If you need a clear in depth picture of where your organization is, and if you are planning to have both short & long term plans, if you are re-setting your goals and revisit your institutional vision, then strategy is the turn key solution.
Smart Chart hives a big hand to their partners to get to know more about their current operating environment (strengths & weaknesses) and their desired future statues, in order that they can implement a roadmap for successful change. By asking the hard questions, we draw out the key drivers, risks, issues and constraints that will help to inform strategic planning and transform your organization.
Why set a new strategy?
Business leaders decide to reset their business strategy for many reasons as follows;
- Having new leadership
- Radical changes in the market
- Below average team performance
- Rallying behind an obvious purpose and direction for staff
In fact, lots of triggers and of different approaches are in hand. But the real challenge is always to come up with a good workable and actionable strategy – one that’s well thought through, has identified what the choices are, and sets a clear and practical direction.
The most critical factor in business strategy is to be clear about what you’re trying to achieve: who you want to serve; why customers should buy your products or services; and how you should organize to deliver them most effectively. In short, you should have stated;
- the target market
- the value proposition
- the operating model
How it all begins?
Smart Chart has its unique road map to draw your strategy for your organization.
- Assess your current situation
- Clarify your Vision & mission
- Explore right business model for your business
- Develop strategy
- Performance Management
You have to analyze your current situation based on facts of your business history, search in each area of the business and determine what worked well, what could have been better and what opportunities lie ahead. SWOT (Strength, Weakness, Opportunities and Threats) analysis that gives a clear view of internal and external factors. As well as PESTLE analysis (Political, Economic, Social, Technological, Legal and Environmental).
Clarify your Vision
Your vision should cover the future direction of your business and short & long term goals. It’s about describing the organization’s purpose and values. Business gurus have debated long and hard about what comes first – the vision, or the mission statement however, you could develop both at the same time. Like the vision statement, this defines the organization’s purpose, but it also outlines its primary objectives. This focuses on what needs done in the short term to realise the long term vision. So, for the vision statement, you may want to answer the question:
“Where do we want to be in 5 years?
While For the mission statement, you should answer the questions:
- What do we do?
- How do we do it?
- Whom do we do it for?
- What value do we bring?
Set strategic objectives
After setting the vision & mission you will have to choose the high-level objectives for all areas of the business. They need to highlight the priorities and inform the plans that will ensure delivery of the company’s vision and mission.
Such objectives must be SMART (Specific, Measurable, Achievable, Realistic and Time-related). and must also include factors such as KPI’s, resource allocation and budget requirements.
Explore right business model for your business
In every type of business you need to select the right business model. But what exactly is a business model? In the most basic terms, a business model is how you plan to make money with your business. You need to ask questions like, “Who is your target customer?”, “How will you generate revenue?”, “How will you reach potential customers, convert them to paying customers, and keep them paying?”. These questions will help you decide which business model will be best for you.
You may now develop your strategy by reviewing your set business model and ask yourself questions like;
- What are the required changes to implement the Business Model?
- How do we bridge the gap (transition) between the current and new strategic direction?
- What are the strategic programs needed to implement the Business Model and Strategy?
- Who should have ownership for each of the strategic programs?
- How do we communicate the Strategy to staff and key stakeholders?
Set the 1yr Business Plan
It is the time to cover the bones with some meat!
Start translating the strategic objectives into more detailed short-term plans. These plans will contain actions for departments and functions in your organization. You’re now focusing on measurable results and communicating to stakeholders what they need to do and when. You can even think of these tactical plans as short sprints to execute the strategy in practice.
It is not only that you have done plans and hard work, but it’s vital to continually review all objectives and action plans to make sure you’re still on track to achieve that overall goal. Managing and monitoring a whole strategy is a complex task, which is why many directors, managers and business leaders are looking to alternative methods of handling strategies. Creating, managing and reviewing a strategy requires you to capture the relevant information, break down large chunks of information, plan, priorities, capture the relevant information and have a clear strategic vision
Smart chart added value
Smart Chart is giving more than a hand to organizations to determine what type of strategy to set and implement and we go further into the outcomes sort from a strategy. Thanks to a unique blend of assessment both internally and externally operating environments, complimented by benchmarking will improve the development of a more effective strategic plan. Developing a good understanding of an organization’s internal and external environment helps to develop a more responsive strategy to any changes in the future. Directing effort and resources to the right activities (bridging the gap, validated business model) will ensure the development of a workable strategy.
Organizational Design definition
It is that way an organization is to be structured and operated by its members. It is both a plan and a process. Implementing a new strategy, business model or to address areas in need of improvement often drives an organization to assess their organizational structure to see if it’s fit-for-purpose or may require restructuring.
Why review your organization design?
Reviewing your organization design, and determining any need to restructure, is necessary when there is:
- A new strategy developed
- A change in leadership
- More demand from consumers for products and services
- Changes in the supply chain impacting your organization
- New competitors in the marketplace
- Financial and process audits suggest the need for changes to structure
Since we realize the many choices of organization structure, we put ourselves in your position and think how do you go about making organization design decision for your business?
These multiple techniques for organization structures have different benefits in different situations. What matters is the overall organization design is aligned with the business strategy and the market environment in which the business operates. It must then have the right business controls, the right flexibility, the right incentives, the right people and the right resources.
Considerations for Organization Design
- Organization Strategy
The organization design must support organization strategy. If your organization intends to be innovative then a hierarchical structure will not work. If however, your strategy is based on low cost, high volume delivery then a rigid structure with tight controls may be the best design.
- Organization Size
When you decide to redesign the organization, you must take into account the size of your organization. As a small organization could be paralyzed by too much specialization. However, In larger organizations, on the other hand, there may be economies of scale that can be gained by maintaining functionally specialist departments and teams. A large organization has more complex decision making needs and some decision making responsibilities are likely to be devolved.
- Organization Environment
If the market environment you work in (customers, suppliers, regulators, etc.) is unpredictable or volatile, then the organization needs to be flexible enough to react to this.
- Organization Controls
Ask yourself first about the level of control that suits your business. Since Some activities need special controls, whilst others are more efficient when there is a high degree of flexibility.
- Organization Incentives
There has to be a matrix of Incentives and rewards must be aligned with the business’s strategy and purpose. When these are misaligned, there is a danger that units within the organization become self-serving. Using the earlier example of a company that wants to grow by acquiring new customers, the sale team is incentivized on customer retention, and therefore is self-serving rather than aligned with the business purpose.
Smart chart Value Added
Throughout an outstanding team of leadership that involved the need to review, design and implement initiatives to restructure entire government departments to divisions within organizations. We developed the guideway, processes, and approvals process for new or changes to government department organizational structures.
Each and every organization must change – not only to survive, but also to retain its relevance in a world of sever competition, constant global progress, and rapid changes. But in order for change to bring a benefit and advance an organization to a higher level of service and operation, that change must be driven by knowledge. Planned change comes in the form of performance Improvement initiatives. Naturally, some performance initiatives are relatively small, while others are massive in scope, amounting to an organizational transformation.
Hence, Performance improvement shall involve changes to business processes, restructuring an organization, responding to market shifts, introducing new technologies, etc. When performance improvement is well planned and implemented, it helps assure the organization achieves enduring benefits or prepare the organization for larger performance improvement initiatives.
Why PIP (performance improvement plan)?
It is very essential that we identify what type of improvements are needed, how they may impact other organizational components and what is the best way to implement changes resulting in real benefits and an environment that values continuous improvement.
Though improvement approach ensures that you achieve the step change in the business that has been identified as critical to ensuring your continued prosperity and growth.
It is a must for those that follows to implement PIP:
- Whoever requires additional capability and capacity to support the performance improvement initiative – project manager, project team, industry experts, & analysts.
- Those under pressure by their internal or external environment to change quickly.
- Any organization seeks to build up and reinforce capability for the future through training and implementation of continuous improvement.
Smart Chart supports you with experience and expertise in performance improvement and know the journey that organizations undertake during periods of change and transformation – to help you map the best roadmap for success.
The key to successful performance improvement initiatives is to ensure that benefits realization is a key focus in the Project Design phase.
How we do so:
- We Create a shared vision across top Management on the need for and opportunity presented by the performance improvement initiatives
- Showing a clear link between the strategy and the performance improvement initiative.
- Ensuring that performance improvement is not isolated but viewed as part of the wider strategic direction and project agenda.
- Designing a detailed project plan and mobilizing the right people and resources.
- Measuring the results of performance improvement to show the results of the initiative and our engagement.
- Following up on performance improvement initiatives post implementation to ensure real benefits have continued to be realized.
Smart chart Value Added
Smart Chart shall provide you with a unique PIP that drive performance improvement in your organization to successful goals in simple 6 stages process:
- Documenting Performance Issues
- Developing an Action Plan
- Reviewing the Performance Plan
- Gather with the Employee
- Following Up
- Set PIP Conclusion