What is a Good Business Strategy?

What is a Good Business Strategy?

Every business leader wants their organization to succeed. Turning a profit and satisfying stakeholders are worthy objectives but aren’t feasible without an effective business strategy.

To attain success, leaders must hone their skills and set clear business goals by crafting a strategy that creates value for the firm, customers, suppliers, and employees.

Here's an overview of 3 Human-centered criteria of a good strategy:


STRATEGY THAT INSPIRES (cognition)

To execute a strategy, people need to understand it, see its point, and be positively triggered to take the leap of faith that it requires.

Strategy that inspires is strategy that ignites interest. It excites, it triggers people’s curiosity, imagination and creativity. It makes their brains work and replaces current views about an organization’s future with better ones. This means:

  • A clear and outspoken vision outlining a desirable future state of the organization.
  • A creative tension between where the organization is today and where it wants to be.
  • Alignment between the future idea of the organization and the future ideas of its people

Does your strategy inspire your people?


STRATEGY THAT TOUCHES (emotion)

To execute a strategy, people need to feel good about it, feel attached and committed to it and agree that it is the right thing to do for the organization. Strategy that touches is strategy that triggers positive emotions. It feels right, aligns with people’s values and passions, and makes people wholeheartedly say yes. It is purpose-driven and based on sympathy and empathy with others and the world at large. This means:

  • A future direction that is morally and ethically the right thing to do for the organization.
  • A large enough step forward so that it substantially triggers people’s emotions.
  • Alignment between the values and beliefs held by the organization and the passions of its people.

Does your strategy touch your people?


STRATEGY THAT MOVES (behavior)

To execute a strategy, people need to see the path, have clarity on what it means for them and asks from them, and believe it is somehow achievable. Strategy that moves is strategy that enables and stimulates action. It is clear, actionable, and contextualized so that everyone in an organization understands what it takes from them to execute it. This means:

  • A detailed enough description of the strategy and its consequences for units, departments and individual people
  • A clear understanding of the difference between the current state and the future state of the organization
  • Alignment between the capabilities and resources the strategy requires and what is feasible.

Does your strategy move your people?



Infographic Jeroen Kraaijenbrink


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