Phase

Phase

Phase 3
Crafting a Strategy to achieve the objectives and vision

Phase

Phase

Developing a Strategic vision

Setting Objective

Implementing and executing strategy

Monitoring Developing Evaluating performance and Making corrective adjustments

Revise as needed in light of actual performance, changing Conditions, New opportunities, and new ideas

Developing a Strategic Vision

A
describe the route a company intends to take in developing and strengthening its business.

Illuminate the companys directional path Provide managers with a reference point for making strategic decision Preparing company for the future

External Considerations

Internal Considerations

Graphic
Directional Focused

Easy to Communicate Flexible Desirable Feasible

Too broad

Not distinctive

Not forward-looking

Bland or Uninspiring

Vague or incomplete

Too reliant or superlative

Strategic Vision, Mission and Values

Strategic Vision
A Strategic Vision portrays a companys future business Scope (Where we are going

Strategic Mission
A companys Mission typically describes its present business and purpose (Who we are, What we do, and Why we are here)

Values
A companys values are beliefs , traits, and behavioral norms that company personnel are expected to display in conducting the companys business and pursuing its strategic vision and strategy

Communicating the Strategic Vision

An Effectively communicated vision is a valuable management tool for enlisting the commitment of company personnel to actions that get the company moving in the intended direction

Expressing the Essence of Vision in a Slogan

Strategic Visions become real only when the vision statement is imprinted in the mind of organization members and then translated into hard objectives and strategies

Expressing the Essence of Vision in a Slogan

FedEx: Satisfying worldwide demand for fast, timedefinite, reliable distribution Scotland Yard: To make London the safest major city in the world The Home Depot: Helping people improve the place where they live and work Charles Schwab: To provide customers with the most useful and ethical financial services in the world.

The Payoffs of a Clear Vision Statement

A Clear Vision Statement crystallize senior executives own views about the firms long-term direction It reduces the risk of rudderless decision making It is a tool for winning the support of organizational members for internal changes that will help make the vision a reality It provide a beacon for lower-level manageress in forming departmental mission Setting Departmental objectives, and crafting functional and departmental strategies that are in sync with the companys overall strategy. It helps an organization prepare for the future.

Setting Objectives
The Managerial purpose of is to convert the strategic vision into specific performance targets - results and outcomes the companys management wants to achieve

are an organizations performance targets the results and outcomes management wants to achieve. They function as yardsticks for measuring how well the organization is doing.

Managers ought to use the objective- setting as an organization to perform at its full potential and deliver the best possible result
Setting stretch objectives is an effective tool for avoiding ho-hum result

What kind of Objectives to set The need for a Balanced Scorecard

Two very distinct types of performance yardsticks are required: those relating to financial performance and those relating to strategic performance Financial objectives relate to the financial performance targets management has established for the organization to achieve Strategic objectives relate to target outcomes that indicate a company is strengthening its market standing, competitive vitality and future business prospects

Strategic Intent: Relentless pursue of an ambitions Long-Term Strategic Objective

A company exhibits strategic intent when it relentlessly pursues an ambitious strategic objective, concentrating the full force of its resources and competitive actions on achieving that objective

rafting A Strategy
The task of crafting a strategy entails addressing a series of how:
How to grow the business, how to please the customer, how to outcompete rivals, how to respond to changing market condition, how to manage each functional piece of the business, how to develop needed competencies and capabilities, and how to achieve strategic and financial objectives.

Corporate Strategy

Business Strategy

Functional areas strategies within each business

Operating strategy within each business

Corporate Strategy
The overall companywide game plan for managing a set of business Orchestrated by the CEO and other senior Executives

Business Strategy
Business Strategy concerns the actions and approaches crafted to produce successful performance in one specific line of business. Orchestrated by the general managers of each of the companys different lines of business, often with advice and input from the heads of functional area activities within each business and other key people This strategy indicate: How to strengthen market position and gain competitive advantage Action to build competitive capabilities

Functional Area Strategy

Functional Area Strategies concern with the action and practices employed in managing particular functions or business processes or activities within a business. It is orchestrated by the heads of major functional activities within a particular businesses, often in collaboration with other key people. Provide a game plan for managing a particular activity in ways that support the overall business strategy

Operating Strategies concern the relatively narrow strategic initiatives and approaches for managing key operating units and specific operating activities with strategic significance. Orchestrated by brand managers, the operating manager etc. Add detail and completeness to business and functional strategy Provide a game plan for managing specific lowerechelon activities with strategic significance

Strategic Plan
A Strategic Vision + Objectives + Strategy = A Strategic Plan
A companys Strategic plan lays out its future direction, performance, targets , and strategy

In most situation managing the strategy execution process include the following principle aspects:
Staffing the organization with the needed skills and expertise, consciously building and strengthening strategy supportive competencies and competitive capabilities, and organizing the work effort. Allocating ample resources to activities critical to strategic success Ensuring that policies and procedures facilitate rather than impede effective execution Using the best-known practices to perform core business activities and pushing for continuous improvement. Organizational units have to periodically reassess how things are being done and diligently pursue useful changes and improvement

Installing information and operating systems that enable company personnel to do their jobs better and quicker Motivating people to pursue the target objectives energetically and if need be modifying their duties and job behavior to better fit the requirements of successful strategy execution Creating a company culture and work climate conducive to successful strategy execution Exerting the internal leadership needed to drive implementation forward and keep improving the strategy execution process. When stumbling blocks or weakness are encountered, management has to see that they are addressed and rectified in timely and effective fashion

The Fifth phase of the strategy management process monitoring external developments, evaluating the companys progress, and making corrective adjustment It is the trigger point for deciding whether to continue or change the companys vision, objectives, strategy, and/or strategy execution methods. But whenever a company encounters disruptive changes in its environment, questions need to be revised about the appropriateness of its direction and strategy

N:B: A companys vision, objectives, strategy, and approach to strategy executing are never final; managing strategy is an ongoing process, not an every-now and then task

Leading the strategic management process call for the following six actions on the part of senior executives:
1. Staying on top of how well things are going. 2. Making sure the company has a good strategic plan 3. Putting constructive pressure on organizational units to achieve good results and operating excellence. 4. Pushing corrective actions to improve both the companys strategy and how well it is being executed 5. Leading the development of stronger core competencies and competitive capabilities. 6. Displaying ethical integrity and leading social responsibility initiatives.

1. Be inquiring critics and oversee the companys direction, strategy and business approaches. 2. Evaluating the caliber of senior executives strategy-making and strategy-executing skills. 3. Institute a compensation plan for top executives that rewards them for actions and results that serve stakeholder interests, and most especially those of shareholders 4. Oversee the companys functional accounting and financial reporting practices.