WHAT SHOULD BE THE LONG TERM STRATEGY AND STRUCTURE OF THE BUSINESS?

What Should Be the Long Term Strategy and Structure of the Business?



What Should Be the Long Term Strategy and Structure of the Business?

Strategy of an organization is the roadmap towards attainment of its long term goals and objectives. Strategic management is the process of operationalization of the firm's strategy. It entails obtaining a fit between organizational strategy, structure, and environment. The organization operates in an external environment. It is imperative for the organization to conduct an industry analysis for efficient strategic management process.

A long term strategic Plan (or an Operating Budget for that matter) should never be cast in stone - but should be built as a tool, a guide, and remain somewhat flexible to “rationally” adapt - within certain constraints and authorizations of course! An Operating Budget or even a Biannual “Plan” is not a Strategic Plan; more correctly it is an implementation of a “living” strategic Plan. Why is “living” Plan emphasized? Too often, if a long term strategic plan is indeed written, it might actually just be accumulating dust, only to be brushed up during the next budget planning cycle. A proper long term strategic Plan needs to be developed that is continually used and evaluative information constantly fed back, just as certainly as the operating budget is reviewed by the Executive Committee and at Board Meetings frequently.

The second portion of the above Strategic Planning Chart (modified from the original by Higgins & Vincze in “Strategic Management”) emphasizes that the full process is actually circular. Once the Plan is originally accepted and prioritized, the Evaluation and Feedback regularly and continually updates and refocuses the entire plan. Again and of course, Policy Authorization Strategists need to meet on a pre-determined schedule or as required. This could ...