international MBA, MBA, mba programme, MBA Scotland, MBA student, Professor Colin Eden, Scotland, Strategy; Making Strategy, Strathclyde Business School, strathclyde mba, Student Experience, University of Strathclyde, University of Strathclyde Business School
Today more than ever, organizations need to get their strategies right. One way of accomplishing this is by choosing the right technique that will be used in making the organizational strategy. This article will look at a ‘different’ process of making strategy which engages the business team and ensures performance. This article has been influenced by the Making Strategy course by Professor Colin Eden.
The nature of the changing business environment has completely transformed the way that businesses perform their organizational functions. An area of management that has always been an issue of debate is the area of business strategy and performance. Research suggests that organizations on the average only tend to deliver about sixty percent of the performance (ROI) which the business strategy promises to deliver. This research points to the fact that despite the investment that goes into creating or building an organizational strategy; many organizations really have little or nothing to show for it. To make matter even worse, in trying to remediate this, management tend to take the wrong steps and efforts to turn performance around by cutting costs, firing employees- when what is actually needed is a better strategy… a better way of making strategy for the organization.
The course module and term “making strategy” is used here to describe a way of strategy. The word ‘making’ is used in place of substitutes like “creating” or “building”; because ‘making’ indicates the process and ability to create a strategy, operationalize it – i.e put it into practice to ensure its proper adoption. The old way of building organizational strategies is by using theories but strategy isn’t and shouldn’t be built around theories or plans. Strategy should be an inclusive; that is, it should involve a strong team of business stakeholders. One advantage of involving a team of people is that this will ensure a strong level of ownership. Strategy should be a dynamic process. Strategy should be built by identifying the core competences of the organization, identifying the organizational issues, developing realistic goals and plans that put into perspective the market environment business operates in – and then using these indices to effect competitive advantage and drive effective business performance.