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Five Phases of Making and Executing

Strategy
Developing a Strategic Vision
Setting Objectives
Crafting a Strategy
Implementing and Executing
Monitoring, evaluating, making
corrective adjustments
Strategic Vision: Purpose
Deciding where the company
should go (creating a roadmap
of the future)
Deciding future business position
to stake out
Providing long-term direction
Giving firm a strong identity

Elements of Developing and
Implementing a Strategic Vision
Developing a mission statement
that defines the current business
where are we now
Determine the long-term course
where are we going
Communicate the strategic vision
in exciting terms get an
organizational commitment.
Missions vs. Strategic Visions
A mission
statement
focuses on
current business
activities -- who
we are, what we
do, why are we
here
A strategic
vision concerns
a firms future
business path --
where we are
going

Characteristics of a Mission
Statement
Defines current business activities
Highlights boundaries of current
business
Conveys
Who we are,
What we do, and
Where we are now
Company specific, gives an identity

Characteristics of a Strategic
Vision
Charts a companys future course
Defines the business makeup for 5
years (or more)
Specifies future technology-product-
customer focus
Indicates capabilities to be developed
Requires managers to exercise
foresight
Developing a Strategic Vision:
Things to Consider
External Factors
Internal Factors
Characteristics of an Effective
Statement
Common Shortcomings
Link with the Company Values

Components of Vision
Purpose
_________

Core Values
Core Ideology
Environment
BHAGs
___________
Vivid
Description
Envisioned Future
Why is a Strategic Vision
Important?


What is the Managerial Value?
Communicating the Vision
Purpose
Things to consider
Various Ways to Instill
Potential Resistance
PayOffs
Setting Objectives: Purpose
Converts strategic vision and
mission into specific performance
targets
Creates yardsticks for performance
Pushes firm to be inventive and
focused on results
Helps prevent complacency and
coasting
Establishing Objectives
Represent commitment to
achieve specific performance
targets by a certain time
Should be stated in
quantifiable terms and contain
a deadline for achievement
Spell-out how much of what
kind of performance by when
Purpose of Objective-Setting
Provides results-oriented decision-
making for what should be
accomplished
Provides a set of
benchmarks for judging
organizational performance
Objectives: Balanced
Scorecard Approach

What are the Two Main
Types of Objectives?

Which Takes Precedence?


Objectives: Additional Concepts

BHAGs
Short vs. Long-Term
Strategic Intent Concept
Various Organizational Levels
Top-Down vs. Bottom-Up