Many organisations go about setting strategy from the inside out. Which is, after clarifying what it is the organisation needs to achieve, they then work out how to take that to market. This approach does not work well amongst modern consumers - especially millennials. For instance, millennial reward brands that make their lives better. They steer well clear of self-centred brands.
An outside-in strategic framework begins with having a clear understanding of the state of the context/market your organisation is functioning in and then what it is the target audience is really wanting — asking questions like; ‘where is the world heading?’ The answers to this exploration and questioning becomes the factors that put a pressure on the relevancy of your thinking, resources and process to take your organisation into the future.
The difference between these two perspectives can be the difference between whether an organisation thrives and profits or struggles and fades.
Effective Outside-in organisational strategy allocates disproportionate time to developing clarity and strength around three critically interdependent factors:
- Leadership - An increasing number of leaders of capacity
- Infrastructure - Scalable infrastructure
- Market Dynamics - An understanding of the non-obvious cultural dynamics at play in the category you need to win in.
However, it is important not to overstate the first two points and undervalue or brush over the last one. Don’t settle for a vague, biased inside out understanding of Market Dynamics around you. Get an external unbiased perspective.
So, is your thinking more inside-out or outside-in leading for winning in 2018?