The Nation Newspaper

Tag: strategy

  • What is Consumer Strategy?

    This is a column that promises to discuss, mould and shape societal values, seeks to protect the interests of consumers, citizens and other broader relevant topics, such as decadence of educational systems, unemployable job seekers, trading ethics et al under the column, ‘TRUE VALUE 360’. It is an interactive column as suggestions, complaints; day to day experiences are welcome.

    This week’s edition is Consumer Strategy:

    It is the psychology of why customers would select one brand over another. Consumer strategy looks at the consumer’s environment and how that may be an influence. It also looks at how customers behave when shopping and making shopping decisions. In our environment where consumers have not been protected in the past decades; and the drive to make sales override consumers satisfaction, consumer behavior will likely be influenced by other factors such as scale of preference and product positioning. For example, storeowners, just by changing where a product is positioned in the store will attract more sales.

    Consumer strategy uses market research tools. The goal is to give consumers what they want, not what brands think they want, this is where research comes in.

    Research is distinguished between primary and secondary research. Primary research is research that the marketing team designs and conducts. The Pepsi Challenge was an example of primary research. Marketers were trying to find out if consumers preferred sweeter drinks like Pepsi to tarter drinks like Coke. Secondary research is using research what already exists, such as how many elderly people live in a certain area. That information is available already; a serious research marketer just needs to gain access to it.

    As consumers, what will make us stick to a brand more than its competitors? What will make us loyal to a brand?

    Good Quality

    Accessibility

    Reward for loyalty

    Compensation for damage or poor quality

    Affordability as in value for money

    Incentives, such as regular promos

    Unfortunately, our local brands never compensate for damage or poor quality and we still get charged for it. What can we do? Ideally, reports with evidence should be made to the appropriate regulatory body, but like we know, the regulatory bodies have been slack so far.

    But with the new wind of change, it’s time to challenge even the regulatory bodies to task and demand performance and citizen’s protection.

     

    Are we helpless? Only if we want to be. What to do? Avoid misleading brands, keep evidence and spread the word to friends and family till we perceive a positive change. You may go further by sending a mail of your complaint to us with evidence. Let us tackle brands who trample on us together. See you next week.

  • Military plans strategy against suicide bombing

    Military plans strategy against suicide bombing

    In what turned out to be his last official outing as the Chief of Army Staff (COAS) Lt.-Gen. Keneth Minimah yesterday expressed concern over the spate of suicide bombings by Boko Haram insurgents and the heavy casualties.

    He said the army was fashioning out more effective ways of responding to the threat.

    Gen. Minimah spoke at the opening of the Chief of Army Staff second quarterly conference in Abuja.

    The conference was dominated by talks on modalities for proactive response to suicide bombing.

    Gen. Minimah said the army would seek ways of working with other security agencies to tackle suicide bombing.

    His words: “I therefore urge you to use the opportunity offered by this conference to deliberate on measures to enable the Nigerian Army, in synergy with sister-services, security agencies and paramilitary organisations to adequately respond to this tactics of the terrorists.”

    The former COAS observed that the insurgents had resorted to suicide bombing because their ability to face troops in any form of combat had been seriously degraded.

    He deplored the insurgents’ choice of innocent and venerable targets in worship places, markets and schools for bomb attacks, describing the action as cowardly.

    Gen. Minimah said the conference offered the opportunity to review counter insurgency operations and help the army prepare better for events lined up for the rest of the year.

    The army chief praised Nigerians for their patriotism and nationalism in supporting the Army in the counter insurgency campaign.

    He hailed the troops, who he said continued to make sacrifices in the war against terrorism.

    The former army chief thanked President Muhammadu Buhari for his support to the Armed Forces.

    “His sustained effort at national, regional and international levels towards addressing insecurity in the country since assumption of office has reassured us that victory over the Boko Haram terrorists is in sight,” Gen. Minimah stated.

  • NFF adopts new strategy for U-17 team building

    NFF adopts new strategy for U-17 team building

    The Nigeria Football Federation (NFF) has adopted a new strategy for building the country’s future U-17 teams, according to the chairman of the NFF Technical and Development Committee, Felix Anyansi-Agwu.

    Anyansi-Agwu, a ranking member of the NFF Executive Committee and chairman of two–time African champions Enyimba FC, told thenff.com on Sunday that the new measure is pragmatic and cost-effective, and will enable the building of a strong squad within a short period of time.

    “I have already discussed the new approach with the present technical crew of the U-17 team led by Emmanuel Amuneke, and they love the idea. We decided on this new approach because it will save us time and funds in the long run.”

    He explained: “Instead of doing the MRI (Magnetic Resonance Imaging) examination for all manner of players with potential, we just look at those that have potential from the beginning and create a pool of between 60 and 70 players for whom we will conduct the examination. That way, we can drop those who fail the test quickly and run with those who pass and are therefore eligible.”

    The Technical and Development Committee chairman believes conducting the test after identifying players with promise (as was done in the past) was actually putting the cart before the horse.

    “There is no point conducting open screening for players and discovering 100 players with some promise, and then you go for the test and 80 of them fail the test. You are back to square one, or at best compelled to make do with the remaining meagre pool, which may be populated by mediocre or average players. If you don’t like what you have, you return to the screening ground and take more players and move them to the laboratory, then probably find out that they also are ineligible. That approach is very long–winding, time-consuming and capital–intensive.

    “That was one factor that worked against our U-17 team at the African Championship in Niger Republic earlier this year.”

    The Golden Eaglets finished in fourth place at the African U-17 Championship in Niger, picking the last African ticket to the FIFA U-17 World Cup scheduled for Chile later this year.

    “We believe the new approach we have adopted is much better and pragmatic, and will enable us to raise a much stronger team for the FIFA U-17 World Cup in Chile, and in good time as well.”

  • WHO traditional medicine strategy: 2014-2023

    The WHO Traditional Medicine Strategy 2014–2023 was developed and launched in response to the World Health Assembly resolution on traditional medicine (WHA62.13). The strategy aims to support Member States in developing proactive policies and implementing action plans that will strengthen the role traditional medicine plays in keeping populations healthy.

    Addressing the challenges, responding to the needs identified by Member States and building on the work done under the WHO traditional medicine strategy: 2002–2005, the updated strategy for the period 2014–2023 devotes more attention than its predecessor to prioritizing health services and systems, including traditional and complementary medicine products, practices and practitioners.

    Regulation of T and CM products, practices and practitioners

    As a result of the WHO Traditional Medicine Strategy 2002 to 2005, national and regional policies and regulations have been established to promote the safe use of T and CM products, practices and practitioners (Box 4) in many Member States. It remains a key responsibility of Member States to protect the health of their populations by ensuring the safety of T and CM practice and managing its described risks more effectively (Box 5). Differences between countries are apparent in the type of supervisory structures put in place by governments in order to develop policies and regulate T and CM products, practices and practitioners while being mindful of the need for consumer choice and protection. Since Global review of T and CM 1 Communication with WHO from the Government of India, Ministry of Health and Family Welfare, 2013. 31 WHO Traditional Medicine Strategy

    T and CM is diversely perceived and assessed in different countries, it is hardly surprising, given their different national priorities, legislation and resources, that Member States will choose to protect the health of their populations in very different ways. Box 4: T and CM products, practices and practitioners T and CM products include herbs, herbal materials, herbal preparations and finished herbal products that contain parts of plants, other plant materials or combinations thereof as active ingredients. In some countries herbal medicines may contain, by tradition, natural organic or inorganic active ingredients that are not of plant origin (e.g. animal and mineral materials). (Ref.: modified questionnaire explanation in the second WHO Global Survey).

    T and CM practices include medication therapy and procedure-based health care therapies such as herbal medicines, naturopathy, acupuncture and manual therapies such as chiropractic, osteopathy as well as other related techniques including qigong, tai chi, yoga, thermal medicine, and other physical, mental, spiritual and mind-body therapies. (Ref.: modified definition of procedure-based therapies in WHO General Guidelines for Methodologies on Research and Evaluation of Traditional Medicine). T and CM practitioners can be TM practitioners, CM practitioners, conventional medicine professionals and health care workers such as doctors, dentists, nurses, midwives, pharmacists and physical therapists who provide TM/ CAM services to their patients (Ref.: modified questionnaire explanation in the second WHO Global Survey).

    WHO Traditional Medicine Strategy: T and CM is diversely perceived and assessed in different countries, it is hardly surprising, given their different national priorities, legislation and resources, that Member States will choose to protect the health of their populations in very different ways.

    Box 4: T and CM products, practices and practitioners T and CM products include herbs, herbal materials, herbal preparations and finished herbal products that contain parts of plants, other plant materials or combinations thereof as active ingredients. In some countries herbal medicines may contain, by tradition, natural organic or inorganic active ingredients that are not of plant origin (e.g. animal and mineral materials). (Ref.: modified questionnaire explanation in the second WHO Global Survey). T and CM practices include medication therapy and procedure-based health care therapies  such as herbal medicines, naturopathy,  acupuncture and manual therapies such as chiropractic, osteopathy as well as other related techniques including qigong, tai chi, yoga, thermal medicine, and other physical, mental, spiritual and mind-body therapies. (Ref.: modified definition of procedure-based therapies in WHO General Guidelines for Methodologies on Research and Evaluation of Traditional Medicine). T and CM practitioners can be TM practitioners, CM practitioners, conventional medicine professionals and health care workers such as doctors, dentists, nurses, midwives, pharmacists and physical therapists who provide TM/ CAM services to their patients (Ref.: modified questionnaire explanation in the second WHO Global Survey).

     

    •Source: www.who.int

  • Siasia maps out strategy to beat Zambia

    Siasia maps out strategy to beat Zambia

    •Wants to control midfield
    •Hails Awoniyi, Mohammed’s qualities

    Dream Team VI handler, Samson Siasia has vowed to control the midfield and the entire play away to Zambia in a strategy he believes will give victory to his team and a qualifying ticket for the All Africa Games (AAG).

    Dream Team VI has a date on April 12 with Zambia in Lusaka and Nigeria’s U- 23 national team’s chief coach is leaving no stone unturned to ensure his team beat Zambia to pick the AAG ticket.

    “We need to work hard to control the midfield in the match against Zambia in Lusaka. If we are able to do this then we will surely win over there and thereby qualify for the All Africa Games.

    Answering the question on how to stop the Zambians in Lusaka knowing fully well that the team may change tactics from defending that they did in the first leg to coming out to attack in the return leg at home to the Nigerian team, Siasia said he already has answers to this.

    “My game is always attacking. I want to go to Lusaka to attack and defend as well too. Having looked again at the first leg game we played here in Abuja, even the Zambian Coach knew that we created enough chances to score goals. He (Zambian Coach) has been very careful to tell his players not to come out and this is where we have to capitalise to score goals.

    “We are targeting any player that comes in now that can perform better than the ones we already have here that are not doing that well. We are looking at the striking position, the midfield and the defense whichever one that is not playing well. That is what we are trying to do.

    “In the first match we played against Zambia here in Abuja, I think we didn’t do that well from the right and left midfield. The qualities were not there and we didn’t see enough one on one attacking on the right and left side. We want to try and improve in those areas. The more crosses we have the more chances we will get in scoring goals. We want to work more on the midfield.

     

  • Cally Ikpe chides PDP’s campaign strategy

    Veteran broadcaster and CEO of Callivision Network, Cally Ikpe, has taken a swipe at the ruling People’s Democratic Party and its campaign strategies. In a recent Facebook post, Ikpe described the presidential race as a very tough one for President Goodluck Jonathan, not necessarily because he underestimated the potency of the opposition candidate, but more because of what he describes as the bad advisers, cronies and grabbers around him.

    “It is worst still that the closest of these advisers and most indispensable is Dr. Patience Jonathan. It is to her credit that Governor Rotimi Ameachi of Rivers State turned foe and ultimately a big boost to the opposition. Madam has carried on with anything and everything but decorum, hurling invectives at just any one who crosses her path. It’s amazing how the president is able to put up with all of these embarrassing attitudes,”Ikpe lamented.

    In his words, her recent remarks on General Muhammadu Buhari, calling him brain dead, sparks off mockery not to the General but herself as people naturally are inclined to probe into the mental state of the attacker.

    “Interestingly, all of this rascality is only serving to boost the opposition. Again, brazenly against common sense and love for her country she has gone further to advise the whole nation to “stone anyone who shouts change.” I insist it is divine providence that foisted GEJ on us as president; not even OBJ should take credit. The president does not owe any Deziani, Iweala, Anenih, Mark, IBB or any other person. If he believed so and ran his show like he were in charge completely, he won’t be struggling this much at this point,” he added.

  • BoI in new strategy to reposition SMEs

    BoI in new strategy to reposition SMEs

    To reposition Small and Medium Enterprises (SMEs), the Bank of Industry (BoI) has signed a service agreement with 122 Business Development Service Providers (BDSPs). This may signal a new dawn for SMEs, as it promises to address the challenges of poor packaging of loan requests and non-bankable business plans, which are responsible for the low level of financial support to the sector, Assistant Editors, Chikodi Okereocha and Okwy Iroegbu-Chikezie report.   

    It’s the most revolutionary step in development banking aimed at improving access to finance by Small and Medium Enterprises (SMEs). If more credit gets to SMEs, we will create more jobs.”

    There were the words of the Executive Director (SMEs), Bank of Industry (BoI), Mr. Waheed Olagunju, at the signing of the service agreement between BoI and Business Development Service Providers (BDSPs) in Lagos, last week.

    Its Managing Director, Mr. Rasheed Olaoluwa said loans to SMEs accounted for less than 10 per cent of BoI’s total loan portfolio. This is not because there are no loanable funds for SMEs. He identified poor packaging of loan requests and non-bankable business plans as responsible for the low level of financial support to the SME sector. He said it was in recognition of these challenges, as well as in fulfilment of BoI’s mandate of providing long-term finance and business support services to large, medium and small projects, that the bank decided to engage the services of BDSPs.

    At the signing of the agreement, Olaoluwa said the BDSPs would collaborate with BoI to identify credible SMEs that require finance. They would also develop bankable business plans and proposals for SMEs to facilitate  their access to finance.

    That is not all. The BDSPs, who emerged after a rigorous and painstaking selection, would, according to the managing director, provide post-finance services, such as mentorship, handholding, financial advice and inculcation of best practices. They would also support the SMEs to develop synergies and sustainable relationship with large enterprises, industrial buyers, and suppliers along the value chain.

    In opting for a strategic repositioning of SMEs through the agreement with BDSPs, the BoI chief said the bank was encouraged by the importance of Micro, Small and Medium Enterprises (MSMEs) to the economy. He said, for instance, that figures from the National Bureau of Statistics (NBS) showed that there are over 17 million MSMEs in Nigeria, accounting for over 90 per cent of all firms and employing over 30 million people. The enterprises, he added, also account for about half of Nigeria’s Gross Domestic Product (GDP).

    He pointed out that the launch of the National Enterprise Development Programme (NEDP) by President Goodluck Jonathan underscored the strategic importance of MSMEs to economic development. He said BoI’s role under the NEDEP is to provide long-term finance to viable MSME projects, and that as part of effort to discharge such role, the BoI chose to engage the services of BDSPs.

    For the BDSPs, however, it was not a smooth ride. They emerged after a rigorous selection.  Olaoluwa said: “On July 14, 2014, we published in some national dailies a Request for Proposal (RFP) from prospective BDSPs. Three hundred and thirty-one applications were received nationwide.”

    He said at the end of the evaluation, a total of 122 firms were shortlisted as BDSPs in three categories based on their capacity and their preferred areas. While a total of 28 BDSPs had capacity for national coverage, 74 are to operate on zonal basis, leaving 20 BDSPs with state coverage.

    Explaining how the BDSPs would be remunerated, the BoI boss said there was an initial token fee to be paid by the SME to the BDSP before the submission of the business plan and loan application to BoI. This would be based on a graduated scale. For instance, while an initial token fee of N10, 000 would be paid for a loan of less than N10 million, N25, 000 is for a loan amount of between N10 million and N50 million. A loan amount of between N50 million and N200 million attracts initial token fee of N50, 000.

    “This initial token fee is designed to ensure that SMEs show some commitment to their projects and help to eliminate frivolous applications,” Olaoluwa explained, adding that the total success fee shall be 0.5 per cent of the approved loan amount and shall be payable by BoI as follows: 50 per cent of the total fee payable after the collection of the loan offer letter by the SME; balance of 50 per cent of the total fee payable immediate after the disbursement of the loan by BoI.

    To keep the BDSPs on their toes, there are  some specific performance benchmarks they must satisfy,  failing which they may be delisted by BoI. For instance, they must make full disclosures to BoI on the SMEs and any BDSP that misrepresents facts while processing any loan application shall be blacklisted. Also, business plans and loan applications submitted shall be in accordance with BoI’s RAC and other applicable criteria which shall be communicated to the BDSPs by BoI. Besides, each BDSP is expected to achieve a minimum of 10 successful applications yearly, and any BDSP that fails to achieve a success rate of at least 40 per cent in terms of successful loan applications may be disqualify from the renewal of the agreement.

    With this initiative, BoI has taken a major step to address the deficiency of lack of capacity inherent in most of our SMEs,” the MD said, pointing out that to facilitate regular dialogue and exchange of ideas between BoI and the BDSPs, a closed online user group platform has been created on BoI’s website.

    He, however, clarified that regardless of the appointment of BDSPs, customers are at liberty to apply for loans directly to BoI through any of the bank’s physical offices across tthe country, or digitally inclined customers who are also at liberty to apply through BoI’s online application portal. He expressed optimism that through this partnership, the job and wealth creation objectives of the Federal Government under the NEDEP will be realised.

    Some of the successful BDSPs share Olaoluwa’s optimism over the prospect of bountiful job and wealth creation through the platform of the service agreement. Describing the agreement as “heart-warming and the beginning of a new way of doing things,” Mrs. Folasade Odunaiya, Executive Director, IBFC Alliance Limited, one of the BDSPs, said: “We have a government that is interested in uplifting small businesses to create more jobs.”

    She, however, called on BoI to take a look at the commercial side of the  agreement as the fee is small.

    The Managing Director of Resort Consult Limited, a BDSP, Mr. Femi Ekundayo, agrees with her. “It’s a challenge,” he said, adding however, that the BoI-BDSP partnership is a call to national service. While calling on BoI to empower the BDSPs through training, he noted that the principle of inclusion is what BoI had done.

    Indeed, Ekundayo and other experts believe that the successful co-creation of this SME-business development eco-system signals the beginning of a new dawn for SMEs. Apart from addressing the age-long challenge of lack of capacity in most SMEs in Nigeria, it is expected to help address the low level of financial support to SMEs.

     

  • Union Dicon Salt Plc reviews strategy, plans to diversify business

    Union Dicon Salt Plc reviews strategy, plans to diversify business

    The management of Union Dicon Salt Plc has hinted of plans to turnaround its business in the coming years.

    Chairman of the company, Gen. (Rtd.) T. Y. Danjuma speaking on the future prospect of the company at the 21st annual general meeting in Lagos yesterday said, the company is embarking on a major diversification exercise by investing in the Agricultural and industrial goods sector of the economy.

    He said that the company intends to amend its memorandum and articles of association to accommodate the diversification.

    He assured the shareholders that the management and board of Union Dicon are committed to the continuous review of company’s strategy and operations.

    “Our company will experience a significant improvement in fortunes, before the end of the next financial year,” Danjuma said.

    The financial statement of the company at the end of 31st December, 2013 shows an improvement as its profit after tax moved from negative figure of N20.415 million in 2012 to N11.814 million at the end of the 2013 financial year.

    Although, its current liabilities still exceeded its current assets by N917.499 million and the company had a negative shareholders fund of N1.082 billion at the end of 2013 financial year.

    It would be recalled that in the last quarter of 2013, CBO Capital Partners became a significant minority shareholder in Union Dicon Salt, by acquiring 44 million units at the par value, having 15 per cent of Union Dicon and also being awarded a board management contract.

  • Chams outlines growth strategy to sustain profitability

    Chams outlines growth strategy to sustain profitability

    After posting a net profit of N188 million in 2013, Chams Plc has outlined its growth strategy and priorities in 2014 and beyond with a reassurance that ongoing initiatives would surmount industry challenges and stabilize the profitability of the information and communication technology company.

    Addressing shareholders at the annual general meeting of the company in Lagos, directors of Chams said the company was poised for stable growth with several initiatives, partnerships and restructuring expected to impact positively on performance in the years ahead.

    Chairman, Chams Plc, Very Revd Ayodeji  Richards, said the industry outlook and the corporate strategy indicate a robust future for the company.

    According to him, the information and communication technology (ICT) sector has now become a key driver of economic activity in Nigeria and other developing markets with myriad of ICT solutions now required to support business in various sectors of the economy, including financial services sector, telecommunications sector and trade.

    “The ICT business is so huge and indefinite in many respects. Our focus therefore will be on the identity management and payment industries. The structure and nature of economies in this part of the world leaves a huge gap to fill, given that there is an absence of core identity infrastructure, which also makes it difficult for the payment system to thrive,” Richards said.

    He outlined that Chams has maintained leadership in the identity management industry with several significant projects undertaken with various public and private institutions.

    “We have implemented and are working on projects that include: Biometric Matching Solution project led by CBN Banker’s committee, National Identity project led by NIMC, Identity Management project for the State of Osun, Identity Management project for Anambra State, You-WIN biometric data capture project, PHCN biometric data capture project, Call Centre project for Telcos and banks in partnership with Tech Mahindra, Payroll Automation project for the State of Osun, Osun State Residency Card, Internal Generated Revenue project for Anambra State and Internally Generated Revenue project for Abia State,” Richards said.

    He pointed out that the demand for identity management and transaction payments solutions is likely to continue growing at a compound annual growth rate (CAGR) of 5.0 per cent until 2018 with the likelihood of demand growth arising from the ongoing implementation of the Central Bank of Nigeria’s cashlite policy; increasing financial inclusion and the digitization of commerce.

    According to him, while there are challenges in the short term, the board of directors is confident that the outlook for the identity management and payments industry in general and Chams specifically is positive over the medium to long term.

    He added that the company has been investing in far reaching development programmes aimed at strengthening its structure to provide cushion for any shock or disruption that may arise from the competitive operating environment that is fast becoming more global than local.

    Group managing director, Chams Plc, Demola Aladekomo, said the performance of the company in 2013 confirmed that the various initiatives that had been put in place have started bearing fruit.

    “To consolidate on our performance in the last financial year and maintain our profitability is quite commendable and we are confident that things can only become better for us. More gratifying is the fact that we have sustained our topline growth trajectory, an indication that we have continued to increase our market share and remain competitive. We have entered into some partnership agreements that will have positive impact on our performance in the coming years,” Aladekomo said.

    According to him, the priorities of the company in 2014 include completion of the ongoing restructuring across the group and dedication of its energy towards delivering value to all stakeholders;  upgrading of its card personalization bureau to EMV-certified standard and fostering strategic alliance with its partners based in South Africa and Israel.

    He added that the company would also strive to launch new card products and solutions into the market; sustain growth in its market share; achieve a profit growth of 300 per cent while continuing to engage the investment community and keep them abreast of developments in the company.

    In the 2014, Chams will also drive the implementation of the Bank Verification Number project initiated by the Central Bank of Nigeria (CBN) and the Bankers’ Committee. It is implementing the one-year project in partnership with Dermalog Identification Systems, a leading global company in the field of bio-payment. Chams and its technical partner, Dermalog, will work for five years on the Bank Biometric Matching Solution Project, which is expected to create 1000 new jobs for young professionals.

    Apart from its benefits to the national economy, which is bridging the formal and informal economy, the Bankers Biometric Matching Solution project and the increasing uptake of identity management products and services by private and public enterprises are expected to usher Chams into a new era of strength, financial stability, improved cash flow and profitability beyond the 2014 financial year

  • Implementing business plan and strategy in your workplace

    Implementing business plan and strategy in your workplace

    Planning is very critical to business success. So also is strategy. In short, these two words are believed to be interchangeable or at least go together like Siamese twins. Little wonder that we have the phrase “strategic planning”. What is a business plan? A business plan is a formal document that articulates the direction of a business in a bid to accomplish its most important goal, that is, profitability. Profit does not come by accident.
    So, by writing and following a business plan, you can definitely increase the possibility of achieving profitability. Whether you want to start a business or grow one, attract investors or obtain a loan, attempting to do it without a well-composed business plan is like a stranger going to a place without prior direction. Or better still, it is like a ship without a rudder (which controls its direction). Let me also illustrate it as a motivational speaker. It is like having a dream without an action plan. The dream cannot become a goal that can be achieved.

    Research

    To be successful in business, you need to research and write your business plan; master the key components of a successful plan; understand all your financing options; and streamline the process using easy-to-use templates.
    A business plan is used for many purposes, that is, as a development tool, a management and planning guide, a mission statement, a sales document, etc., and is read by several different audiences. Therefore, you need to structure the components of your business plan for the greatest impact; anticipate all questions that business plan reviewers will ask; and critique and package your business plan for winning results.

    A professional

    Balanko-Dickson, a third-generation entrepreneur, Licensed Professional Business Coach and founding member of the Professional Business Coaches Alliance, who has clients throughout Canada, the United States, South Africa and the United Kingdom says developing a detailed business plan will provide you with an opportunity to shape a powerful business development strategy. He stresses that a business plan has an equation structure of Goals + Research+ Strategy.

    Paradox

    In what seems like a contrary and paradoxical view, Roger Martin, dean of the Rotman School of Management at the University of Toronto, Canada and author of Playing to Win: How Strategy Really Works, says, “I must have heard the words we ‘need to create a strategic plan’ at least an order of magnitude more times than I have heard ‘we need to create a strategy’. This is because most people see strategy as an exercise in producing a planning document. In this conception, strategy is manifested as a long list of initiatives with timeframes associated and resources assigned. Somewhat intriguingly, at least to me, the initiatives are themselves often called strategies. That is, each different initiative is a strategy and the plan is an organised list of the strategies.”

    Distinction

    Martin says strategic plan of this sort is not different from a budget. He stresses that many people with whom he works find it hard to distinguish between the two and wonder why a company needs to have both. Martin adds that he thinks they are right to wonder this way.
    In his words, “The vast majority of strategic plans that I have seen over 30 years of working in the strategy realm are simply budgets with lots of explanatory words attached. This may be the case because the finance function is deeply involved in the strategy process in most organisations. But it is also the cause of the deep antipathy I see, especially amongst line executives, toward strategic planning. I know very few who look forward with joy to the commencement of the next strategic planning cycle.”

    Breaking free

    We need to break free of this obsession with planning if must make strategy more interesting as well as different from a budget. Strategy is not planning — it is the making of an integrated set of choices that collectively position a firm in its industry so as to create a sustainable advantage relative to competition and deliver superior financial returns, argues Martin. He adds that once this is made clear to line managers, they will recognise that strategy is not just fancily-worded budgeting and they get much more interested in it.
    The fact remains that it is difficult to execute a strategy without initiatives, investments and budgeting. But Martin is quick to add that what you need to get managers focused on before you start on those things is the strategy that will make these initiatives coherent. “That strategy is a singular thing; there is one strategy for a given business — not a set of strategies. It is one integrated set of choices: what is our winning aspiration; where will we play; how will we win; what capabilities need to be in place; and what management systems must be instituted?” he submits rather rhetorically.
    Useful guide

    That strategy guides you as to what initiatives are sensible and capable of producing the desired result. Martin says such a strategy actually makes planning easy. There are fewer fights about which initiatives should and should not make the list, because the strategy allows you to easily determine what is important or not. According to him, this conception of strategy also helps define the length of your strategic plan.

    Last note

    There is no disputing the fact that this paradoxical analysis and definition of strategy can be rejected by those who have spent all their lifetime developing traditional strategic plans, especially that there seems to be a thin line of meaning between planning and strategy as explained by Martin.

    •GOKE ILESANMI, Managing Consultant/CEO of Gokmar Communication Consulting, is an International Platinum Columnist, Certified Public Speaker/MC, Communication Specialist, Motivational Speaker and Career Management Coach. He is also a Book Reviewer, Biographer and Editorial Consultant.
    Tel: 08055068773; 08187499425
    Email: gokeiles2010@gmail.com
    Website: www.gokeilesanmi.com