Discuss The Two Basic Growth Strategies – A detailed, action-oriented explanation of the strategic planning process, from mission, vision, and values to strategic priorities, goals, KPIs, and initiatives.
Prepare a list of stakeholders Stakeholders are people or systems that have an interest in the organization. A stakeholder can affect or be affected by the organization.
Discuss The Two Basic Growth Strategies
Stakeholder analysis is common to any management field. In the ecosystem of strategic planning, we use stakeholder lists to better understand the organization’s challenges and make strategy more focused.
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To reflect the different interests of stakeholders within the same group, we can define subgroups of stakeholders. For a more technical explanation, refer to Gilb’s Glossary.
In strategic planning, the highest level of abstraction is the one where we discuss mission, vision, and values.
Organizations create mission/vision statements for two main reasons (see below for some ideas on the difference between the terms).
A mission is a goal at the highest level of abstraction, a context for all of today’s goals and activities. BSC Designer makes it easy to implement mission strategies by providing agile balanced scorecard software, high-value content, and a superior customer experience. Example of a good/bad mission
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A good mission statement motivates your team. Bad mission statements are generic, boring, and lack direction. Find more thoughts on this topic in Bernard Marr’s LinkedIn post.
With mission, we have the highest level summary of the company’s goals. Now we are shifting the planning horizon from the present to the future.
Vision describes the future the organization sees. BSC Designer Vision provides organizations worldwide with an effective tool to explain their strategy to employees and track execution. 1.3 Core Values: The guiding principles of the organization
Whatever an organization does, it must be consistent with its values. Let’s talk about what these values are and how to implement them correctly.
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To improve company performance, it is not enough to collect a list of values. These values should be followed.
Our Values: Great customers. Respond quickly and share knowledge. Be proactive. Focus on product quality and simplify complexities. Adaptation. Support remote work and hire talent globally. skill Be experts not only in software but also in strategy execution field. 1.4 Test your mission, vision and values in challenging situations
Have you ever seen a company that has “customer centricity” among their values, but doesn’t actually respond to a client’s emails within a week?
If you have found a significant difference between your values and actions, you can make your values more realistic or adjust your behavior patterns according to these values.
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In calmer waters, most corporate values seem to work. Test your values in times of crisis! 1.5 Configuring strategy attributes in BSC Designer software
> Settings > Strategy tab). These strategy statements can be global for the entire company and customized for the scorecard.
There are at least 10 strategies that explain different approaches to strategy and ways to formulate it. You may be a follower of a particular school of strategy, but any good strategy has certain key elements.
Under the umbrella of “strategy planning,” we can group various business tools that play some role in formulating a theory about what will work:
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In the next step, the strategic assumptions created using certain frameworks need to be transformed in the form of a strategic map with specific objectives, which will be interconnected through cause and effect connections.
A strategy map does not have to include all the supporting concepts and your reasoning (strategic intelligence), include these concepts in supporting documentation and strategy commentary.
A strategy commentary can be a 2-3 page document that explains the rationale followed to formulate the current strategy.
2.3 Strategic Themes From all the possible elements for successful mission achievement, we need to select some that are our priorities.
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It depends on the context. If we define an overall strategy of the organization, they can be:
For example, if we’re on the product team and focusing our development efforts, the topics might shift to more specific topics:
Different authors approach strategic topics in their own way. For example, in Kaplan and Norton’s balanced scorecard,
Another popular framework, McKinsey’s Three Horizons, approaches the challenge of sorting out ideas about business growth. It suggests focusing on three time horizons and distributing efforts accordingly.
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Although we have many priorities, the key skill is to excel in one subject. Other subjects should be implemented at a good level.
The concept of focus has its drawbacks. Companies stop seeing new opportunities and may think that focus is everything. it’s not. As Richard Rumelt said in “Good Strategy. Bad Strategy”: “Focus always means more profit and better. But it doesn’t.”
See the “Growth Values” section discussed above. Make sure your company has an environment conducive to innovation. Earlier we discussed how organizations can build a scorecard for the innovation process.
Strategic themes or strategic priorities help organize the organization’s top-level choices. What about operational level choices? How do we decide priorities for specific goals?
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In this case, strategic topics can be a starting point for prioritization. For example, we can filter out some ideas that don’t fit strategic themes. However, we will have a long list of goals. How to prioritize goals?
In essence, they are all about defining certain parameters (more specific priorities derived from strategic themes) and evaluating objectives against these parameters.
The evaluation process can be as simple as establishing objectives in a four-sector priority matrix or as establishing multi-factor priorities based on several parameters and their weight (importance). In this article, we have discussed several prioritization frameworks and a specific approach to calculating preference scores.
We started with the task of defining a goal at the highest level of abstraction. Then we discussed the bottom-level strategic priorities. What’s Next Business Goals!
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Initial goals are usually vague and vague. We need to define them better and divide them into more clear and concrete parts. This process is called target fragmentation.
At this stage, we need to set the business objectives on the strategy map. It is important to find cause and effect relationships between them. As discussed earlier in Strategy Map: A Guide to Getting Started,
Cause-and-effect logic is not always shown as an arrow; Sometimes, it is only mentioned in the strategy commentary document.
The term strategy map was popularized by the authors of the Balanced Scorecard, a strategy execution framework. This framework suggests using four perspectives to describe strategy:
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It is important for any goal on the map to have: an owner(s) responsible for it, a strategic initiative that provides the right business context (action plan, rationale) to achieve the goal, and metrics (KPIs) that show the company is on the right track. 3.3 Clarify objectives with KPIs
We have mission as the highest level of abstraction. Then we have the pillars of our strategy – the strategic priorities, then the business objectives, which are more specific but still sufficiently detailed.
Let’s take an example of maintaining the best conditions for the team goal. Let’s make it more clear by calculating it in different ways:
In addition to solving the problem of making the goals more tangible, with KPIs, we have introduced an effective tool for monitoring the execution of the strategic plan. Leading and Lagging Metrics The ideal situation is to have at least one leading and one lagging metric related to each objective. Here, we explain the difference.
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It needs to be aligned with the business objectives and subject to validation (confirm that the metric is measurable, realistic and aligned with the business purpose). Use this KPI template to get started with your new metrics. More ideas about metrics and their evaluation are discussed in “KPI System”.
We have moved from a very abstract mission statement to relatively specific goals that can be measured through KPIs. The final level of abstraction in strategic planning is execution, which governs operational plans and initiatives. This is where we can apply our project management skills, determine budgets, set deadlines, define more specific priorities and gain full control over execution.
BSC Designer users can align initiatives with business objectives or KPIs and assign budgets, responsible people and timelines to:
A byproduct of strategy description is that it can provide an estimate of the strategy budget—the cost of future strategy execution. I did not include budgeting as a separate step because strategic planning should not be reduced to budgeting.
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A strategy scorecard is a series of objectives, each objective with its own budget that can be assigned to several initiatives. Using all this information, we can calculate:
A scorecard’s total budget will be an estimate of the costs of implementing the described strategy.
Typically, a goal is defined from a positive perspective – we focus on what we will achieve and what value we will create. For effective strategy execution, we need to think about the other side as well – potential risk. Each strategic objective should be supported by identified risks.
ലളിതമായി പറഞ്ഞാൽ, ഒരു സ്ട്രാറ്റജി അലൈൻമെന്റ് (കാസ്കേഡിംഗ്) എന്നത് ബിസിനസ്സ് ലക്ഷ്യങ്ങളെ ചുറ്റിപ്പറ്റിയുള്ള ചർച്ചയാണ്, അത് പങ്കാളികളെ എത്രത്തോളം ആഗ്രഹിക്കുന്നുവെന്ന് മനസ്സിലാക്കാൻ സഹായിക്കുന്നു.