Have you ever driven in dense fog? It’s stressful, it’s confusing and you can lose your way. Similarly, organizations operating without a strategic framework – a vision and a path to get to that vision – are effectively driving in the fog, vulnerable to disorientation and stagnation.
No matter the business, whether an individual hotel property, a multi-faceted organization or something in between, a strategic framework brings clarity of direction and in where to invest time and capital. It starts with a vision to illuminate the path ahead. This empowers employees to understand where the business is headed and commit to contributing to that future state. For financial stakeholders, this transparent view of the future fosters confidence and strengthens their belief in the company’s long-term viability.
Learning from others
A vision must be just that — visionary. It should reflect your organization’s aspiration for the future. Here’s a great example:
Lego, one of the most successful toy companies in the world, has been around for almost a century but was struggling in the early 2000s. The company was trying to do too many things that weren’t core to their business.
At this critical juncture, leadership stepped back and refocused on their vision, “to be a global force for learning through play.” Notice how their vision is future-focused. Great visions set the course for the future and defining what the business is driving toward.
With this powerful vision, they set out on several important paths to sustainable growth, including recentering their business around their core brick system product, digital innovation and sustainability. The pathways provided the strategic foundation for each year’s annual plan, guiding priority setting, resource allocation, and the difficult decisions needed to keep the organization advancing toward its vision.
As a result of this strategic reset, Lego successfully navigated its financial crisis, emerged stronger and became the world’s largest toymaker.
Create your strategic framework
Challenges will always exist. Market fluctuations, attracting great talent, emerging trends and technologies, changing customer needs and more can create uncertainty and foggy conditions.
Articulating a vision and defining your areas of focus will help your business navigate challenges and advance into the future with purpose.
Consider these steps as you create a strategic framework:
1. Gain insight from inside and outside your organization
Engage internal and external stakeholders to conduct a candid and comprehensive assessment of your business. Employees, customers, suppliers and partners offer unique perspectives that can inform your strategic direction. Take time to honestly assess your organization’s greatest strengths, biggest weaknesses and potential threats.
2. Prepare for changing conditions
Much like with driving, it’s critical to anticipate potential shifts in your environment and obstacles that may suddenly appear on your path. Pay attention to the trends that could affect your business and your customers’ businesses.
When your organization faces unexpected headwinds, these challenges shouldn’t push you off course or away from your vision. Instead, your strategic framework should serve as your guide, providing structure and clarity while remaining responsive to necessary course corrections along the way.
3. Take an inspiration tour
Organizations often operate with a 'heads-down' mentality, focused on doing things the way they always have. Challenge this perspective by looking upward and outward, studying not only competitors but also companies outside the industry that have successfully navigated trying circumstances.
What lessons can your business adapt from companies like Lego? Or consider experience-centric businesses such as the Savannah Bananas, Chewy or others. What human need did they address? What innovative approaches did they employ?
Using these insights, you can define a bold vision for your future be it three, five or 10 years from now. The strongest visions that address a real human need can inspire employees, attract talent and unleash creativity and innovation in new and exciting ways.
Once you’ve established your vision, take time to think critically about what it will take to bring it to life and identify the five biggest areas of opportunity that will help you get there. These are your strategic pathways. With your vision and pathways defined, you now have the core elements of a strategic framework. From here, your annual plans and goals should align with the pathways you’ve defined, ensuring each year brings you closer to realizing your vision.
Importantly, your strategy will be far more successful when it’s grounded in your core values and supported by consistent communication. Share the vision and strategy with stakeholders regularly, not just during the initial rollout. Look for creative ways to keep the message alive and remind employees that each of them plays a role in bringing the vision to life. Communicate and celebrate progress along the journey so everyone feels inspired, engaged, and invested in the organization’s future.
Attempting to lead without a strategic framework is like driving through fog: It creates uncertainty, stalls momentum and leaves your organization vulnerable to losing its way. Cut through the fog with vision and definition, and you'll move forward with clarity.
Karen McSteen is principal of consulting firm brandMatters and a member of the International Society of Hotel Consultants.
This column is part of ISHC Global Insights, a partnership between CoStar News and the International Society of Hospitality Consultants.
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