‍Ifsmall and medium-sized companies are sloppy with their strategy, they contribute to large, cash-rich companies being able to sit too heavily on the future. This risks stopping the new solutions that our children and grandchildren need.

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If the business world were a schoolyard, the big guys would call most of the shots. In some industries, this is particularly pronounced. Giants like Google, Amazon and Microsoft have a strong hold on their markets. The same goes for a number of consultancies.

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Actually, it's a paradox. Because the opportunities for small and medium-sized businesses have never been better. Technological developments make it possible for a new idea to be born in Copenhagen, developed in Kolding and 3D printed in Kalundborg without much hassle.

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At the same time, the corona has shown that we don't have to travel to the other side of the world, as we thought, to collaborate. Most things can be done via Teams. So why don't we see the big, heavy companies being challenged by the small ones?

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From business model to good business

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There are many explanations, of course, but one of them concerns me more and more. After 25 years working with strategy, I dare to say that far too many small and medium-sized companies neglect their strategy work.

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And it's not just my gut feeling. A report from the Center for Owner-Managed Businesses, for example, shows that around one in four owner-managers have not formulated objectives for the company. And up to one in three hasn't formulated action plans and work tasks for employees.

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I often encounter the paradox that the accounting department has effective programs. Sales is top tuned. Coffee machines and inventory management are working. The business model is in place. But the strategy work - it's mostly seen as a cumbersome paper tiger.

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And because strategy is something that is often not so visible in everyday life, it might be "forgotten". I've even heard business leaders say: "We don't have time for all that strategy talk".

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Here lies a huge misunderstanding. If strategy work just ends up in a drawer, it's a waste of time. However, if the strategy is concrete, useful and easy to understand, it can be the key to turning a good business model into a good business in the long term.

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If the little ones fail, the big ones win - and then most people lose

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Is it only a company problem when strategy is lacking? No, I think it's also a societal problem.

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Because in a world where solutions to the climate crisis, poverty, clean water, gender equality and much more are urgent, we need all good ideas and smart business models to become good business.

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We can't expect Google, Amazon and Microsoft to have all the ideas. But if they are to be seriously challenged, the small companies must use the same strategic elbow grease that contributes to the success of the big ones. If not, we all risk missing out on the new solutions that our children and grandchildren need.

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That's why I hope 2022 will be the year when better and concrete strategy development gets more focus in small and medium-sized businesses. We all need that.

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This column is written by Founder & CEO, Sanne Markwall, MakeMyStrategy and was published on 14.1.2022 in Jyllandsposten Erhverv and on finans.dk and can be read HERE‍