DEVELOPING A CORPORATE STRATEGY 

Mission Statement

The firm, its brands, services and stakeholders need to be able to look to the future with confidence. What will the organisation be focussed on in 2, 5 and 10 years time? Will it be able to retain its dominant position in the marketplace? Will its products still be perceived as world class, be able to generate profitable growth and be capable of securing the firms’s future?

Employees must be able to perceive their prospective role in the future of the firm and their pathway to personal growth within it. The firm’s customers on the other hand need to feel secure, inspired and engaged as the firm constantly seeks to develop and upgrade its offer and
re-invent how it adds value for its customers.

The role of the mission statement is to encapsulate these realities. It needs to share the organisation’s priorities, define how it sees its role with respect to its customers and stakeholders, explain how it creates value and highlight the motivations that drive the organisation to excel.


Organisational Values

Sustainable strategy development is not about securing growth at all costs. Today’s firms and their brands are judged not just by their performance but by the way they act. Customer expectations of brands and firms are at an all time high. Firms are expected to be innovative, dynamic, transparent and authentic.  They must also demonstrate inspiring values, make sacrifices where necessary and continually demonstrate their exemplar position as excellent corporate and brand citizens.

Understanding how to act on behalf of the firm and what constitutes agreed best practice is a core function of the corporate brand. Living up to perceived corporate value standards has been shown to impact more powerfully on customer attitudes and loyalty than functional performance, when customers are make choices in competitive markets.

 

 

 

 

 

Corporate Objectives

Ultimately the firm exists to maximise returns for its shareholders. However there are many ways it can deliver this. Corporate objective setting requires management to develop a long term perspective on the external business environment. Beyond that it requires an understanding of the unique capabilities and resources of the firm that have created a sustainable competitive advantage so far and what will do so in the future. Only by understanding each source of differential advantage can the firm focus its resources effectively to maximise competitiveness and deliver consistent profitable growth.

Understanding the balance of business activities that delivers this will require a synthesis of information and insight from across multiple departments and disciplines within the firm. Portfolio management describes the process of achieving the right blend of business activities, business units and brands that provides the firm with the best possible source of opportunities for growth.

This can often be a difficult process to achieve when directed internally. The natural fight for resources, status and power often distorts the process with individuals and politics diverting valuable resources to pet projects and tired mature brands.

Innovation strategy describes the philosophy driving innovation activities rather than its processes. Is the firm looking to re-invent the category or constantly re-set the bar? Does the firm believe in the value of design or is functionality considered more important? Does the firm believe in forming joint ventures or does it buy in expertise and invest? These are important corporate strategy decisions that require substantial thought, analysis, market modelling and if available commercial flair.

Finally corporate social responsibility. Previously a nice to have, now a critical component of the corporate brand that is judged alongside its financial performance. Scattergun CSR initiatives waste resources and go unnoticed by customers and stakeholders. Meanwhile relevant meaningful activities generate substantial attention and are seen as supporting the value proposition and authenticity of the brand.