Strategy in its most straightforward definition is a high level plan to achieve one or more goals or an overall position during a period of time.
Strategy, being fundamental to the success and sustainability of any organisation is underpinned by quality operational plans and key performance indicators. Having a strategy that is supported by these elements is important because the resources available to achieve strategic goals are usually limited.
Two approaches – strategic and operational – are most often used by boards of directors to plan and respond to different situations and map a path forward.
A challenge for many organisations is that the board does not execute a strategy that is clearly attached to quality operational targets, clear key performance indicators across all levels of operation and realistic timeframes.
Ultimately, the outcome is a strategy not cohesively implemented and strategic goals left unmet.
How does an organisation overcome this challenge?
By developing a strategic plan that entirely depicts the long-term vision and which is underpinned by realistic and measurable operational objectives around budget, results and timeframes.
An effective strategy provides the organisation and its staff with a common purpose, goals and a set of actions to achieve the objectives outlined. It ensures that everyone is working for the same outcome. Providing staff with an understanding of their destination, their individual purpose and the course they’re taking to get there equips them to focus and prioritize.
Done well, strategy is about paving the path for an organisations success and providing it with the tools and time to get there. A well-formulated strategy will enable increased growth, productivity and profit both now and into the future.
I’ll be expanding on these kinds of issues in the coming series – giving you steps to help your organisation thrive and flourish.
Myself and the team at Sumpter Baughen have worked alongside many clients ranging from Iwi, farming, business, Maori business, and trusts. We have helped implement effective strategies at a board level through to an operational level.
If you want to make 2014 your most outstanding yet, and if one or all of the above challenges resonates, contact us direct today.