MANAJEMEN STRATEJIK

INTRODUCTION
&

STRATEGY MAPS
040913180 Mahmudati Amaliyah 040913299 Devinta Ajeng Pitaloka 041013002 Dwi Damayanti 041013123 Nur Aini Firdaus 041013137 Febi Citra Maulina 041013138 Farida Amelia

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INTRODUCTION

What is Strategy?

Describes how it intends to create value for its shareholders, costumers, and citizens. Actually based on observations, therere no two organizations thought about strategy in the same way. Basicly, strategic doctrines existed around: 1. shareholder value 2. costumer management 3. process management 4. quality 5. core capabilities 6. innovation 7. human resources 8. information technology 9. organizational design 10. learning

Describing Strategy The Balance Scorecard offers just such a framework for describing strategies for creating value. The Important elements of BSC framework: 1. Financial performance 2. Customer value proposition 3. Internal processes 4. Learning and growth objectives Link of those 4 elements chain of cause-andeffect relationship The framework for value creation in publc-sector and nonprofit organizations is similar to the private sector framework.

How the Organizations Creates Value

The four perspectives model provides a language that executive teams can use to discuss the direction and priorities of their enterprises as a series of causeand-effect linkages among objectives in the four Balanced Scorecard perspectives.

STRATEGY MAP is a visual representation of the cause-and-effect relationships among the components of an organizationss strategy. provides the missing link between strategy formulation and strategy execution. provides a normative checklist for a strategys components and interrelationships.

Several Principles of The Strategy Map:

Strategy balance contradictory forces Strategy is based on a differentiated costumer value proposition Value is created through internal business processes (operations management, costumer management, innovationm regulatoru and social) Strategy consists of simultaneous complementary themes Strategic alignment determines the value of intangible assests (human capital, information capital, organization capital)

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STRATEGIC MAPS

Strategy how an organization intends to create sustained value for its shareholders. Creating value from intangible assets DIFFERS in several important ways from creating value tangible assets, its because: 1. Value creation is indirect: intangible assets seldom have a direct impact. 2. Value is contextual: depends on its alignment with the strategy. 3. Value is potential: intangible assets have potential value but not market value. 4. Assets are bundled: intangible assets seldom create value by themselves.

The Balanced Scorecard provides a framework to illustrate how strategy links intangible assets to value creating processes. The Framework of The Balaced Scorecard: 1. The Financial Perspective: the tangible outcomes of the strategy. 2. The Customer Perspective: the value proposition for targeted customers. 3. The Internal Process Perspective: identifies the critical few processes that are expected to have greatest impact on the strategy. 4. The Learning and Growth Perspective: identifies the intangible assets that are most important to the strategy (which one are required to support the value-creating internal processes). Those four perspectives have objectives which linked together by cause-and-effect relationships is the structure which a strategy map is developed.

The Balance Scorecard as A Step Continuum describes what value is and how it is created

1. Mission Why we exist, the reason for the organizations existence.

2. Values Whats important to us

3. Vision What we want to be, defines the mid-to-long-term goals of the organizations.

4. Strategy Our game plan.

5. Strategy Map Translate the strategy 6. Balance Scorecard Measure and focus 7. Target and Initiatives What we need to do 8. Strategic Outcomes

FINANCIAL PERSPECTIVE

As the ultimate objective for profit-maximizing companies. Typically relate to profitability-measured. Two dimensions of a financial strategy are: Growth Strategy and Productivity Strategy. Growth Strategy Company can generate profitbale revenue growth by depending relationships with existing customers and by selling entirely new products. Productivity Strategy Company can reduce costs by lowering direct and indirect expenses and company can utilizing their financial and physical assets more efficiently. Actions to improve revenue growth generally take longer to create value than actions to improve productivity. So, growth strategy is long-term dimension and productivity strategy is short-therm dimension.

OPERATIONS MANAGEMENT PROCESSES

There are four ways organizations can improve their operations management processes to deliver goods and services: Develop and sustain supplier relationships. Produce products and services Distribute and deliver products and services to Customers Manage risk.

CUSTOMER PERSPECTIVE IS BASED ON DIFFERENTIATED VALUE PROPORTION

>> Outcome from a well formulated and implemented strategy : 1. Customer satisfaction 2. Customer retention 3. Customer aqcuisition 4. Customer profitability 5. Market Share 6. Account Share

>> A company that can understand who its targeted customer are, it can identify the objectives and measures for the value proporsition to offer. >> Value proporsition should communicate what the company expects to do for its customer better or differently than its competitors

INTERNAL PERSPECTIVE : VALUE IS CREATED THROUGH INTERNAL BUSINESS PROCESSES

>> Objective in the internal and learning and growth perspectives describe how the strategy will be accomplished. >> Internal processes accomplish 2 vital components of an organizations strategy : 1. Produce and deliver the value proposition for customers 2. Improve processes and reduce costs for the productivity component in the financial perspective >> Organizations internal processes 4 clusters 1. Operations management processes 2. Customer management processes 3. Innovation processes 4. Regulatory and Social processes

VALUE-CREATING PROCESSES

There are a few processes that companies must focus on to deliver a differentiating value proposition and that are most critical for enhancing productivity and maintaining an organizations franchise to operate.

CUSTOMER MANAGEMENT PROCESSES

Customer management must: Select customers. Acquire customers. Retain customers. Grow relationships with customers.

Strategy maps can provide significant value to companies using other quality programs in these four ways:
They provide explicit and testable causal linkages between strategy and reality. They establish targets beyond existing best practices. They identify entirely new processes that are critical for achieving strategic objectives. They set strategic priorities for process enhancements.

INNOVATION PROCESSES
Managing innovation should include four important processes: 1. Identify opportunities for new products and services. 2. Manage the research and development portfolio. 3. Design and develop new products and services. 4. Bring new products and services to market.

REGULATORY AND SOCIAL PROCESSES

1. Environment. 2. Safety and health performance. 3. Employment practices. 4. Community investment.

STRATEGY IS A CONCEPT IN A CONTINUUM

Strategy is one step in logical continuum that mmoves an organizaytion from high level mission statement to the work performent by frontline or backline employees. Mission of organization is profides the starting point by defining why or how to make the organization exist Vission of organization is provides the future picture of the organizations direction and help everyone to understand why and how they should support the orgnization.

Mission and vission statement dset the goal and direction of organization that can help the stakeholder of company like shareholder, customer and employee understand what the company is and what it intends to achieve.

Porters arrgues that strategy is selecting the set of activities in which an organization will excel to create the sustainable differences in marketplace

FINANCIAL STRATEGY

Basically financial strategy are simple. The company can make more money with selling more and apending less. Deepenning the relationship with excisting customer and produce th product is the example of financial strategy to generate profitable revenue rate The second dimension of financial strategy is productivity improvements. Company can reduce the direct and indirect expensse and company is utilizing their financial andphysical asset efficiently.