Importance of Creating Strategy for Your OrganizationBYAngela Ihunweze(Mrs)+234 080 33 28 03 53

Table of contents

What exactly is strategy?

Fundamentals of strategy Strategy at Different Levels of a

Business

The impact of strategy in the organization

Key Stakeholders and Participants in the Strategic Process

Key Stakeholders and Participants in the Strategic Process part 2

Exercise for you

What exactly is strategy?According to Johnson and Scholes in their description of strategy in their publication (Exploring Corporate Strategy)it is defined as follows:

“The direction and scope of an organisation over the long-term: which achieves advantage for the organisation through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations"

Fundamentals of strategy

Strategy addresses the following fundamentals: Where is the business trying to get to in the long-term

(direction) Which markets should the business compete in and what kind

of activities are involved in such markets? (markets; scope)

How can the business perform better than the competition in those markets? (advantage)?

What resources (skills, assets, finance, relationships, technical competence, facilities) are required in order to be able to compete? (resources)?

What external, environmental factors affect the businesses' ability to compete? (environment)?

What are the values and expectations of those who have power in and around the business? (stakeholders)

Strategy at Different Levels of a Business

Strategies exist at several levels in any organization - ranging from the overall business (or group of businesses) through to individuals working in it.

Corporate Strategy - is concerned with the overall purpose and scope of the business to meet stakeholder expectations. This is a crucial level since it is heavily influenced by investors in the business and acts to guide strategic decision-making throughout the business. Corporate strategy is often stated explicitly in a "mission statement".

Business Unit Strategy - is concerned more with how a business competes successfully in a particular market. It concerns strategic decisions about choice of products, meeting needs of customers, gaining advantage over competitors, exploiting or creating new opportunities etc.

Operational Strategy - is concerned with how each part of the business is organized to deliver the corporate and business-unit level strategic direction. Operational strategy therefore focuses on issues of resources, processes, people etc.

The impact of strategy in the organization

leads to action builds a shared vision that is values-based is an inclusive, participatory process in which board and staff take on a shared ownership

accepts accountability to the community is externally focused and sensitive to the organization's environment

is based on quality data requires an openness to questioning the status quo

is a key part of effective management.

Key Stakeholders and Participants in the Strategic Process

Strategic planning phase Who should be involved?

Planning the process; The management team of the project or organization.

Understanding the context;All staff and Board members: Administrative staff should be involved if it is important for them to understand the organization's issues and problems.

Key Stakeholders and Participants in the Strategic

Process part 2 Vision, values and mission discussion; All staff and Board

members. It is very important to involve all staff, including administrative staff in this discussion as it is likely to provide a set of

operating principles – in other words, to

make it clear why people who work in

the project or organization are expected to work and behave in a certain way.

Review of strengths and weaknesses opportunities and threats; Programme or professional staff for the whole of this process; include administrative staff in the discussions around internal strengths and weaknesses. Discussion of strategic options and

goals. Professional staff and Board members.

Organizational structure; The management team with input from

the rest of the staff

Exercise for youWhat is your contribution in creating strategy

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