Partner Article

Has your business got the right strategic mix?

This article started writing itself nearly 3 years ago. Let me explain!

I was in a filmed interview with Peter Kirby, the respected Purchasing Manager at Drager in Blyth in Northumberland and asking him his criteria for choosing a new supplier. Peter listed the usual things such as quality, standards, reliability, attitude, finance and so on. But then he said something that hit me hard and has continued to resonate since the interview.

He said it was vital that a new supplier had a clear business strategy. Probing further, what he was after was seeing if that supplier was going in the same direction as Drager including commitment to continuous improvement, a commitment to innovation, a passion for quality and reliability. What does this mean for you?

In my coaching work with suppliers I find that many have a vision for their businesses but few have a clear and compelling strategy that drills down to customer need.

What should you be doing?

First up is to know what strategy truly is and not get it mixed up with all the mission statement, visions and values that abound.

What is a strategy? In a nutshell it is the “how” of how you will compete.

Harvard University has a more succinct definition: “Strategy is a plan that aims to give the enterprise a competitive advantage over rivals through differentiation”.

Peter, with his question, is not just looking to see if your business is in empathy with his and his buying needs, but he is also looking to see how you are aiming to compete in the future, and in doing so, help him compete and keep ahead of his competitors.

What should you be asking?

This article is about drilling down beyond the overall business strategy and asking the vital question if you have the right strategic mix of business.

Let’s agree that today every sector or business type is volatile or vulnerable. Even if your sector is doing well, beware of competitors, customer changes, trends and so on.

Here are just two of the many elements that your strategic mix needs to consider:

Be aware of your existing customers needs both now and in the future. Ask them so that you are travelling in the same direction and develop or improve your products, services and processes accordingly.

You do ask your key customers don’t you? Even your public sector customers?

Develop innovative new products that reflect true innovation and are not just a superficial tweak. How about a target like this? “In four years time 25% of our revenues will come from products or services that don’t exist today”. That should give you a strong strategic vision.

Imagine now answering Peter’s question about strategy! You are not only saying that you are what I term as a committed or “alpha supplier” but it will likely be the edge that gets you the business.

This was posted in Bdaily's Members' News section by Malcolm Gallagher .