Key Ideas and Messages of the paper
Problem
Most corporate executives are disappointed with the final outcome of the expensive and time consuming annual strategic planning process (reference). They feel that there is very little impact of the strategic planning process on the strategic direction of their organization and on the activities of the executives. The McKinsey survey included 800 top corporate executives and it was observed that only 45% of these executives were actually satisfied with the usual annual strategic planning process. It was also found that almost 79% believed that a formal planning process is essential for development of the strategy and most participants were disappointed with their respective companies where there was no formal process for strategy development. The survey, therefore, raises the question about methods to improve the strategic planning process and its effectiveness in order to improve the satisfaction level of the employees.? According to Ren?e Dye and Olivier Sibony, there are five ways of improving the process.
Prescribed Solution
As a first step, managers should identify and discuss the main strategic issues likely to impact significantly on the organizational performances in the future. This will ensure there is no wastage of time and energy in discussing less important issues.
Once the key issues have been identified, the right people should be selected to address those issues. Research shows that the presence of knowledgeable and influential people, with honest and open discussions on the difficult topics in the planning process is essential.
Business units should be given enough time and resources to implement all the strategies. In fact, business units should be freed from conducting the strategic planning process every year as the main focus should be on implementing each and every strategy adopted in the previous year.
Proper implementation of the chosen strategy is important to improve the quality of the entire process. It is also very important to have a system to measure the progress of the execution of the strategy and one of the major tools for such measurement is the strategic-performance-management system.
Success of implementation of the strategic plan is dependent on the evaluation and compensation of the managers. If managers are evaluated and compensated accordingly they will be more motivated in the process of execution.
Critical Analysis
Key learning from the reading
It is quite clear from the paper that business executives are frustrated about the little impact of the strategic planning process on the organization?s strategic direction and on executives? own actions. 45% of the 800 executives were disappointed with the process. 79% of the managers who responded felt that a formal planning process is important in the development of the strategy whereas, 51% respondents, who belong to those companies where there is no formal process, were found to be disappointed. 20% of the respondents belonging to the companies having formal processes for strategy development, were dissatisfied. The main problem is the lack of effectiveness of the strategic planning process.
There are, however different ways to improve the strategic planning process (reference). The process should start with the identification of the key strategic issues which are crucial for the future of the business. Once the issues are identified appropriate human resources should be allocated to address these issues. A strategic planning cycle needs to be revised according to the business requirement. It is not necessary that each business unit conduct the same strategic planning process each and every year. The strategic performance management system can be used as a tool to evaluate the implementation process.? Additionally, managers should be motivated to form and implement the strategic plans (How to improve strategic planning, August 2007)
giants vs saints suh suh lindsey vonn lindsey vonn josef stalin kourtney and kim take new york
No comments:
Post a Comment