The Best Strategy

The strategy that a company can implement is the best strategy

for that company
Before choosing one, the Company
should think what the already does well
should assess the fit between corporate strategy and corporate
strength
must understand general considerations as its:
- latent need of customers
-competitive situation
- regulatory environment
- capital markets
- new technology
- structure of its industry
- strengths and weaknesses of its rivals

Execution
Strategy without tactics is the long road to victory; tactics without
strategy is the noise before defeat.
- The Art of War
The Execution bridge the common divide between strategy & operations
A complete operations management strategy requires a commitment to
execution, identifying the critical programs to integrate efforts and
making the necessary changes in
- organization and management systems
- talent, culture, and leadership,
- business technology systems, and
- process architecture
Issues around execution:
1. Leadership: Without strong visionary leadership, strategy will not be
executed effectively
2. The second key issue is to recognize that strategy and operations are
both important but different

Typical challenges and pitfalls in linking strategy

with operations

One challenge or pitfall is that few companies align

operational improvement activities to strategic priorities.

their

Many companies today are practicing Total Quality Management, Six

Sigma, or other continuous improvement activities. But these are
done across the organization with no sense of priorities or impact
from process improvements. Consequently, much effort does not
show up in tangible results. Companies need a formal process for
using strategic objectives to set priorities for where operational
improvements can have the largest impact on strategy execution.

Another pitfall occurs when budgeting and financial planning are

done separately from strategic planning. The operational plan and
budget be driven from the revenue targets in the strategic plan.

A third challenge is that most management meetings get consumed

with discussions about short-term operational and tactical issues. It
is important to meet to discuss and solve operational problems. But
companies err when they devote all their time together for firefighting and coping with near-term issues.
Creating a strategy map and scorecard for that strategy is the
logical and proven next step for putting the strategy into
action.

Role of leadership in sound execution

Organizations that have successfully implemented their strategies
operated in varied regions and industries, including manufacturing,
financial services, consumer services, non-profit, educational, and public
sector. Their strategies differ; some produce low-cost commodity
products and services, others deliver complete solutions to their
customer, and still others innovate with high-technology products. About
the only common element all these diverse successful strategy
implementers have in common is exceptional and visionary leadership.
Different stages of leadership for a strategy:
- For Stage 1, the CEO leads the change agenda and drives it
from
the top to reinforce the mission, values and vision. Leadership sets the
ambitious vision and stretch targets.
-In Stage 2, the executive leader validates the strategy map as an
expression of the strategy articulated in Stage 1 and challenges the
organization with stretch targets that take all employees outside their
comfort zones.

-In

Stage 3, leadership drives alignment of organizational units and is

essential for communicating vision, values, and strategy to all
employees.
-In Stage 4, supports the cross-organizational unit process improvements.
-In Stage 5, the leaders openness and skill in running the strategy
management review meeting determines its effectiveness for finetuning the strategy throughout the year.
-In Stage 6, the leader must allow even a well-formulated and executed
strategy to be challenged in light of new external circumstances, data
collected about the performance of the existing strategy, and new
suggestions from employees throughout the organization. Being willing
to welcome and subject existing business strategies to fact-based
challenges is one of the hallmarks of effective leadership.
None of the six stages in the management system is simple or brief. But
collectively, the management processes in the six stages
provide
leaders with a comprehensive, proven system for managing the
development, planning, implementation, review, and adaptation of their
strategies.

Transform market forces into operational

advantages

A business can operate only in contact with the environment as it

produce goods & services for buyers and have to compete with its
rivals. In order to be successful it need to be in touch with the
outer world.

Direct relation between a business and its environment companies keep interaction with their environment on a
continuous basis. The company adapt to this environment in order
to satisfy their customers.

Reacting to the constantly changing world does not mean to

undermine the importance of strategy

The importance of strategy should be emphasised along with the

steps to formulate the strategy and its prerequisites.