Strategy is the defining vision of what the organisation aims to achieve.
Objectives define how the organisation will achieve that strategy
Without a clear strategy and a guiding set of objectives, businesses can easily lose sight of their purpose. Strategic visions and objectives are all too often loosely shrouded in cliche terms such as:
A laser focused vision makes every word mean something for the organisation, in terms of what it intends to deliver to the customer.
Business strategy may seem like a simple task; but using the right tools can not only make the process simpler, but results in a framework more suited to implementation, rather than a dust collecting document. In selecting the best strategic framework, consideration is given to the stage of corporate lifecycle, the industry and product line and the corporate culture.
The most popular business strategy frameworks employed today include:
Porters Value Chain – ideally suited for highly adaptive products that need to be delivered in short time frames.
Ensures that all activities contribute value to the service delivery stream. A good framework to develop operational processes for new companies and merging two organisations together.
Balanced Scorecard – ideal for established companies that are seeking to implement strategy throughout a large or complex company. Balanced Scorecard provides a whole new way of thinking and operating. It makes performance measurement as simple as it can possibly be.
Once a strategic plan has been developed, most management systems require at least an annual review of company goals and objectives, as well as its vision and mission.