A strategic principle, as defined by Harvard’s article Transforming Corner-Office Strategy into Frontline Action, is:
“A memorable and actionable phrase that distills a company’s corporate strategy into its unique essence and communicates it throughout the organization” and has as goal to achieve a sustainable competitive advantage.
I strongly believe that for two reasons, strategic principles will become crucial in todays and future’s business:
* Generation Y
* Collaborative & co-creational economy
Generation Y employees have certain traits that could perfectly benefit strategic principles deployed by their companies.
They want responsibility and involvement in decision making. As described on Wikipedia three core elements that describe the ambitions of Generation Y in the workplace are: Impact, Communication and Flexibility.
A two way understanding (bottom-up and top-down) and benefiting from both its intelligences is the new way according to researches and views of responsible ones.
Impact:
The strong drive to have impact can be encouraged even more by guiding the employees with a strategic principle, creating a more focused, effective and relevant drive.
Communication:
With all the communication tools the employee has, the strategic principle must be spread out, reminding them and -much more important- inspiring them to think about solutions and benefits, achieving impact and influence. Treat it like a mantra which must be communicated throughout the channels.
Flexibility:
Working remotely does not only concern employees, but also freelancers, multinationals with regional offices, companies or projects scattered throughout the globe and outsouring of course. A strategic principle will add clearity by focusing and representing a clear view how that company wants to achieve its competitive advantage. Of course introductions -of whatsoever kind- will allign the person with the objective of their work in agreement with the company, again, a crystal clear strategic principle can work as a mantra, always in mind.
By doing so, the process will be more effective, minimizing loss of time and energy and increasing satisfaction.
Consistency and relevancy are not only key towards the market but also within the organization.
The title not only refers to the new kind of human capital within the economies, but also refers to the open economy where collaboration, end-user innovation, co-creation are some of the key concepts that companies are increasingly benefiting from. As examined in Marketing’s fifth P on steroids, the way business is conducted will change, the complementary or substitutional efforts by the ‘crowd’ should be guided and inspired with the right approach.
Guided empowerment will bring benefits such as clearity, focus and responsibility.
I’ve been introduced to the concept of strategic principles through interesting discussions and since then experimenting with the concept in several occassions, be it executional or determining the principle itself. The process is challenging and hard.
My knowledge and experience on this concept is yet limited, do share your views, experiences, knowledge and opinions to accumulate understanding on this powerful tool!
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