designs to the market or shifting focus to new designs. 

Decisions should also include the option to 'let go,' such as exiting a low-profit venture. Similarly, we should consider how much money a specific income group may be willing or able to allocate to our product. We should determine our pricing strategy accordingly.

We all know IKEA, the Swedish furniture retailer known for its innovative practices in the furniture industry. IKEA is known for its minimalist, functional, and unique designs. To offer affordable products to customers, the company needed to reduce costs. To source its products at the most competitive prices, it used a global supply chain. It designed furniture pieces for customers to assemble themselves, further lowering costs. The cost savings were translated into affordable prices for customers. IKEA offered various designs, new products, and options to cater to different and diverse customer segments. They created shopping environments where customers could find many choices tailored to their budgets and tastes. This same shopping experience was reflected on their website and in e-commerce. They implemented loyalty programs. . They diversified their delivery methods and provided consultancy for customers' decoration and design needs. They even sought input from users for design ideas.

Most likely, IKEA has achieved strategic coherence within its organization. To succeed, they must have clearly and continuously communicated their goals and intentions to all employees, suppliers, partners, and customers. They must have chosen suppliers offering cost-effective and quality products. They must have had sound cost and resource planning in place. I would expect them to have a strong technological infrastructure in areas like enterprise resource planning, supply chain management, and customer relationship management.

They probably value their designers and prioritize new product development. I believe they are committed to fostering a customer-centric culture. They must have tailored their organization to align with these objectives. Moreover, I would expect them to have leaders who effectively manage all these connections. They must have made continuous learning and listening to customers a habit.

I think we would encounter leaders who can effectively manage change, embrace innovation, and, most importantly, possess strong personal and social skills. In short, I believe we would encounter leaders who are knowledgeable, operationally adept, and strategic.

While strategy is fundamentally based on analysis, the success of a business heavily relies on accurate synthesis. Even more importantly, strategies only make sense and come to life when they are embraced by employees and create value for our customers and business partners.

Let us not forget that our employees and partners are present at every point that touches the customer!

M. Işık Deliorman, CCMP™, MA

Novida Global Publishing & Consulting

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