What Are Enterprise Methodology Integrations And Why Is This Topic Important To You?

Strategic planning should have a creative component instead of being strictly analysis-driven, and it should be more motivational, invoking willing commitment, than bargaining-driven, producing negotiated commitment.
Understanding the market means, above all, building a detailed knowledge of customers’ needs and wants, as well as what they do not want. It is also essential to develop an appreciation of customer expectations, particularly in terms of quality, price, customer service and the sales process. Knowing who will buy and why are fundamental questions. How, where and when they currently purchase and would like to purchase are also significant.
To boost performance, well integrated companies don’t have to change their culture; they have to recognize its value and use it to reinforce the way they coalesce across their strategy and execution. These cultures make it easier, not harder, for people to work together across internal boundaries (like those of functions and business units). They have a climate of grand aspiration, drawing people to contribute and excel, and to bring more of themselves to work. The interplay between capabilities and culture becomes a defining feature of the enterprise.
Your job is to have the courage necessary to face the situation honestly and do what you know you have to do. Don’t play games with your own mind. Do not wish or hope that things will get better or that the problem will go away. Hope is not a strategy.

Go For The Biggest Catchment

The work of discerning whether there are important changes afoot involves getting into the gritty details. To make good bets on how a wave of change will play out you must acquire enough expertise to question the experts. As changes begin to occur, the air will be full of comments about what is happening, but you must be able to dig beneath that surface and discover the fundamental forces at work.
The pace of change has significantly increased in recent years and the competitive arena has enlarged, driven by, for example, larger international corporates with an appetite for new markets, reduced barriers to international trade, and technology.
Because a global strategy requires a strong global presence to start with, it’s often the end-game for international businesses, moving through the other models before achieving a truly global brand. As a company, you’re taking a gamble that your product has so much universal appeal that it will create demand regardless of market tastes and preferences — which is also why so few companies truly achieve this status:
On one hand, functions are treated as sources of expertise within the enterprise, which gives them an incentive to emulate world-class functions in other companies—to whom they will inevitably be compared. On the other hand, they are set up as cost centers and service bureaus, mandated to meet the needs of all their constituents as rapidly as possible under the ceiling of their budget.

Competitive Advantage

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.
Decisionmakers must be in touch with customers, seeking opportunities to meet with them formally and informally. Customers usually welcome the opportunity to have their voice heard and this simple measure informs the views of senior managers.
Administrative firms are high process but low input. These firms follow rigorous processes and well-defined routines to make strategic decisions without actually eliciting debate from other employees. One benefit is the detailed data collection and documentation that accompanies this extensive process. If administrative firms are smart, they can leverage this information to improve future decision making.
One big reason companies get distracted is the daunting pressure that many companies face: to seek growth in the face of uncertainty, increased competition, and relentless commoditization. They pursue many diverse growth avenues and organizational interventions. They do this in the name of agility or resilience or with the idea that if they try a lot of things or let a thousand flowers bloom, they’ll be more likely to find a path that works. This saves them from having to make difficult choices in advance about their portfolio, and to allow them to hedge their bets.

The Right Combination

In the past, you chose your product, then sought out customers. In many cases today, however, companies are identifying the customer and the customer’s exact needs and then retrofitting or reverse engineering product and service development based on what the customer says he or she wants. Companies are moving from “product development” to “customer development” and not even creating the product until the customer has agreed to buy it at a particular price.
To be successful in strategic planning and in business, you must become brilliant on the basics of strategic planning, and you do that by continuing to ask and answer the right questions.
Many companies, especially those with multiple product/service lines, use return/profit as their driving force. They will purchase or start a company or enter into any market where they can earn excellent profits.
The structure of the industry will significantly effect the profit potential of the business operating in that industry. The strategy and actions of a business operating in the industry may improve or destroy the industry structure. Each business (and the relevant decision takers) must recognize and evaluate the impact, short term and long term, of actions taken on the overall industry structure and attractiveness.

Reducing Business Risks

To build competitive advantage, an organisation must encourage challenges to accepted norms and engage in direct dialogue with customers and other stakeholders. It should not rely on assumptions that have little evidence to support them. Having a corporate culture that encourages or allows this is essential. In reversal theory terms, the rebellious motivational state, rather than the conforming state, needs to dominate.
Entropy is a great boon to management and strategy consultants. Despite all the high-level concepts consultants advertise, the bread and butter of every consultant’s business is undoing entropy — cleaning up the debris and weeds that grow in every organizational garden.
The greatest challenge with global strategy is knowing how much standardization to pursue. Even top global brands still invest in some level of localization and adaptation to local markets — just not so much that it infringes on their scale and efficiency. You should expect to invest in a solid localization process so that your customers can interact with your website, mobile app, packaging, and more in their home language.
It used to be that the strategy for growing operations went in only one direction: scaling up. Scaling up was the best way to get the most productivity and to reduce unit costs. Bigger was better. Ten 100-ton dump trucks using ten drivers carry the same amount of load as 100 ten-ton dump trucks requiring 100 drivers! So scale up to those 100-ton dump trucks as soon as you can.

Determine Your Purpose

Sustainability has introduced the concept of stakeholder dialogue to business, and diverse perspectives are needed for companies to develop resilient business strategies. And while stakeholder engagement has sometimes been seen as a matter of fairness or, let’s face it, the appeasement of critics, it is also just smart business.
To engage all of your employees in the company’s strategy, you have to set the right incentives. The keys to good incentives are incentives that do not demotivate people (do your incentives spark a need for achievement?); incentives that fuel and guide motivation but don’t try to create it (that doesn’t work); incentives that are tied to strategic objectives; and incentives that reward the right things.
An anomaly is a fact that doesn’t fit received wisdom. To a certain kind of mind, an anomaly is an annoying blemish on the perfect skin of explanation. But to others, an anomaly marks an opportunity to learn something, perhaps something very valuable. In science, anomalies are the frontier, where the action is.
Strategy is about action, about doing something. The kernel of a strategy must contain action. It does not need to point to all the actions that will be taken as events unfold, but there must be enough clarity about action to bring concepts down to earth. To have punch, actions should coordinate and build upon one another, focusing organizational energy.

Think In The Long Term

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.
While there are many theories that explain why companies fail and succeed, they are mostly descriptive, not prescriptive. There is no step-by-step model that prescribes in specific terms how companies can formulate and execute their strategies to obtain high performance.
Strategy is formulated at the top, but it must be adopted by everyone throughout the organization. It’s best that top management communicate directly with all levels of the organization. But when it comes to implementing the strategy, centralizing decisions related to that strategy should be done very carefully.
In new or young high-growth industries where barriers to entry are low, innovation rates are high, demand is very hard to predict, and the relative positions of competitors are in flux, a company can often radically shift the course of industry development through some innovative move. A mature industry that’s similarly fragmented and not dominated by a few powerful incumbents, or is stagnant and ripe for disruption, is also likely to be similarly malleable.

Business Strategy Approaches

A balanced instinct counteracts the sterile, uniform structure of the rational approach. Instinct, intuition and emotion are resources that can be used to bring flair and insight, leading to the best decisions. It is also worth considering that unique human instinct provides a valuable commodity in business: scarcity. And scarcity often determines value.
A natural advantage of many good strategies comes from insight into new sources of strength and weakness. Looking at things from a different or fresh perspective can reveal new realms of advantage and opportunity as well as weakness and threat.
How could you position your products or services in such a way that they are clearly superior to those of your competitors? What could you do more of or less of to improve the attractiveness of your offering in comparison to your competitors? What could you start doing (or stop doing) to make your products or services more appealing than your competitors?
It seems some CEOs have an uncanny ability to predict the future. They may have unusual insights into their particular markets, and luck may play a part as well. In addition, they are prepared to create their own luck by cultivating an ability to see opportunities for their company and to make the deals that convert those opportunities into realities. Some things that may seem like amazing foresight are actually the result of the hard work and discipline it takes to constantly look forward to build a successful company.

Engage Others In Problem Solving

Make a prediction about the future even if it’s likely to be only partially accurate. Your vision of the future should inform the strategic bets you’re placing now.
No organization can succeed by concentrating on any one of these factors to the exclusion of the other two. Your challenge is to balance the resources you apply to each in proportion to priorities based on current situations and future positions.
Agile firms — especially startups — are always turning on a dime, and they certainly don’t seem to be following any kind of plan. Easy enough, then, to assume that what you see an agile firm doing — acting at high speed, maintaining a high tempo, being highly responsive — is all there is.
When management teams begin to think about their key stakeholders, they often launch right into what they need to do for customers, for employees, and so on, without thinking first about what they want from them. Why is sorting out the “from” so important? What an organization wants from each group of key stakeholders translates neatly into its objectives.

Consider The Impact Of Financial Decisions

Organisations should focus on opportunities where they may benefit from scarcity, keeping a special eye on the future. Where does scarcity lie and where is it likely to develop? In our finite world, there will always be bottlenecks, blockages or things that there is a need for but which are unavailable. But because someone somewhere will come up with innovative solutions, the scarcity will not remain the same for long.
What exactly are the products and services that you are planning to offer? What do they do to change or improve the lives or work of your customers? What is it about them that makes them clearly superior and the best choice for the customers that you are going after?
Market-based benchmarks — those pegged to the performance of your competitors — serve as minimum standards, not as the beall and end-all. They work for starters, and only if you can’t come up with better standards to measure your own performance. You do better to identify best-case performance standards and aim for those, irrespective of what your competition does.
Establishing systems that routinely provide accurate, reliable information is essential. Organisations need to exploit all knowledge, from information held on computers to the expertise and experience of their employees, to ensure that durable, effective decisions are made.

Comments

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