Chen Chunhua: how to formulate strategy? (good article in depth)

Introduction: the balance in 2021 is insufficient, and 2022 is coming. The end of this yearstrategic planHow's it going? howDevelop strategy? This article sharesstrategyFive angles anddigitizationTwo sets of strategies of the times to help youcontrollerBetter understand and develop strategies.

I'm often asked about strategy andAdministrationWhat is the difference between?

Management solves two problems:cost reductionAnd improveefficiency。 Strategy always asks two most important questions: the first is how to createcustomeras well asCustomer valueThe second is how to achieve growth.

When making a strategy, if you choose the right thing to do, you will get the opportunity to stay with customers and achieve growth, so the strategy must play a traction role. Any oneorganizationStrategy must be matched with management.

Strategy is essentially a choice. What matters is what you choose not to do. I often ask you a question: what do we choose to do? What do you choose not to do? This problem must be thought out clearly, because if everything is done, there must be no problemwayAll done.

Therefore, the highest priority for any organizationleaderPeople, the first requirement is to haveStrategic thinking。 What can we choose to achieve growth and focus on the direction of customer value? This isenterpriseSupreme leaderneedA place to train yourself.

I use five perspectives to help you understand and develop strategies:

01. Strategy is a setplan

When I was doing regional research in the enterprise, many regional leaders told me that our strategy was determined. I asked: if the strategy is certain, what will you dotargetWhat is it? He would say: build the region better and better.

It's not a goal, it's a slogan. The goal must be very clear and specific. For example, how muchCustomer servicesales revenueHow much is it? How to promotemarketGrowth and so on, this is very clear.

strategyThe first choice is a set of plans with objectives, strategiesInspection standardAnd action plan.

I wrote in the "40 years of Shunde" that Shunde chose not to do it at that time because it had no geographical advantagethree types of processing plus compensation trades", but make every effort to developindustrial enterprise, from a small fan to becoming the world's largest manufacturing base of air conditioner, microwave oven and refrigerator. So the strategy in the strategy is to have a choice.

The plan should have inspection standards. Why do I think we often don't have a strategy, because you can never test it. If we talk about the plan, we must discuss the problem of testing, which needs to be verified.

Finally, the plan should have an action plan. Strategy is not about talking about a dream and a goal. It should be implemented in the action plan, that is, how you can do itensureThe realization of the strategy.

02. Strategy is a setbusiness model

Strategy must be a business model. The business model solves these problems:

(1) ExplicitValue proposition

AlibabaAt the beginning of its establishment,Jack MaPut forward Alibaba's value proposition very clearly: let there be no difficult business in the world. It is based on this value proposition that Alibaba iscustomerSolutions continue to improve on this pointCustomer value, forAliOur strategy has won the space for survival. Therefore, you should clearly tell others what you havevalue

(2)costModelAndprofitModel. That's why you make a profit, yourCost compositionHow is it.

(3) SettleSupply chainProblems.

(4)Organizational form

So,strategyYestarget, strategystandardAfter the action plan is made, it will be transformed into a model, which includes value proposition, cost model and profit model, supply chain and organization form.

03. Strategy is the judgment of the future

When we're doing strategy,actuallyThey are all answers, how to let yourself go to the future, that is to say, in the futuredecisionNow?

For example, I see a lot of China todaycityThe development and growth of comes from some previous arrangements. Therefore, we must judge the situation in our strategy.

For example, Guizhou has taken a very special position in the new round of developmentbig dataThe times stand out. Why did Guizhou succeed? Because it was done many years agodigitizationThe layout is done with big dataindustryrelevantIt clearly takes big data as the basis for the layout of the whole provinceStrategic choiceDirection.

One advantage of strategy is that it is not too late to make choices at any time, because we are all creating the future. Today is the best choice. So someone told me, Miss Chen, you may not care much about me, youserviceAll are bigenterprise。 I said that there are no large or small enterprises today, because the conversion speed is faster today.

04. The core of the strategy is implementation

We sometimes say that there is a very big difference in strategyrisk, that is, once the selection is wrong, it may have a great impact. But when I finish talking about strategy, you will find that the core of strategy is not choice, but implementation.

Many times, people don't choose if they are afraid of making a mistake. If they are afraid of making a mistake, they don't choose, and you don't have the abilitystrategyofability。 In the practice of many enterprises, the key of strategy is actually implementation.Ren ZhengfeiIn summaryHuaweiToday's success said that "the direction is roughly correct, and the key depends on implementation".

05. Strategy is a concept

Finally, strategy is a concept that helps us form a unified strategycognitionConsistent with action, and then with externalcommunicate

Concepts can also solve complexity, such as the "Shunde model"industrial enterpriseMainlyTownship EnterprisesMainlyCollective enterpriseThe main concept solves the impact and complexity around how to develop. So when you train your strategy, when you can set ittarget, by identifying concepts, we can integrate complexity.

strategyactuallyIt's a beautiful dream. Because of your vision of the future and your choice of goals, you make choices with your dreams, choose what to do and choose not to do. When choosing what to do and what not to do, we should cultivate our ability. Finally, this ability is internalized into your own ability, that is, your abilityCore competence

06、digitizationTimes,enterpriseThere should be two sets of strategies at the same time

Digital survivalIn this era, I found that enterprises must have two groups of strategies at the same time:

One ismanagementLevel strategy is basically reflected in yourmarketandcompeteHow to achieve goals and achieve growth is the core performance inMarket strategyAndMarketing strategy, at this timeEnterprise Strategy AndMarketing strategyOften two are one.

One iscompanylevelstrategy, is a future oriented strategy for growth, which helps enterprises still have the opportunity to find different growth spaces in an uncertain environment.

industrial ageindustryThe change with the market is not so fast, so the strategy is for operation, or for competition. If the competition wins, the growth will be solved. But today, even if you win the competition, you still can't solve the problem of growth, because changes are too fast.

Today, the problem of enterprises is to run two strategies at the same time. Executive layerneedDo a good job in business level strategy.entrepreneurAnd the core layer, we must do a good job in the growth strategy at the same time and do two strategies simultaneously. This is what I want to remind. (end of this article)

Statement: This article only represents the author's point of view, not the position of MBA think tank.
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Author: Chen Chunhua, the official account is ID:CCH_chunnuanhuakai. "Spring blossoms" is the media of Chen Chunhua, a management practitioner. It covers the latest management ideas, business commentaries, speeches, records and works.