Building Margin

100: When It Comes to Strategy, Make Sure You Have These 5 Things

Feb 18, 2025
Wondering if your business is prepared for the future? Discover the five essential components that could make or break your strategy. From defining a clear plan to implementing robust financial forecasting, this discussion highlights what it takes to propel growth and ensure long-term value. Learn why neglecting these elements means flying blind in the competitive landscape. Don't get left behind—find out how to set yourself up for success!
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ADVICE

Make Strategy About Cash Flow

  • Define a clear strategy that states where you'll compete, how you'll compete, and how you'll win.
  • Ensure your strategy produces free cash flow that exceeds the investment required to execute it.
INSIGHT

Profits Follow Strategy, Not The Other Way

  • Strategy isn't about higher reported profits; it's about choices that generate sustainable free cash flow and firm value.
  • A viable strategy requires evaluating whether resources can deliver returns that justify the investment.
ADVICE

Turn Strategy Into IARs

  • Use IARs (Initiatives, Actions, Results) to translate strategy into execution with one to three initiatives to start.
  • Limit initiatives, pick high-impact actions as hypotheses, and measure outputs with clear results.
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