My Key Takeaways from week 2
Article – The Real Value of strategic Planning:
This article explained about how most companies invest ample amount of time and effort in a formal, annual strategic planning process, yet they get very little benefit from their strategy process. Kaplan lists some key questions that needs to be addressed before a strategy meeting – who needs attend the reviews?; how long should the reviews be?; where should they be held?; what should be discussed?; how should the conversation be conducted? How much preparation is needed? What kind of follow-up is required?. Of the above mentioned questions, three things got my attention and I have planned to apply them in my real life scenarios. First, the meeting should only have members who can contribute meaningfully to the plans. Second, a document detailing the strategy should be sent out at least a week before the meeting, this would allow participants the time they’ll need to study it. The meeting should be a place to ask questions and debate the issue instead of discussing about the problem. Third, a disciplined follow-up is essential. Follow-up assures that the strategic plans do not lie ignored on the executive bookshelf but are living documents that drive actions and performance. I am planning to first implement these three strategies in my meetings hereafter.
Building Your Company’s Vision:
The Core ideology and the purpose is what defines a company. The strategies and success are just a part of the company that varies periodically. Truly great companies understand the difference between what should never change and what should be open for change. The company’s Vision provides guidance about what core to preserve and what future should be envisioned to drive the company. Many successful companies have correctly found their BHAGs (Big, Hairy and Audacious Goals). I have seen many companies that went out of market as they didn’t realize their core purpose. One of my friend founded a start-up that initially focused on connecting Healthcare professionals online. It was started with a vision to support Healthcare. But eventually he drifted off from his purpose and extended it as an online platform for other commodities. By failing to stick to the core purpose, the company lost its reputation and went off the market.
Your Strategy Needs a Strategy:
Before formulating a plan one should consider several factors for that strategy. To choose a right strategic style one must understand their company’s structure, adaptability and vision. Each style is associated with distinct planning practices and is best suited to one environment. A strategy that works well for an automobile company where the market growth is slow does not work in the same way for a company like software providers where the market is rapidly changing. So once you have analysed and identified your environment, a right strategy can be easily applied and can be continuously monitored to adjust as conditions change over time. As far as I have observed, Companies that continually match their strategic styles to their situation will enjoy a great advantage over others.