I hope you enjoyed March Madness as much as I did.  What I enjoy most is the team coherence--the way winning coaches prepare their players for each game.  Successful coaches set clear game strategies that capitalize on what they do best collectively as a team.  As a result, the coherence between game strategy and team capabilities delivers a winning advantage, and in many cases surprising the favored team.  The same disciplined approach can be translated to companies. 

Working with a recent client, the owner and management team were so preoccupied with growing the top line that they had lost sight of, or rather were not aligned to, what the company as a whole (“team”) did really well. They were pursuing multiple new product and market strategies that undermined rather than strengthen their ability to “win.”  Albu Consulting’s role was to help the management team redirect their energies and resources toward reinforcing what they did really well and thereby providing a roadmap to achieving a winning advantage. 

This haphazard approach to achieving growth represents a big hurdle for many middle market firms.  In a Booz & Co. survey of 1800 executives, 56% of executives said they struggled to make sure their day-to-day decisions were in line with their strategy, 52% felt their company’s strategies would not lead to success, and 64% said their biggest frustration is too many conflicting priorities.  Most often resources were not being allocated to support the company’s true strengths.

What can you and your leadership team do to become more focused and successful?  Consider these four key steps to create long-term value for your company.

1. Get a solid understanding of what your company does really well.  What are your true strengths? Where did these strengths come from? How does this differentiate your business from competitors?
2. Focus your efforts on leveraging your true source of competitive advantage.  Be ruthless and even obsessive about staying on strategy.  Resist the temptation to jump at product or market ideas that dilute resources and your company’s strengths.
3. Build capabilities that intensify your strengths. Invest in people and processes that will strengthen your products or services, market position and customer loyalty.
4. Clearly and consistently communicate your strategy, gain support, and align action plans so strategy becomes part of everyone’s day-to-day responsibility. 

Bottom line, understand your strengths and leverage them. Companies that stay focused and invest in what they do best increase their business value faster and more consistently.    

Dick Albu is the founder and president of Albu consulting LLC, a strategy management consulting firm focused on engaging and energizing leadership teams of middle market private and family businesses. With offices in Stamford, CT, the firm is dedicated to helping its clients formulate robust business strategies and follow through on execution of key strategic initiatives. Dick Albu can be reached at 203-321-2147 or RAlbu@albuconsulting.com. Rob Krist, Managing Director can be reached at RKrist@albuconsulting.com.  Please visit Albu Consulting’s website for more information at www.albuconsulting.com.