STRATEGIC MANAGEMENT : PLANNING AND EXECUTION Strategic Management management that bases all actions, activities, and decisions

s on what is most likely within an ethical framework to ensure successful performance in the marketplace. COMPONENTS OF STRATEGIC MANAGEMENT 1. Strategic Planning involves developing a written plan (vision, mission, goals, action plan) 2. Strategic Execution involves implementing strategies set forth in strategic planning, monitoring progress toward their achievement, and adjusting as necessary STEPS TO STRATEGIC PLANNING 1. 2. 3. 4. 5. 6. 7. Developing Mission-Vision Statement Developing Guiding Principles Situation Assessment Developing Goals Developing Objectives Developing Action Plan Implement and Review

CREATIVE THINKING AND STRATEGIC PLANNING o o o Creative thinking is crucial in strategic planning Creative thinkers are persons who look into the business environment from a different perspective, challenge outdated paradigms that no longer work, and poor defenders of the status quo. They are the mavericks in organizations.

Conducting SWOT Analysis 1. Identifying Organizational Strengths competitive advantage 2. Identifying Organizational Weaknesses competitive disadvantage 3. Identifying External Opportunities opportunities in the organizations business environment; potential venues for growth 4. Identifying External Threats a phenomenon in an organizations business environment that has the potential to put the organization at a competitive disadvantage

Developing the Vision Vision is like a beacon in the distance toward which the organization is always moving

Characteristics of a well-crafted vision statement: 1. Easily Understood vision should be structured in a way that everybody in the HR spectrum can understand very well 2. Brief but comprehensible vision should be direct to the point and does not need further explanation to describe it

3. Challenging yet attainable management can construct the vision in a simple manner but can bring out the fiery spirit in their employees that they can do it. 4. Lofty yet tangible big words in the vision statement can be discouraging and daunting to whoever reading it, so make sure to use it sparingly so that they can feel that the vision statement is attainable and within grasps. 5. Stirs excitement since wordings are lofty and challenging, it can create a sense of excitement if they have actually achieved the vision. 6. Creates unity of purpose this serves as guidepost of the organization 7. Not concerned with numbers vision does not hassle itself as to how much work can be done, it inspires everyone that work should always be done and accomplished within the workday 8. Sets the tone vision statement sets the atmosphere of work and essence in the workplace Sample : Business Express Airlines will be recognized as the premiere air carrier in the United States for business travellers.

Developing the Mission Mission who the organization is, what it does, where it is going Sample : Business Express Airlines (BEA) is a domestic air carrier dedicated in providing business travellers with air transportation that exceeds their expectations in terms of cost, convenience, service and dependability. To this end, BEA provides air carrier service to add from a steadily increasing number of major hub airports in the United States Rules of Thumb in Creating Mission Statements Describe who, what and where of the organization Be brief, but comprehensive Choose simple words, easy to understand and descriptive Avoid how statements

Developing the Guiding Principles It represents the organizations value system (foundation of its corporate culture) A concept that applies to all levels (rank and file employees to executives) Sample: St. Lukes Medical Centers Corporate Values S ocial responsibility P assion for excellence I nnovation C ustomer focus E xpertise T eamwork Developing Strategic Objectives and Goals Translate an organizations mission into measurable terms Fall into the realm of what rather than how

 Characteristics: Broadly stated Specific enough to be measured Single issue focus Tied directly to the vision/mission In accordance with the guiding principles Show what the organization wants to accomplish Developing Action Plan consists of specific tactics that are well-defined, finite projects and activities undertaken for the purpose of achieving a specific desired outcome. Characteristics of Specific Tactics 1. Specific in nature 2. Measurable 3. Quantifiable 4. Can be accomplished within a time frame 5. Can be assigned 6. Tied directly to a broad objective Execution and Progression of an Action Plan To put less energy and thought into execution than into planning is a major error because even the best strategic plan wont help an organization if it is poorly executed. Critical Steps to Successful Execution: Communicate through feedback Build capability Establish strategy-supportive stimuli Eliminate administrative barriers Identify advocates and resisters Exercise strategic leadership Be flexible and improvise Monitor and adjust as needed Review the current status and make necessary adjustments.