Success with a renewal strategy
Strategic planning requires continuous efforts over a long period. It also involves strategic renewal, which means constantly responding to changing conditions and ensuring competitiveness. This, in turn, requires knowing what capabilities and resources are necessary for the company to succeed.
A successful strategy requires knowing your company's core competence
A company's most important asset is the people with the skills and ability necessary to work towards the company's goals amid changes. You must be able to identify these skills and abilities and develop them in the right direction. It is essential that employees are willing to use their skills and develop them for the benefit of the company.
One way to identify the skills and competencies needed is through strategic capabilities. First, identify the strategic capabilities that give the company its competitive advantage and distinguish it from other players in the industry. After that, you should determine what know-how is required to achieve and maintain these capabilities.
For example, a company's strategic capabilities may include internationality. This requires language skills, cross-cultural understanding and willingness to work in a global environment. After identifying the capabilities, it is easier to map out who already has the necessary skills and who can develop them. If necessary, the organisation can recruit a new employee based on having the ability to strengthen this capability.
A successful company combines strategic capabilities with individual skills
When a company's strategy is developed and strategic capabilities are being identified, the people must not be forgotten. In addition to the needs of the company, individuals' needs and career aspirations must be considered. The formulation of a strategy starts by combining the needs of the company and the individuals because the best result is achieved by satisfying both interests.
The company's management is responsible for implementing the strategy and identifying and developing capabilities. It is management's responsibility to ensure that the company's strategic goals are realised in such a way that every employee feels essential at work and wants to develop their skills. Only long-term cooperation between people and teams ultimately enables success in a constantly changing environment.
Companies need competence management to ensure competitiveness and fulfil their promises to customers. Competence management should be based on strategic capabilities and competencies. It is also an essential part of strategic talent and competence development. Learn more about competence management.
Companies and individuals must be able to adapt to and influence continuous change. This starting point must be considered in a company's strategic planning in its strategic renewal. Strategic renewal is a fresh approach to strategy. Read more about strategic renewal.