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Strategic financial management and institutional management

Strategic financial management and institutional management

Abstract

Strategic or corporate management is the behavior of the drafting, implementation and evaluating cross-functional decisions that enable an organization to achieve its long-term goals.] is the process of specifying the mission of the organization, vision and objectives, development policies and plans, often in terms of projects and programs that are designed to achieve these objectives, and then allocating resources to implement policies and plans, projects and programs. A balanced scorecard is often used to evaluate the company's overall performance and progress toward the objectives.

Strategic management is a management level of activity in the setting of targets and tactics. Strategic Management the general direction of the company and is closely related to the field of Organization Studies. In the field of business administration is helpful to talk of "strategic alignment" between the organization and its environment or "strategic coherence". According Arieu (2007), "there strategic consistency when the actions of an organization are consistent with management's expectations, and these in turn are with the market and the context. "

"Strategic management is an ongoing process that evaluates and monitors the business and the industries in which the company participates, assesses its competitors and sets goals and strategies to meet all current and potential competitors, and then re-evaluate the strategy annually or quarterly [ie regularly] to determine how and if application is successful or needs replacement by a new strategy to meet the changed circumstances, new technologies, new competitors, a new economic environment., or a new social, financial

Methodologies

There are many approaches to planning strategic, but is usually a three step process you can use:

• Situation – evaluate the current situation and how it occurred.
• Target – define goals and objectives (sometimes called ideal state)
• Path – map a possible route to goals / objectives

An alternative approach is called Draw-See-Think

• Draw – What is the ideal image or the desired end state?
• View – What is the situation today? What is the difference from ideal and why?
• Think – What specific actions should be taken to close the gap between the current situation and the ideal state?
• Plan – What resources are needed to implement the activities?

An alternative to the absorption-See-Think approach is called See-Think-Draw

• View – What is the situation today?
• Think – Define goals / objectives
• Draw – road map for achieving the goals and objectives

In other words, planning strategy can be:

• Vision – Define the vision and establish a mission statement with hierarchy the goals and objectives
• SWOT – Analysis performed according to the desired goals
• Formulate – Formulate actions and processes that must be taken to achieve these objectives
• Implement – Implementation of the agreed processes
• Control – Monitor and get feedback from implemented processes to fully control the operation of

Strategic planning

Strategic planning is an organizational process of defining its strategy, or direction and making decisions on the allocation of its resources to pursue this strategy, including its capital and people. Various business analysis techniques can be used in strategic planning, including SWOT (Strengths, Weaknesses, Opportunities and Threats), PEST analysis (Political, Economic, Social and Technological) analysis STEER (Socio-cultural, technological, economic, environmental and regulatory factors), and Epistel (Environment, Politics, Computers, social, technological, economic and legal).

Strategic planning is the formal consideration of future development of the organization. All offers of strategic planning with at least one of the three key questions:

1. "What do we do?"
2. "For who we do it? "
3. "How can we excel?"

In business strategic planning, The third question is better phrased "How can we beat or avoid competitionIn many organizations, this is viewed as a process for determining that a organization is going in the next year or more, usually 3 to 5 years, although some extend their vision to 20 years.

In order to determine where going, the organization needs to know exactly where you are, then determine where to go and how to get there. The resulting document is called "plan strategic. "

It is also true that strategic planning can be an effective tool for tracing the direction of a company without However, strategic planning itself can not predict exactly how the market will evolve and what problems arise in the coming days with the organization to plan its strategy. Therefore, strategic innovation and playing with the "strategic plan" must be a cornerstone the strategy of an organization to survive in the turbulent business climate.

Mission, Vision and Values

Mission: Define the purpose fundamental to an organization or company, briefly describing why it exists and what it does to achieve its vision. The mission could be long term or short term. A mission of the company may take many years or for life of the organization or may change as the organization develops. It is a goal with a timeline, but rather the general objective is conducted as organizational goals and objectives are achieved.

Vision: Define the desired object or future state of an organization or company in terms of its fundamental purpose and / or strategic direction. The vision is a long-term, often describing how the organization wants the world to be operated. For example, a charity working with the poor could have a vision statement that is read "A World Without Poverty"

It is sometimes used to set out a "snapshot" of the organization in the future. A statement vision provides the inspiration, the basis for planning throughout the organization. One could answer the question: "Where we going?"

Values: Beliefs that are shared among the stakeholders of an organization. The unit values of an organization's culture and priorities.

Strategy: Strategy strictly defined, means "the art of general" (from Greek stratcgos). A combination of ends (objectives) for which the company is striving and the means (policies) which are trying to get there.

The mission and vision statements

Sometimes organizations summarizes the goals and objectives in a mission statement and / or a vision statement Others begin with a vision and mission, and use them to formulate goals and objectives.

While the existence of a shared mission is extremely useful, the strategy of many specialists question the requirement for a written mission statement. However, there are many models of strategic planning to start with mission statements, so it is useful to consider here.

• A mission statement tells that the fundamental purpose of the organization. It defines the customer and critical processes. You are informed of desired performance.

• A Declaration Vision describes what the organization wants to be, or how they want the world to be operated. It focuses on the future. It is a source inspiration. Provides clear decision-making criteria.

One advantage of having a declaration is that it creates value for the to be exposed to the declaration, and the prospects are managers, employees and sometimes even customers. Declarations of creating a sense of direction and opportunity. Both are an essential part of the strategy making process.

Many people mistake vision statement for mission statement, and sometimes one is used simply as a longer-term version of the other. The vision should describe why it is important to achieve the mission.

A statement vision defines the purpose or broader goal for being in existence or in the business and can continue the same for decades if well designed. A mission statement is more specific to what the company can accomplish the same. The vision should describe what will be achieved in the broader area where the organization and others succeed in achieving their individual missions.

A mission statement may seem a vision statement in a few companies, but can be a serious mistake. This may confuse people. The mission statement can lead the people to achieve the defined objectives, even if they are stretch objectives, provided it can be clarified in the SMART (specific, measurable, achievable, relevant and time specific) terms. A mission statement provides a way to realize vision in line with their values. These statements have a direct impact on the bottom line and the success of the organization.

What comes first? The mission statement or vision statement? That depends. If you have a fresh start to the activity, new program or plan to re-engineer its current services, then the vision that guides the rest of the mission and strategic plan. If you have an established business which established the mission, then often guides the mission of the vision statement and the rest of the strategic plan. Either way, you need to know your purpose fundamental – the mission, its current status in terms of internal resources and capabilities (strengths and / or weaknesses) and external conditions (opportunities and / or threats) and where to go – the vision for the future. It is important that you keep the end or desired result in sight from the beginning. [Citation needed].

Characteristics of an effective vision statement include:

• Clarity and lack of ambiguity
• Vivid and clear picture
• Description of a bright future
• Writing memorable and participation
• Realistic aspirations
• Alignment with the values and organizational culture

To be truly effective, a vision statement of the organization must (the theory states) to assimilate the culture of the organization. Leaders have a responsibility to communicate the vision regularly, creating narratives that illustrate the vision, acting as role models by embodying the vision, creating short-term objectives compatible with the vision and encourage others to craft their own personal vision compatible with the overall vision of the organization. In addition, mission statements should undergo an internal assessment and external evaluation. Internal evaluation should focus on how members within the organization to interpret its mission statement. External evaluation – which includes all business stakeholders – Is useful because it offers a different perspective. These discrepancies between these two assessments can give insight into the effectiveness of the organization's statement of mission.

Another approach to defining a vision and mission is to raise two questions. First, "What does the organization have aspirations for the world which it operates and has some influence over? ", And following this," What can (or not) to the organization to do or contribute to meeting these aspirations? . The short answer to the first question is the basis of the Vision Statement. The answer to the second question determines the mission statement.

Situational analysis

When developing strategies, analysis of the organization and its environment as it is when and how you can develop in the future is important. The analysis must be performed internally, as well as externally to identify all opportunities and threats in the external environment and as the strengths and weaknesses of the organizations.

There are several factors to assess in the external situation analysis:

1. The markets (customers)
2. Competition
3. Technology
4. Supplier markets
5. Labor markets
6. The economy
7. The regulatory environment

It is rare to find seven of these factors that are of critical importance. It is also common to find that the first two – markets and competition – are not critical. (Bradford "External Situation – What to Consider")

Analysis the external environment normally focuses on the client. Management should be visionary in formulating customer strategy, and should be done thinking of the environment changes market, how these could impact customer sets, and whether those customer groups are the ones the company wishes to serve.

Analysis of the competitive environment also performed, often based on the framework suggested

Strategy formulation

The strategic combination is a three main processes are:

• Conducting a situation analysis, self-evaluation and competitor analysis: both internal and external, both micro and macro-environment of the environment.
• Consistent with this assessment, objectives are set. These objectives should be parallel to a timeline, some are in the short term and long-term. It is developing vision statements (long-term vision of a possible future)
• mission statements (the role that the organization is given in society), the overall business objectives (both financial and strategic), Strategic Business objectives of the unit objectives (both financial and strategic), and tactics.
• These objectives should, in light of the analysis situation, suggest a strategic plan. The plan provides details of how to achieve these objectives.

Action Plan Marketing

• The placement and implementation of necessary resources, financial, human resources, operational support, time, technology support
• Operating with a change in methods or alteration of the structure
• The distribution of specific tasks to specific jobs or mold liability to persons or equipment.
• The process should be managed by a team responsible. This is to directly monitor the result, comparison of improvement and best practices, the cultivation of the effectiveness of processes, calibration and reduction of variation and establish the process as needed.
• Presentation of certain program involves the acquisition of the requisition of resources: a necessity for process development, documentation, training, testing process and imalgation with (and conversion / or from) difficult processes.

Like so many problems and when the processes of implementation strategy, will have arisen, such as human relations, employee communication. Perhaps the marketing strategy is the biggest problem usually involves application, with emphasis timely new products. One organization, with effective management, you should try to implement their plans without signaling this fact to its competitors. [3]

For a policy of work must have a level of consistency of each person in an organization, especially management. This is what should happen both in the tactical and strategic levels of management.

References

1. David, F Strategic Management, Columbus: Merrill Publishing Company, 1989
2. Lamb, Robert, Boyden Competitive strategic management, Englewood Cliffs, NJ: Prentice-Hall, 1984
3. Sweet, Franklyn H. Strategic Planning … A conceptual study of the Bureau of Business Research at the University of Texas, 1964
4. Chandler, Alfred Strategy and Structure: Chapters in the history of industrial enterprise, Doubleday, New York, 1962.
5. Selznick, Philip Leadership in the Administration: a sociological interpretation, Fila, eterson, Evanston Il. 1957.
6. Ansoff, Igor, Corporate Strategy McGraw Hill, New York, 1965.

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