Strategy and Strategic Vision
Igor Ansoff’s work “Corporate Strategy” was published in 1965 and is generally regarded as the first which set out a practical method for strategic decision making within a business. His Model of Strategic Planning maps out a process, or a cascade, of decision making which starts at the highly aggregated decisions and cascades towards the more specific. Central to this process is his “gap analysis”:
- Decide the set of objectives
- Analyze where you are with regard to these objectives
- Ascertain the gap between where you are and where you want to be Generate the options for action which can close the gap
- Select the best option according to their “gap reducing properties”.
Igor Ansoff’s work was years ahead in identifying the need for competitive advantage and providing a checklist against which competitors should be judged. It was also the first work to propose the concept of synergy (most simply, and memorably, described as 2 + 2 = 5). Kenneth Andrew’s defined corporate strategy, in his 1971 book “The concept of Corporate Strategy”, as “the pattern of decisions in a company that determines and reveals its objectives, purposes or goals, produces the principle policies and plans for achieving those goals, and defines the range of business the company is to pursue, the kind of economic and human organization it is or intends to be, and the nature of economic and non-economic contribution it intends to make to its shareholders, employees, customers and communities”. When the outcome of the SWOT analysis reveals the need for the major overhaul or transformation of the organization, it becomes imperative for the leaders to create a new vision that conveys an institutive appealing picture of what the organization can be in feature. Therefore, a strategic vision is an ambitious view of the feature that everyone in the organization can believe in and that is not readily attainable, yet offers a feature that is better in important way then what now exist. A leader must have a clear idea of what he or she wants to do and strength to persist in the face of setbacks and even in case of failure. To be a motivating, a vision must be expressed in ideological terms, not just economic terms, to help people develop a personal connection with the organization.
A clear and inspiring vision serves number of functions:
- Facilitate decision making in that it helps people determine what is good or bad , important or trivial.
- Inspire followers by appealing to their fundamental human need to fee important, useful and to be a part of something great.
- Link the present to the past by rationalizing the need or changing old ways of doing work.
- Give meaning to work by explaining not just what people do but why the do it
- Establish a standard of excellence
To be a widely accepted, vision creation should be shared exercise. To make a difference, the vision should be based on the inputs and values of the followers and other key stake holders. A well-crafted vision is one that is the result of team work, simple enough to be understood, appealing enough to be energize, and credible enough to be accepted and attainable and realistic.
A Vision Statement – As I look back on my life’s work, I am probably most proud of having helped to create a company that by virtue of its values, practices, and success has had a tremendous impact on the way companies are managed around the world. And I’m particularly proud that I’m leaving behind an ongoing organization that can live on as a role model long after I am gone – William R. Hewlett, Cofounder, HPPosted by ZuzukiSX4 Posted on 31 Dec
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