How SME Leaders Should Combine Better Strategy & Innovation To Drive Business Growth

Written by: Marc Sniukas • October 09, 2023

Image Source: https://unsplash.com/@wocintechchat.com

Have you ever really, deeply thought about your heartbeat? The consistent rhythm that keeps you alive.

Think of your heartbeat as your business strategy. And the blood that it pumps? That's innovation. Both are critical for any business to survive — and thrive.

Understanding Strategy In The Modern Business World

In today’s fast-paced, ever-changing environment, if you're not moving forward, you're moving backward. 

This is especially true for small and medium-sized enterprises (SMEs). Yet, so many business leaders miss the mark when it comes to strategy. I've cleared up more common misunderstandings about strategy than I can count.

I’ve worked with CEOs of large, medium and small companies around the globe and across industries for decades, helping them craft winning strategies. And along the way, I learned what makes good strategies. Strategies that work. Strategies that actually get implemented.

You see, many SME leaders believe that big, long-term strategic visions are only for large corporations. I’ve often heard them say things like, "It's too complicated," or "Strategy is just a dream that never becomes a reality." 

These opinions, views and limiting beliefs come from outdated ideas about strategy.

How You Get To The Heart Of Strategy

Because true strategy isn't about lengthy presentations or vague mission statements. And it's definitely not just about annual meetings. 

Real strategy acts as a clear guide that changes and grows with the business world. It's carefully crafted to help SMEs navigate the ever-changing challenges they face.

In my research, I developed the 'Opportunity Canvas,' highlighting overlooked growth areas and demonstrating that strategy is never set in stone. It’s a toolkit that helps businesses like yours see challenges as opportunities simply waiting to be discovered.

The Vital Role Innovation Plays In Developing Strategy

But even the best strategies can fall flat without innovation. Every new process, product or method can be seen as the lifeblood of your business. It’s more than just following trends — it's about creating real value.

Take this statistic, for example: 

While 89% of businesses believe they provide top-notch customer experiences, only a few of their customers agree. 

In our digital age, customers are everywhere and expect top-quality brand interactions to happen frequently and quickly. So meeting and exceeding these expectations is more critical than ever.

This gap highlights the incredible potential possible when you combine strategy with innovation.

Why Your Strategy Needs An Upgrade To Drive Business Growth

Through my years of experience in the business world, I’ve heard countless organizations claim they talk about “strategy”, but in reality…

They’re discussing topics like financial targets, lofty vision statements, 3-5 year plans, benchmarking and best practices, following what competitors are doing, Google Analytics and PowerPoint, the list goes one.

Generally, their “strategy” is done once a year off-site, or outsourced to outside consultants.

While some of these topics are indeed important, I can confirm that they are not strategy. I refer to these approaches as old-school strategy. 

Because strategy is not a vision, or a plan, or merely about optimization. 

Strategy is a call to action, weaving it into your everyday business, to constantly review and adapt. 

It’s about open discussions where everyone — from the CEO to the newest hire — has a say in the direction the business is headed. Better Strategy means businesses can quickly adapt, no matter their challenges. 

Strategy is really about: 

1. Achieving your ambitions

2. Acknowledging challenges you’re facing or opportunities you want to seize

3. Describing how you’ll overcome or seize them, and why you think your approach will work

4. Outlining a coherent set of actions to implement your proposed response. 

That’s it. That’s strategy. Quite simple, isn’t it? 

What You Can Start Doing Today As An SME Leader

As a leader, you aim high, have big ambitions and want more than the average employee — and you should. 

But daily challenges and ranging priorities can sometimes make you lose sight of your bigger goals. Remember, every challenge also brings an opportunity for growth.

Research, evidence and my personal experience in the business world suggests that having a clear, written strategy can set SMEs like yours on the path to success. 

Let strategy be the guiding force behind your decisions, with innovation driving you forward, by diving deeper into this Better Strategy with my free guide:

The Strategy Launchpad — For Leaders & CEOs Who Are Tired Of Old-School Strategy

Inside, I share the seven major benefits a good strategy can have on your business, outline the new rules of Better Strategy, and provide real-life examples so you can put your new strategy into action right away.

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