Today, we are going to focus on a fundamental matter, which is a proper definition of one’s business vision, strategy, and tactics.
Most of the young entrepreneurs jump into products and sell without having a clear vision and goals. They want success but haven’t defined what that success looks like.
I will show you a framework that enables you to establish a vision, strategy, and tactics.
After this lesson, you will be able to see the difference between these three components. What is more, you will be able to keep it simple once defining your aims.
A Story About A Business Vision At A Party
Firstly, let’s assume your business represents your body. Your eyes define the vision. You’ve noticed a charming person at a party, and you would love to have a chat and even maybe something more.
Your vision would be something like this: “Meet the person across the room” (vision is usually a long term goal, but for now, let’s focus on its short-term version). You’ve created your vision, and along with it comes the intention to pursue that goal.
Secondly, to achieve the aim and make your vision come true, you have to set up a plan to make things happen. That would be your strategy. You will use your brain to develop a way of how to approach the person and look professional. Your strategy might be: “Get 40 roses, offer a drink and tell a joke as an ice-breaker”.
Thirdly, at that moment, you’ve drafted a plan, and you have to think of tactics that will support you in executing the strategy, which leads to vision fulfillment. Tactics might include your charming look, waving your long blonde hair, your walk, your lovely voice, or a good joke. Whatever you can think of. Imagine that all went according to your plan, you met that person, had a fantastic night, and you’re going out together next week.
What would happen if you didn’t have these three components aligned?
Lack of vision
Probably you would spend the rest of the night alone or with your friends without having a clear vision. Nothing would happen between you and the person who was sitting in the bar.
Often, we are not even aware of missing opportunities without forming a vision. Spending a night alone or with friends is not bad. But if you had a vision described above, your night could be much more enjoyable. The vision is an enabler, a driver, and gives the motivation to make things happen.
Lack of strategy
If you don’t have a vision, a good plan might not be enough to achieve the goal. You’re not even aware of the purpose.
Let’s agree you have a strategy to walk to the bar, get the flowers, and drinks, and proceed to meet that person. Your order is being executed, and while you are waiting for the bartender, you notice a bowl of free peanuts.
Your brain thinks, “Wow! Free peanuts!” and you start eating. I know it sounds funny, but you get distracted from your goal. Then, you look around, and you spot a TV above the bar and so on. So strategy without a strong vision might not be enough; you can easily get distracted.
Lack of tactics
Let’s assume that you have a strategy to go there and get two drinks. But you need to know what drinks that a person likes. What if that person does not like drinks? It is highly unlikely that you will figure out all those things immediately.
Think ahead. If you don’t know what drinks the person likes, or they will be too expensive for you, the situation might be embarrassing.
A combination of vision, strategy, and tactics is vital to the success of your business.
All three become the backbone of every successful organization. They give motivation, a clear understanding of the goal, alignment across all the organizational layers. It is essential to communicate the vision across every part of your organization.
Next, we will focus on the framework while defining a vision, strategy, and tactics.
I have been working for over 14 years for the biggest consulting companies and tens of customers. I would like to show you a bulletproof framework that will help you to define your business vision, strategy, and tactics. At the end of this course, I will give you a couple of examples of well-written visions.
While defining a business vision, strategy, and tactics, you need to take into consideration four components
Business Vision sets long-term goals and answers the question, “Where?“. Where would you like to be in the long run?
Strategy defines the scope of your business. It answers the question, “What?“. What am I going to offer, and to whom? The scope represents the definition of products, markets, geographies, technologies, and processes.
While defining tactics, you should first think about competitive advantages. Tactics should answer the question “How?“. How am I going to be better than my competition? What is a value-added in my offer? Some great examples of competitive advantages might be:
Lower costs, higher quality of products, greater customer loyalty, the capacity to innovate more quickly, superior service capability, better business location, brand name, government protection, and support, distribution channels.
The last component we call Logic. It tights together a vision, strategy, and tactics with a rationale. It answers the question: “Why?”. Why are all these things going to work? Why do I think that my business will be successful and makes sense?
How should it look like?
Example 1 – Space X
“The Company was founded in 2002 to revolutionize space technology, with the ultimate goal of enabling people to live on other planets. SpaceX designs, manufactures and launches advanced rockets and spacecraft. SpaceX offers competitive pricing for its Falcon 9 and Falcon Heavy launch services. It is the only private company capable of returning a spacecraft from low Earth orbit”.
Example 2 – Nike
“Bring inspiration and innovation to every athlete in the world. Do everything possible to expand human potential”.
Example 3 – Starbucks
“Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow. Inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time”.
Example 4 – SmartBeasts
“Inspire people in every age to grow and pursue financial freedom by providing online classes and educational materials, walking them step-by-step from the idea through the business applications setup up to the final offer that sells”.
As you have noticed, sentences are kept simple but provide all-in-one information. You are aware of the ultimate goals of each of the above companies. You might figure out what they would like to offer and how they would like to achieve it.
Take your time when thinking about your vision and strategy. It is vital to know where you want your business to be in the long run. I know you will do it, and your company will achieve success.
Let’s summarize what you have learned, so far.
- First, you have learned what vision, strategy, and tactics are.
- Secondly, you understand why having these three components aligned is essential to your successful business.
- Finally, you are able to formulate your own Vision, Strategy, and Tactics.