Wednesday, November 6, 2013

The Strategic Planning Process

Strategic Planning And Executive Action
In this case, I present an article from Boston Consulting Group Perspectives.  This article, of course, outlines six very specific areas that executives should consider in the Strategic Planning Process.  These areas are considered subsequent to discussing two constraints that, in some cases, hinder the strategic planning process.  Evidently, there is the matter of time as a scarce resource, and moreover, accountability for operating decisions.   

In any event, here are the six areas that executives should consider, that is, with the constraints mentioned earlier :

1. There is the matter of outlook, which can affect the degree to which functional and professional viewpoints, as versus corporate needs, will dominate the work of planning.
2. There is the question of the extent of involvement for members of the management operation. Who should participate and to what extent?
3. There is the problem of determining what part of the work of planning should be accomplished through joint effort, and of how to achieve effective collaboration among the participants in the planning process.
4. There is the matter of incentives – of making planning an appropriately emphasized and rewarded kind of managerial work.
5. There is the question of how to provide staff coordination for planning and this raises the issue of how a planning unit should be used in the organization.
6. And there is the role of the chief executive in the planning process – what should it be?
Your Strategy Needs Strategy
Strategy is ubiquitous in competitive markets, though as this article illustrates it is exigent that strategy be apposite for the industry.  That is to say, strategy isn't a one size fits all approach, and moreover, to make this dangerous generalization that strategy in one case is fine in others will lead to great detriment. The article discusses the rather conservative oil industry, and by contrast, the innovative internet software industry.   

The article breakdowns industries by properly assessing the industry.  Subsequently, the article posits that the factors predictability, and malleability are to above all else govern strategy formulation.  Moreover, Boston Consulting Group places these two variables into a matrix with four strategic styles.  In this case, they are classical, adaptive, shaping, and visionary.  See the uploaded picture for a clear idea of how this works.  

In the end, strategy is, of course, necessary in each industry.  Though, evidently, it is rather myopic to use frameworks in an axiomatic matter or generalize based on the salience of a particular framework as applied to one organization.  This, of course, is relevant to the McKinsey Quarterly article, "The Strategic Yardstick You Can't Ignore" because in my humble estimation, there is a linkage between the appropriate strategy, and economic profit.  This is, however, only my hypothesis, and would require further investigation.

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