The Truth Is You Are Not The Only Living Soul Bothered About Evaluating Business Master Plan Integrations

A good strategy includes a set of coherent actions. They are not “implementation” details; they are the punch in the strategy. A strategy that fails to define a variety of plausible and feasible immediate actions is missing a critical component.
A lack of connection between strategy and execution stems in part from the ingrained habit of not taking strategic issues into account when planning new implementations. With such habits in place, it becomes very challenging to build and develop distinctive capabilities. You may have to unlearn the old ways you put capabilities together and learn new ones that are linked closely to your strategy from the very first moment.
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.
In the early days you may be able to fly under the radar, but at some point, if you want to truly have an impact on the business, you’ll need the backing and support of key executives.

Cut Costs To Grow Stronger

A hallmark of true expertise and insight is making a complex subject understandable. A hallmark of mediocrity and poor strategy is unnecessary complexity — a flurry of fluff masking an absence of substance.
Dissect your past strategies. Which strategies have worked and which haven’t? Which strategies were supported by your employees and other stakeholders, and which weren’t? How well did you implement previous strategies?
It is often said that in many organisations, too much attention is paid to norms, rules, procedures and precedents and not enough to creative thinking. However, many of the problems that organisations face today cannot be solved without a creative approach.
Pay attention to the details as you roll out projects (and add more projects as more resources become available). Everything is going to impact implementation. Do you have the right organization structure? Is the information reaching the people it needs to reach?

Operating In Many Modes

It’s far more difficult for large organizations to tolerate risk than it is for smaller ones. They simply have much more to lose. Big businesses are more inclined to accept lower-risk concepts than new ideas that involve greater risk. Smaller organizations looking to edge out much larger counterparts must have a greater propensity for failure.
The operating knowledge used to run distinctive capabilities in most companies is tacit. In other words, it is held within the minds of people doing the work, is habitually followed, and is passed on through on-the-job training. This tacit knowledge is rarely written down in any systematic way. Because this knowledge is learned on the job, often within a function or business unit, it varies across different parts of the enterprise, often with some parts of the organization being far more capable than others.
For decisions to be formulated accurately and implemented effectively, people must have the freedom to act and to be able to exploit their potential. This requires the removal of unnecessary bureaucratic or procedural constraints, giving people clear (and possibly expanding) areas of responsibility and authority.
Ensure that your strategic plan is still appropriate, clear, and embraced by the team. It’s often shocking to most leaders, but up to 95% of employees are unaware of, or don’t understand, company strategy. Update the plan as needed and make sure it can be summarized in a short, clear statement that employees can express with confidence and energy.

Reorganize To Drive Change

Almost by definition, a strategy can never actually be fully implemented because everything that you necessarily assumed when formulating it—about customers, technology, regulation, competitors, and so on—is in a constant state of flux. CEOs and their business unit leaders must continuously evolve their strategies if they are to remain relevant and competitive. And if that’s the case, there will always be a gap between where their companies are and what their strategies call for.
Leaders need to think hard about how to make purpose central to their strategy. The two best tactics for doing that are to transform the leadership agenda and to disseminate purpose throughout the organization.
To achieve great victories, you must be clear about your goals and objectives at every level of the business. This requires that you know exactly what it is that you want to accomplish and how you are going to go about accomplishing it. This is the first principle of strategy.
Having conflicting goals, dedicating resources to unconnected targets, and accommodating incompatible interests are the luxuries of the rich and powerful, but they make for bad strategy. Despite this, most organizations will not create focused strategies. Instead, they will generate laundry lists of desirable outcomes and, at the same time, ignore the need for genuine competence in coordinating and focusing their resources.

Determine Your Corporate Mission

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.
Learn as much as you can so you’re informed, not just reacting to rumor and innuendo. Use your internal network and ask others in the organization for insight, context, and clarity. When you’ve done the hard work of sense-making, you’ll be able to anticipate the questions your team will ask and prepare the most effective answers you can.
Many people ask why “capabilities and management systems” are part of strategy when they are really elements of execution. That is yet another manifestation of the widespread, artificial, and unhelpful attempt to distinguish between choices that are “strategic” and ones that are “executional” or “tactical.”
Ensure that the products/services you plan to build are unique, with clear differentiation and that they are aligned with your business. Think back to when Apple launched the iPod, a truly innovative product. The company has since been well-known for its brand and quality. Along with its computers, people buy Apple's other products too, like the iPhone, iPad, etc., even though they might be more expensive than the alternatives.

Recognize Who Your Stakeholders Are

Our strengths are our core competencies—those things we do better than any of our competitors or that really tie together all the products we offer in a unique way. What internal structures or expertise do we have that are a special source of pride? This becomes the center for determining what we will do in the future. We want to constantly build on the things we already do particularly well.
An Integrated Cost Leadership/Differentiation Strategy involves producing low-cost products with differentiated features. This strategy is about simultaneously focusing on two drivers of competitive advantage: cost and differentiation. This type of strategy is often called a hybrid strategy.
Scenario planning helps provide a better understanding of how different factors affecting a business effect each other. It can reveal linkages between apparently unrelated factors and, most importantly, it can provide greater insight into the forces shaping the future, delivering real competitive advantage.
Experience shows that risk must be actively managed and accorded a high priority, not only within the decision-making process but permanently and throughout the organisation. This might mean that risk-management procedures and techniques are well documented, clearly communicated and regularly reviewed and monitored. In order to manage risks, you have to know what they are, what factors affect them and what their potential impact is.

Compensate Fairly And Well

Focused low-cost business strategies are similar to focused differentiation strategies, but their point of differentiation is specifically lower-cost products and services. An integrated low-cost/differentiation strategy is the middle ground between focused differentiation and focused low-cost business strategies. It’s effectively a hybrid model where differentiated products are sold at a lower-than-average price point.
Two common mistakes beset decision-making. The first is to react to a situation as if it were a unique series of events, when the problem it reflects is a generic one requiring the application of a consistent rule, principle or strategy. This results from an inability to see the big picture or to understand where the events might lead. The second is to perceive a situation as if it were a generic issue requiring an old solution; if it is a new type of situation, a new solution is required.
It’s essential to think about who your stakeholders are before diving into strategy discussions. But simply identifying these groups or individuals is not enough. You must also think carefully about their wants and needs—as well as your own—to have a better understanding of how they align with your potential strategy.
Many management fads come and go, with greater or lesser success. But one management skill is always the most valuable, and that is the ability to develop a clear, workable strategic plan that gives you a competitive advantage in your marketplace.

Cash Flow Is Critical

Strategic groups can generally be ranked in a rough hierarchical order built on two dimensions: price and performance. Each jump in price tends to bring a corresponding jump in some dimensions of performance.
In business, a strategy is the long-range sketch of the desired image, direction and destination of the organisation. It is a scheme of corporate intent and action, which is carefully planned and flexibly designed with the purpose of achieving effectiveness, perceiving and utilising opportunities and meeting challenges and threats.
Small organizations know the importance of staying on the move. The most innovative ones are sources of constant motion and creativity. For this reason, you should husband your strength and resources so that you can concentrate energy when it’s needed. This requires you to carefully be in tune with the capabilities and limitations of all of your people. The better your leaders know their people and their limitations, the better they’ll be able to gauge when undue burden is placed on them, so they can always bring out their best.
Budget according to what actual expenses have been in the past, but be proactive as well. Determine a reasonable amount to spend on office supplies and budget accordingly. You can establish other benchmarks by comparing your expenses with other companies in your industry. If you belong to a trade group, find out how other members have done relative to their projections. Have they come in over or under their projections? Did they miss or exceed the mark by less than 5 percent—or by more than 10? Try to find out how specific competitors have done. If all else fails, find out how businesses in your region do in general.

Get The Strategic Sequence Right

If your strategy is to be a specialist company, making something for a certain type of customer, or if you have a geographic focus, then you probably want to be decentralized into different business units. But you still need to coordinate across your decentralized units.
How is your company’s leadership making informed decisions about the arrangement of your company as a complex system of many moving and interconnected parts—including organizational capabilities, resources, and management systems—all aimed at fulfilling one overarching purpose? What frameworks and information do your leaders require to ask good questions, have better conversations, and make robust strategic and organizational choices?
Divestment strategy means that you have to get rid of yesterday before you can go on to tomorrow. What are you going to get out of, cut back on, remove, or eliminate altogether? One of the basic rules in strategic thinking is to never go into something new until you have gotten rid of something old. Never expand into a new area until you have divested yourself of something in an older area.
We are living in an age of the most dramatic change in all of history. What worked very well for some companies for a long time does not work at all today. Companies like Blockbuster and Borders Books went from market leaders to bankruptcy in just a couple of years when the business environment changed.

Business Strategy Implementation

We should not let the simplistic but comforting dualism of strategy and execution deceive us. Execution should be as varied, as thoughtful, as subtle, as diverse, and as intertwined with strategy as is necessary to get the job done, and that will vary according to the specific challenge at hand. In short, your execution needs a strategy.
A good place to start closing your strategy-to-execution gap is by first defining two or three primary elements of your identity: a clear, recognizable value proposition and the capabilities system that supports it. You continue to iterate these; with each iteration, you match them more closely together. At some point you must consider how these fit your portfolio of products and services and how to drive coherence among all three elements.
If you make a commodity product, your strategy is going to be based on becoming a low-cost producer. In this case, your structure is intended to achieve economies of scale and scope. What can you standardize? How can you reduce costs? What tasks can you make repeatable?
A business should demonstrate its honesty and integrity to both the outside world and its own employees. Decisions that lack integrity are unlikely to succeed and are likely to be damaging. Dishonesty leads to difficult decisions becoming worse or harder to make, and it may become impossible to make or implement future decisions as people’s trust and respect diminish.

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