Today`s leaders are trying to get the maximum value out of their business strategy and bridge the gap between strategy and execution in their organizations. One way to do this is to use an innovative approach, such as technology. Modern technology has the ability to translate a paper-based business strategy into a digital, executable format. Another possibility is training by external experts. At BGH, we can help you strengthen responsibility for the strategy vision, reflect strategy in your organization, develop strategic agility and explore new technologies tailored to your business. At the end of the day, I think all of these concepts are important for strategic direction. But in my opinion (and I am biased), the critical concept of organization is a systemic perspective. This is the first of Baldrige`s 11 core values and concepts. Peter Drucker says, “Culture eats the breakfast strategy.” This means that culture determines your success, no matter how effective your strategy is. Are you part of your culture and do you know where you stand in terms of strategic direction? So how is your business performing? Check your alignment with a strategic alignment model to find out. These provide a visual guide on how to link and align priorities vertically and horizontally in your organization. Strategic planning and implementation excellence are synonymous with strategic direction, which can positively influence your organizational direction.
Yes, read it again. If your organization has a number of KPIs, they can help you determine overall goals. However, there are limitations here, as KPIs can be “set in stone” in many organizations. This means that your KPIs can reflect your goals from a few years ago! Research on decision making (especially multi-criteria decision-making, which we discuss here) shows that a process called AHP (analytical hierarchy process – don`t worry about the scary name) is best. In the real world, you`ll probably want to give specific numbers on these goals, but this “big picture” of what we want to achieve (being the most profitable widget company), combined with a general statement of how we`re going to achieve it (by having low costs, increasing distribution, and managing cash at the same time) is your “strategy.” In other words, by measuring the strategic direction of your projects and eliminating unaligned projects (marked as “waste” in the diagram below), you can allocate these resources to important projects in difficulty (blue) and turn them into successful projects (green). The results suggest that both elements contribute to performance. The article states that (alignment) “also leads to a more positive work climate, above-average employee engagement, a strong commitment to values, and less turf wars and exhausting infighting.” (ibid.) As mentioned earlier, you should incorporate strategic direction into every step of your planning process. This way, you can be sure that you won`t leave anything unattended. Let`s take a look at the creation, communication and execution phases of your business plan. We`ll look at ways to achieve this, but first you need to consider your organizational architecture and assess whether your model meets your business needs. Any strategy has little value until it is implemented.
The following is at the heart of why these richest 10% achieved their goals. Enter the strategic direction. Strategic alignment is the strength of the links “between the overall objectives of an organization and the objectives of each of the units that contribute to the success of these overall objectives” (Andolsen, 2007). The concept is closely related to the strategic fit that exists when the network of internal performance drivers is consistent and aligned with the customer and financial outcomes desired by the company (Kaplan & Norton, 2006). STRATEGIC ALIGNMENT (verb): The process of aligning an organization`s decisions and actions to support the achievement of strategic objectives. The concept of strategic direction is important in the context of a global business environment where activities need to be coordinated across regions and time zones. [3] Strategic direction includes not only technical and functional activities, but also human resource management issues (and how best to develop people`s motivation and performance). Studies suggest that aligning business strategy and HR strategy can affect performance. [4] The process may extend to organizations and groups that pursue complementary objectives, such as trading partners.
It was also found that co-alignment of business strategy, business structure, IT strategy and IT structure contributes to performance. [5] I did some literature research to see if there is general agreement on the definition of strategic direction. I found two articles in the Houston Chronicle on strategic direction with a focus on for-profit businesses. Steven Symes` first article defines strategic direction as “what is most important to the organization, and then creates a roadmap to achieve the organization`s goal.” The article further highlights that alignment requires planning, adaptability, and an engaged workforce. This definition was therefore focused on the planning process. Flora Richards-Gustafson`s second article defines strategic direction as “the alignment of a company`s strategy with its culture.” The Richards-Gustafson approach is a process in which management must change its vision and align it with leadership goals, organizational culture and individual employees. So maybe our family wasn`t strategic because there weren`t “leadership goals” that others could align with? There`s a simple test you can take to start an honest conversation about strategy and organizational effectiveness in your workplace. Think about your business as a whole, or perhaps choose a strategically important element, such as an area of growth on which future success or its main source of revenue depends, and ask yourself the following two questions: Kathy Wilson, change strategist coach, shares one game by game in her “Strategic Planning Handbook.” You can and should rethink your strategic plan to ensure that key initiatives and objectives remain valid, and if a strategy or tactic goes against your company`s values, it should be reconsidered.
The rule of thumb is to call on experts in the field to compare the contribution of your alternatives (projects, suppliers, warehouse location, etc.) with your weighted strategic objectives. When measuring something that is inherently subjective, ask a group of people for their opinion. Don`t leave your strategy to chance! For companies across all industries, strategic alignment has never been more important and challenging than it is today. There is no time to lose. Contact us for more information. There are some things you can do to identify your own strategic goals, even if the entire strategic planning process isn`t giving you what you need. There are two stages; First, you need to identify your strategic goals, and then you need to assess the relative importance of your goals. This second step is really important (and often left out) because it`s the weighting/relative importance of your goals that helps your team make clear, consistent, and well-aligned decisions.
Strategic alignment is therefore crucial for any leader, for any organization that wants to achieve its goals and outperform its competitors. On this page, we present our ultimate guide to strategic direction – enjoy! To avoid this situation, make sure your business strategies align with your company`s objectives. From the traditional bureaucratic model to the network model, often referred to as “innovative,” it`s important to align your organizational architecture. If you have efficiency strategies in place with a model that represents a flexible network, it might not work.