There are a multitude of distractions in your accountancy firm that can lure you away and stop you from focusing on the things that really matter.

But when you take the time and effort to develop good strategy for the future of your firm, it will galvanise your team and magnify the force of your efforts and actions.

How can you not take the time and effort to do this?

Focusing on the goals, purpose, vision and values of your firm will improve its strategic health and will enhance the way that you and your team feel about the firm.

But how can you prepare a strategy without diagnosing the key challenges and risks that affect your firm?

Diagnosing the key challenges gives you focus. And focus means choosing what you should ignore and what you should act upon.

Carry out this tough strategy work and you gain a competitive advantage.  It’s worth remembering that Warren Buffett, one of the world’s most successful investors, said that he evaluates a company by looking for ‘sustainable competitive advantage’.

Good strategy can give you that advantage, but only if you identify and clarify your challenges. It needs hard work.

Your challenges may be internal – perhaps a disengaged team member is limiting your productivity levels.

Your challenges may be external – supply shortages of a key component, a new competitor, new technology or current market trends requiring you to change your marketing strategy.

Good strategy contains 3 elements:

  1. Diagnose your most significant challenge or risk
  2. Set out your guiding policy - your goals, purpose and vision for the future of your firm
  3. Create a set of coherent decisions and actions to address challenges and to improve your strategic health.

Click the button below to work out the strategic health of your firm. Answer all of the questions honestly and openly and you will create an assessment of your firm's current health, which will help you decide on the next strategic focus for your team.