For an organization to be successful, its managers and leaders must direct their people to:
1) do the right things
2) do the right things
The first, doing the right things, is Business Strategy. The second, doing the right things, falls into the field of Effectiveness, and other Skills.
Business Strategy is of great importance to any company, small or large. In large companies, it is usually the top management levels who deal with the strategic issue; however, as an individual moves up the ladder, he/she has to think more and more strategically every day.
Formulating the business strategy
Formulating the business strategy, and then implementing it, is a dynamic, complex, continuous and integrated process that requires a lot of evaluation and adjustments. It involves three major steps:
1. Determine where we are: analyze the situation both internally and externally, at the micro and macro levels.
Identify where we want to go: this involves establishing the mission, vision, values and objectives, both at the corporate level and at the business unit level.
3. Determine how to get there: i.e. the Strategic Plan, which is the series of decisions to be made.
4. What products and services to offer
Implementing the business strategy
It is useless to have a fabulous strategy if it is not carried out. Implementing or executing the plan involves a series of steps:
Allocate and procure the necessary resources: financial, human, time, technology, etc.
Establish the human structure: it can be a hierarchical command structure, multi-functional teams, etc.
Establish responsibilities: each task or process should be the responsibility of a person or a team.
Manage the process: evaluate the results, and make the necessary adjustments.
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