A good enterprise development strategy begins with ensuring its support at all levels of the company.
Support begins with understanding, and understanding begins with understandable information with a competent and understandable strategic plan.
To create a workable, truly understandable, and therefore potentially implemented document called “business development strategy” (a system of hypotheses, goals, objectives, ways of implementing them), it is not enough simply to invest the results of strategic analysis and conclusions from it into a visually attractive form.
It is necessary to ensure certain requirements that follow not only from the classical management system by purpose, but also take into account the specific management of strategic (ie, large-scale and long-term) changes in the organization and the ecosystem of the business.
It should be noted that this information is hardly applicable to the case when the company’s development strategy does not provide for a change in the company itself but consists only in ensuring the company’s exit to a new geographic market (scaling the existing business model).
In fact, this does not happen. And the organization will still have to change. Not everyone understands this at once. This approach usually does not provide for a deep adaptation of the management system and all company structures to the new strategy, but it is a simplified understanding of growth and fraught with many risks.
If we are talking about large-scale changes, modifications of the business model and other fundamental foundations of the organization’s existence, the strategy must take into account the maximum possible number of critical success factors and its creation is a complex, multi-stage and iterative process.
But to study the courses you need to spend some time, but for now, we would like to facilitate this work for our readers and share some tips that, despite its simplicity, are key to improving the implementation of the strategies of organizations.
№1. YOU NEED The PLAN TO CREATE A STRATEGIC PLAN
Yes exactly. By itself, developing a competent organization strategy is a complex process involving many people in the company and even beyond. Do not be in a hurry to start developing a development strategy. It cannot be very good.
First, you need to understand the following:
- What should be the result?
- What methods of analysis should be applied?
- What exactly needs to be analyzed inside the organization and outside it?
- What will formats of providing separate sections of the plan be most understandable and useful?
- How detailed is it necessary to detail this or that section of the strategic plan?
- From which sections should the strategic plan consist?
- Who will be responsible for this or that section of the strategic plan?
- And much more.
Because all these operations in a strategically focused company should be carried out with a certain periodicity, then such an activity should not be a project “campaigning”, but a full-fledged process.
Therefore, the description of this process is usually done in the form of the “Methodology of strategic management” and, sometimes, supplemented by the relevant regulations.
“Planning a strategic plan” is not just good wishes. This is a clear understanding of how to make such a complex project as ensuring the quality development of a development strategy and its effective implementation. And all this in the conditions of deficiency of necessary competencies of strategic planning and management.
How often do we see that the development of the company’s strategy turns into another adventure, and all because management approaches this issue not prepared, not armed with appropriate methods and effective ways of using them?
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№ 2. YOU SHOULD CREATE A PLAN FOR THE IMPLEMENTATION OF THE DEVELOPMENT STRATEGY
In fact, the main work begins when the company begins to implement the strategic plan. To create a strategy is a negligible amount of labor compared to what needs to be done to implement it.
The reasons most often lie in the fact that companies can not effectively link strategic planning with operational management, presenting the process of achieving strategic goals in the thousands and millions of employee actions.
The very ones whose hands and implement large-scale strategic decisions.
What needs to be done to correct this situation? Let’s highlight three main points that help move from bold and ambitious strategies to effective actions to implement them.
This is not the notorious detailing of strategic goals, this is a full-fledged strategic (ie, long-term) planning at all levels of the organization. And these lower-level strategies are devoted to how to best implement the company’s strategy as a whole.
In the course of cascading, business unit strategies and functional strategies of the units that support the company’s activities are created.
In the course of cascading, there is another important process – the synchronization of strategies. This applies to strategies of formally independent subdivisions or business units.
Their plans should be synchronized among themselves in all parameters, the mismatch of which may impede the effectiveness of implementation.
With this approach to planning, it is difficult to expect that the strategic plan will be a dummy invented in the quiet of the offices by top managers of the enterprise or consultants.
This organization of the process implies an active two-way exchange of information and opinions between levels of government. Such an exchange will help to identify gaps in the original strategic plan, which were simply not visible from above.
This approach implies a certain level of trust in the performers, which should be supplemented by the necessary methodologies and reporting system.
To improve the qualification in the field of strategic management is now quite easy. This can be done by going through special online courses.
RESOURCE SUPPORT AND DEVELOPMENT STRATEGY
Here we mean not so much material resources, as intangible. Some managers, although they learned to count money, do not always correctly relate projects to the real capabilities of performers and overlook the so-called subtle matter.
Vivid examples of failures caused by such behavior, we can observe now in the defense industry. Despite the fact that the financing of certain works has now grown many times, some enterprises are unable to meet military requirements, regardless of the number of funds allocated.
And all because the key competencies for creating this or that kind of technology were lost or not reproduced. In this regard, we strongly recommend expanding the “nomenclature” of planning, including not only all key material and financial resources, but also intellectual components of various types.
Such improvements make much higher demands on the quality of strategic and operational planning and detailed strategic initiatives.
BILATERAL COMMUNICATION WHEN CREATING AND IMPLEMENTING A STRATEGY
In the process of implementing the strategy, intra-firm communications are of great importance.
Control in the strategic loop usually uses feedback, containing two “loops” of different types.
In the framework of feedback of the first type, management is performed to reject actual performance results from planned ones. And feedback of the second type is used to assess the correctness of the strategy itself.
If the first “loop” operates with a plan-fact analysis of the enterprise’s activities in the implementation of strategic projects, the second is to assess the reliability of those hypotheses about changes in the external environment and the ecosystem of the enterprise, which were incorporated into the strategy.
Changes in these hypotheses may lead to changes in the strategy itself. And such timely monitoring is impossible without a developed system of communications.
№ 3. IT IS NECESSARY TO TAKE INTO ACCOUNT THE CULTURAL COMPONENT OF THE STRATEGY IMPLEMENTATION
In a modern economy, you can not just take, develop a strategy and say “Forward, comrades!”. Rather, it is possible to do so, but it is unlikely to get the expected ambitious result.
In today’s economy, not everything is decided by the concentration of resources, much depends on soft factors, and one of the most important such factors is the organizational culture.
Each branch requires a certain specificity of business relationships within the collectives, and each company is a carrier of a certain specificity in this area.
In accordance with our research, one of the most important qualities of an organization in modern conditions is the ability to quickly adapt its work to frequently changing external conditions.
Daily development and constant attention to stimulating more effective business conduct and concentration of employees on the achievement of goals and results is the foundation of the company ‘s long-term competitiveness and its economic prosperity.
Otherwise, internal problems will take too much energy to implement the company’s plans.
In modern conditions, the collective cannot effectively cope with large-scale tasks without a common vision and intra-firm consensus.
When the whole company focuses on the implementation of its development strategy, it gives it significant advantages over its competitors, allows competitors to identify new markets in their industry faster than competitors, and use them more efficiently, and, under certain circumstances, exploit the weaknesses of competitors.
In conditions of the instability of the external environment and increased competition in local markets, the primary task for companies is to increase competitiveness.
The key to success in such conditions lies not in one or two successful solutions, but in the constant influx of fresh ideas and their effective implementation.
Competition is no longer at the level of goods or services, but at the level of their ability to constantly improve in accordance with the requirements of the market. At the same time, mutual enhancement of the advantages of companies arises not accidentally, but as a result of systematic work to create unique capabilities throughout the value chain.
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Such work is usually conducted within the framework of the strategic management system. The quality of this system determines the efficiency and purposefulness of all the activities of companies, and a qualitative development strategy is the logical result of the functioning of such a system.
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