Organizational strategies are developed through a hierarchical process that starts with overarching goals and cascades down to employee actions.
The Strategy Development Process
The development of organizational strategies involves a structured approach, as highlighted in the provided reference. Here's a breakdown of the typical steps:
1. Setting Organizational Goals
- The process begins with the organization setting clear, specific goals. These goals often relate to financial performance, such as increasing profits by a certain percentage, as stated in the reference.
- These objectives are typically established at the highest level of the organization (e.g., by the CEO or Board of Directors).
- Example: A company might set a goal to increase its profits by 15% within the next fiscal year.
2. Departmental Strategy Formulation
- Once organizational goals are defined, department heads take the lead in formulating strategies to achieve these goals.
- Department heads analyze the overall goals and develop plans that align with their specific areas of responsibility.
- Example: The marketing department might decide to focus on breaking into new markets or creating new ad campaigns, while the product development department could prioritize new product research and development.
- The reference mentioned specifically that department heads use the organizational goal as a guideline for their strategies, whether to break into new markets or launch new advertising campaigns.
3. Implementation by Employees
- The final stage involves employees carrying out the tasks and activities needed to implement the chosen strategies.
- Employees at all levels execute the detailed plans created by their departmental leadership.
- This step is crucial for putting the strategies into action and achieving the organizational goals.
- Example: If the marketing strategy involves a new advertising campaign, employees in the marketing team will be responsible for creating the ads, managing ad placements, and monitoring their performance.
Key Aspects of Strategy Development
| Aspect | Description | Example |
|---|---|---|
| Goal Setting | Defining specific, measurable, achievable, relevant, and time-bound objectives. | Increase profits by 10% in the next fiscal year. |
| Departmental Focus | Tailoring strategies to fit specific department capabilities and contributions to the overall goal. | Marketing department focuses on new market entry. |
| Employee Execution | Employees perform the work based on departmental strategies. | Marketing team develops and executes a new ad campaign. |
Summary
Organizational strategies are not a single event but a process involving goal setting, departmental planning, and employee action. By clearly defining goals at the top and delegating strategy development down to each department, companies ensure a cohesive approach to achieving their objectives. The hierarchical structure provides clarity and ensures that all levels of the organization contribute to the overall success.
