Companies Thrive Through Sustainable Organization Growth and Profitability

Most organizations are in business to survive, grow and thrive. Companies thrive through sustainable organization growth and profitability to increase their value over time. To attain sustainable organization growth and profitability a company must develop sustainable competitive advantage through strengthening its strategic capability. Competitive advantage refers to the means - strategy - by which a company achieves its long-term organizational goals such as:beating competitors in gaining more customers, revenues, or market share; improving community relations; or providing greater profits to their owners. ​

Strategic capability refers to a business' ability to harness all its skills, organizational capabilities, and resources in order to gain competitive advantage in a free and competitive market. A business can improve its strategic capability by developing organizational capabilities that allows it to better perform its strategic management decisions and tasks resulting in formulating good strategies, effective implementation, and successful execution. 

Formulating Good Strategy 
Strategy formulation is the process by which an organization translates ideas about how to survive, grow and be profitable into a valid strategy. A strategy is an integrated and externally oriented concept of how a business organization will compete, successfully, against its rivals.

A strategy is an intangible concept and invisible to those in the organization who would intervene to craft a good one to help the organization achieve its long-term goals. A logic model of a strategy helps in making the concept explicit through visualization. The strategy visualization helps managers clarify their thoughts and build consensus on the company's direction and how the company intends to conduct business to be profitable.

The explicit visual model of strategy makes the underlying idea easy to grasp, and enables the organization to work out a shared understanding of the strategy. It also ensures strategy determination does not degenerate into solemn recording of platitudes, useless for building consensus. The model also satisfies the needs of employees and stakeholders that cooperate to keep the organization alive and successful.
​
Effective Strategy Implementation
An organization's strategy must be implemented and executed successfully for it to gain any benefits from it. Strategy implementation is an organizing function concerned with determining the resources and capabilities required by the organization to make the strategy work as intended. Effective implementation is affected by factors such as: strategy development, environmental uncertainty, organizational structure, organizational culture, leadership, operational planning, resource allocation, communication, people, control and outcome.

​Strategy implementation is about  investment decisions and plans to build a capable organization that can make the formulated strategy work as intended. ​Strategy Implementation process involves planning for acquisition of resources, and /or development of appropriate organizational capabilities to strengthen existing organizational capabilities and competencies, or building new organizational capabilities to improve the organization's strategic capability.

Organizational capabilities refer to a business's ability to successfully employ competitive strategies that allows it to survive and increase its value overtime. Organization capability and culture are intangible, soft assets not directly visible to the organization. They are managed through the hard disciplines that shape them, such as: organization structure, decision rights, talent, management systems, and measures and incentives. 
Successful Strategy Execution
​Execution is a function of the strategic management process, and it occurs within the context of strategy implementation. It is concerned with managing initiatives - this is where strategy is translated into practice or remains on paper - and building adequate organization strategic capability.

Strategic capability refers to the organization's ability to harness all its skills, organizational capabilities, and resources in order to gain competitive advantage, and thus survive and increase its value over time.  ​The focus of strategic capability is on the organization's assets, resources, market position in projecting how well it will be able to employ strategies in the future.

​[TBD]

 
​