STRATEGIC MANAGEMENT & CORRECTIVE ACTION

The purpose of goal setting is to clarify the vision for your business. It entails defining your long- and short-term objectives, identifying how the objectives are to be accomplished and then adapting the process for your staff, assigning each person a task at which they can succeed.

Keep in mind that goals must be detailed, realistic and match the values of your vision. Typically, the final step in this stage is to devise a mission statement that succinctly communicates your goals to both your shareholders and staff alike.

This is a key stage as the information gained here will shape the next two stages. The focus of the analysis should be on understanding the needs of the business as a sustainable entity, its strategic direction and identifying initiatives that will help your business grow. Pay particular attention to any issues, both external and internal, with the potential to affect your goals and objectives and take care to identify the strengths and weaknesses of your organisation as well as any threats and opportunities that may arise.

The first step is to review the information gathered in the previous step. Ascertain the resources you have at your disposal that can help your business reach its defined goals and objectives, and identify areas where external resources should be sought. Prioritse the issues facing the company based on their potential to impact your success and remember that business and economic situations are fluid, so it is advisable to develop alternative approaches that target each step of the plan.

This is the action stage of the strategic management process and successful strategy implementation is critical to the success of any business venture. If the overall strategy does not work with the business’ current structure, a new structure should be installed at the start of this stage. Ensure that everyone in the organisation is clear on their responsibilities and duties, and understand how it fits in with the overall goal. Once these steps have been covered and the necessary funding has been secured, executing the plan can commence.

Strategy evaluation and control actions include performance measurements, consistent review of internal and external issues, and taking corrective steps when necessary. The significance of strategy evaluation lies in its capacity to, through performance control, co-ordinate the tasks performed by entrepreneurs, managers, groups, departments, and so forth. Strategic evaluation is important because it addresses the urge for feedback, appraisal and reward. It aids in developing the strategic management process, contributes inputs for new strategic planning, and allows us to judge the validity of strategic choices.

Any successful strategy evaluation begins with defining the parameters to be measured and these parameters should mirror the objectives as outlined in the goal setting stage. Monitoring internal and external aspects will also enable you to timeously respond to any change in your business environment. Determine your progress by measuring the actual results versus the plan and if you determine that the strategy is not moving the company toward its goal, take corrective action.

The final phase of the controlling process occurs when entrepreneurs must decide on the action(s) required to correct performance that deviates from the business plan. However, before any such steps can be taken, the true cause of the deviation must be identified.

The reasons for deviations can range from unrealistic objectives to the wrong strategy being selected. It is important to remember that not all deviations resulting from external environmental threats or opportunities have progressed to the point that a particular outcome is likely, so corrective action may be necessary. Entrepreneurs must remember that for each type of deviation the corrective action will differ and adjustments in any one area may necessitate adjustments to one or more of the other factors. Adjusting the objectives, for example, is likely to require different strategies, standards, resources, activities, and perhaps organisational structure and systems.

5 General areas for corrective action:

If these actions are not successful, return to your strategic management process. As internal and external issues are constantly evolving, any data gained in this stage should be retained to help with future strategies. Strategy evaluation is as significant as strategy formulation because it throws light on the efficiency and effectiveness of the proposed plans in achieving the desired results. Entrepreneurs and managers can also assess the appropriateness of the current strategy in today’s dynamic world with socio-economic, political and technological innovations. Strategic evaluation is the final phase of the strategic management process.

So What's your Plan? (SWYP) is a practical guide to making your dreams come true by setting and achieving your own objectives. SWYP is your complete reference for developing, creating, implementing and managing your own strategic plan. While there are hundreds of people offering to teach you how to formulate your own strategic plan, what happens if setting objectives is not your forte, or you haven’t constructed a business plan before and don’t have the tools to manage risk? Perhaps you just don’t know where to start. Dr van Wyk will show you how following the SWYP-methodology can help you create massively successful strategic plans for your business and your life.

You will discover how easy it is to:

Available from Amazon.com, CreateSpace.com, also on Kindle and other devices.

Contact Dr van Wyk on 071 481 9956 or Gerhard.vanWyk@icloud.com