Creating company alignement

One of the most important lessons about strategy from Michael Porter, professor at the Harvard Business School, is that a company's activities should fit and contribute to the building of a competitive advantage or unique positioning in the marketplace.

The selection of a CRM software, the hire of extra sales staff, or the development of a public relations campaigns are all major company activities that should fit the strategy and reinforce one another.

The trouble is that most companies don't have a "razor-like" strategic focus and it is questionable that each of their individual investments really clearly contribute to buidling a powerful, distinctive competitive advantage.

Below is a reminder of Porter's 5 tests of a good strategy:

1. A unique value proposition compared to competitors
2. A different, tailored value chain
3. Clear tradeoffs, and choosing what not to do
4. Activities that fit together and reinforce each other
5. Continuity of strategy with continual improvement in realization