When it comes to the topic of business strategy, many writers have equated it to a competition. However, the corporate strategy is seldom about competition. There are no opponents to defeat; perhaps the biggest competitor is yourself, your own company. It would be best if you focused on growing and prospering your business.
Along with the ‘war-like’ mindset, there are many myths associated with business strategy. These myths are more prevalent in certain regions than others. But in some jurisdictions, these strategies have been squarely debunked.
Here’s a look at some of the corporate strategy myths that have been debunked in Singapore.
1. Talent is Not a Competitive Advantage
Most company leaders acknowledge that employees are important assets to the company. However, many of them fail to recognize them as assets to enhance the company’s success. Most company leaders perceive a fair mix of exemplary, ordinary, and weak employees within the company. In addition, they believe that meeting the needs of customers is all that matters. Although there is some accuracy in this belief, it is still worth understanding why Singapore, and Singaporean enterprises, tower above its peers.
2. It’s Not Profitable to Learn What Competitors Are Doing
Another popular myth asserts that as long as you have a sound plan and policies, you can focus all your energy on these, and there will not be a need to check up on what the competition is up to.
It is important to focus on your strategy. However, it is equally vital to know what the competition is doing. It may not be so obvious, but you can engage the services of a professional accounting firm in Singapore to analyze your books and reveal the effects of competition.
Each day, new competitive schemes and tactics emerge. You risk losing clients if you are not aware of the new developments out in the market. Therefore, it is essential to stay up to date with what is happening in the market as well as keeping your competitive edge sharp.
3. Strategy Should Be Abstract and High-Level
For many people, it is a belief that corporate strategy is abstract and should only be confined to high-level executives. This may be due to the fact that it concerns the overall direction that the organization takes.
However, that is not the case. The overall organizational direction should also be broken down to employees who will deliver it to the ultimate benefactor – the customer.
4. A Strategy is Best Developed by Consultants
Along with the belief that strategy is abstract and confined to high-level officials, many entrepreneurs consider a strategy to be a ‘thing’ recommended by a group of consultants.
Although it is advisable to seek the opinion of professionals, you do not have to rely on consultants to develop a strategy. Accounting companies in Singapore can provide you with elaborate finance strategies for your company. However, you can utilize recommendations from the consultant to develop a robust and workable strategy.
5. Strategy Springs from Data
Data is important when developing arguments and making plans for a corporate. Without reliable data, strategies will turn to fantasies.
However, with all due respect, a strategy is about the future while data lies in the past.
The managing director of Monetary Authority of Singapore (MAS), Mr Ravi Menon painted a picture of how strategy can differ from data. In 1965, Singapore’s per capita GDP was equivalent to Mexico and South Africa. Today, it surpasses nations such as France and South Korea and rivalling giants like the United States.
Similarly, data could reflect a picture that is unfavorable to your corporate. Despite so, keep in mind that strategy is about the future. Let data inform the strategy; but, build a strategy that utilizes insight, passion, and ambition.