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Transcript

  • 1. The Process II igc
  • 2. 5 Tasks 1. Develop the vision 2. Set up the objective s 3. Craft the strategy 4. Implement the strategy 5. Evaluate the performance
  • 3. VISION # 1
    • Vision : the destination (long term) of a company
    • - where are we heading.
    • Mission : what is our business.
  • 4. Mission
    • Mission relates to the current set of activities,
    • - what we do
    • - why we do
    • Constituent elements of a Mission are,
    • - our business : what?
    • - our customers : who
    • - our customers : located where?
    • - our customers : value (why do they buy)?
  • 5. Vision & Mission
    • The two terms are prominently displayed in company publications such as annual reports.
    • The objective is to create emotional bonding between the stake holders.
    • Simplicity is the essence – crisp, short and easy to read and understand
  • 6. Mission why
    • A well-conceived mission statement
    • - Provides a direction and a purpose
    • - Eliminates risk of decisions in vacuum
    • - Provides employees a sense of purpose
    • - Steer s organization into the future
  • 7. Mission Elements
    • Customer - Who
    • Products - What
    • Market - Where
    • Philosophy - Beliefs, Values,
    • Ethical Priorities
  • 8. Mission Elements
    • Self-Concept - Distinctive Competence
    • Public Image - Responsiveness to society/community
    • Employees - Concern, employee as resource but cost
    • Growth, Survival - Commitment to growth & financial soundness
  • 9. Vision Statements Examples
    • BA
    • Worlds favourite airline
    • McDonald’s
    • To be the world's best quick service restaurant experience.
    • Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile
  • 10. Shared Vision
    • Sharing comes through effective communication.
    • Sharing forges the togetherness between the stakeholders.
    • Sharing creates the team membership that is much emphasized in the corporate world today.
  • 11. Management tools in corporate world
  • 12. OBJECTIVES # 2
    • Objectives convert a vision into measurable outcomes of performance.
    • Must be
    • S pecific - 10% increase in sales, not “increase sales”
    • M easurable - What gets measured gets done
    • A ttainable - realistic
    • R esponsible - accountable
    • T ime specific - deadlines
  • 13. Classification
    • Two broad types:
    • 1. Financial (short term)
    • - Rising stock prices
    • - Higher returns on invested capital
    • 2. Strategic (non-financial, long term)
    • - Mainly competitor focused,
    • e.g. unseating a competitor
  • 14. FINANCIAL
    • Revenue growth
    • Higher ROI
    • Rising stock prices
    • Stable earning during recession
  • 15. NON-FINANCIAL
    • Bigger market share
    • Higher product quality
    • More attractive product line than rivals
    • Wider geographic coverage than rivals
  • 16. Financial vs Non-financial Short term vs Long term
    • There can be clashes between the two types of objectives e.g. to retain or to distribute profit?
    • Financial objectives are tempting and can be imposing in difficult times.
    • If the short-term overrides the long-term too often the effectiveness of a company in the longer term can suffer.
  • 17. STRATEGY # 3
    • Strategy is a Position (market).
    • To decide on a strategy requires homework such evaluation of organizational resources and capabilities against opportunities and threats.
    • Managerial capability and business creativity are important elements of strategy.
  • 18. Elements of Strategy
    • How to grow the business
    • How to satisfy the customers
    • How to outcompete rivals
    • How to respond to changing market conditions
  • 19. Strategy Hierarchy
    • Strategy does not reside in vacuum. It requires input from the functional channels of an organization such as HR, Operations, Marketing and Finance.
    • As an example, consider the BA strategy of being the world’s favourite (position) airline.
    • Following are some functional inputs into this
    • strategy (position);
    • customer services (training, recruitment)
    • efficiency in operation (scheduling, services) creating an image (promotion)
    • financing (equipment, technology)
  • 20. IMPLEMENTATION # 4
    • Capable leadership is the first requirement in the implementation process.
    • Areas that need attention in implementation include;
    • - budget (steer resources into critical areas)
    • - policies (supportive to the strategy)
    • - company culture (supportive to strategy)
    • - support systems (decision process, IT)
    • - programs and practices (promote excellence)
  • 21. Culture
    • Collection of values and norms
    • that are shared by people and groups
    • in an organization
    • that control the way they interact
    • with each other and
    • with stakeholders outside the organization.
  • 22. Culture
    • Values : Beliefs and Ideas that guide the standard of behaviour in an organization
    • Norms : Guidelines on the appropriate kinds of behaviour by employees in particular situations
  • 23. EVALUATION # 5
    • Evaluation requires balancing the present performance against the future requirements.
    • Hence, financial measures alone cannot evaluate a strategic plan as they relate to the past events.
    • Additional measures required to assess the strategic aspects of a business include investments in long-term capabilities (R&D etc.) and customer relationships.
    • Balanced Scorecard is a strategy tool developed to serve the dual purpose to mixing the diverse requirement of present against the future.
  • 24. Evaluation Perspectives