The aim of strategic planning by business organizations is to ensure the company has a vision and that vision should be achievable through short set goals. Senior managers, therefore, need to have the appropriate skills to drive forward the strategic planning process. Of the fundamentals skills employers look for in a senior strategic manager include the analytical skill. The senior manager needs to be able to analyze the business plan of the organization, consequently, being able to evaluate it. It is only by analysis that strategic planners will be able to determine which steps are to be taken.
Communication is also an important skill for the senior managers. The strategic plan needs to be communicated to the employers as well as to the entire workforce so they are able to know which steps they should take to achieve the business plans objectives. Senior managers ought to be decisive. All the information pertaining to the realization of the business plan need to be considered and come up with a thoughtful decision in good time for problem-solving. Leadership by the senior managers will make the employees be focussed towards the achieving of the goals as they will be lead towards a common path.
Benefits of MBO and TQM
Total Quality Management seeks to improve the companys business operations. The benefit is not only felt inside the company but also ensures the customers are satisfied. The main aim of the TQM is the identification and consequent elimination of the business mistakes. It results in the reduced waste improving productivity in the business organization. The effect of introduction of TQM in the strategic plan ensures the improvement of the products and processes in the company if felt continuously. On the other hand, Management By Objectives in the strategic plan seek to bring both the employee and the employer on the same page so as to realize the goals of the business plan. In short, the benefit is that MBO is able to bring out the appraisal of performance in the company.
Corporate culture plays the role of presenting the professional values to be adopted by the company in the strategic planning procedure. Corporate culture is what dictates how the business organization will effectively relate with the entire workforce and also the external environment composed of the suppliers, business customers, and the partners. In the business plan strategic development, the corporate culture gives the summary of how the company should effectively take up its role so as to be able to achieve the goals of the strategic plan. The belief of achieving this business plan is also taken into consideration.
For instance, the role of the corporate culture is to ensure the retention of employees. Employees are an integral part of any business organization. It is the employees that participate in the actual step by step procedures to enable the business organization to be able to achieve the goals of the strategic management. The corporate culture, therefore, ensures there is a good working relationship between the employee and the employer.
Controls to evaluate a strategy
Of the types of controls is the Premise control. Here, the role is to check whether the initial proposition of the strategic plan is still valid. The premise should be determined early enough to tell if the plan is still viable. For example, a business organization strategic plans need to be realistic to cater for the customers needs. Special Alert Control takes care of the immediate unfolding events during the implementation of the strategic plan. For example, the unfortunate effect may be an outsider acquiring and gaining control of the major competitor of your business. The strategic plan will have to be reassessed to cater for this event. Implementation Control is to be carried out as the events unfold. The control can be able to tell whether the previously laid out strategy is on track as planned or not. The evaluation is done once the set out individual milestones are met. For example, when the strategy is retention of employees, the implementation control will be able to determine if a certain number of employees has been retained is a certain period of time.
Measurement of corporate performance
The balanced scorecard method of performance measurement incorporates both financial and nonfinancial means in the corporate performance evaluation. This method is effective as it determines the measure of innovativeness of the employees, their ability to learn and grow the knowledge acquired, how the employees value the customers and the overall financial performance of the employees.
Strategic incentive management method
The business motor world is very competitive in the world today. Toyota motors need to develop a strategic incentive management method that will seek the effective retention of its employees to counteract the possibility of brain drain to other upcoming motor companies. Particular methods to realize employee retention by the Toyota Motors company is the provision of rewards both in terms of monetary value and nonmonetary to the talented employees based on the individual performances. The method of appraisal by various forms of rewards should be well known to the employees so that they work with this in mind. The result of this strategic incentive will be the retention of talented employees by the Toyota Motors.
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