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ABC of Strategic Management

ABC of Strategic Management

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Published by: doon on Jun 21, 2009
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07/28/2012

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© Copyright 2000
CENTRE
for 
STRATEGIC MANAGEMENT
 ® 
. All rights reserved.1420 Monitor Road, San Diego, CA 92110-1545  Phone 619/275-6528 • Fax 619/275-0324 • E-mail csmintl@san.rr.com© Copyright 2000
CENTRE
for 
STRATEGIC MANAGEMENT
 ® 
. All rights reserved.1420 Monitor Road, San Diego, CA 92110-1545 • Phone 619/275-6528 • Fax 619/275-0324 • E-mail csmintl@san.rr.com
Fact
Every organization, both public and private,needs to become an outcome-oriented systemfocused on the customer.
 —Stephen G. Haines
The ABC’s of Strategic Management
SM
The ABC’s of Strategic Management
SM
By Stephen G. Haines and the CENTRE
for 
STRATEGIC MANAGEMENT
“The SystemsThinking Approach 
SM 
to creating a customer-focused, high performance, learning organization” 
Thinking Backwards to the Future 
In the Industrial Age, public and private enterprises built their futureby incremental expansion of present technology, assumptions, andday-to-day operations. In today’s global information age, this strategyof merely building on the present is defunct. Worldwide markets andinstant global communications are now multiplying all ouropportunities.Today, organizations must keep pace with changes in theirenvironment and reduce current expenses, waste, and bureaucraticoperations. They must completely reinvent their future vision, andthen begin thinking backwards to this future with the strategiesneeded to remain successful. They must commit passionately to thedisciplined management of the changes that occur along the waytoward becoming a customer-focused, high performance, learningorganization.
The ABC 
’  
s of Strategic Management 
SM 
Our work at the Centre leads us to look for simple, yet systematic,ways to focus on Strategic Management (Planning and Change) withour clients. As a result, we’ve clarified and simplified these ideas into aStrategic Management System with three goals:
Goal #1:Develop a Strategic Plan and Document
Goal #2:Ensure Successful Implementation
Goal #3:Sustain High PerformanceTo achieve these goals,
 
first it is important to get an understandingof the three “Seemingly Simple Elements” that form the basis for ourreinventing Strategic Management from its checkered planning past.As a result of past problems, the number of planner jobs in firms hasdecreased while the amount of Strategic Planning is increasing rapidly.
S
EEMINGLY
S
IMPLE
E
LEMENT
#1:
P
LANNING
 
AND
C
HANGE
 
ARE
 
A
P
RIMARY
P
ART
 
OF
M
ANAGEMENT
 
AND
L
EADERSHIP
Strategic Management must culminate in a significant change in theway leaders conduct their business day-to-day. This is a key differencebetween our model and others which tend to suffer the fatal “SPOTS”Syndrome (
S
trategic
P
lans
O
n
T
op
S
helves—gathering dust).
Having Strategic Planning and Change led by top management toachieve our three goals is a critical requirement.
Strategic Plans are theblueprints; executives must fill in implementation details.appraisal needs to evaluate everyone on their behaviors vs. the corevalues, and on their contribution to results vs. the core strategies.Implicit in this step is the understanding that we have to managechange before it manages us (in ways we may not like).
Quarterly orbi-monthly meetings of the Strategic Change Leadership SteeringCommittee (SCLSC) are absolutely essential.
No organization we haveworked with has successfully implemented their Strategic Plan withoutthis steering committee.In addition, the CEO needs to conduct weekly meetings with his/ her staff with an agenda
 
focused on reviewing the status of the topannual priorities previously agreed to under each core strategy (withinternal support cadre help).
Implementation needs to focus on the vital few leverage points forStrategic Change from our research and that of others regarding bestpractices of successful organizations
 .
These leverage points are (1)leadership and management practices, including those in humanresource management, i.e.,
attunement with peoples’heartsand minds
;(2) customer-focused, business process reengineering to “eliminatewaste” throughout the firm, i.e.,
alignment of the delivery system
; and (3)becoming more customer-focused through high quality products andservices (our five-point World Class Star Results model).
Step #10:
 
This
ANNUAL STRATEGIC REVIEW (ANDUPDATE)
step
 
is
similar to a yearly independent financial audit
and isneeded to keep pace with and be flexible to changing environments.This is the key to
Goal #3: Sustaining High Performance
over thelong term. It includes:1.Reacting to changes in theenvironment (Phase E).2.Formally auditing andreviewing the StrategicPlan.3.Updating annual actionpriorities for next year.4.Updating the StrategicManagement System itself as the new way to run thebusiness day to day.
How To Get Started In Strategic Management 
OPTION A:
A
 
one-day Executive Briefingand Plan-to-Plan event 
(Step#1). This is theeducating, organizing, andtailoring day mentionedearlier.
OPTION B:
A
one-dayPlan-to-Implement day(Step #8).
Complete the10 tasks listed earlier andlater finish other aspects of the full Strategic Management Process.
OPTION C:
Conduct training on Strategic Planning or StrategicChange and/or have staff certified in this process.
OPTION D:
Since a system is circular, you may actually enter itand begin the process at any point during the year.Thus, you could enter into developing a system of managingstrategically
 
at whatever point you desire. This might includestarting with the Strategic Review and Assessment, or a StrategicChange project you have in mind (such as Total Quality), ordeveloping your measures, or the SWOT Analysis, etc.
OPTION E:
Conduct only the step you need now.
For additional copies or information,please contact the CENTRE
for 
STRATEGIC MANAGEMENT
 ® 
at619/275-0324Visit our Web sites:www.csmintl.com.www.systemsthinkingpress.com
The key is to just start!
4
Asystem is defined as a set of components that work togetherforthe overall objective of the whole.
Our systems model iscomprised of 10 concrete steps in five distinct phases (A-B-C-D-E). We call these the ABC’s of Systems Thinking
.
Any
system canbe described by the following phases: Aseries of inputs (Phase C)to a throughput or actions (Phase D) to achieve your outputs(Phase A) along with a feedback loop (Phase B) in theenvironment (Phase E) to measure success.Our ABC systems phases start with Phase A (as we want tobe proactive in creating our Ideal Future) instead of Phase C,the traditional left to right flow. Once you create this future,you work backwards to today to make it happen.

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