Beyond the Basics

Why strategy is essential in the North American elevator industry.

by Osmond Koksal

Today, I’m adding a third certainty to life: taxes, death and strategy. The moment you decide to start a business in the North American Elevator Industry (NAEI), you’re already establishing your corporate strategy. As soon as operations begin, your business and functional strategies fall into place. Whether you actively shape them or react to circumstances, your strategies are being formed. Every organization has strategic initiatives — some may not even realize they have a strategy, while others may have naturally developed effective approaches over time.

In my view, the most successful organizations are those that dedicate optimal amounts of time and resources to crafting and executing well-researched action plans. Regardless of the circumstances, it’s crucial to see strategic concepts as valuable resources, equally important as essential equipment like trucks or CNC machines. Unfortunately, these concepts are often undervalued in NAEI. However, when utilized effectively, they can significantly enhance organizational value.

What Strategy Is Not

Before we can understand the concept of strategy, we need to know what it is not. Strategy is not a buzzword or something that needs to be used to look cool. I would argue that the word “strategy” is the second misused word after “quantum.”

Strategy Is Not a Marketing Initiative

Since founding Strategy Room Consulting (SRC), some people have assumed I started a marketing agency. While marketing is a critical component of strategic concepts, it’s just one part of the broader scope of strategy.

Strategy Is Not Branding

There’s nothing more detrimental than sending a sales team to engage with customers without a strong operations team backing them. No matter how much a company invests in marketing and sales, if the organization isn’t equipped to support those efforts operationally, it’s not operating strategically.

Strategy Is Not a Plan

While it has a major planning process component, strategy is not just a plan or the entire planning process. It is a much broader concept that includes other critical elements. 

Strategy Is Not Just a Military Tool

Strategy concepts are not exclusive to the military because they apply broadly to any organization or individual seeking to achieve specific goals in a complex environment. In business, for example, strategic thinking helps companies allocate resources, anticipate challenges and position themselves competitively. 

Strategy Is Not Just Competitive Advantage

“Co-opetition” strategies are a prime example, where competing companies can collaborate in certain environments for mutual benefit. Strategy involves decisions around innovation, customer value, operational efficiency and organizational structure, which can sometimes align with those of competitors. This approach emphasizes that strategy is not just about outpacing others, but also about finding opportunities for cooperation when it serves broader business goals.

Strategy Is Not Just a Vision and Mission Statement

Many organizations write and forget their vision and mission statements. A vision is about the desired future state — what you want to chase in the long run. Strategy is how you intend to achieve that vision. It’s the road map or the “how” to the vision’s “what.”

Strategy Is Not Just M&A

Strategy concepts extend far beyond mergers and acquisitions (M&A). While M&A can be one tool within a broader strategy, strategy as a whole encompasses the long-term vision, competitive positioning, resource allocation and overall direction of a company. Strategy is about adapting and shaping the future, while M&A is just one potential tactic to achieve strategic objectives.

Strategy Is Not About Being Reactive

While it may account for contingencies, strategy is inherently proactive. It’s about making informed choices and taking control of the direction rather than simply reacting to external forces or situations.

Strategy Is Not a One-Time Decision

It’s not something you decide once and never revisit. A good strategy evolves with the changing environment and circumstances. It’s adaptable and flexible over time. The Samsung that we all know as today’s technology giant, for example, started as a small grocery store. 

Strategy Is Not a Goal

A goal is a specific outcome or target to be reached. Strategy is the means or the method for achieving those goals. A goal might be to increase market share by 10%, while the strategy outlines how you’ll do it (e.g., through innovation, acquisition or customer retention).

Then, What Is Strategy?

I define strategy as a series of controllable, internal actions that a company undertakes to create value for both its customers and itself. These actions can occur across various departments, such as Sales, Project Management, Operations and many others. The essential point is that each action must align with and contribute to the organization’s overall goals and objectives, ensuring coherence and unity in their executions.

How Is Strategy Used in the NAEI Today?

Operating in this industry is challenging. Every organization, regardless of its specific business strategies, shares essential activities that are universally applicable — most notably, safety and continuous service. As a result, the prevailing mindset is to “get the job done safely and move on to the next task.” Unlike many other industries I’ve studied, the NAEI enjoys strong customer loyalty. This means that the “get the job done safely” approach not only fulfills a crucial operational requirement but also serves as an effective sales tool for securing future orders. Because this operational tactic can be used as a sales tool, companies in the NAEI have become comfortable and don’t see any need to push the boundaries of creating other methods to gain competitive advantages. “Same old” works; why change it? While this method is undeniably effective, it is an emergent strategy. Irrespective of how it came about, it should still be subject to an internal review of each organization. What works today may not necessarily work in the future. 

KONE as a Crown Jewel Example

It may be worthwhile to examine an outstanding example from within the industry. During my 13 years in the industry, I consistently admired KONE’s strategic approach and how it aligned both internally and externally. As I write this article, KONE has a dedicated webpage for its strategy, where it clearly communicates its purpose and the motivation behind why every KONE team member shows up to work, even on a cold, dark Monday morning.

KONE’s Purpose: “We Shape the Future of Cities.” 

A key element of KONE’s purpose lies in its focus on the future. Many companies make the common strategic mistake of fixating solely on today’s needs and reacting to immediate demands. However, true strategic initiatives require time and foresight. They must be crafted not to address the needs and wants of the present, but those of the future.

KONE’s Vision: “To Create the Best People Flow Experience.”

This vision statement emphasizes that “the best” people flow experience is not fixed. What constitutes the best people flow today differs significantly from commuting methods of a century ago, and it will evolve further over the next 50 years. KONE is expressing its commitment to adaptability and positioning itself as a leader in shaping the future of people flow experiences, whatever they may entail. This fits so well with the very definition of a vision statement; it is a never-ending and never-achieving ambition that a company pursues. 

KONE’s Mission: “To Improve the Flow of Urban Life.” 

Like a well-crafted mission statement, KONE clearly defines how its daily actions, tactics, projects, products and services align cohesively with its overall purpose. From sanitation staff to shareholders, everyone at KONE understands what the company does on a day-to-day basis, ensuring unity and coherence across all levels.

Downside of Strategy

Many organizations shy away from strategic planning because it requires time, money and already limited resources. Strategy consultants haven’t done much to ease the concerns of entrepreneurs and executives within operating companies. Traditional strategy development can cost tens of thousands of dollars, consume resources through countless meetings and, most critically, waste time. Often, companies involve too many teams, when, in reality, only a select few need to be part of the strategy creation process. However, SRC has devised innovative solutions to this challenge, with a mission to deliver fast and affordable strategies to firms in the North American Elevator Industry.

Stand Out From the Crowd

If you’re reading this, it means your organization is still thriving and clearly doing something right. In NAEI, many companies aren’t under immediate pressure to adopt highly strategic approaches. The industry consists of niche markets where businesses can stay relevant without heavy strategic planning. This presents a great opportunity for companies to gradually start exploring strategic concepts. Those in a stable position should begin considering their valuation strategies, as every entrepreneur is, in essence, an investor in their business. For companies focused on rapid short-term growth, strategic thinking is more crucial than ever. Eventually, even those not currently focused on growth will need to plan for an exit. In an industry like ours, utilizing strategic tools can create a competitive edge, especially when many organizations aren’t actively doing so.