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Strategic Management Model

Where are we now?
Strategy Formulation
Where do we want to be?
Strategy Implementation
How do we get there?
How do we measure our progress?
Strategic Management Model
Strategy Formulation
Where do we want to be?
Vision without Action is a Daydream
Action without Vision is a Nightmare

Not Optional
Stretch 30+ Years
8-10 Words in length
Future State
Brief and Memorable
VISION (Continued)
Inspiring and Challenging
Descriptive of the Ideal
Vision Examples
Light the Fire Within
A Safer Future for All Communities
See the Mountains Breathe Freely
To Be the Happiest Place on Earth
To Be the Worlds Best Quick Service
Vision Levels of People
Some people never see it. (Wanderers)
Some people see it but never pursue it on their own.
Some people see it and pursue it. (Achievers)
Some people see it and pursue it and help others see
it. (Leaders)

John Maxwell, Developing The Leader Within

You, 1993.
VISION should have /have not
Core values and principles
Source of priorities, plans and goals
Puller into the future
Statement that makes us unique
Have not-
A high concept, sounding like an ad tag line
A strategy or a plan
A history of our proud past
A soft business value
Mission Statement
In the absence of a clearly defined direction one
is forced to concentrate on confusion that will
ultimately consume you.
What is our purpose (scope of our business
Describes current state
Timeline is 3-5 Years
Builds on our distinctive competencies
Tends to focus on Core Business
30-35 Words in length
Mission Examples
To Lead All Communities in Disaster Preparedness,
Mitigation, and Recovery by Maximizing Assistance
and Support.
Caltrans Improves Mobility Across California.
To produce superior financial returns for our
shareholders as we serve our customers with the
highest quality transportation, logistics, and e-
MISSION Should be
Indicative of major components of strategy
Indicate how objectives can be accomplished
Defining a Business
What will be our business?
What it should be?
Derek Abell Model defines business along
three dimensions-
A) Customer groups-who
B) Customer Needs-What
C)Alternative technologies- How
Levels at which business can be
At SBU level
Each SBU would have a business definition along
the three dimensions
At Corporate Level
The conglomerate would have a common business
definition that would have a wider approach to the
three dimensions.
Synergy is the Prime objective of having a business
definition so that there is no Identity Crisis.
Business Model
It can be defined as the representation
/framework or blue print of a companys core
logic and strategic choices for creating and
capturing value within a value network.

A Business model is an answer to the question

How does the organization make money?
Goals and Objectives
Goals are what an organisation hopes to
accomplish in a future period of time. They
are qualitative in nature.
Objectives are the ends that specifically state
how goals will be achieved and hence are
quantitative in nature. Objectives make the
goals operational.
Characteristics of Objectives
Concrete and specific
Related to time frame
Measurable and Controllable
Correlate with each other
Should be set within constraints
Objective formulation
-The forces in the environment
(The interests of the stakeholders)
- Realities of the enterprise
resources and internal Power
- The value system of top Executive
- Awareness by the management(of
past objectives
Critical success factors(CSF) for
Objective setting

Those strategic factors or key factors which are crucial

for the success of any organization.
Once identified objectives refined along them and
resources allocated.
Post implementation measures of performance
identified and put to practice.
Key Performance Indicators (KPIs) are the measures in
terms of which the CSFs are measured.(e.g. pre tax
profit, percent profit for community sevice, product
reject rate , Recall rate, number of complaints etc.
Formulation (contd.)
Performing Environmental Appraisal
Doing Organizational Appraisal
Formulating corporate-level strategies
Formulating business-level strategies
Undertaking strategic analysis
Exercising Strategic choice.
Preparing strategic plan
Strategy Implementation
Activating Strategies
Designing the structure , systems and
Managing behavioral implementation
Managing Functional implementation
Operationalizing Strategies
Strategy Implementation (contd.)
Project implementation- Setting up the organization.
Procedural implementation- Regulatory Framework
Resource Allocation
Structural implementation ( design of structures and
systems), Behavioral implementation (Leadership style,
corporate culture, power equations etc.) , Functional
implementation (policies in different functional areas)
and operational implementation (productivity,
processes, people and pace ) level
Strategy Evaluation
Appraisal and measurement of
performance through-

Performing strategic evaluation.

Exercising strategic control.

Reformulating Strategies.