Posts Tagged ‘Strategic Management’

Tips For Effective Corporate Strategic Management

April 25th, 2010



Before I formally start my writing here, there is something we should take into consideration, and it’s the fact we have to see the firm as an institution not as a mere “company” or “firm” that generate profits, Americans use the “Corporation” term instead of the “Institution” term, it is the same.

We also have to focus on 4 main things on the “company”, one is: the company per se, its surrounding and its competitiveness, we have to remember the strategic vision it has to be related to the corporate dimension, and this strategic vision has to be related to its entrepreneurship philosophy and its organizational culture, we have to differentiate these two concepts, the entrepreneurship philosophy it is mainly related to its institutional dimension and its organizational culture is mainly related to its human resource dimension, these two main sections are what makes the “corporation” per se, this is the corporate efficiency. In the other hand, after this here it comes the Strategic Management which is all what has to do with the economic / technical dimension effectiveness, after this it comes what is called the organizational system, can see in this, the processes this goes from the mid management sections of the firm to the staff in the lower part, and the corporate organization, here we can see the corporate dimension.

We have to reduce coordination costs between the firm or the company seen as a corporation now, the external corporate image dimension and the management or direction culture, reducing coordination costs means clear identification of values and precepts, guidelines, rules, etc, and corporate identity. Corporate Culture influence the Corporate identity this influence the Corporate Brand these three sections represent the self-portrayal of the firm here the main thing is the efficient corporate value systems used by the members of it. These three main sections influence the corporate image and corporate reputation which is already the perception of the firm either by the shareholders, stakeholders or any other external group.

So the secret of the corporation is the correct value systems in the external level, the value system is too close related to the Corporate Philosophy and the Corporate Culture both has to take into account behaviours and institutional criterions, seen this way therefore this builds the entrepreneurship philosophy which will create the corporate principles and this therefore will influence on the creation of the vision and mission same as realization of them among the members or staff, that will also increase internal and external shareholders same as stakeholders value.

A good director is a very important requisite for this be undertaken at a low coordination costs and in a short time of course, a good CEO will be in charge of becoming a promoter of this entrepreneurship philosophy and will have to spread it all over the organization and at the same to create entrepreneurship philosophy network system which will be in charge of multiplying this new approach among the members and of course the use of technology could be helpful for this.

By: Henry Alzamora

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Training KPI and Effective HR Management

March 20th, 2010



The use of KPI’s or key performance indicators is quite a useful concept that has become popular in strategic management. Over the past years, the practice of management has been becoming more and more based on facts and observations, and it became logical to try and define which parameters could determine performance.

Being able to have quantifiable bases with which to measure various aspects of the performance and condition of an employee, group, or company has become one of the basic principles of sound management. After identifying the various measurable quantities available, it then becomes a matter of choosing the most relevant parameters. The most important of these parameters then became known as key performance indicators (KPI).

For instance, a training KPI is the average number of training hours that each employee has undergone within a specified time period, usually a year. This parameter would be able to roughly indicate the amount of training that an employee, on average, is able to get within that time period.

By considering both the magnitude and the rate of change of this parameter, management would be able to get a clearer idea of whether their employees are receiving enough training. Conversely, if this average number is too small, or if the rate of change is negative – that is, if the number of hours show a decreasing trend – then it might be necessary to route more resources to training.

Another training KPI that might prove useful is the average training cost, per employee, over a specified time period. This cost can then be compared against the average increase in productivity, to see if the training regimen that has been implemented actually worked. For example, a high average training cost together with a low average increase in productivity would seem to point towards an ineffective training program. A lower average training cost, on the other hand, together with a high average increase in productivity would mean that the training program implemented was a cost-effective one.

It can be seen from these examples, then, that considering training KPI’s individually would not always yield accurate evaluations. This is because many of these parameters are actually interrelated, and must be considered together to represent a meaningful way of measuring performance.

It is still important, of course, to be able to identify what these most important training KPI’s are, to be able to monitor all of them effectively. Once data has been gathered according to these known key performance indicators, then the data can be evaluated, in light of the relationships between these KPI’s. A proper selection of KPI’s would help to limit the data to be analyzed to those data that would really be relevant.

In today’s world, organizations are more often than not forced to adapt to changing conditions and a dynamic marketplace. This places more importance on being able to evaluate and implement effective training programs. With the use of training KPI’s, managers would be able to judge better and craft good training programs for the betterment of their organization.

By: Sam Miller

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The basics of strategic management

November 12th, 2009

Crisis management in business environment requires pro-activeness and anticipation. Instead of spending a great deal of money, time and energy to react to unforeseen changes, organizations need to develop strategic planning skills to deal with immediate problems, but mostly to prepare for future challenges.

Strategic management is an ongoing activity of successful organizations determining where an organization will be in the future and how it’s going to get there. The process addresses three fundamental requirements on strategic thinking: a crystal-clear purpose, a thorough understanding of the environmental forces that relate to that purpose and originality in developing effective responses to those forces. Continually posing the question “Are we doing the right thing?” strategic management entails readiness to review the organization’s current practices, while paying attention to the “big picture” in the future. In addition, by providing increased awareness of future trends and needs, it helps the smooth adaptation of the organization to changing circumstances. In that way, strategic management forces organizations to look into the future, while offering the opportunity to influence the future assuming a proactive attitude.

The process is typically used to determine organizational mission, vision, values, and goals and objectives and includes several major steps in the process. These include:

1/ Start-up phase

The start-up phase focuses on the formation of the planning team. The team should identify the key products and services and the principal markets the firm should operate in, collect historical data and projected information in regards to environmental factors, technology, regulations and competition and identify possible constraints to conducting the strategic planning process.

2/ Diagnosis phase

The diagnosis phase focuses on thoroughly investigating environmental issues and trends by performing an external and internal audit. The external audit focuses on business threats and opportunities such as direct/indirect competition, outsourcing, and niche markets, while the internal audit examines the organization’s strengths and weaknesses in terms of products, employees, skills, resources and needs. In addition, the diagnosis phase establishes a clear understanding of the business situation and identifies key issues and challenges to address.

3/ Strategy formulation & implementation Phase

The strategy formulation & implementation phase focuses on the development of appropriate strategies to produce products and services to best respond to the issues and challenges identified in the diagnosis phase. In this phase of strategic management, strategies are integrated into a clear organizational vision that defines the action plan and performance indices.

After these phases are completed and strategic plans are crafted, organizations focus on customer satisfaction and profitable operations. In this context, the creation of a new corporate mission assists to the deployment of available resources to implement the competitive strategies. Moreover, this proactive posture provides organizations with a sense of direction and stability, while employing effective recruitment and leadership patterns.

The most successful organizations recognize strategic management to be vital to their ongoing success. In an ever changing business environment, strategic plans need ongoing attention based on technological change, governmental regulations, industrialization and globalization. In this context, strategic management develops precise and considerable actions and directions to meet the organizational objectives. In addition, being the foundation that assists an organization to jointly and cooperatively gain control of the future by putting all organizational members into the system, strategic management provides standards of accountability for people, programs, and allocated resources.




By: Christina Pomoni

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