The role of corporate strategy is to ensure that the value of the enterprise as a whole is more than the sum of its parts.
Developing a winning corporate strategy requires a relentless focus on value creation—and thoughtful attention in three important areas.
First set a clear, shared, long-term vision that motivates the team and engages investors. Where do we want to be in five or ten years? Then define a portfolio strategy to realize the vision. Which businesses should we be in? Where should we expand and where is it best to divest? And finally, establish the corporate policies and processes that reflect the corporation's parenting approach. How do we link strategy to value creation?
Corporate strategy is an ongoing process—particularly given today’s volatile competitive environments. Consistently delivering value creation that outpaces peers demands that organizations enhance their capabilities and regularly revisit their strategies.
What makes a good strategy?
1. Ambition. A bold, inspiring, full potential ambition that drives to sustained profitable growth.
2. Strategic foundation. A robust fact base that drives to strategic insights and builds the case for change.
3. Where to Play. Clear choices on where to play: which markets and segments the company will pursue (and which it will not).
4. How to Win . Clear choices on how to win: which differentiated capabilities and assets the company will leverage.
5. Results at the front line. Flexible priorities that follow the money even in turbulence and go beyond "just initiatives". Mobilization of the front-line to embed the change and creation of feedback loops to monitor and adapt.
The example of corporate strategy work is how to build a strategy for a regional retailer. This example is all applicable for other industries.