"Strategy happens whether you intend it or not," says Michael Behnam, dean of Loyola University Chicago's Quinlan School of Business.
"Most of us think about strategy as the big meetings at work, but in the absence of intentional processes, strategy happens at the office fridge as people discuss what they want to achieve."
This unintentional strategy could have unintentional impacts on business, he says.
Below, Behnam shares strategy insights gleaned from his career as an educator, trainer, and consultant both in the U.S. and Germany.
Plan to plan
Businesses need to develop a clear and active process for strategic planning, says Behnam. If they don't and strategy happens anyway, businesses cannot guarantee implementation, assign budget or accountability, or measure outcomes. Studies have shown that management teams spend less than an hour per month discussing strategy, which is not enough to thoughtfully move their business forward.
Anticipate the unexpected
No one can predict the future. "The COVID-19 pandemic or even the fall of the Berlin Wall in 1989 when I lived in Germany shows this," says Behnam. Even so, the right business strategy is to expand the company's thinking to anticipate all possible futures. This means thinking beyond the highly likely scenarios and preparing to respond regardless of which future happens. And yet, businesses almost always lack the motivation and imagination to do this.
Understand global impacts
All businesses—even small family-run storefronts—are impacted by global business, says Behnam. One example is the global supply chain challenges highlighted by the pandemic. Another is the inherent competition between small businesses and national or international businesses. Since everything is so interconnected, business strategy needs to consider how to both harness the benefits and address the challenges of global business.
Plan to communicate
Once the strategy is created, businesses need to clearly communicate the strategy to employees and be explicit about each person's expected contribution, says Behnam. Research shows that about nine out of ten strategies fail. Not all of the failed strategies are bad strategies. They fail in part because studies suggest that 75% of employees don't know how their position intersects with and supports their organization's strategy. Instead of focusing on business goals, employees focus on clearing their desk by moving things from the inbox to the outbox without a sense of the bigger strategic picture.
Tie your strategy to your budget
Creating budgets that support the business strategy is critical. And yet, according to Behnam, many businesses don't and managers are left wondering where they should allocate their department funds. They may even make funding decisions that don't fully support the company's goals.
Strategies need to be thoughtfully created, explained, and lived to make a difference, explains Behnam. They are not just for the never-opened binder on the bookshelf.
Learn about Loyola University Chicago's Next Generation MBA. The program's required consulting class provides students with hands-on experience through a project for a Chicagoland organization.
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