Strategy – A View from the Top
What Is Strategy?
Understanding how a strategy is created is very important. It is also very important to understand that there is a connection between good strategic planning and long-term performance. Companies that succeed seem to have a better understanding of the customers’ wants and needs and how they can create value.
It is hard to define a “strategy” in one sentence but it could be defined as the “positioning an organization for competitive advantage”. Its main objective is to create value for stakeholders by providing customer value. (pg. 2) Strategies always change as the context in which strategy is developed always changes. For ...view middle of the document...
It creates a window of the future and shows the desire to win. The Ssrategy formulation process is organized by three key questions: Where are we now? Where do we go? How do we get there? Each of these questions defines a part of the process and suggests different types of evaluations. A strategy review can be inspired but a few factors such as disappointment, new leadership or new technologies.
Strategy and Performance
Carefully thought about strategies often bring only a small part of their promised financial value. Top leadership has defined difference between good and great companies. A way for companies to move from good to great is the “willingness to identify and assess defining facts in the company and in the larger business environment”. (pg. 19)
Creating a culture of high performance is central to mandating to “direct he affairs of the company”. To create a high performance a team should:
1. Define its role, agenda, and information needs.
2. Ensure that management not only performs but performs with integrity.
3. Set expectations about the tone and culture of the company
4. Formulate corporate strategy with management.
5. Ensure that corporate culture, the agreed strategy, management incentive compensation, and the company’s approach to audit and accounting, internal controls, and disclosure and consistent and aligned.
6. Help management understand the expectations of shareholders and regulators. (pg. 31)
A Mission Statement and a Vision Statement