ACE Strategy 1-2-3

How comfortable are you when you are asked to articulate, communicate and execute a strategy? Well, we have come up with a 3-step approach, hence the namesake, Strategy 1-2-3. First, you will need to define your value proposition. What is it that will turn on your customers? If you able to position your products and services well, you will hit the jackpot, so to speak. To get the maximum benefit for your enterprise, you are better off identifying unmet needs as you can leverage on growth as a value driver. More importantly, you will have pricing power.

Second, you will need to determine the capital structure appropriate for the undertaking. Assuming that you have been able to achieve this, you will be able to determine the weighted average cost of capital. Combining the first 2 steps, you can workout the return on invested capital, cost of capital and these you work out your economic profit. You can then decide how much competitive advantage you can be comfortable with and then gauge your competitive advantage period ( CAP ) and the value creation that you may gain from your venture. It is also during this CAP that you are able to factor in growth which will boost your enterprise value.

Third, when you are good to go, you will need to measure and manage the processes that will drive your business model. You must have a scorecard which should indicate to you how well you have been in achieving the desire outcomes and more importantly, are you getting there in a consistent, sustainable way. Only when you can replicate your successes ad nauseam. will you be able to sustain the value creation process. You may want to track and analyze signals as to how you shape your market and brand. You will also want to know whether your salesforce has aligned their beliefs consistent with your core ideology ( mission and purpose ). Only then, you be assured of the quality that your Brand signifies.

When you have reached this stage, you can cruise and selling your Brand successfully will be the litmus test.

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