2. Creating Vision and Strategy

Introduction

Developing a clear vision and strategy is crucial for any organization's success. A vision outlines where the company wants to be in the future, while the strategy defines the path to get there. This document explores the process of creating a vision and strategy, emphasizing the importance of communication and iterative refinement.

Understanding Vision and Strategy

Vision is the aspirational goal of an organization — a picture of what the company aims to achieve in the long term. It serves as a guiding star for all stakeholders, providing direction and purpose.

Strategy is the roadmap that outlines how the organization will reach its vision. It involves identifying the strengths to leverage, weaknesses to address, opportunities to seize, and threats to mitigate.

Case Study: Lopes Labs

In late 2020, Lopes Labs embarked on defining its strategy for 2021. The company's vision centered around the "tri-match," aiming to seamlessly connect buyers, sellers, and real estate agents. To bring this vision closer to reality, they identified four strategic objectives:

1. Increase Digital Sales Contribution: In 2020, only 20% of sales came from digital channels. Recognizing the growing importance of digitalization, especially during the pandemic, the goal was set to increase this figure to over 50%.

2. Enhance Presence in the Secondary Market: While Lopes had a strong foothold in the primary market (new property launches), the secondary market (existing properties) offered a vast untapped opportunity. The strategy aimed to boost representation in this sector without compromising the primary market's volume.

3. Leverage Digital to Enhance Non-Digital Leads: Many leads originated from offline sources like signage or walk-ins. The objective was to use digital tools to nurture these leads further along the sales funnel.

4. Optimize Cross-Selling Opportunities: Identifying "missing links" in the sales process, the company sought to cross-sell between different property types and services, such as financing options for buyers.

These objectives provided a clear strategic focus for the year and guided the planning and execution of initiatives across the organization.

The Importance of Communication

Defining vision and strategy is only the beginning. Continuous communication is essential to ensure alignment and keep everyone focused on the shared goals. Key points include:

• Regular Reminders: Vision and strategy should be reiterated frequently, not just announced once and forgotten.
• Onboarding New Team Members: As new employees join, they need to be brought up to speed on the company's direction.
• Addressing Feedback: Open communication channels allow for feedback, which can highlight areas where clarity is needed.

Failing to communicate effectively can lead to confusion and a lack of direction among team members.

The Process of Creating Vision and Strategy

Step 1: Understand Strategic Objectives

Begin by gaining clarity on the company's overarching goals. Engage with leaders, founders, and stakeholders to understand their perspectives. While growth is a common objective, it's essential to delve into the "how" and "why" to inform your strategy.

Step 2: Know Your Customers

Develop a deep understanding of your customers' problems and needs. Tools and methods include:

• Empathy Mapping: Visualize customer experiences to better understand their feelings and motivations.
• Personas: Create detailed profiles representing different segments of your customer base.
• Customer Interviews and Surveys: Direct feedback provides valuable insights.
• Observation: Watch how customers interact with your product or service in real-world settings.
• Jobs to Be Done Framework: Identify the tasks customers are trying to accomplish with your product.

Step 3: Draft the Vision

With a clear understanding of company objectives and customer needs, draft the first version of your product vision. This step is often more productive when done individually to allow for creative thinking without the constraints of group dynamics.

Step 4: Iterate and Refine

Share your draft vision in one-on-one sessions with:

• Team Members: Product managers, designers, engineers, etc.
• Leadership: Managers, directors, and other stakeholders from different departments.

One-on-one meetings encourage open and honest feedback, leading to a more refined and widely accepted vision.

Step 5: Communicate Constantly

Once finalized, communicate the vision and strategy consistently across the organization. Regular communication helps:

• Maintain Alignment: Keeps everyone focused on common goals.
• Manage Expectations: Clarifies priorities and reduces misunderstandings.
• Build Cohesion: Fosters a sense of shared purpose.

Step 6: Review and Revise

Set regular intervals to review and, if necessary, revise your vision and strategy:

• Annually: Ensure the vision still aligns with the company's direction and market conditions.
• When Significant Changes Occur: Be prepared to adjust in response to new competitors, market shifts, or internal changes.

Sequencing the Process

The order in which you develop and implement these elements matters:

1. Purpose and Vision: Establish these first to provide direction.
2. Strategic Objectives and Team Structure: Define objectives based on the vision and organize teams accordingly.
3. OKRs (Objectives and Key Results): With objectives and team structures in place, teams can set specific, measurable goals.

Timing for Definition, Review, and Communication

• Purpose and Vision

  • Define: As soon as possible.
  • Review: Annually or when significant changes occur.
  • Communicate: At every opportunity; at least monthly in company-wide meetings.

• Strategic Objectives and Team Structure

  • Define: After setting the vision.
  • Review: Between the third and fourth quarters in preparation for the next year.
  • Communicate: Regularly to ensure everyone understands their roles and goals.

• OKRs

  • Define: Each quarter, prior to the start of the new quarter.
  • Review: Weekly check-ins to monitor progress and address obstacles.
  • Communicate: Weekly updates help maintain momentum and accountability.

Practical Application at Lopes Labs

At Lopes Labs, the process unfolded as follows:

1. Onboarding and Diagnosis: In August 2020, the new leader joined and conducted a thorough analysis of the company's status and market position.

2. Vision and Team Structure: By September 2020, a product vision was drafted, and the team structure was reorganized to align with strategic objectives.

3. Initial OKRs: Set for Q4 2020 to begin operationalizing the strategy.

4. Strategic Planning for 2021: In Q4 2020, leadership engaged in multiple sessions to perform a SWOT analysis and define objectives for the upcoming year.

5. Annual Review: At the end of 2021, the cycle repeated to adjust the strategy based on new insights and market conditions.

Conclusion

Creating a vision and strategy is a foundational step for any organization's success. It involves a clear understanding of company goals, customer needs, and a structured approach to planning and execution. Continuous communication and periodic reviews ensure that the organization remains aligned and adaptable in a changing environment.

By following the outlined steps—understanding objectives, knowing your customers, drafting and refining the vision, communicating constantly, and reviewing regularly—organizations can set a clear path toward achieving their long-term goals.