Authored by Simon Rose and Tim Cima

As we're all gearing up to enter a new year, organisations will be heading into their strategic planning cycle. This crucial period should see leaders setting the direction for the coming year and beyond, determining where the focus should lie to achieve long-term success. In this article, we explore key areas that businesses should consider when shaping their strategies for 2024. 

We all know that setting targets and goals is often the starting point. While this is something we advocate strongly, one of the first aspects to evaluate in the context of moving forward is customer propositions - and, principally whether they meet the needs of your customers. In today's competitive marketplace, it is essential to continuously reassess and refine the value-add that your company offers to its customers and how this translates to attracting new customers while improving retention rates. Understanding their evolving needs and preferences should drive the development of innovative and relevant propositions. By aligning your services with customer expectations, you increase the likelihood of attracting and retaining valuable clients. 

Communication

Effective communication is another critical component of a successful strategy. It is not enough to have exceptional products or services; you must also effectively convey their value to customers. Clear and compelling communication ensures that your target audience is aware of your propositions and services and that they understand how they can benefit from them. By developing a robust communication plan, your business ensures that its messages resonate with customers and contribute to achieving strategic objectives.

However, communication of your strategy, more fundamentally, is about how it is received, understood and enacted by your staff. From executive-level to the frontline, and across the entire business, staff at all levels must understand the strategy, their role in its success - and, importantly, how they can influence its outcomes. For example, sales staff always know their position (achieving targets), but do the Finance teams, servicing staff and risk staff know how important their role is in shaping successful outcomes?

Setting realistic targets, of course, is a fundamental step in strategy development. Businesses should aim for challenging, yet attainable, objectives that motivate and push employees towards excellence. By setting targets that are too easy, organizations risk complacency and stagnation. Conversely, unrealistic goals can demotivate employees and hinder performance. Striking the right balance requires a thorough understanding of your organisation's capabilities, its growth plans and growth pace, as well as the external factors influencing your industry.

A Symbiotic Ecosystem

Defining a strategy can be both a challenging and rewarding activity, in that it focuses the minds of key leaders and staff within the organisation to drive performance and customer engagement. But what about other key actors in the process: suppliers and partnerships?

Key to any successful strategy is the values and principles the organisation has at its heart. Yet, do the suppliers and partners your business engages with have similar values? Have you considered how they, themselves, can impact the delivery of your strategic performance? Creating an effective ecosystem becomes essential to success: putting suppliers and partner ethics, cost effectiveness, innovation and service levels into your plans will ensure a robust framework for performance, that helps ensure operational resilience and scalability.

Driving Performance

Performance management plays a pivotal role in strategy execution. Establishing an effective performance management process ensures that employees are aligned with the organisation's strategic goals. Regular performance evaluations and feedback sessions enable individuals to identify areas for improvement and develop the necessary skills to contribute to the company's success. But more fundamentally, is the need to define and implement a robust performance management framework that focuses on both skills development and achieving outcomes: get this in the right shape and businesses can strengthen their chances of a successful execution of the strategy.

Another key consideration for 2024 strategy is embracing technology and innovation. Technology has become an enabler and catalyst for growth in today's digital world. By leveraging new technologies and exploring innovative approaches, businesses can gain a competitive edge. Investing in research and development, fostering a culture of creativity, and embracing digital transformation can position your organisation as a leader in your industry. Integrating technology into your strategy allows you to streamline processes, enhance efficiency, and open new avenues for growth. Yet, SRM would always recommend focusing technology development on enabling the customer journey (and not your business operations).

Furthermore, the post-pandemic landscape has highlighted the importance of adaptability and resilience. Organisations must be prepared to navigate unforeseen challenges and embrace change. Building flexibility into your strategy allows you to respond swiftly to evolving market dynamics and seize new opportunities. Prioritising agility and resilience equips your business to thrive in an ever-changing environment. 

Finally, employee engagement and talent management should be prioritised when developing your strategy for years to come. Engaged employees are more likely to be committed, productive, and innovative. By investing in their development, providing a positive work environment, and recognising their contributions, businesses can foster a culture of excellence. Talented individuals are a valuable asset, and nurturing their potential ensures the long-term success of your company.

The Bottom Line

As businesses approach the 2024 strategy development season, it is crucial to focus on key areas such as customer propositions, effective communication, target setting, performance management, technology, adaptability, talent management - and the supplier ecosystem. By carefully considering these aspects, organisations can position themselves for success in the upcoming year and beyond. Strategy development is an ongoing process, and constant evaluation and refinement are vital to remain agile and competitive in today's fast-paced business landscape.