Business Plan Tips : Smart Business Planning Strategies

Business Plan Tips : Smart Business Planning Strategies

Smart strategic plans keep it simple. Keep
in mind, we talked about strategy as investing now for returns in the long-term. GE, for
example, has a variety of companies and industries that they operate in. And the key for them
is developing the leadership who can run these enterprises and make them work. All the way
back to the time of legendary CEO, Neutron Jack Welch, the idea of developing A-players
and pruning the garden and developing has been a strategy that has worked effectively
for them. Many other companies have tried to copy and not done as well, but basically,
this is what they do, and they’re excellent at it. There are probably more GE alums who
are CEOs of other companies than any other company existing today. Creating leadership
is GE’s strategy. Sony, for example, in making video games, had recognized that partnering
with, actually, their customers to develop the games was going to be far more effective
than relying only on their own internal code writers. The secret to On Star’s strategy,
which is a GM subsidiary that offers global positioning and driver assistance services,
was to actually offer their product to competitors. This was anathema to GM initially, but it
was a key to On Star being successful with their product. REI, which you’re familiar
with, which is the camping store, which sells products at a premium price, their highly
differentiated product. But what they’re able to do is hold onto their customers. If you’ve
ever shopped at an REI store, you can set up tents. You can explore things. There’s
a whole variety of things. They offer a whole experience for camping, in the store. If you’ve
ever shopped REI, you’ll go back, and this is their strategy. GM, for years, has struggled
to offer consistently cool cars that consumers wanted to buy. What they discovered was that
in the design process, designers (they have great designers) and engineers sat at the
table together, but at GM, the engineers always won out. They brought in a legendary designer
from Chrysler who made one simple change, which was that anymore at the table, the designers
and the engineers were equal. So a car couldn’t come out until both the designers and the
engineers had signed off on it. Small change, simple change, but a major impact in terms
of GM’s success.

Comments (1)

  1. Boosting productivity is a smart strategic plan. I agree that developing leadership is key to growth.

Comment here