Is your company maximizing its performance by strategically managing the business?
Business’ achieve ‘world class’ by creating and operating high performing organizations. To get to that point requires a strategy that is driven by top management throughout the entire organization.
Strategically Managing Operations.
The three elements that make up strategic management include,
- Strategy Formulation
- Strategy Implementation, and
- Evaluation and Control
Each of these areas are addressed once the company’s ‘external’ (e.g., suppliers, stockholders) and internal or societal factors (economic, technological developments, etc.) have been analyzed and accounted for in the company’s plans.
Likewise, the company’s structure, culture, and resources are analyzed and accounted for in the company’s plans.
Typically, a firm’s strategy consists of the company’s,
- Mission, or purpose for existence
- Objectives, or what activities are planned to achieve the mission
- A strategy is how the company plans to reach its objectives, and
- Policies, or guidance of how decisions will be made
Strategy implementation is the idea of putting the company’s plans into action. This consists of developing,
- Programs, that is statements of the steps needed to complete the plan
- Budgets, or the conversion of a program into monetary figures
- Procedures, an outline of how to do the tasks needed to support the plan
Evaluation and Control.
To succeed, it is necessary to know if the company is making progress towards its goals and objectives. Therefore, the company must have ways to measure its performance.
These performance measurements must be expressed quantitatively, as well as qualitatively, such that each performance goal is specific, measurable, attainable, realistic and timebound.
These measurements, if properly constructed, show the company’s performance to the stated goals and objectives. If the results of the measurements show a need for improvement, the company can undertake corrective action and resolve weaknesses.
By following its strategic plans, a company can methodically and effectively manage its performance to succeed in its business environment.
The Bottom Line.
To maximize performance a company must strategically manage its business. This requires high-level planning that includes strategy formulation, implementation, evaluation and control. Performance goals are the yardsticks used to measure progress. The goals should be specific, measurable, attainable, realistic and timebound. By following its strategy, a company can effectively manage its performance and business environment.
Manufacturing and Supply Chain Services
We are Manufacturing and Supply Chain Services, MSCSGRP, specializing in ‘enterprise wide operations and supply chain management programs. Our company’s proprietary processes and services promote the organization, control and cost reductions boosting your company’s bottom line. We’re not satisfied until you are satisfied. How can we help you? Contact Us.
MSCS Group will be temporarily ceasing publication of all blogs and industry articles over the coming holidays. Our last publication for 2018 is Tuesday, December 11th. We will resume publication the week of January 7th, 2019.
We hope that you’ve had a good year and wish you continued success in 2019!