What Steps Need to Be Taken Before We Implement an Organizational Strategy? Why Are Time

Week 4 DQs

 What steps need to be taken before we implement an organizational strategy? Why are time frames so important to the implementation of an organizations strategy? What role does the sequence of execution play?

EXAMPLE 1 In regards to the process of establishing an organizational strategy, communication is nearly required at the beginning of the process. Most of the time, this process is headed by senior leadership, as they are the ones primarily responsible for communicating the vision and interpret the message to the strategic planning. The strategic plans which have been successful accomplish this through open communication which allows everyone to share the same vision of the organization; it also promotes individual motivation as the plan progresses successfully. In addition, there is a timeframe in place so that everyone on the team is aware on what tasks need to be completed when in order to promote motivations of accomplishing their goals. Furthermore, there is a guide to each step in the process so that the people involved can determine when steps are completed and how to approach the following step. Finally, communication is only efficient when it’s clear and consistent on the desired goals which are necessary to obtain success. The most common way to evaluate an organizations present state and potential is through SWOT (strength, weakness, opportunity, and threat) analysis. This process includes the embrace of strengths as well as the core capabilities in customers, people, and products. Ideally, these are the reasons why the company is in business and the competitive advantages they have. Through the use of SWOT, strengths and capabilities are followed by the identification of weaknesses and/or vulnerabilities. Some organizations avoid identifying weaknesses; but the reality is that lacking the ability to address the weaknesses can ultimately be the factor which results in failure. Once again, evaluations should include products, services, resources, customers, and employees. Internal and external environmental influences also need to be evaluated. Next, through the use of SWOT, threats of the current and future market can be addressed. Through the application of the information gathered, the planning of the organization can focus on the vision and mission statement while being aware of their competitive advantages. The communication required must be clear and consistent to the team. This stage in the process requires leadership to embrace the situation and enforce the plan and establish a commitment. In addition, important stakeholders must also be included in the process. Receiving an input from the shareholders can serve as a valuable aide to the organization.

EXAMPLE 2

Numerous steps need to be applied before establishing an organizational strategy. Primarily, the who, what, when, and where needs to be established.

Who is responsible for establishing the strategic plan? A successful strategic plan involves a variety of departments and employees. Furthermore, it’s important to establish what individuals are going to be accountable for what task.

What needs to be accomplished in order for each of the employee and department in the organization must do in order to implement the organizational strategy. For example, what are the procedures for which the employees must follow in order to follow through with the plan? Are the finances budgeted as well so that the plan can be executed? Furthermore, there must be programs implemented that support the plan.

How is everyone going to work together to accomplish the task at hand? For example, are there objectives that make up the organizational strategy or is there one single phase to the plan. How will one department have knowledge of what is happening in a different department? How is information going to be correlated and disseminated? How will the people involved in the plan know whether or not the plan is progressing as expected?

Time frames are important for the progress of the plan because without them, there will be no way to determine if the plan is progressing in the intended time frame. Timelines and deadlines must be linked to each step of the implementation process to make sure things will progress as scheduled and the plan concludes successfully.

The sequence of execution is critical to the success of the overall plan. Furthermore, this allows assurance that the budget will allow the plan to complete successfully. If a plan is established without determining the budget or setting a sequence of execution, the final steps of the plan might never be possible because the planning was incorrect. For example, a referral strategy was applied in my company. We credit $500 to every person that moves in and refers somebody. Thankfully, we have already calculated how this marketing plan will work out so there is no risk of financial losses as long as the plan is followed. In conclusion, the sequence of execution is critical for success.

EXAMPLE 3 In order to introduce an organizational plan, there must be a meeting between shareholders first. This meeting of shareholders is important so that everyone understands what the organization needs to do in order to gain success. Essentially, everything the company goes through must happen through communication. The following step in the planning process is through the use of SWOT to determine potential strengths, weaknesses, opportunity, and threats of the company. This process allows shareholders to determine the risks involved and how they can use the resources of the products. Furthermore, collect all the information needed to achieve the mission of the organization.

Examine the strengths that were established and then determine how the organization can maximize the potentials of the strength and potential organizational growth. The next step for the staff is to execute the process. Threats are the next topic discussion; members must determine the severity of the potential threats and establish preventative measures to protect the future of the organization.

Once all the previously mentioned information is gathered, the strategy will be easier to establish. In general, the practices mentioned should take roughly 5-10 years to accomplish. The best plans can absolutely fail if they are not executed correctly. In regards to TQM, the execution phase is were the management team delegates their responsibility to the daily management. Essentially, the strategy becomes a part of the daily operations for the entire organization. Assuming the plans are executed properly, every member is aware of what is expected and can measure their performance by the results of the day. Furthermore, if every member executes their end properly, the organization will accomplish their long term goals.

Reference Babich, Peter. Hoshin Handbook. 2nd ed. Poway, CA: Total Quality Engineering, Inc., 1996.

Read more: Strategy Formulation - organization, levels, system, advantages, manager, school, company, hierarchy, business, system, History, Environmental scanning, Continuous implementation, Values assessment, Vision and mission formulation http://www.referenceforbusiness.com/management/Sc-Str/Strategy- Formulation.html#ixzz1EqOvXQS6  How would control processes and metrics differ between various types of organizations? Include an example of control processes or metrics for each type (minimum of three) of organization in your answer.

EXAMPLE 1 Control processes and metrics each offer a comparison of organizations based on strategic process and their competitive advantages and goals. All companies and industries interpret their goals and challenges differently so its difficult to determine how their perspective on success.

For example, a company such as Starbucks measures their success by the quality of customer feedback they get. Customer satisfaction is important for Starbucks while a company such as McDonalds does not establish any importance in customer service. If McDonalds management ran Starbucks, they would measure their success based on how many cups of coffee were sold. A company such as Dunkin Donuts measures there success based on how many branches are operational and the revenue they generate. To sum up our review, three companies inside the same industry each have different perspectives on success, control processes, and metrics. Retail is yet another industry with different metrics. For example, Nordstrom is a company focused on customer satisfaction, Wal-Mart is a company based on the volume of sales and price points, as well as K-Mart.

In regards to the apartment industry, various management companies practice their strategies. My company in particular measures customer satisfaction based on the turnover percentage and the closing percentages of leasing professionals. Ideally, our strategy is to prioritize great service compared to cheap rent. There is other companies which specifically lower their prices to compete with the opposition.

I personally think that all companies measure all factors of their business, but prioritize on particular areas. For example, companies, regardless of what industry, determine how successful they are based on the net revenue. Ultimately, the purpose of measuring other factors in their business is to determine what can be changed to increased revenue and their competitive advantage.

EXAMPLE 2 In regards to making a comparison of the control process and a metric between organizations, it ultimately results in the strategic plan which the company implements to operate their business in the best way possible. It works out this way because every organization has a different perspective on success. One company can measure their success by how many units are sold, while another company can measure their success through the customer feedback they receive. The following examples mentioned are from the wireless industry. A company such as AT&T measures their success based on how many users they have and what kind of packages they are paying for. In a related example, Metro PCS determines their success based strictly on how many new customers they can get; mostly because consumers do not have to commit to long term agreements. Verizon for example, measures their success based on customer satisfaction. Verizon constantly promotes the largest network coverage for this reason. In regards to the insurance industry, companies such as State Farm measure their success based on how many coverages they have. Geico however, measures their success based on customer feedback so they promote their insurance coverage on cars, motorcycles, and water craft vehicles. Progressive Insurance also determines success based on customer feedback which is why they promote comparisons with the competition on all their premiums. In regards to the automotive industry, the latest trend concerns the warranty of a vehicle. For example, Hyundai provides a warranty for up to 100,000 miles. A warranty of this extent is not easy to emulate so companies such as Honda promote the latest electric car in the market. Furthermore, a company like Volvo will offer $0 down payment, first month free, and free maintenance for the length of a lease in order to compete in the industry.

EXAMPLE 3 Control processes and metrics are measured differently depending on what organization and the industry. Primarily, companies will analysis the financial aspect of the business; although other companies examine other factors. In particular, aspects can include production, franchises, and different employee performances.

Production- manufacturing organizations measure the amount of final products produced per shift on a daily, weekly, monthly, and annually to obtain information. Daily permits management to establish whether the right dynamics of employees are there and weekly allows management to determine how much, if any, overtime should be applied. Monthly- organizations can determine how many products need to be completed in order to reach the budget and make a profit. Yearly-the numbers are applied to the budgets for the following year.

Number of franchises- companies can measure their success based on how many franchises there is and how they perform. Ideally, this would permit new franchises to open in the correct location which would lead to further success of the company.

All organizations that offer services and/or sell products must evaluate their customer service. Ultimately, the primary goal is to establish customer satisfaction.