Question

The Process for Implementing the Vision and Strategic Direction

Answer 1

The process of implementing vision and strategic direction involves three steps: 1. Strategic planning and formulation; 2. Strategic implementation and 3. Strategic control.

1. Strategic planning and formulation: It starts with setting of vision. The vision is a broad guideline which the firm dreams to achieve in a future course of time. Vision is followed by mission which is precisely defined by a company. Vision and mission gives rise to goals and objectives. Goals are broad and long term statements; while objectives are short and specific business statements. Setting of objectives is followed by SWOT (Strengths; weakness; Opportunities and Threats) analysis through which the firm derives strategic alternatives. Strategic alternatives are evaluated using corporate portfolio technique (BCG, Space matrix etc.). Evaluation of strategic alternatives results in strategic choice. The stage of strategic planning and formulation ends at strategic choice.

2. Strategic implementation: This is the actual stage of implementing the strategic planning process completed in the previous step. This stage involves preparation of plans and programs; policies and procedures; budgets and schedules. It is followed by structural implementation wherein the division of labor and co-ordination of labor is achieved. Other aspects of this stage include drafting of culture and policies as originally envisioned in the vision and mission statement.

3. Strategic control: This stage involves quantifying the actual standards and comparing them with planned standards. In case of deviation from the planned standards, corrective actions are taken.