Overwhelmed by choice? Build a strategy.
The paralysis of being overwhelmed by choice…. We’ve all been there. Whether it is looking through a menu with 20 different meals or deciding which Airbnb is best for a weekend away – it’s both debilitating and infuriating.
What makes this even more ridiculous is that our brains push us into thinking that these small decisions are are absolutely critical when in actual fact, they are often almost irrelevant. Whether you order the pasta instead of the risotto, it is likely you will have a great meal or if you choose the place 3 minutes closer to the beach over the place with the terrace, it is likely you will have a great holiday. If you don’t, you learn and move on, no big deal.
The above choices are generally small stuff where, mostly you will end up being OK, regardless of the choice, but this is not always the case and sometimes it is important to take choice seriously.
I have both witnessed and suffered from choice overwhelm over the years, where I have been part of discussions on where or what a company “should” be focussing on. In my case discussions are often around international growth. It’s important to say that there is no fault here and it is perfectly normal to be both overwhelmed and excited when looking to pursue a new market or region as generally, there are multiple, equally attractive, equally exciting options for action. So, what happens next?
For example, take a fictional Offshore Wind Services company in Holland, working solely within the North Sea market. They have built a solid track record over the years and a market leader in Holland. Business is going well. So well that the leadership team agrees that their business model is scalable on a global basis and that international diversification will allow further growth and potentially, more stability against an ever-changing market.
This all sounds great but where do they go? In the USA, the Vineyard Project is the start of their renewables journey and set to scale, Taiwan is 7 years into their aggressive Offshore Wind program, in Australia, Victoria is looking to add 9GW by 2040 and there and many, many other projects around the world. This presents a problem as the company can’t be everywhere at once so what do they do? Do they choose to enter an already competitive space, trying to capture more of the UK and European market for example and by that, opting to start by trying for a minimal share of one of the most established, most competitive markets? Do they opt to enter a smaller market but look to be there early and dominate or do they go to a Taiwan type and do something in between? Or do they decide to enter another sector entirely? There is so much choice… Too much choice.
One thing for sure is that for a company to enter any new space, there are costs to consider and that means a deliberate, focussed strategy is required.
Working together to build a clearly defined strategy allows the team to align around the opportunities available, actions required, the costs involved and most importantly, the people power required to deliver. The options are therefore all dependent on the company. For instance, does the company offer a niche product or does it offer cost savings where it can bring value to a market? Does the company have enough units to move to another location and still service existing work? Does the company have the cashflow to allow for the weeks, months and sometimes years of red numbers as they pursue their chosen market and finally, does the company have the personnel in house, are they willing to move and equally can the company backfill these positions? Building a draft strategy allows discussions and ultimately, answers to these questions.
Once the draft is developed accepted by all key stakeholders, the next phase is testing. Testing your plans with clients and suppliers is a critical step because all you have so far is an idea, agreed by a group of people who are all aligned on one thing, the success of their company. Testing allows the romance and wishful thinking of a strategy to be removed, gives clients the chance to confirm that the solution would fit their needs and suppliers the chance to confirm that they can service your business from the new location (or not, meaning you need a new plan for supply chain). Testing against multiple sources will also allow consistency and if the feedback ties in with your initial plans – bingo, it’s time to present to the board for sign off. If not, tweaks, or sometimes a complete re-write is required (this is often a good thing and you can pat yourself on the back because you have allowed the opportunity to adapt your plan without a penny spent).
Providing sign off has taken place and all key stakeholders are aligned, it is time for the team to come together for implementation and this is when the fun really begins. There are always unforeseen challenges, always, and they generally start immediately but by staying on course to the strategy, the company can allow for small tweaks to be made when new information is available. It also enables a company to leave task owners to get on with the job in hand without any micromanagement. I have been lucky in my career to have been the lead in establishing international facilities and can say, I always slept well at night knowing the board/leadership team were fully engaged, aware and supportive during what is a period of challenge.
The key message is that without a firm strategy in place, the chances of either getting lucky or getting burnt is high. I have the experience of both and can say neither are ideal, even the lucky ones could have been better if I had taken the time to build a more developed strategy.
International growth done well is an amazing journey which benefits your clients, your people and ultimately (especially in Renewables), the world, so doing the deep work before you start is a responsibility to be taken seriously.