Scarcely a day goes by without a reminder of the fragility of our financial positions. Even those who should be at the top of their game aren’t immune to money problems, and without effective strategies in place for handling growth and your business’s evolution, any company could find itself at risk.
Consider musician Kanye West as a case study. At a time when he should be more financially secure than ever – he’s one of the most popular and talked-about rappers in history – he recently admitted he was over $50 million in debt. According to Forbes, West’s issues stem from undertaking costly, self-funded projects, a situation that could have been avoided if he had a more conservative strategy in place.
This kind of issue isn’t limited to the high-flying world in which a figure like Kanye West operates, however. It’s happening to organisations right here in Australia. Dun and Bradstreet’s New and Failed Businesses report for the December quarter of 2015 found that over 12,000 of the nation’s companies failed in that time period. Figures like these make one wonder how many of those businesses could have benefited from better strategic management.
Without a strategic management plan in place to drive your initiatives, you could face an uphill battle.
Building an effective leadership strategy
Being able to meet the unique goals you have for your business is difficult to pull off on your own – you need the support of all levels of your organisation. That means developing a smart leadership strategy to motivate your workforce and offer guidance and direction for everyone, no matter what their role.
A McKinsey and Company study looking into leadership behaviours found that the most effective leaders are able to develop and communicate their vision, while also supporting others and seeking different perspectives on how to achieve those goals. It’s all very well to know where you want your business to go, but without a strategic management plan in place to drive your initiatives, you will likely face an uphill battle.
Breaking down communication barriers between various departments of your organisation should be made a priority, as eliminating disorganisation and infighting will allow your strategy to run much more smoothly. Having a simple, powerful strategy software solution is a great way to ensure everyone remains on the same page, and has a clear idea of where your organisation is headed.
When it’s time to employ such a solution, speak to the team at StrategyBlocks.