To develop a robust business strategy, companies all must conduct strategy development beginning with a clear understanding of its current situation and identified strategic challenges. The next steps include depicting what the future state vision of the organization is and then delving into the details of strategically planning how to achieve that state. In order to understand your strategic challenges, you must begin with a complete, end-to-end understanding of your situation. Proper strategy development involves more than a focus on maximizing profitability. Business strategy is about value creation, strategy is about focus, and strategy is about flexibility.
Business strategy development has evolved through 5 key phases since the early 1900s. Strategy development started with a focus on financial planning in the 1950s, moving to sustainable business planning in the 1960s, to strategic planning in the 1970s and ultimately to a focus on strategic management in the present day. Changes to strategic mindset represent a changing landscape, new business leaders, and emergence of disruptive technologies and trends. A lot of competitive strategy is also hinged on ideas in the 1970s, where the focus of what business leaders devote their efforts to was around thinking strategically to beat competition and the business frameworks of alternative strategies, portfolio analysis, and the BCG Growth Share Matrix were actively used for the first time. Today, the strategic development theme is on integrating strategic planning and execution with a stress on the primary notions of core competencies, strategy planning and execution, and balance scorecard analysis.
The strategic thinking of contemporary businesses has been built upon a platform of militant strategists since the beginning of organized warfare. Sun Tzu preached to know and attack the enemys strategy. In Sun Tzus Art of War, he spoke about five core factors in military strategy and each of these factors relates to a popular concept of business strategy. Sun Tzu hinted at indirect corporate strategies when he proclaimed winning without fighting is the pinnacle of skill on the battlefield. Sun Tzus thoughts about the factor of terrain, in todays business landscape, translates to markets, industry structures, market positions, and industry forces.
There are several structural components to the strategy development execution. You should construct the organization context under which the business operates. Within the category of strategic initiatives, we should evaluate our project portfolio, championing and management, and maneuvering tactics. organizational context includes activities such as governance, organizational structure, balance scorecard metrics, rewards, as well as management teams capabilities and core beliefs. Within strategy execution, an important element is shaping the strategy planning/budgeting process. Strategy planning/budgeting initiatives can include growth scenario planning workshops, growth strategy design, and product innovation management. Strategy execution initiatives need to be clearly controlled.
There are several types of strategic challenges that can be derived from our discussion thus far. One key challenge to strategy development is ambiguity, in regards to both the challenge and strategy development approach. Defining strategic intent includes defining objectives, developing relevant battlefields, and choosing the relevant core competencies. An critical strategy development challenge is designing a tops down approach to intervention driven by revised strategic intent. In the strategy development process, framing the type of strategic challenge is one of the most important tasks. There is the strategic challenge of aligning execution context, so that strategy can be truly realized.
Today, there are Mintzberg and Bower present contrasting and complementary ideas around strategy management. Henry Mintberg also advocates a transformation of business practices, where management recognizes the need and has the ability to manage organizational business operational operational transformation. In organizational configuration, the organization engages in behaviors based on adoption to business surroundings. Henry Mintzberg opts for an organization, bottom-ups strategy to drive strategy development that adheres to organizational configuration.
Strategy Development Process
Related Sites : strategic planning development
oregon ducks texas longhorns football brandon meriweather brandon meriweather monk serenity menopause
No comments:
Post a Comment