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Crafting and

Executing Strategy
“ If we can know where we are and something
about how we got there, we might see where
we are trending- and if the outcomes which lie
naturally in our course are unacceptable, to
make timely change
- Abraham Lincoln

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The process

CRAFTING STRATEGY IMPLEMENTING EVALUATING


DEVELOPING A SETTING
TO ACHIEVE THE AND EXECUTING PERFORMANCE AND
STRATEGIC VISION OBJECTIVES
OBJECTIVE THE STRATEGY CORRECTIVE ACTIONS

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Crafting Strategy
Challenges
“There is too much change happening, strategic plans are
obsolete!”
A plan for a single future,
which is what may
companies call their
“strategic plan”, is going to
end up being the obsolete
document that no one
wants to invest in.

Unpredictable nature of the


industries and economy,
manager’s wouldn’t want to
spend money on a future
which becomes obsolete

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“There are too many strategic plans that are useless or not
followed through”
The dreaded blackhole of a strategy is a document
lying on the CEO’s table

There is a clear distinction between a strategic plan


and actual strategic planning, and it is most clearly
differentiated based on alignment and buy-in of the
organization.

A strategic plan that is filled with jargon words like “leverage”


or “accelerate” does not give clear takeaways to employees
about the direction of the organization.

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“Strategy is difficult to measure, therefore, it’s easy to make the
wrong decisions”

A strategy meeting can


The agreement of the entire be completely
team on strategic priorities is unproductive without
much more important than clear direction and
research and analysis in objectives, but we have
coming to a decision. also helped leadership
teams gain clear
Rather than thinking about a strategic direction in a
difficult future, managers are single day.
often too occupied with daily
tasks.
Lacking internal expertise

• Most companies are facing unprecedented disruption from


key market trends, but that doesn’t mean the enterprise
strategy team has the bandwidth to fully analyze and
understand them.
• For instance, it’s impossible to develop a strategy based
around, say, predictive analytics and the Internet of Things
(IoT) if your strategy team lacks sufficient knowledge and
subject matter expertise to analyze these important data
science trends.

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Meeting aggressive guidelines

• Corporate strategy teams are often given tight deadlines


based on the scheduled release of earnings reports or board
meetings, which have little or nothing to do with the
underlying challenges of the project.
• These “externally driven deadlines” can get in the way of
delivering optimal results. Unrealistic deadlines, untethered
to the internal demands of the project itself, can also burn
out the strategy team, leading (again) to disappointing
deliverables.

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Learning to blend digital tools and hybrid teams

• Every corporate strategy team should be constantly


pursuing efficiency. That’s a growing challenge, however,
because it requires the capacity to constantly restructure
enterprise assets and talent.
• As new digital tools like the IoT emerge, enabling
enterprises to collect data in real time, strategy teams
will be hard-pressed to learn how to use all of this data to
inform strategic development and decision-making.

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Evangelizing a “change mindset”
Corporate strategy teams that fail to adopt innovative strategies and
fall behind their market rivals have one thing in common: a bias
favoring the way they’ve always done things. Strategy is about
change, and driving change requires individuals and organizations to
have a “change mindset.”
It takes humility to admit that a better way might exist elsewhere; it
takes an open mind to understand why that better way worked
somewhere else and how it might be applied here; it takes
determination and follow-through to drive change, aligning your
people, processes and systems around new ways of working. Coping
with and taking advantage of change is the ultimate challenge for
enterprises and strategy teams.

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Joys
◂ A company’s strategy is its action plan for
outperforming its competitors and
achieving superior profitability
◂ Winning strategy helps in achieving
competitive advantage

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◂ High- achieving enterprises are nearly
always the product of creative, astute
and proactive strategy making.
Companies don’t get to the top of the
industry rankings with illogical strategies,
copy-cat strategies or timid attempts to
only try to do better.

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Financial benefits
Studies show that organizations that use sound strategy
formulation and management practices are successful and more
profitable than firms that do not have a robust strategy
formulation and plan. Strategy formulation enables the
organization to engage in forward-looking plans and allows the
organization to carefully evaluate its priorities. This gives the
organization the ability to change its landscape and its goals.

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Forces an objective assessment
Strategy formulation provides a discipline within the organization
that allows the top management to take a step back and assess its
day- to –day operations of the business and to think about the
future of the firm. When the senior management constantly re-
evaluates its performance in reference to the future goals, it gives
the organization a better understanding of what needs to be done
to achieve its objectives.

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Provides a framework for decision-making
A strategy provides a structure within which all employees of an
organization can make everyday decisions and ensure that those
decisions are all moving the organization in a single seamless
direction. The strategy offers a vision of the future, it confirms the
purpose and values of the organization, it ensures objectives are
set, identifies the threats and opportunities, it also determines the
methods that can be used to leverage strengths and mitigate the
weaknesses.

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Enables measurement of progress
The strategic formulation process forces an organization to
establish objectives and enables the organization to measure
success. The formulation process enables the organization to
determine what is important and critical to the success of the
organization. It also forces the organization to set objectives and
keeps these measures in place.

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Provides an organizational perspective
Strategy formulation takes an organizational perspective and
carefully looks at all the components of the organization and the
interrelationship between these units to enable the organization
to develop a strategy that is optimal and all inclusive.
Strategy formulation is necessary to any organization that wants
to achieve its goals and objectives within the right time frame.

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Strategic formulation allows the firm to plan its capital budgeting.
Companies have limited funds to invest and must allocate capital
funds where they will be most effective and derive the highest
returns on their investments.

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A strategic plan, when communicated to all members of an
organization, provides employees with a clear vision of what the
purposes and objectives of the firm are. The formulation of
strategy forces organizations to examine the prospect of change
in the foreseeable future and to prepare for change rather than to
wait passively until market forces compel it.

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Success
Story of
strategy
planning-
Patanjali
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Low cost Hiring the right
provider talent
strategy

Focus on Product
product quality innovation

Extensive sales Baba as brand


and distribution ambassador
network
Executing Strategy
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Maps

our office

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Let’s review some concepts
Yellow Blue Red
Is the color of gold, Is the colour of the clear Is the color of blood, and
butter and ripe lemons. sky and the deep sea. It because of this it has
In the spectrum of is located between violet historically been
visible light, yellow is and green on the optical associated with sacrifice,
found between green spectrum. danger and courage.
and orange.

Yellow Blue Red


Is the color of gold, Is the colour of the clear Is the color of blood, and
butter and ripe lemons. sky and the deep sea. It because of this it has
In the spectrum of is located between violet historically been
visible light, yellow is and green on the optical associated with sacrifice,
found between green spectrum. danger and courage.
and orange.
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