Strategy that works !
The Strategy must be adapted to the current company for achieve value. The value is necessary for growth and survival in a global world. Every company provides measurable results when the defined strategy makes sense.
The 3 main basic elements of STRATEGY DEVELOPMENT:
MISSION: Why are we here? What’s the point?
VISION: Where do we want to go?
VALUES: Formulation of process and implementation.
Areas to be included in the strategy process are: MANAGMENT, PRODUCTION, LEARNING AND COMMITMENT
To understand the link between strategy process and the result is important.
Without it, any process analysis, do not have any value to the managers.
All senior managers have a natural focus on ensuring that the content of the strategy is working.
Fundamentally it is to focus on the process of development and implementation of strategy, since there is a direct linkage between strategy and business results. The strategic work makes a difference and must be done correctly from the start.
- Focus on the proces
- Perspective (resource- or market oriented?)
- Time Horizon (period lifetime planning)
- Life time (Strategic Plan)
- Top-down or bottom-up (depending on the style of leadership)
- Participants
After clarification of the above 6 points, the design of the Strategy can be defined.
Implementation of the strategy adopted is based on established initiatives based on key parameters to ensure effective priority setting and achieving success.
Design of strategy:
- How do we create a picture of what the future holds?
- What analysis of external and internal conditions are necessary?
- How should the mission, vision, targets, values and success criteria be formulated?
- What kind of workshops, seminars and meetings are necessary?
- How should the strategy be communicated?
- What channels and means should be used?
- How to ensure implementation of the strategy and made necessary follow-up of targets and initiatives?
It is so IMPORTANT that the strategy process is selected with great care, since it can take years for an organization to get used to a new way of working with strategy
Equally important is to stick with the chosen design as it gives the organization an effective opportunity to improve and adjust the process.
The weakness of many strategy processes are if only one-sided focus have been on the development, where activities associated with the implementation and follow-up forgotten or mistakenly omitted.
Formulation and implementation of strategy is the company’s values.
The mission is the foundation and the vision is being pursued to realize using the defined strategy.
Based on the vision, there should be sets out a number of strategic objectives and areas of focus.
The analytical work could be focus on services, markets, customers, competitors, business model and risks.
Implementation of the strategy adopted, is based on established initiatives based on key parameters to ensure effective priority setting and achieving success.
Key Performance Indicators (KPI) should be set up to support the effective implementation and thus realizing a predetermined strategy.
Problems can arise if only one-sides focus on KPI’s at the risk of deployment fails. To prevent this, always focus on PLAN – DO – CHECK – ACT activities from the Quality Management Circle.
- A strategy typically starts with establishing a vision.
- The vision then broken down to a few targets to be challenging but achievable.
- It is important that there is not talk about more than 2-3 goal, which in turn should be of paramount importance.
- The next step is the preparation of plans
- Implementation of plans
- Evaluation of performance
- Next, the diagnosis that makes it possible to capture learning and adjust the plan.
PLAN-DO-CHECK-ACT
Degradation of the strategy elements is of great importance to managers and leaders understand the strategy and each can see their personal role in goal achievement.
The hallmark of a well-planned approach to strategy development and implementation is a continued emphasis on Kaizen (continuous improvement), while the link between the mission and the quality control system is supported, with associated milestones and checkpoints.
Also includes a broad involvement of the management team in the development and definition of objectives and means.
Note that it can typically take two to three years before the organizations are fully familiar with the strategy process. Even though it may seem simple and straightforward. Involvement of the management team is essential, as all feels ownership of the final plan succeed when they have the opportunity to influence decisions.
The strategy must never be a team project, as it is doomed to fail. It is the resonsibility of doing the strategy process and ensures that there will be given a clear choice.
A good idea is to include a planning coach, whose task is to challenge and to get managers up to speed. Along with the coach is responsible to preent any being too conservative or lost in the details. The coach must ensure that the process is moving forward and everyone keeps on track.
When including a coach or consultant in strategy process and implementation, the enterprise from the start, make the following clear:
- When, why and how a consultant/coach is preferred.
- Know what they want to get out of the collaboration.
- Is motivated to work for change and improvement.
- The process may involve criticism.
- Actively involved in the management of the task.
Strategy should make sense, for achieving high performance and effective results.
NOTE that the strategy process is the most important thing when ambitious goals had to be realized.