How can you develop an overarching strategy for your business?
The full answer to this question lies in a great book titled “Playing to Win: How Strategy Really Works.” It was written by A.G. Lafley, Roger Martin, and other contributors, and discusses the topic of developing an overarching framework, or “strategy cascade.” It was based on their own case studies of how they solved problems within their own industry.
There are many ways to develop a strategy framework, but within the strategy cascade detailed in this book, there are five components you need to know about.
The first is defining your winning aspiration. What does your real estate business exist to do beyond just making money? What does winning mean to you and your team? Your winning aspiration must transcend money and carry your organization beyond that 10-, 15-, or 20-year mark into the future.
The second component is defining where you’re going to play in the marketplace. This is also important because it will define where you’re going to decide not to play. Within the real estate market, we sometimes see agents working in multiple areas and not clearly defined on where they’re going to approach and attack the market. Within this specific part of the cascade, you’re defining which specific type of buyer/seller you’ll work with and which region you’ll work in.
The third component is defining how you’re going to win. This will define your value proposition and your competitive advantage within the marketplace. There are thousands of brokers you’re competing with on a daily basis for the same business. If you can’t clearly define what your competitive advantages are in the marketplace, other brokers will win more business. It’s critical to understand how you’re going to win the marketplace, what your competitive advantage is, and knowing how to execute these principles in your day-to-day business.
The fourth component is what capabilities are needed. This includes what activities will enable your organization to win within the marketplace. What activities will create accountability? What activities will help business and sales development?
The fifth and final component is what management systems you’ll need to execute your strategy. Think of this as your processes, procedures, and systems you have on the back end. For example, what type of CRM are you using? What type of lead follow-up processes and procedures do you have in place? These are small components of a real estate business, but a lot of them are needed to have a highly robust management system to execute your overarching strategy. Without having this last component built out, the previous four won’t work.
There are more components to developing an overarching strategy—all of which we cover in our strategic consulting service—so if you’d like to know more about it, don’t hesitate to reach out to us. If there are any other topics you’d like us to cover, feel free to send us an email. We’d be happy to help.