Strategic Issues as organizational elephants John Argenti, developer of the , refers to the process of unearthing strategic issues as an 'elephant hunt'. The process should be transparent, reviewed by management so that the output is seen by senior management during budget process. One of the identified weaknesses is the organization does not own a fleet of 18-wheelers and aircraft to reach disaster areas. Study after study has shown that the most effective managers rely on some of the softest forms of information, including gossip, hearsay, and various other intangible scraps of information. Ongoing strategic management ensure that strategies continue to create public value, and as a prelude to the next round of strategic planning.
The major differences are in the way they get there and as a consequence the basis on which those forecasts are derived. So many organizations have undergone a poor strategic planning process. This often-heard quote from Alan Lakein, the popular author on time management, is a reminder that many of the day-to-day operational struggles we face in organizational life had their seeds sown in the past, when we failed to think ahead. Strategic planning focuses on the big picture, and tactical planning supports that big picture by focusing on various items within it. By developing an awareness of these hurdles and traps which lead to failure in implementation, firms can learn how to adapt their approach and develop tools to assist them in more successfully executing on their strategy.
First and foremost, the organisation needs to be clear about what issues can get in the way of developing a sound strategic plan before deciding on an appropriate approach. Sweden reaches the forefront of technologically developed with countrywide companies like Ericsson, hence Tesco gets an good thing about developed logistics and distribution channels already in place. The list needs to be prioritized if the plan is to succeed. What do you need to mitigate? What is the best way of implementing those changes - what changes to the structure and financing of your business will be required and what goals and deadlines will you need to set for yourself and others in the business? Accordingly, best practices in change management suggest that the optimum strategy is to diversify strategies, since depending on only one to work out may be overly optimistic. Porter, Competitive Advantage: Techniques for Analyzing Industries and Competitors, New York: The Free Press, 1980.
In 2009, he received an Outstanding Research Award at the Global Conference on Business and Finance; he received a Best Paper Award at the International Global Academy of Business, and he was selected as Faculty Member of the Year in 2000. You can refine them as you actually work to implement them. Other salespeople follow up with their customers, and the next thing management knows, its products have penetrated a new market. My research and that of many others demonstrates that strategy making is an immensely complex process, which involves the most sophisticated, subtle, and, at times, subconscious elements of human thinking. A formal game plan is needed before entering the field. In simpler terms, Steiner goes on further to explain how Strategic Planning is an organizational management activity.
It could also be that the chosen approach is too sophisticated or inappropriate to deliver the required answers. Boston: Harvard University Press, 1977. Why does the organisation need a plan? Generally speaking either an issue is clearly a strategic planning issue or it is clearly not. Strategic design and planning of reverse supply chains deal with decisions that have a long-lasting effect on the company. They have critical roles to play alongside line managers, but not as conventionally conceived.
However, it is important that all these health services and programs undergo some form of evaluation. Implementing a strategic plan The plan needs to be implemented and this implementation process requires planning. Are the people spending the money held accountable for their expenditures? Each piece should be scrutinized, analyzed, digitized for future reference, and formalized into workable information for the strategic plan. When this happens, people become cynical of the next program. Why strategic planning matters more to growing businesses Taking the decision actively to grow a business means embracing the risks that come with growth.
Management, Manufacturing, Organization 1109 Words 7 Pages What is Strategic Planning? First and foremost, the organisation needs to be clear about what issues can get in the way of developing a sound strategic plan before deciding on an appropriate approach. Strategic Management as a whole is a complicated web of different schools of theorists, and can only be described as a tense array of disagreement. But only one of them has been widely accepted in the planning community: business-unit managers must take full and effective charge of the strategy-making process. Leaders determined all its funds are better utilized on its customers in need than on major equipment and its upkeep. How will we use the plan as a management tool? The principles of strategic management apply to all types of business large or small , all institutions and all non-profit organisations.
Critical actions move a strategic plan from a document that sits on the shelf to actions that drive organizational growth. Before the investigative teams start collecting the data, the list of questions needs to be formalized. For smaller groups this information could be placed on a white board for easy viewing. Financial Planning The success of strategic planning is largely dependent on the success of financial planning. Strategic planning issues are fundamental in corporate strategic planning Corporate strategic planning should aim to surface strategic planning issues.
It can realize the specific intentions of senior management, for example, to attack and conquer a new market. However in some cases we have seen that such an approach can still be very financially focused. Step 5: Identify Strengths and Weaknesses Strengths refer to what your company does well. It may include industry or competitive analyses as well as internal studies, including the use of computer models to analyze trends in the organization. But it also consists of decision-making about production and operations, fund, human resource management and other business issues. Every organization wants to survive and grow in a constantly changing and competitive environment.
We are a new organization and we are just shaping our strategic plan; so this is timely for me to have gone through it. Strategic Planning is a process whereby an organization makes choices about: Why do we exist? Future, Management, Mission statement 1170 Words 4 Pages Strategic management consists of the analysis, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. One thing that really needs to be compared in a large organization is if the expenses are being duplicated in other areas and for the same reasons. And finally, senior management by their actions and questions often demonstrate that all they are really interested in are the numbers, with no challenge or credence given to the thinking behind those numbers. Formal procedures will never be able to forecast discontinuities, inform detached managers, or create novel strategies. That is a very insightful article indeed. Thanks for the great information.