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Does Your Business Environment Favor the Success of Your Company?

We learned to build a solid strategic plan here, but now how do we manage it? How do we ensure the effective execution of the strategy and control sustainable performance to achieve business success? Building the right business environment is the key.

In times of failure, it is not productive to question the team's wrong decisions, much less impose business goals or demand more effort from the team. The focus should be on building an organizational environment that encourages decision-making aligned with the company's objectives. This means analyzing the context in which the team operates and trying to understand what leads them to make poor decisions. The consistent implementation of strategies requires that the right people have the right information and are motivated by the right incentives, with clear authority to make essential decisions. The process of strategic alignment should take into account some important factors of the company, as can be seen in the image below.



Purpose, Strategy, and Leadership form the foundation for defining a suitable business environment model that will support the solid implementation of strategic planning and the control of its performance. Good leaders create a sense of organizational purpose that motivates and engages their employees, ensuring discipline and positive results through commitment, not just by mere task enforcement. To implement your strategies effectively, your business environment model needs to consider five essential factors:

Structure: Develop lean, horizontal, agile, and flexible organizational structures to adapt quickly to changes. The more complex the organization's structure, the harder it is to align individual interests with business objectives.


Systems and Processes: Systems refer to the tools and techniques that support business decisions. Processes involve an organized way of conducting activities. Designing efficient systems and processes contributes to quick and smooth operations, avoiding obstacles during moments requiring change.


People: Human and intellectual capital is one of the greatest competitive advantages of a company. Attracting, motivating, retaining, and rewarding people with essential knowledge and talents for organizational performance are key strategic goals of successful modern businesses. Skills development programs and knowledge sharing contribute to building a more prepared and flexible team for future changes and demands.


Culture: Corporate culture encompasses a shared system of values, beliefs, and assumptions among all employees of the company. The strength of the company's culture is closely related to its positive performance, as well as the behavior, commitment, and motivation level of the employees.


Therefore, these five elements should be taken into account in building the most suitable business environment model for the effective implementation of the company's strategy, becoming an effective way to achieve business success.


Learn more about the subject in the book "Strategy – A View From The Top – An Executive Perspective" by Kluyver and Pearce.


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