2. CONTENTS
• Introduction : Strategic decision
• How to set a strategic direction
• The role of strategic direction in OD
• How strategies affect organization design
3. Introduction : Strategic design
• The addition of the term strategic expands such
conception so that creativity is linked with
innovation, allowing ideas to become practical
and profitable applications "that can be
managed effectively, acquired, used and/or
consumed by target audiences
• " Strategic design draws from the body of
literature that emerged in recent years, which
outline strategic design principles that provide
insights and new methods in the areas of
merchandising, consuming, and ownership.
4. How to set a strategic direction
• The importance of strategic direction lies in its capacity to orient your
company's overall purpose.
• Consider your vision, or your big-picture reason for wanting to be in
business. This can be as ethereal as wanting to make the world a
better place or as practical as wanting to earn as much money as
possible while making the least possible effort.
• Your vision should embody the "why" behind your venture.
• Next, consider your company's mission, or the tangible way you will
make your vision into a reality. Your mission statement will likely
include some specifics about your products and services.
• For example, an auto mechanic might articulate a mission to keep its
customers' cars safe and mechanically sound, and a fair-trade
importer might adopt a mission to improve the quality of life for
indigenous artisans by paying fair prices for their offerings.
5. • Setting Periodic Goals
• Long-term goals. By thinking through where you want to be far down the
line, you'll be able to make shorter-term plans aimed at taking you in the
direction you've defined.
• Medium-term goals. These are objectives that cover a time frame of
approximately two to three years, long enough to be broad and
meaningful but short enough for you to actually be able to get specific
about possible outcomes.
• Medium-term goals connect the scope of long-term plans with the
concrete details of shorter-term steps. ▫ Short-term goals. The process of
setting short-term goals breaks your longer-term planning into
achievable, manageable steps.
• Short-term goals should take into account short-term needs such as
having to meet your rent and payroll. They should also be crafted with an
eye toward long-term objectives.
6. THE ROLE OF STRATEGIC DIRECTION IN
ORGANIZATIONAL DESIGN
• The primary responsibility of top management is to determine an
organisation’s goals, strategy and design, therein adapting the
organization to a changing environment.
• Direction settings begins with an assessment of opportunities and
threats in the environment and an evaluation of internal strengths
and weaknesses.
• Then the company can determine its mission, goals and strategies.
• Organisational design reflects the way goals and strategies are
implemented
• Performance measurements feed back into the environment, so that
past performance of the organization assessed by top management
in setting new goals and strategies for the future.
• Choices that top management make about goals, strategy and
organisational design have a huge impact on organisational
effectiveness.
7.
8. HOW STRATEGIES AFFECT ORGANIZATIONAL
DESIGN
• Design must support the firm’s competitive approach. For example, if the
organization uses the low-cost leadership or defender strategy, the design
should be focused on efficiency, whereas if the organization uses the
differentiation or prospector strategy, coordination mechanisms to increase
collaboration and teamwork
• They need not be measurable but should lend themselves easily to objective
setting. Goals rarely change and may succeed from one planning era to the
next.
• Develop specific, measurable objectives – these are action statements that
tell the reader what you want to achieve.
• They should meet the SMART criteria: Specific – they are tangible
outcomes and real activities
• Measurable or Monitorable –Achievable – can we really do it? Realistic –
should we really do it?
• Time-bound – when could we either expect to see some results or finally
measure the result?
