STRATEGY FORMULATION
Strategy Formulation is a process that determines the future direction
of the organization and what organizational resources will be needed.
This process identifies business opportunities and resources that are
required to convert opportunity into success.
Developing a focused strategy and an implementation
plan is far more effective than leaving the future to chance.
Additionally, developing strategies, vision, mission, and specific
action plans greatly contributes to long-term, sustainable success. An
effective Strategy Formulation process will create higher levels of
motivation, commitment, and fuel continuously higher levels of
achievement from everyone within the organization.
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THE PROCESS
The
Strategy Formulation process provides a format for developing specific
strategies, converts those strategies into a business planning process,
and establishes specific, measurable, and attainable goals. It is a
process that involves not only determining where a company wants and
needs to go, but also, how it is going to get there. The goal-setting
process involves many layers of the organization for improved employee
buy-in and input.
The CoreStrata® approach to Strategy Formulation is
Goals-Driven. This approach emphasizes defining where the organization
wants to go, what it wants to accomplish, what the gaps are, and then
developing specific and measurable goals and action plans to achieve
the vision. Strategy formulation is developed through a process that
generally takes several sessions. Session times can range from several
hours to a two or three-day retreat. The executive team and key
management participate in the process. |
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KEY AREAS
Clarify
mission, vision, and values
Define or reevaluate the organization’s
mission, define the vision (what it will look like when the mission has
been fulfilled), and articulate the core values or principles held by
the organization.
Perform a situational analysis
This is a systematic
way of analyzing the current and expected future situations of the
organization in terms of its internal strengths and weaknesses, as well
as the external threats and opportunities. It is often referred to as a
"SWOT" analysis (Strengths, Weaknesses, Opportunities, and Threats).
The analysis provides objective information to use in decision-making
throughout the rest of the planning process.
Develop goals
Define
clear, specific, measurable goals and objectives for the organization
to achieve in the coming years, accountability for achieving the goals,
and specific timeframes for accomplishment.
Define strategies to accomplish each goal
Identify several alternative approaches for each goal, objectively
evaluate the merits and drawbacks of each alternative, prioritize the
options, and choose one or more strategies for each goal that represent
the best available options.
Evaluate the impact on the organization
Test the goals to see if they are realistic given the expertise, time
commitments, money, and other resources necessary to implement the
strategies. This step inevitably results in changes to the goals and
strategies, and also provides valuable information to use in budgeting
and other short-term planning activities.
BENEFITS
- Unified Focus and Clear Direction
- Improved Organizational Performance
- Improved Teamwork
- Succession Planning
- Measurable Goals Throughout the Organization
- Increased Accountability
- Strategic Thinking Mindset for Ongoing Decision-Making
- Increased Profitability
- Improved Resource Utilization
- Profitable Growth
- Clear Communication
- Increased Innovation
- Increased Customer Satisfaction
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