How to Spot a Strategy

How clear is your small business’s strategy? Do your employees know it? Can your customers see it? Management consultant Ed Eppley says strategy is crucial for growth, and developing a strategy starts with defining your focus.

Eppley, who coaches small business owners to think about strategy in the Course for President at Aileron, the professional management training campus near Dayton, Ohio, says, “Most of us never think about the strategy a company has, we just know whether it appeals to us or not. But when a company has a clear strategy and focus, it’s not hard for outsiders to identify.”

Consider the McDonald’s strategy. Eppley says, “Their goal is to sell fast food, but their strategy is clearly evident. It says, ‘We are going to be absolutely consistent. No matter which McDonald’s you go into, you’ll get exactly the same Big Mac, McNuggets, or fries every time, the pricing is going to be extremely competitive, and it’s going to be convenient: You can drive right up, 24-hour-a-day, to locations off any major interstate’.”

How about the Ruth’s Chris Steak House strategy? Eppley says you’re right if you think it’s something like, “Your steak is going to be exceptional in every case, and you’ll get a baked potato that’s as big as your forearm; it’s going to look great, it’s going to be huge, and you’re absolutely going to pay for it.” Unlike McDonald’s, you’re going to have to look them up to find out where the nearest location is. “The Ruth’s Chris customer is somebody who wants to be served, to be waited on, and to enjoy their meal more than they want convenience,” Eppley says.