Strategic management

STRATEGIC MANAGEMENT 

What is strategic management?  Strategic management  can be used to determine mission, vision, values, goals, objectives, roles and responsibilities, timelines, etc. 

What is strategic planning?

  Strategic planning is a management tool, period. As with any management tool, it is used for one purpose only: to help an organization do a better job - to focus its energy, to ensure that members of the organization are working toward the same goals, to assess and adjust the organization's direction in response to a changing environment. In short, strategic planning is a disciplined effort to produce fundamental decisions and actions that shape and guide what an organization is, what it does, and why it does it, with a focus on the future. (Adapted from Bryson's Strategic Planning in Public and Nonprofit Organizations). 

A word by word dissection of this definition provides the key elements that underlie the meaning and success of a strategic planning process: The process is strategic because it involves preparing the best way to respond to the circumstances of the organization's environment, whether or not its circumstances are known in advance; nonprofits often must respond to dynamic and even hostile environments. Being strategic, then, means being clearr bout the organization's objectives, being aware of the organization's resources, and incorporating both into being consciously responsive to a dynamic environment.   

The process is about planning because it involves intentionally(намеренно) setting goals (i.e., choosing a desired future) and developing an approach to achieving those goals.  The process is disciplined in that it calls for a certain order and pattern to keep it focused and productive. The process raises a sequence(последовательность) of questions that helps planners examine experience, test assumptions, gather and incorporate information about the present, and anticipate the environment in which the organization will be working in the future.  

Finally, the process is about fundamental decisions and actions because choices must be made in order to answer the sequence of questions mentioned above. The plan is ultimately no more, and no less, than a set of decisions about what to do, why to do it, and how to do it. Because it is impossible to do everything that needs to be done in this world, strategic planning implies(подразумевает) that some organizational decisions and actions are more important than others - and that much of the strategy lies in making the tough decisions(жесткие решения) about what is most important to achieving organizational success.   

The strategic planning can be complex, challenging, and even messy(хаотичное), but it is always defined by the basic ideas outlined above - and you can always return to these basics for insight(осознания) into your own strategic planning process. 

What is the difference between strategic planning and long-range planning?

  Although many use these terms interchangeably(взаимозаменяемые), strategic planning and long-range planning differ in their emphasis(акцент) on the "assumed"( предполагаемый) environment. Long-range planning is generally considered to mean the development of a plan for accomplishing a goal or set of goals over a period of several years, with the assumption(допущение/предположение) that current knowledge about future conditions is sufficiently reliable(достаточно надежным) to ensure the plan's reliability over the duration of its implementation(реализация). In the late fifties and early sixties, for example, the US. economy was relatively stable and somewhat predictable, and, therefore, long-range planning was both fashionable and useful. On the other hand, strategic planning assumes(допускает) that an organization must be responsive to a dynamic, changing environment (not the more stable environment assumed for long-range planning).  

Certainly a common assumption has emerged(появившийся) in the nonprofit sector that the environment is indeed changeable, often in unpredictable ways. Strategic planning, then, stresses the importance of making decisions that will ensure the organization's ability to successfully respond to changes in the environment. 

What is strategic thinking and strategic management? 

Strategic planning is only useful if it supports strategic thinking and leads to strategic management - the basis for an effective organization. Strategic thinking means asking, "Are we doing the right thing?" Perhaps, more precisely(точно), it means making that assessment(оценка) using three key requirements about strategic thinking: a definite(определенный) purpose be in mind; an understanding of the environment, particularly(особенно) of the forces that affect or impede(препятствовать) the fulfillment(выполнение) of that purpose; and creativity in developing effective responses to those forces. It follows, then, that strategic management is the application of strategic thinking to the job of leading an organization.  

What Strategic Planning Is Not!

Everything said above to describe what strategic planning is can also provide an understanding of what it is not. For example, it is about fundamental decisions and actions, but it does not attempt to make future decisions (Steiner, 1979). Strategic planning involves anticipating(предвидение) the future environment, but the decisions are made in the present. This means that over time, the organization must stay abreast(в ряд) of changes in order to make the best decisions it can at any given point - it must manage, as well as plan, strategically. Strategic planning has also been described as a tool - but it is not a substitute(заменитель) for the exercise of judgment by leadership. 

Ultimately, the leaders of any enterprise need to sit back and ask, and answer, "What are the most important issues(вопросы) to respond(реагировать) to?" and "How shall we respond?" Just as the hammer does not create the bookshelf, so the data analysis and decision-making tools of strategic planning do not make the organization work - they can only support the intuition, reasoning(рассуждение) skills, and judgment that people bring to their organization. 

Finally, strategic planning, though described as disciplined, does not typically flow smoothly(плавно) from one step to the next. It is a creative process, and the fresh insight arrived at today might very well alter the decision made yesterday. Inevitably(неизбежно) the process moves forward and back several times before arriving at the final set of decisions. Therefore(Поэтому), no one should be surprised if the process feels less like a comfortable trip on a commuter(пригородные) train, but rather like a ride on a roller coaster. But even roller coaster cars arrive at their destination, as long as they stay on track! 

What is a strategic plan?

In strategic planning it is critical to formally consider how your organization will accomplish its goals. The answer to this question is a strategy. There are a variety of formal definitions for strategies, but everyone fundamentally agrees that a strategy is the answer to the question, "How?"  "Strategies are simply a set of actions that enable an organization to achieve results." MAP  for Nonprofits, St. Paul, MN.  "Strategy is a way of comparing your organization's strengths with the changing environment in order to get an idea of how best to complete or serve client needs." Jim Fisk & Robert Barron, The Official MBA Handbook. 

Essentially(по существу), there are three different categories of strategies: organizational, programmatic, and functional. The difference among the categories is the focus of the strategy: Organizational strategy outlines the planned avenue for organizational development (e.g., collaborations(сотрудничество), earned income, selection of businesses, mergers(слияний), etc.). Programmatic strategy addresses how to develop, manage and deliver programs (e.g., market a prenatal (предродовой )care service to disadvantaged expectant mothers by providing information and intake services in welfare (обеспечение )offices). Functional strategies articulate how to manage administration and support needs that impact the organization's efficiency and effectiveness (эффективности и результативности )(e.g., develop a financial system that provides accurate information using a cash accrual method).

When should a strategic plan be developed?

Strategy development follows the creation and affirmation (утверждение )of the organization's purpose statement, environmental and program data collection and analysis, and identification of critical issues. It is critical that strategy development follow these steps because the information gathered and decisions made in these phases are the foundation for strategy creation and selection. Each of these steps provides the following: The purpose statement, the statement of the organization's ultimate goal, provides the direction to which the strategies should ultimately lead.  

External market data and program evaluation results provide critical data to support strategy development. Without this information and insight, the organization's strategies will not be in alignment with(согласование с) or effective in the marketplace.  The critical issues list serves as the specific focus and framework for the activities of the organization and the pattern of these activities (developing and selecting the strategies). 

How are strategies developed?

Strategy formulation is a combination of rational, scientific examinations and educated, intuitive best guesses. Many individuals are overwhelmed(перегружены) by the idea of developing strategies, but it can be a fun and invigorating process.  

The process entails(влечет за собой): examining the organization's critical issues determining(определяя) how the organization's strengths and skills can be employed to address the critical issues analyzing opportunities and strengths and looking for ways to synthesize the two exploring and choosing the best approaches(подходы) for the organization.  During this evaluation ask these key questions: Does the strategy meet/address critical issues? Is this aligned with our mission? Is this approach financially viable(жизнеспособный)?  One effective method of strategy generation is to list critical issues and organizational strengths onto flipcharts and then have staff or board members brainstorm possible uses of those strengths or other skills to address the critical issues.  

Once the brainstorm session is completed, use a roundtable discussion to investigate and evaluate the possible strategies.  Remember to develop a list of alternative strategies to investigate(расследовать) and keep in the contingency(непредвиденные обстоятельства) planning file.  It is important not to discount the ideas that come to people during non-working hours.

The Polaroid camera is the result of a three year old's question to her father: "Dad, why can't I see the picture now?" 

What are some tools for analysis and planning? 

A number of analytical tools have been developed to assist organizations with the planning process. Many nonprofit organizations have adapted these tools, modifying the questions and criteria to align with their own specific services and markets. Listed below are analytical tools frequently(часто) used by nonprofit and for-profit organizations.  

What is SWOT Analysis? 

SWOT analysis is a methodology of examining potential strategies derived(производный) from the synthesis of organizational strengths, weaknesses, opportunities and threats (SWOT).  The partnering of the different elements and the extensive data collected as a result of the analysis can serve as a spark(искра) for roundtable discussions and refinement(refinement) of current strategies or generation of new strategies. 

What is the  MacMillan Matrix?

  This strategy grid(сетка), developed by Dr. Ian MacMillan, is specifically designed to assist nonprofit organizations to formulate organizational strategies. There are three assumptions(допущений) underlying this approach: the need for resources is essentially competitive and all agencies wanting to survive must acknowledge(признавать) this dynamic given that resources are scarce, there is no room for direct duplication of services to a single constituency (избирательный округ )-- this is wasteful and inefficient(расточительным и неэффективным) mediocre(посредственный) or low quality service to a large client population is less preferable to delivering higher quality services to a more focused population. These assumptions have implications that are difficult and painful for many organizations and individuals. It might mean terminating some programs to improve core services and competencies, giving programs and clients to more efficient, effective agencies, or competing aggressively with those programs that are less effective or efficient.  MacMillan's matrix examines four program dimensions that guide placement on the strategy grid and indicate implied strategies. 

Alignment(выравнивание) with Mission Statement: Services or programs that are not in alignment with the organizational mission, unable to draw on existing organizational skills or knowledge, unable to share resources, and/or unable to coordinate activities across programs should be divested. 

Competitive Position:  Competitive position addresses the degree to which the organization has a stronger capability(возможности) and potential to fund the program and serve the client base than the competitive agencies. 

Program Attractiveness:  Program attractiveness is the complexity associated with managing a program.  Programs that have low client resistance, a growing client base, easy exit barriers, and stable financial resources are considered simple or "easy to administer." The level of program attractiveness also includes an economic perspective or a review of current and future resource investments. 

Alternative Coverage:  Alternative coverage is the number of other organizations attempting(попытки) to deliver or succeeding in delivering a similar program in the same region to similar constituents. 

The MacMillan Matrix provides ten cells in which to place programs that have been reviewed in terms of these four dimensions(размеры). Each cell is assigned a strategy that directs the future of the program (s) listed in the cell (e.g., aggressive competition, joint venture, orderly divestment, etc.). One cell of the matrix, "Soul of the Agency," requires additional explanation. These are the difficult programs for which the organization is often the clients' "last, best hope." Management must find ways to use the programs in other cells to develop, piggyback, subsidize, leverage, promote, or otherwise support the programs in this category. 

KNOWLEDGE MANAGEMENT

What is knowledge management?

Getting the right information to the right people at the right time -- to enable the right actions. 

How are innovation and knowledge management related? 

Innovation is the most evolved stage in the development of knowledge management. The first stage is data, the second is information, the third is knowledge, and the fourth is innovation. 

INFORMATION MANAGEMENT 

What is information management? 

Information management (IM) is the harnessing(освоение) of the information resources and information capabilities of the organization in order to add and create value both for itself and for its clients or customers.  Information management is the management of organizational processes and systems that acquire, create, organize, distribute, and use information. We adopt a process view of information management. In this view, IM is a continuous cycle of five closely related activities:

• identification of information needs;
• acquisition and creation of information;
• organization and storage of information;
• information dissemination;
• information use.

 

The idea underlying IM is that just as an organization purposefully and systematically manages its human resources or financial assets, it should do likewise(также) for its information resources and processes. All the classic functions of managing an organizational activity apply to IM as well: defining goals, providing leadership, developing policies, allocating resources, training staff, evaluation and feedback. 

What are the benefits of information management?

Generally speaking, there are four kinds of benefits(преимущества) from managing information strategically:

• reduce costs;
• reduce uncertainty or risks;
• add value to existing products or services;
• create new value through new information-based products or services.

 

What is the difference between data, information and knowledge?

  Consider a document containing a table of numbers indicating product sales for the quarter. As they stand, these numbers are Data. An employee reads these numbers, recognizes the name and nature of the product, and notices that the numbers are below last year’s figures, indicating a downward(ухудшающийся) trend. The data has become Information. The employee considers possible explanations for the product decline (perhaps using additional information and personal judgment), and comes to the conclusion that the product is no longer attractive to its customers. This new belief, derived(derived) from reasoning and reflection, is Knowledge. Thus, information is data given context, and endowed(наделены) with meaning and significance(значение). Knowledge is information that is transformed through reasoning and reflection into beliefs, concepts, and mental models.   

What is an information strategy?

An information strategy describes the overall direction and general framework in which the organization’s information  resources and processes should be managed so that the organization would achieve its most important goals.  An Information Strategy typically consists of the following: IM goals and objectives that are well aligned with the organization’s mission and vision IM principles that articulate desirable outcomes and form the foundation for developing information policies One or more areas of strategic focus: this could be some critical information content; common information to be shared; some information-intensive process; or new information-based products or services. 

PROJECT MANAGEMENT 

What is the purpose of project management? 

To provide management with valid, auditable status on which to base management decisions. 

Why should the project be planned? 

The main reason for planning a project is for cost expediency(целесообразность). Proper project planning will insure that the amount of work to be accomplished, the time allotted(выделенный) to satisfactory complete the work scope(сфера), and the resources required to complete the work scope are equally balanced. Every project undergoes some amount of change while in progress. Proper planning allows for the assessment of the impact of change prior to implementing the change. 

What is the most important safe guard provided by project planning? 

Proper planning includes the documentation of the work scope in language that is understandable by the individuals who must accomplish the work scope. This single step when properly accomplished will save many false starts as well as preventing the waste of resources working on efforts(усилия) which are not required to obtain the desired goals of the project. 

Why should a company have a project management system? 

The customer may wish to know how the company manages a project. The customer wants some assurance(гарантия) that the company can deliver the project on time and within(в пределах) budget. Senior management wants a valid insight on how the project is progressing. History is required of past performance so that new proposals(предложения) can be created based on fact. The company desires to be a superior performer when compared to the competition. 

Does each project have to create its own management system?  

The style of the individual project manager will normally vary for each project. It is the responsibility of senior management to put in place a policy and procedure, supported by a selection of project management tools and formats, which will assure that the status reporting is readable, auditable, and valid. 

What are the tools needed for a project management system?

A work definition policy and format, a scheduling procedure, a resource budgeting methodology and format, a real time data collection/reporting system, a material control and accountability subsystem, a change control subsystem, and a monthly formal status review format to be used by senior management.