Business Strategy
Video: Strategic and Commercial Thinking A Framework
Professor George Feiger, former Pro-Vice-Chancellor and Executive Dean of Aston Business School discussed two core aspects that underpin the development of business strategy: the strategic clarity that enables a business to create net positive value; and the commercial thinking that examines all business decisions in the context of their impact on profitability.
This is set within the context that all businesses operate within a legal, regulatory, and social framework. The former two grant a formal, the latter an informal licence to exist and operate. The heightened scrutiny of business in the 2020s means that, increasingly, any successful business strategy (or commercially shrewd action) must be ‘socially responsible’ as well as legally compliant – and be seen to be so.
The creation of ‘Value’ is a calculation that takes into account what might happen to revenues and costs over time. So, the arithmetic must be believable, and the strategy has to begin with a ‘concrete aspiration’ – against which George asks two questions:
- How plausible is this aspiration as a business idea? (I.e., based on a clear understanding of the market)
- How plausible is it that we can get there from here? (Does your organisation have the necessary capabilities and culture to implement the ‘idea’ successfully?)
‘Commercial’ thinking guides all continuous improvement process management. This implies looking at each step in the overall process – and asking if there is a cheaper/faster/higher-quality way. A truly commercial benefit is one that makes the entire process more profitable, not just some part less costly or more revenue-positive.
Watch the full webinar below. Alternatively, the transcript available here provides a written summary.
