1a2 vocabulary of strategy

8/2/2019 1A2 Vocabulary of Strategy

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STRATEGIC POSITION

Recognize the vocabulary of strategy(2)


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Vocabulary of Strategy:

MissionStrategies are developed in order toachieve desired outcomes.

These outcomes are inherent in theorg.s mission or defining purpose.

The mission guides strategic

decisions and provides values and a


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MissionMission

- the over-riding purpose of the org.

- Reflects the values/expectations ofstakeholders and answers thequestion what business are we in?


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MissionASHRIDGE COLLEGE MODELOF MISSION

As per the model, a strong mission as articulated in the mission statement should contain the following 4elements which should be tightlylinked together resonating &reinforcing each other.


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MissionAshridge Mission Model

Elements of a Mission

1. Purpose

2. Strategy

3. Values4. Policies & standards of behaviour


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Purpose

Why does the org. exist? Who does it existfor?

3 categories for the benefit of:

a. Shareholders create wealth

b. All stakeholders satisfy needs


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Strategy

Provides the commercial logic for theco.

What is our business?What should it be?


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Values

The beliefs & moral principles that liebehind the cos culture.


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Policies & standards of behaviour.

Guidance on how the org.s businessshould be conducted.

Guidelines to help people decide

what to do on a daily basis.


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MissionPurpose of a mission (can be internal/external)

1. Inspire & motivate managers &

employees to a higher level ofperformance.

2. Guide resource allocation in a

consistent manner.

3. Help balance the competing & oftenconflicting interests of various

stakeholders.


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MissionPurpose of a mission

4. Provide a sense of direction.

5. Promote shared values amongemployees.

6. Refocus the org. during a crisis.

7. Improve corporate performance.


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MissionImportance of a mission for

corporate strategy

The org. should give seriousconsideration to establishing

a clear concept of itscorporate mission because:


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MissionImportance of mission for corporate

strategy

a. Customers are not only asking whatdo you sell? but also what do youstand for?. Values are

acknowledged as integral elementsof consumers buying decisions asevidenced by the attention given tothem through advertising, brandbuildin and market research.


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MissionImportance of mission for corporate

strategy

b. Studies into organizationalbehaviour show that people are

motivated by many things otherthan money. Employees are likely tobe more productive when they feelwhat they are doing has significancebe ond the mere ursuit of a livin .


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MissionImportance of mission to corporate strategy

c. Some writers believe that there is anempirical relationship betweenstrong corporate values and

profitability.


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Mission StatementFormal documents that state the

org.s mission.

Published within the org. to promotedesired behaviour:

Support for strategy and purpose

Adherence to core values

Adoption of policies and standards

of behaviour


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Mission StatementSome are suspicious of missionstatements because:

1.They are often public relationsexercises rather than an accurateportrayal of the firms actual values.

2.They may be full ofgeneralizations which areimpossible to tie down to specific

strategic implications.


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Mission StatementRole in planning

The mission statement can play an

important role in the strategicplanning process by:

1. Inspiring & informing planning

-to ensure that plans further theorg.s

goals and are consistent with itscore


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Mission StatementRole in planning

2. Screening

- acting as a yardstick by whichplans are judged.

3. Affecting the implementation of a

planned strategy


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Vision or strategic intent the future state desired by theorg.s strategists.

They aim to guide the org.s

collective aspiration toward thisfuture state.


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GoalsA statement of general aimor purpose that supports themission.

May be qualitative in nature.


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GoalsGoals can be related:

Functionally when collaborating on a

projectLogistically resources shared/used in

sequence

In a wider org.l sense -when senior execsdecide on operational priorities

Hierarchically - in a pyramid structure


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ObjectivesA more specific aim/purpose

Will probably be quantified

Should be S-M-A-R-T

- Specific

- Measurable- Achievable (attainable)

- Results-focused (relevant)

- -


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ObjectivesFunctions (P-R-I-M-E)Planning define what the plan is about

Responsibility define the responsibilities ofmanagers & depts.

Integration integrate the efforts of diff. deptsby being consistent & supporting

each other

Motivationso s/b created for all areas ofperformance

Evaluation performance is assessed against


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Vocabulary of Strategy:Goals, Objectives and

TargetsA structure of goals & objectives derive fromthe mission and support it.

All the parts of this structure s/b mutuallysupportive.

An understanding of the org.s mission isinvaluable for setting & controlling the overall

functioning and progress of the org.However, it is possible for an org. to operate

reasonably effectively even if most of theemployees have only an intuitive or vague

understanding of its mission (purpose).


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Strategic capabilityThe adequacy and suitability of the

resources & competences of an org.

for it to survive and prosper.

Flows from resources &

competences.


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Business model

describes the structure ofproduct, service andinformation flows between

the parties involved.


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Strategic controlConsists of two (2) parts:

1. Monitoring the effectiveness ofstrategies & actions

1.Taking corrective action whenrequired


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Business analysisInvolves:

analyzing the strategic position of an org.,

making strategic choices

and implementing the strategic choice(putting the chosen strategy into action).

StrategicPosition

Strategic

Choices

StrategicAction

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