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  There are basically two strategies to adopt in any business organization. They are; the Closed Strategy and the Open Strategy. Traditionally, research and development were an in-house closed strategy that was adopted by business organizations to facilitate innovation and growth. However, the advent of digital technology has sped up the entire process by introducing the Open Strategy.
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Since this is largely a new concept, some organizations and business owners are having a difficult time drawing out the meaning of Open Strategy and how to effectively implement it. If that’s your case, then this article is definitely for you. For starters, the concept of Open Strategy is hinged on transparency and the inclusion of internal and external stakeholders in the strategy process. This simply means, creating room for stakeholders to participate actively in the strategy development process of the organization. This strategy has demonstrated effectiveness in dynamic circumstances, which require swift adjustment. With this strategy, people do not need to withhold ideas just for the sake of group cooperation. Open Strategy is more suitable for companies where goals and targets change swiftly. Thus, Open Strategy is never to be considered as a static element, as it can change in tandem with the given situation. An Open Strategy is adaptable enough to fit into changing markets, customer bases, the customer’s wants, etc. through integrating eminent components of the strategy. Inasmuch as an Open Strategy is recommendable, organization or business owners should check the suitability of the project or organization before adopting the strategy. This is because an Open Strategy does not suit the needs of every project or company, thus, companies can alternate between the Closed and Open Strategy.

Key To Adopting An Effective Open Strategy Process

  • Transparency
As mentioned earlier, an open strategy requires transparency, as that would present a platform for stakeholders to not only understand the situation of projects at hand but to share their ideas and possibly proffer solutions in areas of difficulty. When this is in place, company goals can be achieved effectively.
  • Communication Platform
When there is effective communication, there would be no room for suspicion among and between stakeholders and the company. With communication comes an increase in transparency and cooperation.
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  • Internal Management
Maintaining an Open Strategy requires the organization’s ability to adequately control the internal affairs of the organization.

Likely Drawbacks Companies Encounter With The Open Strategy Process

  • Ineffective Communication
A communication gap in the Open Strategy process could be very disastrous to any organization. Thus, organizations tend to spend heavily in a quest to develop effective communication infrastructure. The stakeholders need to be constantly aware of the scope, objectives, vision, etc. of the organization without which there would be poor productivity, disorganization, and ultimately the failure of the project.
  • Immeasurability of Strategy
Open strategies adopted by any organization should be SMART – Specific, Measurable, Achievable, Realistic, and Timely. If these are not aligned, organizations will not be able to checkmate their progress in attaining strategic goals.
  • Lack of Stakeholder Support
Since this strategy involves a synergy between stakeholders and the organizations, problems tend to occur when organizations and stakeholders fail to reach a middle ground in the strategic plan.
  • Wrong Type of Partner
Two heads, they say, are better than one. But what if those heads do not proffer sound judgment? Selecting the right type of partner is crucial to the success of an organization’s open strategy, as they would provide access to the information you normally wouldn’t have. There is a need to hire partners with adequate knowledge of the project area you want to embark on. Featured Image Source: Marketin91
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This article was first published on 11th December 2021

chidiogo-akaelu

Chidiogo Shalom Akaelu holds a degree in English and Literary Studies, from the University of Nigeria. She is a freelance writer, editor and founder of Loana Press, a budding online publishing outlet.

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