Can you imagine working for a company that doesn't have a strategy? Neither objective for day to day, without job security, it does not make sense. From the smallest company to the largest conglomerate, the strategy we have defined is what sets them apart from their opposition. It is this same strategy that will give employees, particularly managers, the direction they need to be effective in their position and make better decisions.
Strategy is the parameter that these decisions are made within the unit and therefore direct the company forward in a predictable direction.
A lot of companies can get caught up in the term itself and spend so much time developing the ultimate strategy that it becomes useless the moment it is supposed to be effective, or they make it so cumbersome that it is impossible to implement. The strategic process itself consists of two general parts, planning and execution. Both parts of the process must be under constant review, in fact they are usually iterative, as a strategy has to be as strong as it is flexible.
Basic steps in the planning process:
- Establish the vision and mission - the vision will indicate what is the desired future state of the company as well as the mission indicate the purpose of the company (how we can get there is the plan).Make a strategic letter - helps focus the planning process and contains some or all of the following components:
- Objectives - these should be clear, measurable objectives that the company will use to mark milestones and indicators of success Business Justification - interweaves with the mission and vision, but with the details of the company's products, location and market Critical Success Factors - To gain a competitive advantage and achieve the objectives listed above, these are the factors that must be achieved beforehand. Resources - Determine available resources, both tangible and intangible resources must be considered.
Steps for the application process:
- Perform analysis - the initial analysis of both the internal and external factors that determine the future state of the strategic objective. Develop problem statements - the statements must come from the analyzes performed in the previous step, but must be explicit enough to put into highlight potential difficulties in reaching the future state Assess problems - Use problem solving methodologically to assess the magnitude of the problem and whether or not it is an obstacle Action steps - a list of concrete action steps that must be developed for implementation of solutions to each problem statement in the context of the great steps required to achieve the goal.
Remember that both processes and the steps within each can be iterative and can even be broken down into smaller components of the overall strategy.
