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Strategy is the creation of a unique and valuable market position supported by a system of activities that fit together in a complementary way (Porter, 1980). It is about making choices, trade-offs, and deliberately choosing to be different.
It should not be confused with "operational effectiveness" -- what is good for everybody and what every business should be doing, e.g., performing the same activities your competitors perform, TQM, benchmarking, or being a learning organization. Thus, when developing strategies, the goal is to be different from your competitors. However, this does not mean that you are willing to do anything. But to determine where the opportunities lie that you can best exploit. All "strategic plans" need to tie in with the "strategic organization plan." That is, in going back to the definition of strategy, the leaders of the organization should create the unique and valuable market position; while your goal is to support the organization with activities that fit together in a complementary way. Now that does not mean you cannot do things differently or set your own goals. It simply means that you need to keep your leaders visions and goals in mind when setting the your goals. For example, if the leaders have ethics and diversity at the forefront of their strategic vision, you cannot put e-learning and knowledge management at the forefront of your strategic goals. However, that does not mean you cannot use e-learning and knowledge management technologies to bring about ethical and diversity goals. VisioningVisioning is the start of any strategic plan. Once your leaders have set the organizational strategic plans, you need to determine how best your department can bring about changes that will support those plans. And while their strategic plans needs to be "unique," you need to think along the same lines. In addition, a visioning strategy takes a four-prong approach:
TacticalStrategies are forward-looking. They provide the guidelines for growth. With strategies, you are in reality, speaking of future performance gaps and how you are going to overcome them.Tactical is more or less present or noworientated. It is about present performance gaps and how you are going to overcome them in order to support the strategies.
What have you done today to enhance (or at least insure against the decline of) the relative overall useful skill level of your work force vis-a-vis competitors - Tom Peters in Thriving on Chaos. When Peters writes of "enhancing", he is speaking of the strategic plans that will grow the employees to meet tomorrow's challenges. When he writes of "insure against the decline of," he is speaking of the tactical impediments that are presently challenging employees from meeting expected performance standards. In order to grow, you must be able to ward off present roadblocks. Thus, tactical plans are about providing performance stability so that change may take affect for growth.Strategies normally looks an average of about six-years into the future (with a range of about 1 to 10 years). Tactics look ahead just far enough to secure objectives set by strategy. Thus, tactics is characterized by adroitness, ingenuity, or skill. Note that tactics is from the Greek "taktika" -- matters pertaining to arrangement. On the other hand, strategy has its roots in "office of a General" or "to lead").
Command & ControlThere are four basic functions used within organizations to achieve their visions and goals: Command, Control, Leadership, and Management:1. Command -forming and imparting visions:
Thus, command and leadership decide what the organization should be doing, while control and management ensure that the resources used to achieve the results are used efficiently (without waste).
Frameworks of Command & ControlCommand and Leadership use the following framework:
Control and Management uses the following framework:
ReferencesCollins, Eliza and Devanna, Mary (1990). The Portable MBA. New York: John Wiley & SonsU.S. Army (1987). Leadership and Command at Senior Levels. FM 22-103. Poter, Michael E. <1980) Competitive Strategy, Techniques for Analyzing Industries and Competitors. New York: The Free Press. |
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Copyright 2005 by Donald Clark Created July 6, 2005 Updated November 29, 2007 |
A Big Dog, Little Dog and Knowledge Jump Production. Contact: donclark@nwlink.com |