Demystifying Strategy:
The What, Who, How, and Why
"It's just as important to understand what strategy is -- guiding principles for decision-making -- as what it isn't -- mission, value network, and vision." (quoted)
What is strategy? It's been almost a month since we started studying business strategy. However, I still don't have a clear view of what strategy is. The only thing that pops up in my head when I think of strategy is just some tactics you can use in order to win in business competitions. I wanted to know more about strategy and fully understand what it really means. Through this article I chose, the author helps you to get a better understading of strategy.
Many leaders know that they should have a strategy in order to align decision making in their businesses. Most of them struggle with strategies even though they have had a lot of theories to use, because 'when it comes down to the nitty-gritty crafting strategy, they get bogged down.' (quoted)
The author has his own definition of business strategy. "A business strategy is a set of guiding principles that, when communicated and adopted in the organizaion, generates a desired pattern of decision making. A strategy is therefore about how people throughout the organization should make decisions and allocate resources in order accomplish key objectives." In other words, having a business strategy means that you have a roadmap including principles to follow. To do what? To achieve 'desired goals!'
The thing you need to remember is that a strategy is NOT a mission to be achieved. Plus, it's NEITHER the value network, the web of relationships you have with others like suppliers, customers, and investors, NOR a vision which is a means to use inspire others. What he means, I think, is that strategy is not a motivating tool.
What is a conclusion, then? "Mission is about WHAT will be achieved; the value network is about with WHOM value will be created and captured; Strategy is about HOW resources should be allocated to accomplish the mission in the context of the value network; and vision and incentives is about WHY people in the organization should feel motivated to perform at a high level." (quoted) These four together, decide the strategy direction to take. They are all inter-related so that you can't create a strategy without thinkging of vision and goals.
As a Christian, what kind of vision, goals, and strategy we should have? Proverbs 16:1 says "To man belong the plans of the heart, but from the LORD comes the reply of the tongue." And Proverbs 19:21 says "Many are the plans in a man's heart, but it is the LORD's purpose that prevails." We must live a life walking with the Holy Spirit. In Him, that's the place where the wisest strategy comes from.
Now I am less confused with strategy. These four elements of business have always been familiar to us but it was quite hard to tell the difference. What is your own definition of strategy?
Reference: http://www.businessweek.com/managing/content/sep2007/ca20070918_848913.htm?chan=careers_managing+your+company+page_strategy+and+execution by Michael Watkins
"It's just as important to understand what strategy is -- guiding principles for decision-making -- as what it isn't -- mission, value network, and vision." (quoted)
What is strategy? It's been almost a month since we started studying business strategy. However, I still don't have a clear view of what strategy is. The only thing that pops up in my head when I think of strategy is just some tactics you can use in order to win in business competitions. I wanted to know more about strategy and fully understand what it really means. Through this article I chose, the author helps you to get a better understading of strategy.
Many leaders know that they should have a strategy in order to align decision making in their businesses. Most of them struggle with strategies even though they have had a lot of theories to use, because 'when it comes down to the nitty-gritty crafting strategy, they get bogged down.' (quoted)
The author has his own definition of business strategy. "A business strategy is a set of guiding principles that, when communicated and adopted in the organizaion, generates a desired pattern of decision making. A strategy is therefore about how people throughout the organization should make decisions and allocate resources in order accomplish key objectives." In other words, having a business strategy means that you have a roadmap including principles to follow. To do what? To achieve 'desired goals!'
The thing you need to remember is that a strategy is NOT a mission to be achieved. Plus, it's NEITHER the value network, the web of relationships you have with others like suppliers, customers, and investors, NOR a vision which is a means to use inspire others. What he means, I think, is that strategy is not a motivating tool.
What is a conclusion, then? "Mission is about WHAT will be achieved; the value network is about with WHOM value will be created and captured; Strategy is about HOW resources should be allocated to accomplish the mission in the context of the value network; and vision and incentives is about WHY people in the organization should feel motivated to perform at a high level." (quoted) These four together, decide the strategy direction to take. They are all inter-related so that you can't create a strategy without thinkging of vision and goals.
As a Christian, what kind of vision, goals, and strategy we should have? Proverbs 16:1 says "To man belong the plans of the heart, but from the LORD comes the reply of the tongue." And Proverbs 19:21 says "Many are the plans in a man's heart, but it is the LORD's purpose that prevails." We must live a life walking with the Holy Spirit. In Him, that's the place where the wisest strategy comes from.
Now I am less confused with strategy. These four elements of business have always been familiar to us but it was quite hard to tell the difference. What is your own definition of strategy?
Reference: http://www.businessweek.com/managing/content/sep2007/ca20070918_848913.htm?chan=careers_managing+your+company+page_strategy+and+execution by Michael Watkins
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