Basic factors in a Strategic Process
A strategic process impacts business performance
The creation of a structured and strategic process in an organization has a direct impact on innovation.
By Joao Aguirre
- Establishing the pivots that will guarantee the success in the development of a strategic process are of vital importance, for this reason, 6 key elements will be proposed to take into account before thinking about creating a strategic process in your organization.Factor 1. Develop an inclusive process
Include all business stakeholders (they are all those people, groups and entities that have interests of any kind in a company and are affected by its activities). To guarantee a greater probability of success in creating a strategic process, it is vitally important to understand the limitations, requirements, needs, goals and objectives of each of the agents that could interact in said process. When mentioning the different actors, not only does it refer to the external client, this also involves the internal client (employees), suppliers, distributors, etc. (Garnett et al., 2016)
Making an approach to each of the parties should be considered as the most important factor to take into account before developing any strategic process, since these same actors may be limiting or activating the different stages of the process, on the other hand, knowing the capacity of each member of the process, restrictions and future difficulties can be prevented. An inclusive process broadens the level of commitment of each of the parties.
Factor 2. Specific long-term objectives
Setting measurable, concrete and achievable goals becomes your best ally, since by planning visualizing the desirable future, you can more easily identify the process you want to follow, it is important to set a general objective, and a series of specific objectives that are associated with the Stakeholders, because in this way a commitment from each of them is guaranteed to correctly carry out their participation in the strategic process. (Olibe, Michello, & Thorne, 2008)
The communication and dissemination of objectives becomes a psychological motivation tool, especially when the fulfillment of objectives is associated with a series of rewards, for this reason, I recommend linking a series of incentives, they should not be exclusively economic, they can also be be of recognition, valuation, reputation etc.
Factor 3. Create early victories
The early victories or also known as milestones, are the activating elements that will determine if the strategic process is on the right path, since the correct monitoring of the small objectives or mini-goals to be met are the best indicator of progress or opportunities for improvement. .
On the other hand, the milestones should preferably be associated with the Stakeholders, because in an implicit way the members who participate in the strategic process receive a series of motivational rewards indicating that they are doing a good job, the brain is naturally programmed with a high perception to value victories, using this to our advantage, we will have more motivated and committed employees.
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- Factor 4. Flexible strategic planningThe strategy to be developed must be dynamic, changing, with possibilities to rebuild or feed back according to the day-to-day eventualities, for this reason, considering a flexible strategic process that allows adaptations may generate an evolution that allows reaching the mega or the main objective of the process.
It is important to link flexibility, but if in a certain case it is identified that the process is changing significantly, drastic measures must be taken, either to redefine the objective, or the resources, or the members that carry out each activity. The business environment is too volatile, the future too uncertain, but it is there where the glider must have the ability to make decisions and thus reduce possible risks.
Factor 5. Ensure an effective process
The constant frustration faced by managers, executives, entrepreneurs or owners of an organization, is mainly associated with meeting goals in the established time, this problem falls substantially on efficiency when developing a strategic process. The best way to increase efficiency is the knowledge of the restrictions, limitations and the production capacity that Stakeholders have.
A good strategy is characterized by being a constant flow of logic from problem identification to solution, this involves principles, decisions, and actions that allow an organization to achieve its goals and generate extraordinary returns. Many strategies implicitly bring new approaches. New supplier relationships, integrated logistics, alliances, business combinations.
Factor 6. Risk and acceptance of failures
Entrepreneurs generally have no tolerance for failure, much less to take risks, but in every business they must be faced, it is there where there is a great opportunity to involve each and every one of the elements that can negatively impact the strategic process , identify which are the triggers or activators of a risk, the consequences and mainly how to reduce them. (Curtis, 2001)
One suggestion I make to you is to create a Brainstorming workshop, or brainstorm, but in the opposite direction, to which I refer, is to apply the same concept of this type of workshop, but inversely, when you already have the strategic process to develop linking Stakeholders in a workshop where all the risks and possible failures that may exist are identified, when they are identified, they are prioritized by categorizing those that are most likely to happen, then an identification exercise is performed of the possible causes that may be the triggers of that risk, and finally, a series of strategies or guidelines will be created that are aligned with the reduction of risks, even thinking about how to eradicate them without them happening. Obviously, there are controllable and other uncontrollable risks, but the strategies developed there must be aimed at reducing their impact and preventing them.
- “The aforementioned strategic factors will be the key to the growth of your company if you implement them properly”
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