The third element of the strategic management process is implementation. In order to compare and identify the strategic management model characteristics, three strategic management models were selected.
Strategic planning is a systematic process of envisioning a desired future, and translating this vision into broadly defined goals or objectives and a sequence of steps to achieve them.
In contrast to long-term planning which begins withthe current status and lays down a path to meet estimated future needsstrategic planning begins with the desired-end and works backward to the current status.
At every stage of long-range planning the planner asks, "What must be done here to reach the next higher stage? The following notes are based on an article by Morgen Witzel, Financial Times, 5th August,p Henry Mintzberg has been called 'the great management iconoclast' owing to his willingness to attack previously sacred concepts in business and management.
His commonsense approach to management issues has earned him a very wide following and he is perhaps best known for his work on business strategy, where he is said to have exposed the gaps between academic concepts of strategy and reality.
Michael Porter, the other main modern-day strategist, adopted a particular focus on organisational and governmental competence and competitiveness and has written several popular books on business strategy; he has also developed a number of often-used tools and techniques, two of which, his 'Five Forces' and 'Value Chain' models are described later in this module.
Igor Ansoff is another acknowledged contributor to the development of thinking and practice on business strategy. Regarded by many as one of the pioneers of strategic planning, he was a strong proponent of the 'Planning' school of thinkers.
Do we need a formal strategic plan? There is more than one format, but all strategic planning needs to go through a systematic process to determine if a formal plan is required. Choices have to be made based on a rationale and on information, and a procedure or planning method has to be followed. Beyond making decisions, 'strategic planning' can and should be used to interact with internal and external stakeholders, building understanding and commitment.
Depending on the circumstances 'strategic planning' can take one day or several months. The time period reflected in the plan varies, although most authors seem to agree on a time horizon of 3 years or more. The following sections detail all steps of a strategic plan.
Any formal planning exercise requires time and resources; resources can be in terms of money or staff time and there should be an understanding of the opportunity costs involved as well as real costs.
The timing needs therefore to be appropriate and the resources mobilised proportional to the task and intended outcome. Strategic planning is important whether the organisation's direction needs reviewing, whether its priorities have changed or whether the means of achieving desired objectives need to be updated due to internal or external forces effecting delivery.
The first consideration is to determine whether: If the answer is Yes, then the next step is to set in motion the processes for developing the strategic plan and determine 'early stage' roles: The Classic 4-Step Approach to Strategic Planning Here we introduce a very useful structured approach to strategic and change management planning, which was developed from work done initially by Price Waterhouse accountants in the s.
The 4-Step approach is a simple structure that helps us to look both holistically and in detail at the drafting and development as well as the implementation of our Plan: Where are we now? Where do we want to get to?
How are we going to get there? How will we know when we have got there? This should be an honest and realistic assessment of our position across key factors in the organisation generally and in our part of theorganisation specifically; any ducking of issues or avoidance of existing problems here will have a detrimental impact later.
The context of the strategic plan new, update, far-reaching changes will decide which of the following elements to include.
Too much information can cause 'paralysis by analysis', equally too little can result in mistakes. An organisational audit provides objective data about an organisation's set-up, its performance and its problem areas. Organisational history is important, events such as its founding, mergers or dissolutions, changes in senior staff, start or end of main programmes on a time line.
It is important to capture this information as it will help the planning process as it will help to understand organisational culture and how the organisation was set up.
Organisational profile is a stock-take on all current programmes, grouped as appropriate by outcomes or beneficiaries, with indication of coverage, costs, and revenue used. The profile includes, as well information on operation, support functions such as human resources, finances, and governance board, management team.
This is important as it will help to provide a baseline of resources currently utilised and those that might be channelled into new work. Previous and current strategies are the main approaches the organisation has chosen when allocating resources and identifying objectives.
It is important as it shows where the organisation has concentrated its efforts in the past and what investment the organisation has used to reach its position?
Financial assessment is important to establish the stability or volatility of the organisation and to consider previous trends in revenue and expenditure. The organisation will need to consider how much ability it has to move resources from current programmes to invest in the new strategy.
Governance structure assessment is important as this will support the success or failure of the strategic plan. This will include both formal Governance of the organisation as well as all resources required.However, Henry Mintzberg takes a fundamentally different view of strategy formulation and suggests that it is an emergent process where in strategies are formed in response to events or changes in the business environment.
Strategy Formulation, as Outlines by Henry Mintzberg and Joseph Lampel, to the Focus on Strategic Management Within the Education Sector. Words | 15 Pages Discuss the relevance of the ten schools of strategy formulation, as outlines by Henry Mintzberg and Joseph Lampel, to the focus on strategic management within the Hong Kong lifelong.
The three stages are: (1) The formulation of business and Human Resource (HR) strategy through one/two-way vertical fit; (2) The implementation of HRM systems and employee-related interventions; and (3) The evaluation/review of HRM systems for increased efficiency and best vertical and horizontal fit.
SELECTED BIBLIOGRAPHY For a recent, critical overview of strategy development in business organizations, see Henry Mintzberg, The Rise and Fall of Strategic Planning (New York: The Free Press, ). He outlines the many shortcomings he sees in the way strategies were developed in organizations in years past.
Based on their approaches to stakeholder involvement, policy integration, and project promotion, this article identifies three schools of thought on strategic spatial planning: the performance school, the school of innovative action, and the school of transformative strategy formulation.
In addition to providing a guide for a more informed design and analysis of spatial strategy practices. Strategy Safari, the international bestseller on business strategy by leading management thinker Henry Mintzberg and his colleagues Bruce Ahlstrand and Joseph Lampel, is widely considered a classic work in the field.4/5.