EXCELLENCE KEY THREE: GOALS,POLICIES AND

DOMAINS.

PRESENTED BY : BUSHRA BANU

INTRODUCTION
 The principal means by which an organization seeks
to achieve its purpose constitute the heart of strategic
management.
 Core values,
vision of excellence,
mission,
style of management are one set of such means.
Another set consists of choices of goals, policies and
operating domains.
GOALS
Organizations are set up to pursue specific purposes
firms are set up to earn profits
Hospitals, to treat patients
Political parties, to capture power and pursue a programme, and so forth
Organizations that share the same purpose may have different
operating goals.
Organizations are human collectivities.
Goals that they actually pursue reflect the aspirations of
organizational members,
There are several types of organizational goals.
Some goals are Short run, others are long run.
Some goals are mundane, relating to bread and butter matters
Others are transcendental and lofty.
some goals relate to do well on indicators of
organizational performance, such as
profitability ,
growth rate ,
efficiency ,
productivity ,
capacity ,
utilization ,
percentage of seats won in elections ,
share of the market or sector or domain ,
 mortality rate in treating patients ,
fulfilling a target of productions ,
completing a project ,
within budgeted time and cost targets , etc.
STRATEGIC MANAGEMENT OF GOAL OF
GROWTH
The
 effective management of organizational growth is of vital importance to Third World
societies. Fast growth implies an increasing supply of goods and services, usually in
desperate short supply, and can therefore mean improvement in very low living
standards. Successful growth strategies of important organizations in once poor societies
such as Japan and South Korea have led to spectacular improvements in living standards
in these countries. The same may be equally true of sizeable organizations in such poor
Third World countries as India, Brazil, Indonesia, Nigeria, and Bangladesh. .
Growth requires the assessment of growth potential of various parts of the organization’s

domain.
Growth is likely to be both fast as well as lucrative in those segments of the domain that

are likely to grow rapidly and in which any entrant is likely to have considerable
monopoly power for a while at least.
Growth is predicted on the continuing availability of crucial inputs. In the third World

regimes of scarcity, shortages ,and controls ,ensuring the availability of these inputs is no
mean task.
Co-ordination problems and inter-departmental conflicts are frequent during rapid

growth.
 Strategic management of the goal of meeting
national priorities.:
 Third world organizations ,especially the ones in the public sector or
the larger ones in the private, voluntary, co-operative ,or institutional
sectors ,are expected to contribute to national priorities while pursuing
their specific primary objectives.

 These national priorities include ,in Third World countries like India,
emphasis on such matters as exports, setting up facilities in backward
areas, undertaking the production of products or services in short
supply or having a priority status ,employing the disadvantaged
,protection of the environment etc.
Strategic management of goal of greater financial strength

 For commercial organizations financial strength implies sustained high

profitability; for non-commercial organizations, abundance of financial
resources due to governmental or public support or support of various non-
governmental funding agencies or through surplus generating activities. .
 One model speaks of balancing risk and return.
 Another of dividing businesses one is in or wants to be in, into stars (high
growth, high profit through high market-share businesses), dogs (low growth,
low market share), cash cows (low growth, high market share), and problem
children (high growth, low market share). The smart thing to do is to get into a
balanced portfolio of problem children, stars, and cash cows, so that cash cows
generate the cash with which market shares can be increased in problem
children businesses so that they turn into stars. The dumb thing to do is to get
stuck with dog businesses.
Conti…
 Then there are models of competitive strategy. The basic idea is that the
corporation should follow one of several strategies to perform well
financially in different competitive conditions
. Some of the 'generic' strategies are the niche strategy (find a profitable
market segment in a highly competitive industry);
 cost cutting strategy (seek to gain cost advantage over rivals, and possibly
use this advantage to cut prices, capture a larger market share, and dominate
the industry)
product differentiation strategy of differentiating one's product from those
of competitors by brand-based promotion, adding to the product some special
features, distinctive packaging, etc;
 market integration strategy (offer a broad product line that meets the needs
of most classes of customers in the industry); acquisitions and divestiture
strategy (get into profitable business through acquisition and get out of losing
business by selling them off.
 Strategic management of the goal of greater support of
external stakeholders
Third World organizations are vulnerable to pressures from a
host of external stakeholders, such as
 financial institutions,
 government control agencies,
industrial unions,
major customers, major suppliers, etc. Their vulnerability
stems from pervasive government regulation of economic
activity and few alternative sources of crucial inputs which
vests considerable monopoly power in the few organizations
supplying these inputs. Thus, earning the support of major
external stakeholders is an important goal of many Third
World organizations.
Strategic management of the goal of organizational capability
development

Several sub-goals can be nested under the goal of capability development :the goal of
developing the skills of managers; the goal of developing an accountability oriented
organizational structure; and the goal of engineering higher staff morale and commitment
to the organization.
The
 study of public enterprises suggested the following general policy framework for the
overall goal of the development of the organizations capabilities.
Participative
 management,especially of changes and innovations.
Direct rather
 than mediated resolution of managerial conflicts.
Team work
 and team review of performance ,especially at the higher echelons of the
organization.
Long
 range forcasting and planning.
Emphasis
 on experimentation and innovation.
Developing
 marketing capability by adopting the globally best marketing practices.
Strategic management of goal of greater operating efficiency
Efficiency is an elusive goal for many third world
organizations.
A motivational strategy of rewarding merit and
promoting people on the basis of performance rather
than loyalty or seniority.
A Coordination stratergy that emphasises teamwork
,direct, face-to-face resolution of conflict ,frequent
performance reviews, and detailed annual planning to
participate bottlenecks and take remedial actions.
POLICIES
 A policy is a guideline for making wise decisions. It is a general rule

promulgated or held by management that limits the discretion of

decision makers and guides organizational decision making.
 A policy is a stance ,often a choice made between two or more

alternatives, such as the choice between promoting employees on the

basis of merit versus promoting them on the basis of seniority.

 Policies evolve over a period of time through a trial and error process.

 Policies such as 'honesty is the best policy', 'the customer is the king',

or 'no risk no gain' incorporate a substantial ideological content.

STRATEGIC MANAGEMENT OF DIFFERENT
FORMS OF EXCELLENCE

  
A )Strategic management of competitive excellence: 
Development of a strong marketing or domain
influencing capability.
A Policy of giving a good ideal of operating autonomy
to managers.
A policy of making decision participatively and
collectively.
A policy of professionalizing the personnel function by
qualifications rather than 'pull'.
B) Strategic management of Institutionalized excellence

 A policy of offering relatively novel, high quality

products or services.
A policy of developing a strong marketing or domain
influencing capability.
A policy of conducting formal 'market research' before
launching new ventures.
A policy of nurturing staff.
A policy of installing comprehensive budgetary and other
management by exception.
 A policy of instituting standard operating procedures tor
and functions.
A policy of recruiting innovative young professionals.
 C ) Strategic management of Rejuvenatory
excellence
While the policy framework for stabilizing recovery from decline
would be similar to that for institutionalized excellence, the policies
that can help a sick organization recover could be the following:
A strong market orientation and rapid changes in the product mix
for immediate gains.
Professionalization of personnel management—greater emphasis
on qualifications than pull in making staff appointments.
A policy of dialogue and persuasion in dealing with staff rather
than one of using pressure and power.
Recruitment of innovative young professionals.
A policy of openness in dealing with internal and participation in
turn around, developing contacts.
D) Strategic management of Missionary excellence

A policy of giving priority to national or social

priorities over financial criteria in assessing new
ventures.
A policy of integrity and honesty in business dealing.
Emphasis on collaborative relations with unions.
A policy of nurturing staff.
STATEGIC MANAGEMENT OF CREATIVE EXCELLENCE

A policy of opportunistic rather than pre-planned

diversifications.
A policy of offering novel, relatively high quality
activities ,products, services.
A policy of rapid growth.
Emphasis on business integrity.
Emphasis on discipline and accountability.
F )strategic management of versatile
excellence:
 Networking with stakeholders.
Globalizing the activities and operations of the
organization and aiming at turning it into a
multinational organization.
Participative, collective decision making.
CONCLUSION:

A goal seeking organization , especially an

organization that seeks improvement over the current
situation , is a challenge taking organization .
When several improvement goals are pursued, great
internal pressures get built up. Organizations pursuing
multiple improvement goals are likely to malfunction
if they do not adopt appropriate policy frameworks.