Book Excerpt


Kodak has come a long way since rethinking their digital strategy Pictured: The Kodak 1955 Duaflex Flash Outfit Camera


A 1928 model of a Ford car.


you will need a strong blend of insight, data and knowledge. “Knowing what products and services are being offered, how they’ve developed over time, what the current issues are in the marketplace … having this detailed knowledge enables you to see the opportunities for materially high growth,” says Sir Eric Peacock, an experienced chairman who has bought and sold many businesses, including Babygro Plc.


Kodak is an example of a company that spent a huge amount of time and effort studying the behaviour and needs of consumers as it launched its digital strategy. It discovered that women in particular enjoyed taking digital photos, but moving those images onto their computers was an area of frustration for many. This unmet requirement created a huge opportunity and they set about improving their offerings to entirely remove this frustration. They created printer docks and other products with one strategic focus: to make it easier for consumers to share digital photos.


Talking to customers will often reveal their challenges and lead to potential growth opportunities. By addressing market sectors that are under-served and identifying these unmet needs, you can create a winning strategy for growth. This is echoed by Penny Power of Ecademy in her book on social networking – Know me, Like me, Follow me. She argues that, with modern communication tools where everybody can find out about everything, it is no longer appropriate to be “closed, selective and controlling”. Instead she believes in communication that is “open, random and supportive”, gaining the respect and trust of the community. It’s the way the world is going.


But dialogue in the wider market is only part of the solution. What about your own team? It’s all very well leading from the front but it’s better when the troops are up alongside you. Getting too far ahead can bring isolation and danger, as well as apathy and disillusionment in the team. It’s worth mentioning the difference between leadership and management here.


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Whilst leadership is about doing the right things, management is about doing things right. It follows that strategy is more aligned with leadership, but how can this be developed in an inclusive and beneficial way?


When it achieves scale, every successful business will have a strong leadership team. These are typically board directors who meet regularly to discuss the business’s activities and performance. In growing businesses, structures may be less formal but there will normally be key staff that the business relies on for its well-being and success.


In my view, strategy should always be developed in conjunction with your senior team. Not only will this avoid isolation but it will also add insight (there is no monopoly on good ideas!), gain buy-in and, ultimately, spread a wider understanding and purpose across the business. It will also serve to reality check your plans in a way that you would be unable to do on your own. It’s therefore essential to allocate sufficient time at management meetings to discuss and debate the big picture.


To find out more about developing your vision and strategy please contact Guy Rigby on 020 7131 8213, or email guy. rigby@smith.williamson.co.uk.


Disclaimer By necessity this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Article correct at time of writing.


Smith & Williamson LLP Regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activities. A member of Nexia International.


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