“A vision without a strategy remains an illusion.” - Lee Bolman
The importance of strategy in business cannot be emphasized enough. After all, a company cannot reach its intended destination without plotting its pathway. Sadly, over 9 in 10 employees don’t truly understand their employer’s strategy. Naturally, this can hinder companies in virtually every aspect of business.
Understanding why companies fail, as well as the potential solutions, will help you avoid those problems.
Problem 1: Employers Employ The Wrong Decision-Makers
Establishing a strategy is hard work, and requires a long-term thought process. Sadly, a lot of employers fall into the trap of promoting employees to decision-making positions on the back of success in short-term challenges.
In turn, their focus is in the wrong place. This poor foundation makes it impossible to build a winning strategy, and will inevitably cause damage that filters down throughout the business.
Solution: Employers must pay more attention to the recruitment processes, focusing on the skills sets needed to thrive in strategist roles.
Problem 2: Poor Communication
Great communication is the backbone of any successful business. Or at least it should be. It’s impossible for lower-level employees to carry out the strategy if the key information is held at the top levels. As such, even the best strategies will struggle.
This is particularly prevalent in fintech businesses. When internal communication is below the desired standards, collaborations (especially inter-departmental ones) will suffer.