In this plethora of up and coming startups in the world of travel and tourism, one might often wonder as to what really makes the difference. Considering the same industry, the same backgrounds, and almost alike investment structures, what is it that sets the line between the leaders and the followers, you ask? Well, it is both, the approach of strategising as well proper implementation and execution of those strategies. What ultimately sets apart the entrepreneurs of contemporary travel startups is the ability as well as the skill set to strategize, plan and execute. So, today, to elaborate on the same, we are here to show you how, when and where the line is drawn between the terms ‘strategy’ and ‘execution’ to help you take your travel startup to the greatest heights .
UNDERSTANDING THE IMPORTANCE OF THE TWO CONCEPTS
Although, most of the SME entrepreneurs may not have the stretch or financial capability to go for business programs at the budding stage of their startups but, they have to be able to strategize, plan and execute to grow their travel and tourism startups.
Be it a startup or an established business, the first and foremost thing that comes into play after determining the goals and the mission is to decide what steps to take to achieve those objectives. For, if no definite steps are taken to materialize that vision into reality, the vision shall forever remain a vision only.
ABANDONING THE MISCONCEPTION
It’s quite startling to look at the confusion and chaos that people generally have regarding strategy and execution.Some even think that these two mean one and the same. But, behold, for the difference does exist and is in fact a pretty clear and striking one.And trust us, ignoring, neglecting, or getting the two of them wrong creates sloppy thinking, deciding, and doing at all levels of the organization which, you obviously would not want for your startup.
Look at this way, strategy means setting the destination and the direction for your ship whereas execution refers to steering your ship and your sails to that particular direction. In startup terms one would think of Strategy as determining or setting the purpose of the product, then establishing goals and requirements; and Execution as the designing, development, and eventual deployment according to the pre decided strategy.
In common parlance, you might consider this example:
My strategy is to build a website to provide the best travel and tourism packages and deals to people.That is the plan. But, actually building the web site and marketing it to the targeted customer base is the execution.
Having said that, let’s now delve a bit deeper into the same and understand the two terms some more:
The dictionary would lead you to the following two definitions of the term strategy:
- A method or plan chosen to bring about a desired future, such as achievement of a goal or solution to a problem.
- The art and science of planning and marshalling resources for their most efficient and effective use.
In business terms, strategy consists of two distinct components:
- Corporate strategy and,
- Business Unit Strategy
The first one would constitute of the top level management making decisions on the following grounds:
- What should be the capabilities that set apart the business?
- What should be the company’s comparative advantage in adding value to its individual businesses?
- What businesses should the company be in?
The second one would revolve around the following three key decisions that in no way can be delegated by the leader. They are contrasting to the Corporate strategy discussed earlier but, fundamental in the utmost inevitable ways.
- Who should be the customers that define the target market of the business?
- What should be the value proposition that would differentiate our products and services from the competing firms, with the customers?
- What should be the capabilities and skill sets that make our business better than any other in delivering that value proposition?
Any seasoned strategist would be knowing that strategy is not just plain sloganeering. It is the series of choices you make on where to play and how to win to maximize long-term value. On the other hand, execution is producing results in the context of those choices. Thus, you cannot have good execution without having good strategy.
Any business must do things such as set goals and plans for the content business, establish the right incentives, create a motivational, purpose-redolent mission statement, and other such things that leaders do to get results from their companies. These all activities that are needed to produce results within the context of an implemented strategy are referred to as execution.
KEY DIFFERENCES BETWEEN STRATEGY AND EXECUTION
The following are the major differences between strategy and its execution to help clarify things some more for you:
- Strategy means designing the course of things that the organisation stands to do. Execution means, carrying out the opted strategy.
- Strategy involves putting all forces into its place before an action takes place while execution focuses on managing those forces during execution.
- Strategy is a logical process, whereas execution is an operational process.
- Strategy puts emphasis on effectiveness, but execution gives stress on efficiency.
- Strategy is the responsibility of top management. Conversely, middle management is responsible for execution.
- Strategy requires intuitive skills. In contrast to, execution, which needs motivational skills.
- Strategy is an entrepreneurial activity. On the other hand, execution is an administrative activity.
- Strategy is related to planning, but execution is concerned with action.
IN A NUTSHELL
Surely, with the above mentioned article we hope now there would be no doubts and chaos in your mind regarding the two terms. So, the next time you plan to start a new venture or activity in your travel startup, keep in mind that the two ‘Strategy’ and ‘Execution’ are the pillars of a successful and well managed enterprise and if done rightly and efficiently, the fruits that it would bear would be great for you as well as your startup!