• When developing a strategic vision one has to ensure that the strategy is effectively worded; is it graphic, directional and easily and effectively communicated? Strategy must also link in with company values; those beliefs, traits and behavioural norms that personnel are expected to display during business activities in pursuit of its strategy.
• The next step is to set objectives. Organisational performance targets should include more than just financial and strategic objectives. Hough suggests a balanced scorecard approach, with both short-term and long-term objectives, across all organisational levels, in a top-down approach.
• After the objectives have been set, follow crafting a strategy to achieve the objectives. A series of ‘how’ questions kick-starts this step. Hough also suggests that ‘crafting and executing strategy is a team effort in which every manager has a role for the area they head, that it is flawed thinking to view crafting and executing strategy as something only high-level managers do.’ Strategy therefore will be pitched at different levels that all align. These include; corporate strategy, business strategy (should diversification be present), functional-area strategy and operating strategy.
• The fourth step is to implement and execute the strategy. ‘Managing the implementation and execution of strategy is an operations-oriented, make-things-happen activity aimed at performing core business activities in a strategy-supported manner.’ It includes the following principle aspects; staffing the organisation with the right skill and expertise-level personnel, allocating
76 Management Today | January 2012
ample resources, ensuring policies and procedures facilitate rather than impede installing effective operating IT systems, tying rewards and incentives to the achievement of performance objectives and strategy execution, driving the implementation of improved strategy execution constantly.
• The final step suggested by Hough is to evaluate performance and make corrective adjustments. Both internal and external reviews are suggested. Hough also discusses the role of a Board of Directors and how they should ensure corporate governance.
In Part 2 Hough discusses concepts and tools that, if applied diligently, can ensure a detailed and effective evaluation of the company’s external and internal environment. The external environment analysis looks at macro-environmental aspects as well as the immediate industry and competitive environment aspects and their respective interactions with each other and the relevant company.
It
is suggested that, after an in-depth analysis of the external environment companies compile strategic group maps. These maps reveal which companies are close and which are distant competitors. Another tool discussed in this section is on discovering which strategic moves rivals are likely to make next.
Focus on the internal environment leads to a discussion on key factors for future competitive success within the organisation. These include; identifying and assessing company resource strengths and weaknesses and competitive capabilities and deficiencies – across all functional pieces of the
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