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Talking Strategy, with Dr Julius Tapera
A strategy is the process by which organisational members envision the firm’s future and develop the requisite procedures and processes to attain that future.
In developing an organisation’s strategy, organisational leaders need to paint a clear picture of what the organisation has been established to achieve/become (vision), clearly articulate a road map on how this vision is to be achieved (mission) and set clear milestones (key results areas and the attendant key performance indicators), which will show the success or otherwise in achieving the set vision.
In addition, the organisation needs to develop a set of core values that guide the conduct of organisational members in pursuit of the vision. It entails the development of action plans by management for guiding business operations to ensure sustainable growth.
An effective strategy assists an organisation to develop competitive initiatives and business interventions that managers can employ for business growth, customer attraction and retention, growing market share, set and achieve performance standards.
Strategy broadly articulates the nature of products and services an organisation produces or provides to the market, these products and/or services’ competitive advantage, and the requisite resources and capabilities for effective and efficient achievement of organisational goals.
Michael Porter, one of the leading experts in strategy asserts that strategy is about creating competitive advantage through product/service differentiation, value addition to the customer and uniquely positioning your organisation in your industry.
Thus, strategic management includes the processes of scanning the environment, formulating strategy, implementation of the strategy, monitoring as well as evaluation and analysis of the implementation process to ensure effective and efficient achievement of the long-term goals of the organisation.
Strategic management is about exploiting and creating new and different opportunities for the future; engaging in long-term planning and maximising the current opportunities to create the organisation’s sustainable future.
Strategic management, thus, entails synchronising all organisational functions to achieve effectiveness and efficiency in achieving organisational goals. Strategy can also be viewed as a coherent set of individual actions backing a system of goals that are supported as a portfolio by a self-sustaining critical mass or momentum of opinions in the organisation.
We could also refer to strategy as a set of “competitive actions and business approaches”. Another common element among a number of authors in their definition of strategy is that it focuses on the sustainable achievement of the organisation’s performance targets. When developing and implementing a strategy, there is need to focus on developing and implementing new combinations of basic building blocks that can be manipulated to create competitive advantage.
Technology and socialisation influence these strategic interventions, making it necessary for new innovations to remain competitive.
Companies need to constantly look for untapped market spaces outside the traditional boundaries of their industry in order to compete and outperform those who remain within these boundaries.
Therefore, strategic thinking requires a revision of the status quo and innovative development of new product offerings, new ways of delivering these offerings to existing and new markets and creating sustainable competitive advantages in the process.
Creating a sustainable competitive advantage distinguishes a business strategy from other forms of business planning. The strategic development process encompasses the management process that informs, shapes and supports the strategic decisions facing the organisation.
There are three key issues that characterise the strategic development process. Firstly, the development and implementation of the strategy are inseparable types of business activities in which organisations are constantly involved; consequently, the idea of continuous development is central to this process.
Secondly, business organisations need to depart from the old-time rigidity of crafting deterministic, one-time five and 10-year plans, and adopt the flexibility that allows responsiveness to changes in both internal and external environments to the business firm.
Thirdly, the process should allow reflexive interaction and analytical questioning of the status que with a view to continuously improving the business processes as the firm continues with its quest to create and retain competitive advantage.
In summary, strategy development and implementation are the main functions of management; excellent execution of an excellent strategy is the best test of managerial experience — and the most reliable recipe for turning companies into outstanding performers.
Recent authors argue that how well an organisation’s management team determines the direction of the company, develops competitive effective strategic steps and business approaches, and performs what needs to be done internally to ensure effective day-to-day strategy execution and operational excellence determines the ultimate success or failure of the organisation.
l Dr Julius Tapera holds a PhD in Strategic Management and is the Assistant to the Vice-Chancellor at Lupane State University. He is a Strategic Management Consultant, Motivational Speaker and Author. He is contactable on Mobile: +263773586037; Email: [email protected] or [email protected]
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