Three Pillars Of Organisational Strategy

The Three Pillars of Your Organisational Strategy

As a start-up, there is a high probability that you have an idea worth developing into a product or a solution from which you hope to generate revenue and growth. However, the route to the starting point and for the first few miles of this journey is strewn with numerous uncertainties. In my earlier posts I’ve written about how innovation happens, how to successfully develop and launch minimum viable products, factors that will influence your product development and so forth. Today I will make an effort to answer another basic question: ‘What should my start-up strategy be?’.

Before we go further, you would have seen the last few week’s posts about Minimum Viable Products.

What I am about to tell you will be effective not just for when you’re starting up, but also along your journey, even after you’re well established. The three pillars are value you bring to your customers, equity your customers bring to you and ethical spirit of doing business. Let’s look at what they mean.

Pillar 1: The value you bring to your customers

The purpose of any organisation is to create value to its customers. An organisation that is perceived to not create value will become extinct. This pillar should be your response to the question ‘why us?’. Rather than thinking about your specific product or service, let’s turn this around to the problem you’re solving for your customers. A few questions to help you along:

Why are we doing this?

Are we relieving customers of some pain?

Are we making their life better in one or more ways?

Are any others doing what we’re doing?

If so, how are we better than the others?

Pillar 2: The equity your customers bring to you

I started Pillar 1 by saying the purpose of any organisation is to create value to customers. Why? If you don’t create value you can’t generate revenue and if you don’t generate revenue, you can’t grow. There are a number of ways in which your customers bring equity to you. You can simply do direct sales where they pay once to buy your product or service and leave it at that. Or, you can engage with your customers in a subscription model with recurring revenue at frequent intervals. Or, you can go one step further and take over certain aspects of your customers’ needs. This gives you two advantages. A recurring income and the ability to gather insights and enhance your offerings and value to customers, resulting in enhanced returns from them. Still, this relationship is only transactional. Now to truly make your relationships transformational, you need one more pillar.

Pillar 3: Ethical spirit of doing business

The first two pillars, as you would have rightly guessed, are purely transactional. You bring value to your customers, they bring equity to you. Give and take. That’s all you need to do to survive as a business. But, in order to truly grow and become an enterprise and a brand you must focus on converting these transactional relationships into transformational ones. It starts with fairness. Fairness not just in dealing with customers, but also with your suppliers and your own employees. Then, you must put something back into society and your communities. You, me, our companies; we’re all part of a society and community. It’s called giving back without expectation. It doesn’t simply have to be charitable donations or causes. It can be educational outreaches, knowledge sharing, mentoring etc. Thirdly, care for the planet matters. How you practise sustainability and do it more than just a box ticking exercise. To go from practitioner to champion of sustainability.

Here’s a summary of the three pillars that should form your organisational strategy:

Pillar 1: The value you bring to your customers

Pillar 2: The equity they bring to you

Pillar 3: Ethical spirit of doing business

Leave a Reply

Your email address will not be published.

Scroll to top