Four Success Factors for Strategy Development.

Strategic success comprises four success factors. With its brilliant simplicity it is based on the scientific findings of the evolution of species, particularly the HUMAN race. It has notably been applied by many mid-sized companies and explains their worldwide success.

However, This methodology is also applied in very large markets. The key criterion is not large or small, but whether or not the business has a defendable specialization. This method is inspired by the EKS-Methodology developed by German Wolfgang Meves and dates back to the 1970`s.

The objective of the above approach to Strategy is to become and remain the preferred problem-solver for selected customers.

Therefore, it is fully in line with my definition of Strategy in Action.

AndThe four Success Factors for Strategy Development are:

(1) Identify a significant pain point. 

This is a very specific Customer Problem. It is a problem these customers regard as a bottleneck to their own business success. And – very important, the definition of this problem needs to be solution-independent. Like any problem, customer pain points are as diverse and varied as your prospective customers are. So it will make sense to identify a group of customers who experience a similar issue. This is called market segmentation. For strategic success the business needs to focus on solving this problem.

(2) Concentrating the Strategy Process on finding innovative solutions to this specific problem.

The second element is all about specialisation. Specialising means to explore and develop new and innovative solutions to pain point customer problems. By doing so the business creates a unique market position which is called Competitive Advantage.


(3) Fokus the Strategy on delivering superior Customer Value  – NOT Profit!

For entrpreneurial type of businesses profit is the result of Strategy – not the objective.

(4) (Immaterial) Values taking precedence over material benefits. 

The objective of Strategy is finding a superior way of helping customers solving a pain point problem. This is called a job. Every job has functional, emotional and social dimensions of the result that is needed to satisfy the customer and get the job done perfectly.

Customers purchasing decisions are primarily driven by unconscious, emotional factors. They are superior to any cognitive – rationally – presented argument.

Therefore, Strategy is all about HUMAN CENTRIC solution development.

The strategy development process should consider the following questions:

(1) What are the authentic and specific business capabilities? What ist the business culture including values and company policies?

(2) What specific, solution-independent bottleneck problem of a customer (B2C or B2B) does the business want to resolve?

(3) What are the promising, new and innovative solutions which the business would be able to develop and deliver, providing the business with a competitive advantage and creating the basis for future growth and profitability? (Specialisation-Innovation Strategy)

(5) What is missing? How to design the business model? Make or buy?

(4) Who are the target customers/Consumers? Is this segment large enough to guarantee sufficient profitable income?

(5) What to do to have the first mover advantage (Be the first and be number one), becoming the preferred provider of the customer/consumer and sustain this position long term?

The rigorous application of the above steps to Strategy will create an evolutionary, sustainable  success spiral.

Setting the agenda on strategy, value capture and innovation.
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