Know-How Exchange : Strategy

A quick lesson on Objectives, Strategies and Tactics here .. [inactive link removed]

Be aware that most people use the term Strategy incorrectly, where what they really mean is Policy!

[Moderator: Inactive link removed from post. 2/22/2011]

I agree with Andrew that strategy is mistaken for policy and Abhatla that strategy is confused with tactics. Both common errors.

Strategy, or from a practical perspective, the planning and management of it, implies focusing on integrating management, marketing, finance/accounting, R&D, CIS operations/production etc. to achieve organizational success.

This involves formulation, implementation, & evaluation with the purpose being to exploit and create new, better and different opportunities for tomorrow.

Because no organization has unlimited resources, the task here is strategists must decide which alternative strategies will benefit the firm the most with the resources available.

This is where strategy analysis and choice - the process of generating and selecting strategies takes place. Tools such as EFE Matrix, IFE Matrix, Competitive Profile Matrix, TOWS, SPACE, BCG, QSPM etc have been developed over the years to help identify, evaluate, and select strategies. Don't be intimidated by their acronyms, they are not hard to do.

The "classic" strategic-management model is laid along a formulation, implementation & evaluation time line like this:

* Develope Mission and Vision Statement
* Perform External Audit
* Perform Internal Audit
* Establish Long-Term Objectives
* Generate, Evaluate and Select Strategies
* Implement Strategies - Management Issues
* Implement Strategies - Marketing, Finance/Accounting, R&D * CIS etc.
* Measure & Evaluate Performance
* Peform Internal Audit

Hope this helps, unfortunately far too many organizations, especially SME's, ever go through this process.

I agree with the comments above that the definition of strategy has been stretched and contorted. Leaky Funnel's definition is in line with how I would define the term.

In practice, depending upon the company, strategy may mean simply "whatever seems to make sense and will improve profit".

I'll discuss the first definition...

To expand upon the idea of integrating marketing strategy with the larger business, part of leading strategic development could also mean having significant input into the larger business plan and budgeting processes.

I think this is definitely true in companies with a Brand Management structure. In my days in Brand Management for a small company, we helped mold the overall company objectives, had significant input into the budgeting process, as well as developed the marketing strategy in context of a marketing plan.

If you would like to get more ideas about how strategy is incorporated into the planning process, you may want to read some of the articles at marketingplanarticles.com and businessplanarticles.com.

Strategy implementation can also mean working with all departments to stay on course strategically. In practice, this means a lot of work accomplishing the tactics laid out in the marketing plan. It also means, however, you are a "watchdog" who assures that tactical implementation remained in line with the broader strategies.

:-)

Bobette Kyle