DEVELOPING STRATEGIES

Strategies must inform the organization about how to accomplish the goals within the mission in order to reach the vision. A strategic plan is a statement of how the organization will produce an attractive growth rate and a high rate of return on investment by achieving a market position so advantageous that competitors can retaliate only over an extended time period at a prohibitive cost. This can best be accomplished if the strategic plan allows the organization to innovate in products, processes, and procedures which take advantage of the opportunity, actualize its vision, permit it to compete effectively within its mission, and make it possible for it to reach its goals.

To develop strategies, both the positive and negative implications must be ranked. Strategies must encompass all the high ranked positive implications and avoid or minimize the negative implications of the opportunity, vision, mission, and goals. They must allow enough flexibility within the organization to contain the lower ranked implications. There should be a strategic statement for every high-ranked implication or cluster of implications.

The process of establishing a strategy does not lend itself well to hard-and-fast, step-by-step protocol. Like many processes discussed, it is integrative and holistic. The strategy is best developed in a group setting with a representative sample of the organization participating. When the strategy is complete, review it against the opportunity: It is imperative that the strategy take advantage of the opportunity. Modify the strategy if required.

Sometimes it is advantageous to develop multiple strategies that are then tested with a broader representation of the organization and its stakeholders. This can be done by cycling back and changing one or all of the organization's vision, mission, and goals. The strategy represents the way the organization views the opportunity and is going to take advantage of the opportunity. Strategies must be selected along with a consistent vision, mission, and goals. Sometimes, two areas will be established within an organization with different missions to exploit the opportunity more fully.