Modernize your strategy management with Quantive StrategyAI - now generally available.

Logo_Inditex-dark.svg

logo-tomtom.svg

logo-Sociate-Generale.svg

logo-dt.svg

logo-Adobe.svg

logo-mazda.svg

chargebee.svg

logo-Red-Hat.svg

Logo_Inditex-white.svg

logo-chargebee.svg

favicon.png

Users Love Us 1.svg

BusinessActivityMonitoring_HighPerformer_HighPerformer.svg

ObjectivesandKeyResults(OKR)_Leader_Americas_Leader.svg

ObjectivesandKeyResults(OKR)_MomentumLeader_Leader.svg

ObjectivesandKeyResults(OKR)_Leader_Leader.svg

ObjectivesandKeyResults(OKR)_Leader_Small-Business_Leader.svg

ObjectivesandKeyResults(OKR)_Leader_Small-Business_Americas_Leader.svg

capterra-logo.png

G2_Logo_Red_RGB 2.png

Stars.svg

Stars.png

CollaborativeWhiteboard_EasiestToDoBusinessWith_Mid-Market_EaseOfDoingBusinessWith.svg

The Global State of Strategy Report

thumbnail_state of strategy-mock.png

state of strategy-mock.png

Why is a business strategy important?: a successful business strategy incorporates your company’s vision, its most important goals, and the plan of execution for achieving those goals.<ul><li>Importance: business strategy brings your mission to life</li><li>Components: business strategy has three levels — corporate (company-wide, overarching), business (department-wide, contextual), functional (team-wide, tactical)</li><li>Questions: is our business strategy feasible, desirable, viable, strategic, and sensitive to the market?</li></ul><h3>How do we cover business strategy?&nbsp;</h3>Every business has a strategy — whether it’s well executed and intentionally crafted is another story. Business strategy is an ever-evolving topic, with an overwhelming depth and complexity worth hundreds of articles.But in this article, we’ll stick to the most important concepts, covering:<ol style="list-style-type:decimal;"><li>The definition and importance of business strategy</li><li>The three levels of strategy — corporate, business, functional</li><li>Key elements of successful business strategies</li></ol>Let’s get started by exploring the definition and importance of a good business strategy.&nbsp;

So where does it all begin with business strategy?<blockquote>In short, it's the foundation for every method and tactic your business takes to accomplish its goals, business objectives, and mission.</blockquote>Business strategy is the guiding principle and action plan for your organization. It’s built through a vision and mission, objectives, and a dedicated <a href="https://quantive.com/resources/articles/ai-for-decision-making" target="_blank" rel="noopener noreferrer">decision-making</a> process.<hr>Learn more about <a href="https://quantive.com/resources/articles/mission-vs-vision" target="_blank" rel="noopener noreferrer">mission and vision in the strategy process</a><figure class="image image_resized" style="width:50%;"><a href="https://quantive.com/resources/articles/mission-vs-vision" target="_blank" rel="noopener noreferrer"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1679576222/site-v5/mission_vs_vision_4831a60599.png" alt="A green flag with hollow filling placed to the left of an outline of an eye, with the iris also outlined in green, all on a green background, to signal mission vs. vision in business strategy"></a></figure><hr><h3>The importance of business strategy</h3>A business strategy isn’t just a plan for what you’re trying to achieve as a company — it reflects both your internal and external environment equally. It should position your goals and offerings against your competitors, market demand, and new opportunities.Without a connected strategy at the corporate, business, and functional levels, your teams will:<ul><li>Operate in misalignment</li><li>Lack engagement, motivation, and purpose</li><li>Produce lackluster results, at best</li></ul>A great business strategy is your market differentiator, your competitive advantage, and your edge in performance.&nbsp;

An effective business strategy can be broken down into three distinct levels:<ol style="list-style-type:decimal;"><li>Corporate (company-wide, overarching)</li><li>Business (department-wide, contextual)</li><li>Functional (team-wide, tactical)</li></ol><figure class="image image_resized" style="width:75%;"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1670601655/site-v5/Corporate_Buisness_Strategy_Chart3_dbace9b1b9.svg" alt="Corporate Business Strategy Chart: Corporate strategy at the top, business strategy in the middle, functional strategy at the base"></figure><h3>Corporate strategy</h3>Corporate strategy is the “top-level” strategy that guides your organization. This is where strategy mapping, strategic planning, visualization, strategic management, and vision-mission development occurs. This foundational step ultimately determines the trajectory of your business.To <a href="https://quantive.com/resources/articles/strategy-development" target="_blank" rel="noopener noreferrer">develop a thriving corporate strategy</a>, a few simple, but important questions must be answered:<ul><li>What type of business are we? (Niche)</li><li>What distinguishes us as a company? (Vision)</li><li>What are our company's competitive advantages? (Strength)&nbsp;</li></ul>These questions help you understand your company’s identity and pursuits. That is:<ul><li>How the business is being run</li><li>The goals and objectives of the business</li><li>Which markets the business enters</li><li>How success is defined</li><li>Who is hired and why</li><li>How the budget is being created/spent&nbsp;</li></ul><hr>Check out <a href="https://quantive.com/resources/articles/strategy-execution#strategy-execution-at-30,000-ft" target="_blank" rel="noopener noreferrer">corporate strategy execution</a> from a 30,000 ft. perspective<figure class="image image_resized" style="width:50%;"><a href="https://quantive.com/resources/articles/strategy-execution#strategy-execution-at-30,000-ft" target="_blank" rel="noopener noreferrer"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1672763377/site-v5/4_stages_of_successful_strategy_execution_1c658351c6.png" alt="4 squares representing the four stages of strategy execution, overlapped in diagonal, spaced out directions to the top right"></a></figure><hr><h3 style="margin-left:0px;">Business strategy</h3>Business strategy is the middle ground between corporate and functional execution. It establishes and coordinates the positioning of your organization by applying the mission and vision to your competitive landscape. &nbsp;If corporate strategy focuses on the internal environment, business strategy focuses on the external. Business strategy explores the questions centered on value, like:<ul><li>Where is our primary area of focus?</li><li>How will our customers benefit from this competitive focus?</li><li>What about this focus ensures a unique value proposition?</li></ul>With value creation at the core, investing in a sound business strategy is key to your team executing as effectively as possible.&nbsp;<blockquote>Improperly positioned firms encounter competitive difficulties and can fail to sustain competitive advantages.&nbsp;- <a href="https://resources.saylor.org/wwwresources/archived/site/textbooks/International%20Business.pdf" target="_blank" rel="noopener noreferrer">Saylor.org</a></blockquote><h3>Functional strategy</h3>With the second-tier business strategy created, functional strategy has a foundation. VPs and managers influence the key decisions in functional strategy. They have the responsibility of bridging functional strategy to the business and corporate strategy.Functional strategy is then managed by the departments, teams, and initiatives in an organization where the work is done.&nbsp;<blockquote>Different functions require different strategies, each informed by the unique goals, aspirations, and needs of the department.</blockquote>Without alignment between functional and business strategy, organizations experience an operational disconnect. While the functional strategy should meet the department's unique needs, it must also contribute to corporate and <a href="https://quantive.com/resources/articles/cross-functional-collaboration" target="_blank" rel="noopener noreferrer">cross-departmental strategies</a>.&nbsp;<h4>Functional strategy example</h4>Let’s take this one step further by examining how marketing and sales teams may work together. At the strategic level, they may share and depend on information like: &nbsp;<ul><li>The organization’s value proposition</li><li>The ideal customer profile (ICP) &nbsp;</li><li>How the organization delivers value for the ICP</li></ul>It makes sense for these departments to align their strategies, as they work with similar business goals in mind. When functional units align, their impact compounds. &nbsp;The collective functional strategy funnels up to the corporate strategy, forming a collaborative organizational strategy across multiple levels within the organization. &nbsp;

With so many moving parts, contributors, and focus areas, ensuring a clear understanding of business strategy can be complicated.While different models reflect different outlines or structures, business strategy focuses on six elements:<ol style="list-style-type:decimal;"><li>Feasibility: what your business can offer &nbsp;</li><li>Desirability: what the market desires, aka, the desired value &nbsp;</li><li>Viability: ROI on value proposition</li><li>Measurability: Clear<span style="color:rgb(15,15,15);font-family:Söhne, ui-sans-serif, system-ui, -apple-system, &quot;Segoe UI&quot;, Roboto, Ubuntu, Cantarell, &quot;Noto Sans&quot;, sans-serif, &quot;Helvetica Neue&quot;, Arial, &quot;Apple Color Emoji&quot;, &quot;Segoe UI Emoji&quot;, &quot;Segoe UI Symbol&quot;, &quot;Noto Color Emoji&quot;;"> and quantifiable metrics to assess strategic performance</li><li>Strategic playground: your organization's identity, in support of the value proposition</li><li>External environment: ebbs and flows of what's interesting or in-demand&nbsp;</li></ol><h3>Feasibility of business strategy</h3><ul><li>Resources &amp; strengths: Highlighting the resources available, plus the unique skills and strengths of the organization</li><li>Collaborators: Specifying the organizations and individuals you collaborate with, and how they enhance the value of your products and services</li></ul><h3>Desirability of business strategy</h3><ul><li>Value provided: Outlining the products and services offered, the approach taken in delivering them, and the added benefits they bring to the customer</li><li>Target audience &amp; desires: Identifying the target audience and organizations served, and the specific needs that are being fulfilled</li><li>Alternatives: The other entities that customers consider as alternatives when deciding to purchase your products or services</li></ul><h3>Viability of business strategy</h3><ul><li>Financials: Explaining how you receive compensation for your offerings, from whom, the method of payment, and the timing</li><li>Risk management: Outlining the risks and costs associated with the organization and how they are managed</li></ul><h3>Measurability of business strategy</h3><ul><li><span style="color:rgb(15,15,15);font-family:Söhne, ui-sans-serif, system-ui, -apple-system, &quot;Segoe UI&quot;, Roboto, Ubuntu, Cantarell, &quot;Noto Sans&quot;, sans-serif, &quot;Helvetica Neue&quot;, Arial, &quot;Apple Color Emoji&quot;, &quot;Segoe UI Emoji&quot;, &quot;Segoe UI Symbol&quot;, &quot;Noto Color Emoji&quot;;">Data collection methods: Outlining the systematic approaches and tools utilized to gather the data necessary to measure strategic performance &nbsp;</li><li><span style="color:rgb(15,15,15);font-family:Söhne, ui-sans-serif, system-ui, -apple-system, &quot;Segoe UI&quot;, Roboto, Ubuntu, Cantarell, &quot;Noto Sans&quot;, sans-serif, &quot;Helvetica Neue&quot;, Arial, &quot;Apple Color Emoji&quot;, &quot;Segoe UI Emoji&quot;, &quot;Segoe UI Symbol&quot;, &quot;Noto Color Emoji&quot;;">Goal-setting &amp; performance evaluation: Interpreting collected data for actionable insights, strategic implications, and ongoing performance measurements against benchmarks and objectives</li><li><span style="color:rgb(15,15,15);font-family:Söhne, ui-sans-serif, system-ui, -apple-system, &quot;Segoe UI&quot;, Roboto, Ubuntu, Cantarell, &quot;Noto Sans&quot;, sans-serif, &quot;Helvetica Neue&quot;, Arial, &quot;Apple Color Emoji&quot;, &quot;Segoe UI Emoji&quot;, &quot;Segoe UI Symbol&quot;, &quot;Noto Color Emoji&quot;;">Always-on approach: Creating a culture of continuous improvement and strategic adaptation, where data drives ongoing optimization and agility in response to evolving internal and external factors</li></ul><hr>Discover the impact of <a href="https://info.quantive.com/hubfs/Quantive%20Guides/Global-State-of-Strategy-by-Quantive.pdf" target="_blank" rel="noopener noreferrer">regular strategy review on performance</a><figure class="image image_resized" style="width:50%;"><a href="https://info.quantive.com/hubfs/Quantive%20Guides/Global-State-of-Strategy-by-Quantive.pdf" target="_blank" rel="noopener noreferrer"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1712837023/site-v5/2024_strategy_report_Ebook_ff937761d0.png" alt="2024-strategy-report-Ebook.png"></a></figure><hr><h3>Strategic playground</h3><ul><li>Outcomes &amp; values: Stating the desired outcomes, long-term goals, and values that are important to the organization</li><li>Culture &amp; structure: Describing the culture and structure of the organization and what makes it unique</li></ul><h3>Environment external to the business strategy</h3><ul><li>Analyzing the external factors and developments</li><li>Potential uncertainties and out-of-control events&nbsp;</li></ul>

<h3>1. Define your vision and mission</h3>Start by clarifying your organization's vision and mission. These statements provide the foundation for your strategy and should be used as springboards for every decision, plan, and action.<h3>2. Assess the market</h3>Evaluate what your business can offer in relation to market demand. Identify your unique strengths and resources that set you apart from competitors, and see whether these align with your target audience’s needs, preferences, and pain points. As part of this, you should assess potential opportunities and risks in the market to see how you can best address or capitalize on these in time.&nbsp;<h3>3. Create a strategy aligned with market insights&nbsp;</h3>Develop a strategy that’s aligned with your assessment of the market. Incorporate additional insights gathered from market research and other internal data to best align your offerings and positioning to meet customer needs and stay competitive.<h3>4. Ensure financial viability&nbsp;</h3>Assess the financial viability of your strategy by analyzing the potential return on investment and the costs associated with implementation. Develop clear financial projections and risk management strategies.<h3>5. Align strategy across your business</h3>Ensure your strategy is aligned across corporate, business, and functional levels. Define overarching company-wide goals, departmental strategies, and tactical plans that support the larger strategic vision.<h3>6. Establish measurable goals</h3>Set clear, measurable goals and objectives to track progress and performance. Define key performance indicators (KPIs) that reflect the success of your strategy and enable ongoing evaluation.<h3>7. Implement and monitor&nbsp;</h3>Execute your strategy according to the established plan, and continuously monitor performance against set goals. Regularly review metrics and adjust tactics as needed to stay on course.<h3>8. Adapt and innovate&nbsp;</h3>Embrace a culture of adaptation and innovation, remaining agile in response to changing market dynamics and emerging opportunities. For example, many companies are using <a href="https://quantive.com/resources/articles/ai-in-business-strategy" target="_blank" rel="noopener noreferrer">AI for business strategy</a> to simplify planning, evaluating, and implementing strategy. Continuously seek feedback and iterate on your strategy to stay competitive.&nbsp;

Tracking the success of your business strategy implementation is not just about hitting predetermined milestones. It involves aligning your actions with your overarching vision, ensuring they support your long-term goals.&nbsp;Here are a few best practices for effectively monitoring the impact of your business strategy and supporting strategic initiatives.&nbsp;<h3>Define clear OKRs and KPIs</h3>While your business strategy outlines your goals and key objectives, the defined measurements and metrics measure your strategy's success.Goal-setting methods such as objectives and key results (OKRs) and key performance indicators (KPIs) can track progress by directly reflecting the strategic outcomes you're trying to achieve as a business leader. These OKRs and KPIs can include financial metrics (e.g., revenue growth, resource allocation, profitability, ROI) and non-financial metrics (e.g., customer satisfaction, market share, brand awareness).&nbsp;<h3>Gather and analyze relevant data&nbsp;</h3>Collecting the correct data is the backbone of effective performance tracking, which helps senior executives make the right decisions. Dig into various sources (i.e., financial reports, customer feedback, market research, internal performance metrics) to ensure your KPIs and OKRs are constantly updated with the most relevant data, keeping your strategy in tip-top shape.<h3>Assess progress against targets routinely&nbsp;</h3>Regular assessments are necessary when trying to keep your strategy on track.By scheduling periodic reviews (such as weekly or bi-weekly OKR check-ins), you can consistently evaluate progress against predefined targets, identify potential deviations, and course-correct to keep your strategy relevant.&nbsp;<h3>Continuously adapt and iterate when necessary&nbsp;</h3>When developing a business strategy, what works today may not always work tomorrow. Stay vigilant, flexible, and agile, adapting your strategy (alongside its goals, benchmarks, and metrics) to account for market conditions, emerging trends, and new opportunities.

A well-crafted business strategy is a market differentiator and competitive advantage, vital to achieving sustained growth and success. By using the breakdowns and elements in this article, your organization can begin developing the best business strategies for your environment.&nbsp;<hr>Quantive empowers modern organizations to turn their ambitions into reality through strategic agility. It's where strategy, teams, and data come together to drive effective decision-making, streamline execution, and maximize performance.&nbsp; &nbsp;&nbsp;As your company navigates today’s competitive landscape, you need an Always-On Strategy to continuously bridge the gap between current and desired business outcomes. Quantive brings together the technology, expertise, and passion to transform your strategy and playbooks from a static formulation to a feedback-driven engine for growth.&nbsp; &nbsp;&nbsp;Whether you’re a fast-growing scale-up, a mid-market business looking to conquer, or a large enterprise looking for innovation, Quantive keeps you ahead – every step of the way. For more information, visit <a href="http://www.quantive.com/">www.quantive.com</a>.&nbsp;

Strategy Execution in 4 Steps: Keys to Successful Strategy

What is Business Strategy? Definition, Levels, and Elements

Strategy development is the beating heart of effective business management. It’s about understanding your business’s current position, defining the path toward your business ambitions, and tailoring it to the business environment, using objectives and goals as milestones along the way. Without a robust strategy creation approach, your business risks navigating <a href="https://quantive.com/resources/articles/business-challenges" target="_blank" rel="noopener noreferrer">rocky market environments</a> aimlessly, vulnerable to unexpected risks and missed opportunities.&nbsp;Below, we cover quick-fire FAQs on strategy development, unpacking its definition, elements, and advantages to help you deliver the best results in today’s business landscape.&nbsp;

Strategy development involves assessing your business within its environment, considering both internal and external factors. It covers:&nbsp;<ul><li>Tailored <a href="https://quantive.com/resources/articles/business-strategy" target="_blank" rel="noopener noreferrer">business strategies</a> aimed at value creation&nbsp;</li><li>Comprehensive mitigation plans based on identified risks, scenarios, and trade-offs&nbsp;</li><li>Clear communication and execution of plans using defined strategic goals and success metrics&nbsp;</li></ul>

A strategic plan guides your business toward its long-term goals by focusing resources, actions, and priorities on a united purpose. It creates a shared understanding of the company’s direction among company leaders, stakeholders, and staff, ensuring they synchronize their efforts to serve a desired outcome.&nbsp;<hr>Explore our <a href="https://quantive.com/resources/articles/strategic-planning-process" target="_blank" rel="noopener noreferrer">step-by-step guide to strategic planning</a><figure class="image image_resized" style="width:50%;"><a href="https://quantive.com/resources/articles/strategic-planning-process" target="_blank" rel="noopener noreferrer"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1678888522/site-v5/Strategic_Planning_Process_diagram_f96a921ef4.png" alt="a grid illustration connecting a circle and square representing the strategic planning process"></a></figure><hr>

Strategy development involves continuously analyzing, developing strategies, and refining business strategy based on the business's current state, risks, and emerging opportunities. <a href="https://hbr.org/topic/subject/strategic-planning" target="_blank" rel="noopener noreferrer">Strategic planning</a> is a subset of strategy development focused on creating resilient strategies for long-term business sustainability. Both processes are integral to the planning process, with company leaders playing a vital role in guiding and overseeing their execution.&nbsp;

Strategy development is essential for several reasons. It:&nbsp;&nbsp;<ul><li>Establishes clear direction and purpose, helping employees understand the ‘why’ behind their work&nbsp;&nbsp;</li><li>Identifies organizational strengths and weaknesses, aiding in effective resource allocation&nbsp;</li><li>Allows your business to <a href="https://quantive.com/resources/articles/business-adaptability" target="_blank" rel="noopener noreferrer">adapt to changing environments</a>, repositioning it to suit shifting markets and circumstances&nbsp;&nbsp;</li><li>Enhances <a href="https://quantive.com/resources/articles/ai-for-decision-making" target="_blank" rel="noopener noreferrer">decision-making</a>, serving as a framework for evaluating performance and progress&nbsp;</li><li>Promotes innovation, fostering a competitive advantage through continuous improvement based on feedback loops&nbsp;</li><li>Facilitates <a href="https://quantive.com/resources/articles/organizational-alignment" target="_blank" rel="noopener noreferrer">organizational alignment</a>, ensuring conflicting efforts are reduced as departments work cohesively toward shared goals&nbsp;</li><li>Guides risk management, offering a structured approach to assessing and mitigating risks&nbsp;</li></ul>

The development of a strategic plan involves several key steps:&nbsp;<ol style="list-style-type:decimal;"><li>Analyze: Assess your business's current state to understand its strengths and opportunities while minimizing weaknesses and threats&nbsp;</li><li>Develop strategy: Create a strategic plan that navigates your business toward its desired state, identifying strategic options for&nbsp;risks and outlining financial planning concerning resources, budgets, and trade-offs&nbsp;</li><li>Align and communicate: Communicate your business's <a href="https://quantive.com/resources/articles/mission-vs-vision" target="_blank" rel="noopener noreferrer">vision, mission</a>, and long-term goals, aligning these using a <a href="https://quantive.com/resources/articles/goal-setting" target="_blank" rel="noopener noreferrer">goal-setting framework</a> like OKRs&nbsp;</li><li>Create action plans: Detail execution plans, establishing responsibilities and timelines for accountability&nbsp;&nbsp;</li></ol>Implementing your strategic plan requires successful execution that emphasizes measurability. This serves as a continuous feedback loop that drives the strategy creation’s adaptation and optimization, ensuring your strategy doesn’t miss out on market opportunities.&nbsp;&nbsp;

Past strategic performance provides insights into what worked and what didn’t, enabling your business to refine future strategies, embrace practical approaches, and steer clear of prior errors. Historical data also nurtures organizational know-how, empowering your company to evolve and enhance strategy creation effectiveness as it gathers knowledge over time. Frameworks such as <a href="https://quantive.com/resources/articles/what-are-kpis" target="_blank" rel="noopener noreferrer">key performance indicators (KPIs)</a> and <a href="https://quantive.com/resources/articles/okr-meaning" target="_blank" rel="noopener noreferrer">OKRs</a> can be valuable tools in evaluating past performance and informing future strategy, helping company leaders make informed decisions.&nbsp;

A strategy built on innovation and ongoing adaptation is a great way to gain a competitive advantage. Innovation is critical, driving differentiation to secure a competitive advantage. This involves introducing novel ideas, products, or processes that set your business apart from competitors.&nbsp;Yet, an innovative spirit can fall short if it’s not aligned with the business environment. &nbsp;The crux lies with senior executives and their capacity to leverage critical, comprehensive, and timely data, as this dictates business agility and enables your business to tackle market shifts as they come.

Strategy development plans typically lack robust feedback loops, hindering continuous evaluation and adaptation. This absence results in stagnant plans unsuitable to dynamic markets, rendering them obsolete.&nbsp;&nbsp;To maintain agile and relevant strategy development plans, and to avoid <a href="https://quantive.com/resources/articles/strategy-development-pitfalls" target="_blank" rel="noopener noreferrer">strategic planning pitfalls</a>, you need real-time feedback — and <a href="https://quantive.com/resources/articles/digital-transformation" target="_blank" rel="noopener noreferrer">technology-driven</a> feedback loops powered by AI are an effective way to stay ahead. <a href="https://quantive.com/resources/articles/ai-in-business-strategy" target="_blank" rel="noopener noreferrer">AI enables rapid data analysis</a>, supporting adaptive decision-making in dynamic environments. As such, using it for strategic insights allows your business to adapt plans to market changes, analyze trends, and incorporate internal insights, ensuring ongoing relevance, resilience, and success in your strategy development approach.&nbsp;

Creativity fuels strategy development. It empowers your business to innovate, explore new paths, and craft unique value propositions. However, creative strategic concepts must be substantiated to ensure alignment with market realities. Powering your creative ideas with data-backed insights can refine and validate these, providing empirical support for strategy creation. As such, a blend of creativity and data-driven strategies is essential to creating validated visionary strategies primed for success.&nbsp;

Alignment between different departments or units within your business is essential for <a href="https://quantive.com/resources/articles/strategy-execution" target="_blank" rel="noopener noreferrer">effective strategy execution</a>. When various parts of the organization work cohesively towards common strategic objectives, you minimize conflicts, optimize resource allocation, and enhance overall efficiency, contributing to successful strategy implementation. Effective alignment requires active involvement and leadership from company leaders to ensure coherence across the organization.&nbsp;

Deliberate strategy development is a pre-planned strategic approach aligned with long-term objectives. Think of it as a systematic process focused on structured planning and execution. In contrast, emergency strategy development is reactive, responding to unforeseen events or crises. It requires quick decision-making and implementation to navigate immediate challenges and mitigate their impact.&nbsp;<blockquote>The best strategy development approach blends deliberate, long-term planning with the flexibility to pivot, optimize, and refine based on data-driven insights. At Quantive, we call this the <a href="https://quantive.com/resources/articles/always-on-strategy" target="_blank" rel="noopener noreferrer">Always-On Strategy model</a>.&nbsp;</blockquote>Powered by ongoing measurements and continuous optimizations, the Always-On Strategy operates as a dynamic loop, continuously developing, executing, and evaluating strategies. It prioritizes business agility and alignment with market shifts, emphasizing continual strategic readiness to avoid surprises and prevent strategies from becoming obsolete. By leveraging real-time insights, the Always-On Strategy model enables swift, informed decisions and ongoing refinements, ensuring your business strategy remains relevant and adaptable.&nbsp;<hr>Discover the <a href="https://quantive.com/resources/articles/always-on-strategy" target="_blank" rel="noopener noreferrer">Always-On Strategy model</a><figure class="image image_resized" style="width:50%;"><a href="https://quantive.com/resources/articles/always-on-strategy" target="_blank" rel="noopener noreferrer"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1705585972/site-v5/What_is_an_Always_On_Strategy_d1c3c5e1f3.png" alt="an image depicting always-on strategy"></a></figure><hr>

Strategy deployment involves translating your formulated strategy into actionable steps and ensuring its effective implementation across all business levels. Strategy development is the process preceding strategy deployment and consists of the conceptualization, formulation, and planning of business strategies.&nbsp;

While many companies stick to traditional annual strategy reviews, this approach is typically inflexible, rigid, and time-consuming. Instead, focus on creating a dynamic strategy by consistently revisiting and optimizing it to ensure continuous alignment with the evolving market and business landscape.&nbsp;&nbsp;By setting an ongoing schedule for strategic optimizations using best practices such as pre-scheduled planning and regular reviews, you emphasize the significance of strategic agility for stakeholders. Moreover, this approach enables ongoing strategic reassessments while avoiding unnecessary or impulsive changes.&nbsp;

While not always necessary, a fresh pair of impartial eyes can be immensely valuable to your strategy development process, offering expertise and experience that might not be available internally. This can include support with activities such as strategic analysis, market research, problem-solving, and industry-specific best practices — all of which can enrich your strategy development process.&nbsp;&nbsp;<hr>Read more on the <a href="https://info.quantive.com/hubfs/Quantive%20Guides/Global-State-of-Strategy-by-Quantive.pdf" target="_blank" rel="noopener noreferrer">success of centralized vs. decentralized strategies</a><figure class="image image_resized" style="width:50%;"><a href="https://info.quantive.com/hubfs/Quantive%20Guides/Global-State-of-Strategy-by-Quantive.pdf" target="_blank" rel="noopener noreferrer"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1712837023/site-v5/2024_strategy_report_Ebook_ff937761d0.png" alt="2024-strategy-report-Ebook.png"></a></figure><hr>Similarly, the right technology can significantly enhance strategic development. AI-powered solutions not only enable you to analyze your market environment and sift through large amounts of existing data quickly, but also contribute to data-driven strategic decisions. This not only aligns your business with market threats and opportunities but also helps with eliminating biases and navigating organizational politics often associated with this process.&nbsp;

Strategy development isn't a one-person job. It's a <a href="https://quantive.com/resources/articles/cross-functional-collaboration" target="_blank" rel="noopener noreferrer">collaborative effort</a> that involves strategic management from key decision-makers who draw on insights from across the organization. This helps your business account for diverse perspectives and contributions to ensure your strategy development plan is well-rounded and comprehensive.&nbsp;

Integrating technology and <a href="https://quantive.com/resources/articles/what-is-esg" target="_blank" rel="noopener noreferrer">ESG</a> in strategy development is becoming the norm.&nbsp;&nbsp;&nbsp;The right tech tools, such a <a href="https://quantive.com/resources/articles/strategic-intelligence-platform" target="_blank" rel="noopener noreferrer">strategic intelligence platform</a>, can help your business navigate the onslaught of business uncertainties using the right data. AI, machine learning, and big data play a pivotal role in rapidly analyzing your business environment to drive quick, informed decision-making that seamlessly align your strategy with changing market needs and <a href="https://quantive.com/resources/articles/strategic-intelligence-platform-roi" target="_blank" rel="noopener noreferrer">improve your bottom line</a>. Additionally, the push for sustainability and social responsibility push for ESG-aligned strategic initiatives as part of strategic development.&nbsp;&nbsp;&nbsp;<hr>Quantive empowers modern organizations to turn their ambitions into reality through strategic agility. It's where strategy, teams, and data come together to drive effective decision-making, streamline execution, and maximize performance.&nbsp; &nbsp;&nbsp;As your company navigates today’s competitive landscape, you need an Always-On Strategy to continuously bridge the gap between current and desired business outcomes. Quantive brings together the technology, expertise, and passion to transform your strategy and playbooks from a static formulation to a feedback-driven engine for growth.&nbsp; &nbsp;&nbsp;Whether you’re a fast-growing scale-up, a mid-market business looking to conquer, or a large enterprise looking for innovation, Quantive keeps you ahead – every step of the way. For more information, visit <a href="http://www.quantive.com/">www.quantive.com</a>.&nbsp;

7 Pitfalls in Strategy Development & How Technology Can Help

Strategy Development FAQ: Definition, Components, & Benefits

Businesses have had a whirlwind of disruptions over the past few years. From pandemics and supply chain disruptions to interest rate hikes, fluctuating energy prices, geopolitical tensions, and the rise of <a href="https://quantive.com/resources/articles/ai-for-decision-making" target="_blank" rel="noopener noreferrer">generative AI</a>, the market has become a minefield of unexpected disturbances.&nbsp;&nbsp;While market volatility persists, the process of crafting <a href="https://quantive.com/resources/articles/business-strategy" target="_blank" rel="noopener noreferrer">business strategies</a> remains largely unaltered. Although experts and thought leaders like BCG, Drucker, and Porter have built upon this process, its core remains constant:&nbsp;&nbsp;Each year, a group of executives sift through heaps of data to set a future business strategy, usually one to three years ahead — sometimes stretching to five or ten years. They then communicate this strategy down the organization, leaving teams scrambling to align and contribute to meet these goals.&nbsp;This approach views organizations as predictable systems, setting strategies based on assumed certainties in a supposedly known future. However, it’s completely disconnected in today’s <a href="https://quantive.com/resources/articles/business-challenges" target="_blank" rel="noopener noreferrer">uncertain business environment</a>.&nbsp;<blockquote>“In the digital age, sitting down once a year to do anything is weird, it's just bizarre.”&nbsp;– Jeff Immelt, CEO of GE&nbsp;</blockquote>

Once practical, the traditional way of strategy development now creates a <a href="https://quantive.com/resources/articles/strategy-execution-gap" target="_blank" rel="noopener noreferrer">strategy execution gap</a>. The strategy execution gap is the misalignment between a company’s strategic aims and practical application, resulting in a stagnant, inefficient strategy that’s disconnected from present realities.&nbsp;This stems from this outdated strategic process’s multiple weaknesses:&nbsp;<ul><li>Infrequent <a href="https://quantive.com/resources/articles/strategy-development" target="_blank" rel="noopener noreferrer">strategy development</a>: Annual or sporadic strategy formulation renders it dated upon implementation&nbsp;</li><li>Outdated data: Strategy development lacks real-time responses due to reliance on outdated data&nbsp;</li><li>Human-led limitations: Constraints in processing and analyzing information lead to incomplete or biased insights&nbsp;</li><li>Influence of intuition: Heavy reliance on executives' intuition as opposed to accurate data causes blind spots in assessing operations and risks&nbsp;&nbsp;</li><li>Lack of measurement: Inadequate follow-up and monitoring post-deployment&nbsp;</li><li>Infrequent optimization: Rare adjustments in response to market changes render strategies disconnected from the business's current state&nbsp;</li></ul>These weaknesses add up, leading to significant business problems like losing competitive edge, declining profits, inefficiencies, limited innovation, and customer churn. Staying competitive requires a dynamic strategy approach that tackles uncertainty while emphasizing agility — we call this the Always-On Strategy model.&nbsp;<hr>Discover the <a href="https://info.quantive.com/hubfs/Quantive%20Guides/Global-State-of-Strategy-by-Quantive.pdf" target="_blank" rel="noopener noreferrer">current state of strategy in our 2024 report</a>&nbsp;<figure class="image image_resized" style="width:50%;"><a href="https://info.quantive.com/hubfs/Quantive%20Guides/Global-State-of-Strategy-by-Quantive.pdf" target="_blank" rel="noopener noreferrer"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1712837023/site-v5/2024_strategy_report_Ebook_ff937761d0.png" alt="2024-strategy-report-Ebook.png"></a></figure><hr>

The Always-On Strategy model bridges the strategy execution gap using a continuous, rapid, and iterative loop of strategy development, execution, and evaluation. Its connected, data-driven, and agile nature encourages informed strategic decisions, faster execution and time to value, and ongoing alignment with market demands.&nbsp;&nbsp;At its core, the model embraces the fluidity of today’s business landscape. It acknowledges that change is not just continuous but rapid. Rather than depending on dated, set-term plans, this model empowers businesses to tweak their strategy using real-time insights. Its inherent <a href="https://quantive.com/resources/articles/okrs-and-cfrs" target="_blank" rel="noopener noreferrer">feedback cycles</a> refine and optimize strategy continuously, ensuring it stays relevant and timely.&nbsp;&nbsp;Let’s break down the Always-On Strategy by examining its three components:&nbsp;<ul><li><a href="https://quantive.com/resources/articles/strategy-development" target="_blank" rel="noopener noreferrer">Strategy development</a> – direct your business&nbsp;</li><li><a href="https://quantive.com/resources/articles/strategy-execution" target="_blank" rel="noopener noreferrer">Strategy execution</a> – change your business&nbsp;</li><li><a href="https://quantive.com/resources/articles/strategy-evaluation" target="_blank" rel="noopener noreferrer">Strategy evaluation</a> – evaluate your business&nbsp;</li></ul><h3>Component 1: Strategy development&nbsp;</h3>The first phase of Always-On Strategy optimization is making sure you <a href="https://hbr.org/2017/11/many-strategies-fail-because-theyre-not-actually-strategies" target="_blank" rel="noopener noreferrer">have a strategy</a>. This involves <a href="https://quantive.com/resources/articles/strategy-development" target="_blank" rel="noopener noreferrer">developing a robust, adaptable, and responsive strategy</a> that minimizes risks and maximizes <a href="https://quantive.com/resources/articles/business-adaptability" target="_blank" rel="noopener noreferrer">adaptability</a>. This requires an acute awareness of the business environment, including market trends, consumer behaviors, and <a href="https://quantive.com/resources/articles/digital-transformation" target="_blank" rel="noopener noreferrer">emerging technologies</a>.&nbsp;&nbsp;&nbsp;Key activities during strategy development include:&nbsp;<ul><li>Real-time strategic context analysis: Use advanced technology for dynamic data analysis and informed, timely, and responsive strategic decision-making&nbsp;</li><li>Inclusive decision-making: Engage insights from across the organization to create a comprehensive strategy that fosters understanding and ownership&nbsp;</li><li>Executive team collaboration and strategy formulation: Executives convene annually to collaboratively formulate the business strategy, using technology for ongoing discussions, risk assessment, and idea reconciliation&nbsp;</li><li>Hypothesis testing: Assess potential outcomes under various scenarios to mitigate risk and create robust mitigation plans to future-proof your strategy&nbsp;&nbsp;</li><li>Activation readiness: Create a strategy with <a href="https://quantive.com/resources/articles/mission-vs-vision" target="_blank" rel="noopener noreferrer">vision</a> and top-level execution in mind, ensuring clarity and actionability&nbsp;</li></ul><blockquote>“The faster the rate of change, the more adaptability becomes a key imperative.”&nbsp;– Ian Cox, Senior Director, Analyst, Gartner&nbsp;</blockquote><hr>Read more on <a href="https://quantive.com/resources/articles/strategy-development" target="_blank" rel="noopener noreferrer">strategy development</a><figure class="image image_resized" style="width:50%;"><a href="https://quantive.com/resources/articles/strategy-development" target="_blank" rel="noopener noreferrer"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1705667395/site-v5/Strategy_Development_76b703eb76.png" alt="a green bullseye graphic representing strategy development"></a></figure><hr><h3>Component 2: Strategy execution</h3>In the second phase, the focus shifts to addressing the strategy execution gap. This means aligning and translating strategy into actionable steps for smooth implementation, ensuring a seamless move from planning to execution in line with the environment.&nbsp;The main elements of successful strategy execution include the following:&nbsp;<ul><li><a href="https://quantive.com/resources/articles/organizational-alignment" target="_blank" rel="noopener noreferrer">Organizational alignment</a>: Align roles and responsibilities across teams and functions for outcome-driven execution&nbsp;&nbsp;</li><li>Transparency and focus: Drive focus and unified vision through open communication and result visibility&nbsp;&nbsp;</li><li><a href="https://quantive.com/resources/articles/cross-functional-collaboration" target="_blank" rel="noopener noreferrer">Communication</a>: Keep stakeholders updated on goals and progress for effective execution and alignment across the board&nbsp;</li><li><a href="https://quantive.com/resources/articles/business-adaptability" target="_blank" rel="noopener noreferrer">Adaptive execution</a>: Maintain agility to navigate unforeseen challenges or changes during strategy execution&nbsp;</li></ul><h3>Component 3: Strategy evaluation&nbsp;</h3>The last phase of the Always-On Strategy model involves a constant, data-backed evaluation of your dynamic strategy. It involves regularly checking performance metrics to create a continuous feedback loop that steers ongoing actions and decisions.&nbsp;&nbsp;Crucial aspects of strategy evaluation include:&nbsp;<ul><li>Aligning strategic objectives to measurement: Track your objectives’ progress to understand how things are going and improve performance&nbsp;</li><li>KPI integration: Facilitate precision and actionable insights by aligning <a href="https://quantive.com/resources/articles/what-are-kpis" target="_blank" rel="noopener noreferrer">key performance indicators (KPIs)</a> with strategic objectives and the work being done&nbsp;&nbsp;</li><li>Democratization of data: Enable access to strategy-measurement data and analytics for informed decision-making across the organization&nbsp;</li><li>Iterative strategy development: Leverage real-time insights on a rolling basis to optimize strategy development, ensuring the strategy’s relevance while maximizing opportunities&nbsp;</li></ul><img src="https://res.cloudinary.com/gtmhub/image/upload/v1707389187/site-v5/always_on_strategy_model_f53665641c.png" alt="an image showing the three components of the always-on strategy model">

Continuous adaptation isn’t an option when it comes to strategy — it’s vital for success. The Always-On Strategy model relies on ongoing adaptation to respond to market disruptions and thrive accordingly.&nbsp;Let’s take a closer look at the primary advantages of integrating continuous planning and adaptation within your organization:&nbsp;<ul><li>Agility: Swiftly address and accommodate market shifts, honing business agility and responsiveness&nbsp;</li><li>Innovation: Modernize internal processes and nurture a creative work culture for innovative solutions&nbsp;</li><li>Resilience and longevity: Succeed amid dynamic market conditions, ensuring long-term viability and sustainability&nbsp;</li><li>Customer-centric approach: Closely align offerings to changing customer needs, enhancing satisfaction and loyalty&nbsp;&nbsp;</li><li>Engagement: <a href="https://quantive.com/resources/articles/okrs-for-employee-engagement" target="_blank" rel="noopener noreferrer">Drive stakeholder engagement</a> while applying relevant insights to ensure commitment, accountability, and ownership, facilitating progress and shared success&nbsp;</li><li>Resource optimization: Ensure effective resource allocation, <a href="https://quantive.com/resources/articles/lean-growth-okrs" target="_blank" rel="noopener noreferrer">minimizing waste and maximizing productivity</a> for remarkable outcomes&nbsp;</li></ul><blockquote>"The greatest danger in times of turbulence is not the turbulence — it is to act with yesterday's logic."&nbsp;– Peter Drucker&nbsp;</blockquote><img src="https://res.cloudinary.com/gtmhub/image/upload/v1707389272/site-v5/Benefits_of_continuous_adaptation_febf1a1667.svg" alt="An image highlighting the 6 benefits of continuous adaptation">

The Always-On Strategy model sees strategy as an ongoing journey, while keeping a close pulse on results in the here and now. It helps you shape a dynamic strategy that responds to what’s happening inside and outside your company, keeping you ahead in a swiftly changing market.&nbsp;To adopt an Always-On Strategy successfully, consider leveraging AI-powered solutions specifically designed for dynamic strategy management. The right solution can optimize the management of your Always-On Strategy, enabling you to wholly and effectively deliver all of your business’ potential.&nbsp;<a href="https://quantive.com/products/strategies" target="_blank" rel="noopener noreferrer">Quantive Strategies</a> pairs AI with your business data to design, deploy, and continually enhance an Always-On Strategy for your business. By empowering you to make better strategic decisions faster, Quantive Strategies accelerates strategy development, simplifies strategic planning, and reduces business risks.&nbsp;&nbsp;<hr>Quantive empowers modern organizations to turn their ambitions into reality through strategic agility. It's where strategy, teams, and data come together to drive effective decision-making, streamline execution, and maximize performance.&nbsp; &nbsp;&nbsp;As your company navigates today’s competitive landscape, you need an Always-On Strategy to continuously bridge the gap between current and desired business outcomes. Quantive brings together the technology, expertise, and passion to transform your strategy and playbooks from a static formulation to a feedback-driven engine for growth.&nbsp; &nbsp;&nbsp;Whether you’re a fast-growing scale-up, a mid-market business looking to conquer, or a large enterprise looking for innovation, Quantive keeps you ahead – every step of the way. For more information, visit <a href="http://www.quantive.com/">www.quantive.com</a>.&nbsp;

Discover the Power of Quantive Strategies

What is an Always-On Strategy? 

The days of ruminating on decisions for weeks or months are no longer an option. As executives, you must tackle challenges with unprecedented speed — assessing, planning, executing, evaluating, and adjusting decisions on the fly. This can get overwhelming, especially in industries where data floods in and decision-making processes are complex.&nbsp;&nbsp;Not all hope is lost, though. The <a href="https://quantive.com/resources/articles/business-challenges" target="_blank" rel="noopener noreferrer">rapidly evolving business landscape</a> has its silver linings, including using AI for decision-making. AI can drive decision-making by tailoring insights and recommendations to your business’s information. As such, you can use it to streamline decision-making and take action based on real-time information, not just data.&nbsp;&nbsp;In this article, we’ll take you through the ‘what’, ‘why’, and ‘how’ of using AI for decision-making, covering:&nbsp;&nbsp;<ul><li>Why executives need to change their decision-making approach and pace&nbsp;&nbsp;</li><li>Current challenges in executive decision-making&nbsp;</li><li>Why executives should embrace AI for decision-making&nbsp;</li><li>How AI helps solve executive decision-making challenges&nbsp;</li><li>The consequences of delaying AI adoption&nbsp;</li><li>How to embrace AI for executive decision-making&nbsp;</li></ul>

Evolving executive decision-making is more critical than ever. Market dynamics are shifting rapidly, with the pace of running a business increasing rapidly due to:&nbsp;<ul><li>Changing customer expectations: The <a href="https://quantive.com/resources/articles/digital-transformation" target="_blank" rel="noopener noreferrer">digital-first mindset</a> and demand for convenience, personalization, and speedy responses redefine customer expectations.&nbsp;</li><li>Globalization: Competition is increasingly global, with cultural differences, new legal requirements, and geopolitical risks altering market dynamics.&nbsp;&nbsp;&nbsp;</li><li>Cyclical technological disruptions: Rapid innovations demand <a href="https://quantive.com/resources/articles/business-adaptability" target="_blank" rel="noopener noreferrer">quick adaptation</a> and <a href="https://quantive.com/resources/articles/strategy-execution" target="_blank" rel="noopener noreferrer">strategic execution</a>.&nbsp;&nbsp;</li></ul>Yet, executive decision-making struggles to match the pace of business acceleration. This is despite organizations drowning in data and more than <a href="https://www.enterpriseappstoday.com/stats/business-intelligence-statistics.html" target="_blank" rel="noopener noreferrer">$29 billion</a> being spent on business intelligence yearly. <a href="https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/decision-making-in-the-age-of-urgency" target="_blank" rel="noopener noreferrer">McKinsey’s Global Survey</a> found that only 20% of respondents believe their organizations excel at decision-making, with a majority stating that the time they devote to decision-making is ineffective.&nbsp;&nbsp;<blockquote>“For managers at an average Fortune 500 company, this could translate into more than 530,000 days of lost working time and roughly $250 million of wasted labor costs per year.”&nbsp;&nbsp;— McKinsey&nbsp;</blockquote>But why are executives struggling to make informed decisions at the required pace? What makes informed decision-making such a time-consuming and challenging feat?&nbsp;

<h3>Rigid decision-making process&nbsp;</h3>The executive decision-making process hasn’t evolved much. It’s often a slow cycle of data collection, meetings, and report reviews. This becomes inefficient and ineffective when you need to make rapid adjustments based on changing market dynamics — which often leads to delayed and ill-suited decisions.&nbsp;To make things more complicated, these inefficiencies are compounded internally, as organizations often progress faster than executives can keep up with. Consequently, executives such as yourself must avoid becoming bottlenecks in the decision-making pipeline while still retaining ownership of strategic choices.&nbsp;<blockquote>“If you’re good at course correcting, being wrong may be less costly than you think, whereas being slow is going to be expensive for sure.”&nbsp;— Jeff Bezos&nbsp;</blockquote><h3>Data overload&nbsp;</h3>Data is a goldmine, but its volume can quickly become a double-edged sword. As executives, you must not only oversee the continuous influx of data, but also discern its relevance and applicability.&nbsp;&nbsp;Without context, an abundance of data isn’t worth much.&nbsp;While you may have all the individual pieces on hand, not knowing where they fit, what they represent, or what the complete picture should look like can leave you disoriented.&nbsp;&nbsp;An overload of wrong, misinterpreted, or duplicated data can lead to decision paralysis, data mistrust, a reliance on outdated information, and ineffective choices. In fact, a <a href="https://www.salesforce.com/news/stories/data-skills-research/" target="_blank" rel="noopener noreferrer">Salesforce study</a> revealed that 41% of leaders lack an understanding of data because it is too complex or inaccessible.&nbsp;<blockquote>"Finding a way to get a handle on the stream of data at their fingertips, to help businesses distinguish between the signal and the noise, is a crucial first step."&nbsp;— Seth Stephens-Davidowitz&nbsp;</blockquote><h3>Misinformation and poor data quality</h3>As the bedrock of all strategic decisions, executives must prioritize data integrity, accuracy, and reliability, ensuring data stays error-free. Neglecting this can lead to poor decision-making on your part — which happens more often than you’d think.&nbsp;&nbsp;A <a href="https://www.integratedreporting.org/resource/cgma-joining-the-dots/" target="_blank" rel="noopener noreferrer">CMGA study</a> revealed that 80% of respondents made strategic decisions based on flawed information in the past three years. This can get pretty costly, with Gartner reporting that businesses waste an average of <a href="https://www.gartner.com/smarterwithgartner/how-to-create-a-business-case-for-data-quality-improvement" target="_blank" rel="noopener noreferrer">$15 million</a> annually due to poor or faulty decisions.&nbsp;&nbsp;<h3>Internal business complexities&nbsp;</h3>Internal business dynamics add another layer of complexity to your executive decision-making capabilities. These include:&nbsp;<ul><li>Overlapping responsibilities: Decision-making roles are often unclear, with multiple individuals or teams sharing responsibilities. This can lead to confusion, delays, and conflicts during decision-making.&nbsp;</li><li>Interdependencies: Choices in one area of the business affect others and, if navigated incorrectly, can negatively impact the broader organizational ecosystem.&nbsp;</li><li><a href="https://quantive.com/resources/articles/dei-challenges#challenge-#8:-implicit-biases" target="_blank" rel="noopener noreferrer">Individual biases</a>: Personal beliefs can influence decision-making, sometimes leading to choices that align with individual views rather than the organization’s best interests.&nbsp;</li></ul>

AI tools offer numerous advantages, allowing you to go beyond metrics analysis to utilize unstructured information in real-time, and at scale.&nbsp;&nbsp;The right combination of artificial intelligence technologies can provide you with contextually relevant answers to executive questions, forecasts on impact, and even recommendations on what to do next.&nbsp;&nbsp;The evolution, democratization, and convergence of the following technologies makes this possible:&nbsp;<ul><li>Natural language processing (NLP) understands human language, allowing you to automate tasks like customer support, data analysis, and sentiment analysis.&nbsp;</li><li>Predictive analytics identifies patterns and connections in data for future forecasting, such as seasonality.&nbsp;&nbsp;</li><li>Prescriptive analytics provides actionable recommendations by processing data, trends, and context.&nbsp;</li><li>Generative AI processes vast volumes of information, understands concepts, identifies relationships, and generates insights on a much larger scale — and faster than any human can.&nbsp;</li></ul>As these AI capabilities converge, <a href="https://quantive.com/resources/articles/ai-in-business-strategy" target="_blank" rel="noopener noreferrer">businesses can better connect data, metrics, strategy</a>, and operational activities for greater efficiency. This can:&nbsp;<ul><li>Free up 60-70% of employees’ time (<a href="https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/the-economic-potential-of-generative-ai-the-next-productivity-frontier#key-insights" target="_blank" rel="noopener noreferrer">McKinsey</a>)&nbsp;</li><li>Lower costs by 10% or more (<a href="https://fortune.com/2023/06/07/a-i-helped-36-financial-services-execs-reduce-costs-nvidia/" target="_blank" rel="noopener noreferrer">Fortune</a>)&nbsp;</li><li>Grow and sustain a competitive edge (<a href="https://sloanreview.mit.edu/projects/reshaping-business-with-artificial-intelligence/" target="_blank" rel="noopener noreferrer">MITSloan Management Review</a>)&nbsp;</li><li>Boost productivity by 66% (<a href="https://www.nngroup.com/articles/ai-tools-productivity-gains/#:~:text=Here%20are%20the%20results%3A,126%25%20more%20projects%20per%20week." target="_blank" rel="noopener noreferrer">Nielsen Normal Group</a>)&nbsp;</li><li>Reduce errors by 20% (<a href="https://www.forbes.com/sites/louiscolumbus/2020/05/18/10-ways-ai-is-improving-manufacturing-in-2020/?sh=3cdc0231e85a" target="_blank" rel="noopener noreferrer">Forbes</a>)&nbsp;</li></ul>However, we expect AI’s most significant impact to be on decision-making. AI’s ability to use things like predictive models to crunch vast datasets, spot patterns, and offer data-driven recommendations allows it to pull information from areas like sales, customer experience, and business strategy to create a stream of actionable ideas, knowledge, and insights that benefit you as decision-makers. &nbsp;

AI systems offer a range of capabilities that address your main decision-making challenges as executives:&nbsp;<h3>Pattern recognition and anomaly detection</h3>You can apply machine learning techniques, such as deep learning models, to your business’s historical data to help you identify patterns, correlations, and anomalies across your business. Given the sheer volume and complexity of data, these may otherwise be invisible to human analysts. &nbsp;<h3>Real-time information analysis&nbsp;</h3>You can use AI to analyze incoming data and interpret up-to-minute information continuously. This empowers timely, well-informed decision-making, eliminating decision delays while keeping your business aligned with market fluctuations.&nbsp;&nbsp;<h3>Data-driven recommendations and interactions&nbsp;</h3>Machine Learning algorithms can help you analyze historical business decisions and extensive datasets to offer actionable recommendations and answer data-driven inquiries, demonstrating the power of AI for decision-making. As a result, you no longer need manual reviews of voluminous reports or complex dashboards, countering information overload and the misinterpretation of information. &nbsp;<h3>Automated alerts</h3>By applying AI to fast-moving and critical information, you can receive timely alerts, with the context you need, on market trends, goal progressions, key business metrics, competitor activity, and more. These alerts facilitate prompt, proactive action, reducing decision bottlenecks and delays. &nbsp;<h3>Faster time to insight</h3>Generative AI accelerates time to get the answers you need by rapidly processing information, identifying patterns and concepts, and providing real-time humanly understandable insights with context. This eliminates the need for prolonged internal discussions, where answers can take days or weeks to materialize.&nbsp; &nbsp;<h3>Spotting interdependencies&nbsp;</h3>AI can reveal the interconnections between the work, output, and strategies of your departments, teams, and individuals. This helps you get an executive overview of how decisions and responsibilities are intertwined, allowing you to navigate the complexities of overlapping responsibilities and interdependencies within your organization. &nbsp;<h3>Forecast generation&nbsp;</h3>Leveraging insights from historical data, AI can help you comprehend forecasted scenarios. For example, it can extrapolate future product demand while considering variables like holidays and <a href="https://quantive.com/resources/articles/recession-proofing-your-business" target="_blank" rel="noopener noreferrer">economic trends</a>. This equips you with the foresight needed to pivot effectively and assess the possible outcomes of today’s executive decisions.&nbsp;<h3>Scenario planning&nbsp;</h3>AI can help you take forecasting to the next level with scenario planning, allowing you to assess various “what-if” scenarios. This enables you to explore potential outcomes of different executive decisions or variables, which proves essential for risk management and <a href="https://quantive.com/resources/articles/strategic-planning-process" target="_blank" rel="noopener noreferrer">agile strategic planning</a> amid internal complexities.&nbsp;&nbsp;

Forgoing the use of AI for executive decision-making can deprive you of crucial insights, capabilities, and agility — which can impact your business across multiple fronts:&nbsp;<ul><li>Delayed product and service development: Development can become sluggish, with prolonged ideation and iteration bottlenecking the process.&nbsp;</li><li>Missed market opportunities: Missing out on emerging trends and changing customer preferences can erode competitiveness.&nbsp;</li><li>Loss of top talent: You may struggle to <a href="https://quantive.com/resources/articles/okrs-for-employee-engagement" target="_blank" rel="noopener noreferrer">attract, engage, and retain top talent</a>, as skilled professionals are drawn to organizations that embrace cutting-edge technology.&nbsp;</li><li>Increased operational costs: Manual handling of tasks and processes can lead to higher operating costs. For instance, you may need to expand your workforce to compensate.&nbsp;</li><li>Revenue stagnation or decrease: Slower innovation and market entry can lead to stagnant or declining revenues. &nbsp;</li></ul><blockquote>“AI won’t replace humans — but humans with AI will replace humans without AI.”&nbsp;— Harvard Business Review&nbsp;</blockquote>

Given the perks of AI for decision-making — and the steep costs of not implementing it — leaders such as yourself must harness its advantages via a dedicated software solution, fully integrating AI in decision-making processes.&nbsp;&nbsp;A solution that strikes the right combination of AI technologies provides the answers, context, and perspectives needed to make informed decisions, navigate challenges, and enable successful strategic choices. One such solution is Quantive Signals — designed to work for executives, not the other way around.&nbsp; &nbsp;<h3><a href="https://quantive.com/products/signals" target="_blank" rel="noopener noreferrer">Enter Quantive Signals</a></h3>Quantive Signals helps you transform decision-making by seamlessly connecting your business’s KPIs, its strategy, the work being done, and what’s happening with your customer. It provides you as executives with the answers and context needed for informed decision-making, eliminating the need for extensive report analysis or long fact-finding missions. This way, you’ll finally know what’s truly going on within your business.&nbsp;Here’s how Quantive Signals achieves this:&nbsp;<ul><li>Quantive Signals provides an intelligent filter on what’s going on inside your business. By highlighting the most pressing business issues that require your full attention, you no longer have to try and discern the important from the mundane.&nbsp;</li><li>Quantive Signals offers a paradigm shift from the traditional report-based approach to business insights. It allows you to ask any question about your organization using natural language to receive real-time, context-driven answers — whether this is a complex, data-related question or just an ask for a piece of business information.&nbsp;</li><li>Finally, Quantive Signals makes sense of all your information and connects the dots between your business’s KPIs, operational data, strategy, and the work being done. Quantive Signals helps you identify correlations, trends, and root causes that might be impossible or too time-consuming for humans to find on their own.&nbsp;</li></ul><hr>See how <a href="https://quantive.com/products/signals" target="_blank" rel="noopener noreferrer">Quantive Signals empowers your decision-making</a> to drive meaningful progress<figure class="image image_resized" style="width:50%;"><a href="https://quantive.com/products/signals" target="_blank" rel="noopener noreferrer"><img src="https://res.cloudinary.com/gtmhub/image/upload/v1672743341/site-v5/hero_BO_detect_6a773e3263.png" alt="Business Observability"></a></figure><hr>

Executive decision-making has long been characterized by time-consuming processes that drain resources, time, and energy. AI is revolutionizing executive decision-making — delivering speed and efficiency, personalized insights, expert data management, bias control, strategic resource allocation, analytics, and so much more.&nbsp;&nbsp;And we're not talking about some distant future. AI is already here, and it's here to stay.&nbsp;At Quantive, we think forward-looking AI consulting tools such as Quantive Signals can shake up and transform how senior leaders make decisions. By freeing you from tedious manual data analysis and wild goose chases, you can connect the dots between your KPIs, strategy, people, and the work being done to drive organizational productivity and growth.&nbsp;When you truly understand what’s happening within your business, you can reduce business risk, promptly bring about change, go to market faster, and shape a more effective organization. All this results in an unfair competitive advantage that enables you to stay ahead and cut out hiccups that slow down productivity and growth.&nbsp;Ready to take executive data driven decision-making to the next level with AI powered insights? <a href="https://quantive.com/products/singularity" target="_blank" rel="noopener noreferrer">Let’s have a conversation</a> to discover how we can help you harness the power of AI for decision-making.&nbsp;<hr>Quantive empowers modern organizations to turn their ambitions into reality through strategic agility. It's where strategy, teams, and data come together to drive effective decision-making, streamline execution, and maximize performance.&nbsp; &nbsp;&nbsp;As your company navigates today’s competitive landscape, you need an Always-On Strategy to continuously bridge the gap between current and desired business outcomes. Quantive brings together the technology, expertise, and passion to transform your strategy and playbooks from a static formulation to a feedback-driven engine for growth.&nbsp; &nbsp;&nbsp;Whether you’re a fast-growing scale-up, a mid-market business looking to conquer, or a large enterprise looking for innovation, Quantive keeps you ahead – every step of the way. For more information, visit <a href="http://www.quantive.com/">www.quantive.com</a>.&nbsp;

Why AI is the Future of Business Strategy

The Global State of Strategy Report

Learn more about strategy management

What is Business Strategy? Definition, Levels, and Elements

Strategy Development FAQ: Definition, Components, & Benefits

What is an Always-On Strategy?

How AI is Changing Executive Decision-Making