For small companies, it seems as though there is a constant tug-of-war going on between strategy and flexibility.

Most business owners have a strategy or recognize with some distress that they need one. The problem isn’t formulating a strategy. The problem is sticking to it in the face of short-term business demands that seem to trump long-term strategic activities.

Here’s a simple example. A company determines that building customer loyalty is a crucial strategic goal. Toward that end, they commit to sending out a monthly electronic newsletter for one year to 500 of their best customers. All goes well for a month or two. The newsletter is well received, it generates further communication between customers and sales people, and even results in one small piece of new business.

But then …

1. The small team responsible for writing the newsletter begins to complain that they don’t have enough time to do their regular work.

2. The sales manager hears that a sales rep heard from a customer that the last thing she needed was more e-mail.

3. A few days later, the sales manager learns that 50 of the customers have opted-out of the newsletter.

4. It’s suddenly decided that a new automated quotation system needs to be implemented, giving the newsletter team even less time for the newsletter.

The sales manager decides, under the circumstances, to suspend the newsletter for a month or two while they figure out how to improve it and work on the new quotation system.

The newsletter never reappears.
Customer loyalty continues to erode.

It takes a fair amount of discipline to stay on course with something as simple as a newsletter. Imagine the difficulty in staying on course with a strategic plan that involves substantial human resources and significant dollars. Not easy for a small business that doesn’t have the luxuries of a hefty staff and cash reserve.

One way to balance strategy and flexibility is not to take on too much at one time. Three or four strategic initiatives may not sound like much in a strategic planning session, but it can turn into a monster in the trenches.

Start small. Don’t go for the big splash. Pick one thing that’s supremely important and do it well. When you succeed, keep that strategic initiative going and take on another one. Before long your company will be operating strategically and nobody will know or care that it happened. Except perhaps for your competitors, who keep losing out to you.