Nine Aspects You Ought To Think Over In Relation To Localised Plan Of Action Networks

Every decision is a risk-taking judgment. Effective executives try to make the few important decisions on the highest level of conceptual understanding. They try to find the constants in a situation, to think through what is strategic and generic rather than to solve problems.
Strategic planning must focus individually on each SBU to define clearly targeted goals and actions. The approach to the development (or disposal) of each SBU is likely to be different, reflecting the specific nature of the customer relationship, the competitive environment and the key factors for successful development.
You need someone who can come in and be a facilitator of the strategic planning process. This person will take the time to fully understand your company, your people, your markets, your competition, and the situation you are facing in your business today.
Pull together the data that helps you see the trends that relate to your company’s internal factors. What sells well, what doesn’t, and why? Which customers and markets are you successful with, and why?

Creating Your Vision

Overcoming pitfalls requires thinking of capability development in a different way: as an integral part of strategic execution. The key is to link each strategic priority to the capabilities needed to drive that opportunity and to frame accountability for each strategic priority around both results and capability development.
For most companies, an overall approach to building capabilities will include a mix of focused interventions, capability innovations, and capabilities-oriented acquisitions, all in sync. With each step, you’ll be making your capabilities stronger and your company more coherent. People will rehearse and repeat the new routines and practices you put in place, paying close attention to what works and what doesn’t work. Once your capabilities system is working effectively where you piloted it, or where it may have naturally existed, you’ll be ready to bring it to scale.
In creating strategy, it is often important to take on the viewpoints of others, seeing how the situation looks to a rival or to a customer. Advice to do this is both often given and taken. Yet this advice skips over what is possibly the most useful shift in viewpoint: thinking about your own thinking.
Setting a strategy gives you an active role in planning for your company’s future. Without it, too many of your actions will be focused on the short term—reacting to every potential threat, meeting goals that may not have long-term impact, and focusing too much on the day-today operations and problem solving. What’s more, without an eye on the big picture, you may miss the larger shifts in your industry—shifts that require early planning in order to respond and thrive.

Directing Efforts And Behaviour

A company’s pioneers are the businesses that offer unprecedented value. These are the most powerful sources of profitable growth. These businesses have a mass following of customers. Their value curve diverges from the competition.
Purpose can help with the soft side of management — the people-related aspects of running a business, which so often prove to be the undoing of leaders. By putting purpose at the core of strategy, firms can realize three specific benefits: more-unified organizations, more-motivated stakeholders, and a broader positive impact on society.
Questioning is a useful starting point for creative problem solving. Challenging the way that things are can lead to alternatives being generated. Although questioning alone may not provide breakthrough thinking, it is often an essential first step in breaking traditional thinking. In particular, it can help to question established logic, asking “Why?” as well as “Why not?”. Questioning the limits of existing processes, systems or technology can also stimulate creativity. Identifying false assumptions is another valuable step.
Resilience is essential to the success of both business and society; each depends on the other. While connected, resilient business and resilient societies have different characteristics and contexts.

The Budget Sets Priorities

Looking at current trends, where is your business going? Where will it be in two or three years? Will it grow, decline, or continue on its present path? Knowing that the future will always be different from the present, where is your business heading on its current trajectory?
The key to the strategy mindset is to view business life as not entirely random; stochastic but not random. While it may be necessary to revisit and revise choices more often than convenient, the assumption holds that effortful, determined, revisable strategy is better than simply letting happen whatever will happen.
Just as doctors prescribed aspirin for headache and fever without knowing how it worked, just as the ancient Romans dealt in life insurance without any theory of probability, so you must normally work with patterns and analogies. Of course, in some cases, our knowledge is even stronger, and we have theories about the causal structure of the situation — about what causes what.
Great CEOs seek out feedback. They want to know how others see them so that they can understand themselves better and continue to grow as people. They also want feedback about the company from an employee perspective, and they use surveys as a starting point for creating a dialogue to make things better.

Focus On The Big Picture, Not The Numbers

To ensure that your decision-making is effective, it can help to step back from the process and consider your typical approach. Where are the strengths and weaknesses in the approach? What action is needed to improve and develop skills and abilities in this area? In particular, reflect on each stage in the decision-making process and decide where skills might be enhanced.
Strategy is a garbage in, garbage out exercise. Executives often complain about a lack of good data, but we consistently find information that is useful in the formation of strategy.
In science one seeks explanations for broad classes of events and phenomena; in business one seeks to understand and predict a more particular situation. But the lack of universality does not make business unscientific. Science is a method, not an outcome, and the basic method of good businesspeople is intense attention to data and to what works.
A vision always goes beyond the numbers that are typically found in five-year plans. To reach your team at an emotional level, tell a story about how the change you’re seeking will affect real people connected with your company — customers and employees. Draw this picture in some detail.

Court The Uncommitted

Ensure that your strategy remains competitive. Choose a market that is either not served or underserved with little or no competition, and be the first one there. This way, you capture the market share, build your brand and position your company well in that marketplace, making it harder for any new entrants.
Directors and managers will usually focus on sales (volume and value) and profit performance. Future plans are often based on what has been achieved in the past with an emphasis on growth and, for larger businesses, increased market share. The impact on the business of a divergence from plan is not fully considered or even perhaps recognized.
Environmental mapping is intended to capture the key characteristics of the environment in which the business operates. These factors, which may be supportive or constraining to the future development of the organization, provide the ‘back-cloth’ against which the future strategies and plans must be formulated.
How does a company label the industry’s competing factors? For example, does it use the word megahertz instead of speed, or thermal water temperature instead of hot water? Are the competing factors stated in terms buyers can understand and value, or are they in operational jargon? The kind of language used in the strategy gives insight as to whether a company’s strategic vision is built on an “outside-in” perspective, driven by the demand side, or an “inside-out” perspective that is operationally driven.

Blueprinting The Capabilities System

Failing to appreciate the sensitivity of a situation often makes it worse. Pressures of work, lack of time and too little or too much information are common reasons for people not picking up important nuances. Influencing, leading, communicating, trusting and empowering people can all help to develop and demonstrate awareness. Working out in advance the consequences of decisions is also crucial.
In business, the strategy of the offensive requires that you continually bring out newer, better, faster, cheaper, and easier-to-use products and services. You introduce new technologies and new methods of marketing and selling. You continually change your pricing strategies and your cost structures. You form joint ventures and strategic alliances with other companies and organizations that can give you entry into different markets and enable you to outcompete your competitors.
Scenario planning is neither an episodic activity nor a new technique: it is a way of thinking that works best when it permeates the entire organisation, affecting decisions at all levels. However, unlike most popular management initiatives, it does not require major investment in resources or restructuring, simply a commitment for people to take time away from their routine activities to come together to reflect and learn.
People normally think of strategy in terms of action — a strategy is what an organization does. But strategy also embodies an approach to overcoming some difficulty. Identifying the difficulties and obstacles will give you a much clearer picture of the pattern of existing and possible strategies. Even more important, you will gain access to how changes in some factors may radically alter the mix of efficacious strategies. To gain this change in perspective, shift your attention from what is being done to why it is being done, from the directions chosen to the problems that these choices address.

Create A Team Governance Plan

Most business leaders recognize the power of a strong identity. They understand how alignment between strategy and execution enables a company to win, and they recognize the role of distinctive capabilities in creating that alignment. They also see the level of focus this requires. Why then do they let their companies get distracted?
Developing capabilities requires experimentation, trial and error, and iterative learning to figure out what will work in each organization’s unique culture, functional structure, and environment. Faced with lengthy lists of best practices and new processes that don’t match reality, teams simply give up and revert to old patterns of behavior.
To be more productive, organisations require the right people and the right resources in position at the right time. They must also instil a culture that encourages continuous learning and improvement.
In organizations and politics, the longer a pattern of activity is maintained, the more it becomes entrenched and the more its supporting resource allocations are taken to be entitlements. It would take enormous political will and the exercise of great centralized power to overcome the present levels of institutional resistance to change. Such power is, of course, possible, but it would take a crisis of epic proportions to engender it.

Overcome Resistance

Different businesses have different goals and take different routes to fulfil those goals. These routes constitute the business strategies of these businesses. While it is easy to understand the definition of business strategy, sometimes it’s an uphill task to form and execute a successful one.
By creating a business strategy a company can create a competitive advantage and ultimately understand more about themselves and where they are going.
An isolating mechanism inhibits competitors from duplicating your product or the resources underlying your competitive advantage. If you can create new isolating mechanisms, or strengthen existing ones, you can increase the value of the business. This increased value will flow from lessened imitative competition and a consequent slower erosion of your resource values.
Good leadership and good decision-making go hand in hand. Effective leadership depends on an ability to know when to press ahead and when to change course, as well as the ability to show purpose and direction. This is essential when mobilising people, determining priorities and generating commitment.

Managing Slumps

History shows that industries are constantly being created and expanded over time and that industry conditions and boundaries are not given; individual actors can shape them. Companies need not compete head-on in a given industry space.
Value innovation is a distinct concept. It is about strategy that embraces the entire system of a company’s activities. Value innovation requires companies to orient the whole system toward achieving a leap in value for both buyers and themselves. Absent such an integral approach, innovation will remain divided from the core of strategy.
Desperation in a time of crisis triggers a change of attitude. A company could be in the midst of decline, facing imminent failure, or even confronting bankruptcy, and everyone knows it. The only possible responses are fight or flight — either build the capabilities the company will need for the long term while stanching the bleeding in the short run, or look for a niche where the company can defensively survive a while longer.
If you’re asking your team members to do something new, they may worry about risking failure or about changing their status from master to apprentice. Perhaps you’re asking them to throw out comfortable assumptions—that they provide a certain kind of value to the company, that the work they do is stable and prosperous. Maybe change upends the established balance of power, bringing some skill sets and experiences to new prominence and devaluing others.

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