The grand strategy is your plan for achieving your missions, but
your company's grand strategy must be understood as a dynamic
strategy. It reflects beliefs that exist as of a certain point in
time, but as these beliefs change, the strategy must change as well.
For example, your grand strategy may be based upon a belief that
certain economic factors will be happening to your regional economy
within a certain amount of time. This assumption may be critical to
the strategic tactics you develop, such as building up inventory in
anticipation of an improved economy boosting sales demand.
If your underlying assumption is incorrect and, in fact, the
economy stays stable over that same period of time, your strategy
needs to be changed. You have no ability to control or influence
these external factors that underlie your strategy, but you can
monitor them and adjust your grand strategy accordingly.
During the formation of your grand strategy you must also create
different options that can be activated based upon these external
conditions, such as the economy, that are out of your control.
Tracking these critical assumptions on an ongoing basis is very
important if your grand strategy is built upon them.
Identify and track only the most important of these critical
assumptions. From a practical standpoint you cannot track every
single assumption but you must monitor the most critical.
An analysis of your company's "strengths, weaknesses,
opportunities and threats" (SWOT) is an integral part of the grand
strategy planning, and likewise is non-static, and must continue on
a regular basis. Just as external factors will change, affecting
your strategy (they can affect strengths, weaknesses, opportunities
or threats!), so too can circumstances within your company bring
about changes that alter your SWOT assessment. And, of course, your
strategy must change accordingly.
Try to take time away from the day-to-day operations on a regular
basis to ask yourself not only what are your organization's
particular strengths and weaknesses, but also what the strengths and
weaknesses of your competition are, and how can you use these to
better compete and better differentiate your business.
This should be a major aspect of determining the direction in
which your grand strategy moves you. You need to be able to put
together a reasonable SWOT analysis of your competition as well as
yourself, and keep it up to date. With this knowledge, you can
adjust to your market as it really is. …