Monday, 5 August 2013

Strategy 101: Quick Action checklist to develop a world class business



DEVELOPING A STRATEGY FOR A WORLD CLASS  BUSINESS
'World Class' is a concept that is difficult to define. However, an accepted working definition is that a world class company should be able to compete with any other organisation in its chosen markets and that it aspires to world-beating standards in everything it does, in every department or division.

QUICK ACTION CHECKLIST FOR YOUR COMPANY

1. Consider outside influences


Identify the factors in the external environment that call for a strategic response from your business.

2. Establish the world class vision

Determine the core business of your organisation - that at which your organization should excel.

3. Analyse your current position

Benchmark your organisation against your competitors as far as you can.

4. Focus on core capabilities 

From the analyses of the external environment, the core business of the organisation, the standing of the competitors, draw up a list of of the core capabilities of your organisation that will enable you to compete in world markets.

5. Build a corporate strategy

Focus on achieving better products or services, better factories or service operations, better organisations, better management, and better information and communication.

6. Set high targets for the organisation

Set imaginative and ambitious targets by identifying where you intend to be in one, three and five years time. If targets are easily achievable there is a danger that you will rest your laurels. 

7. Develop simple performance measures

Measurement processes, as simple and as straightforward as possible, allow you to continuously monitor what is happening, and to report on progress. Performance measures must be relevant to your aims: concentrate on customer service, time reduction, and quality, and remember within a world class company, financial measures are not the most important performance measure in terms of achieving your objectives.

8. Adopt straightforward reporting procedures

Complex reports require a lot of preparation and take time to understand, and consequently tend to be produced monthly at best. World class companies must be able to act immediately on the results of performance measurement. Adopt the one page management report rule.

9. Communicate your progress

Nothing inspires and motivates like success. Employees must be kept fully informed of the organisation's progress (get your staff to produce their own progress charts if possible).

10. Revise your performance targets

As your organisation raises its performance in the areas that you have defined, identify new areas to be improved.

11. Assess effectiveness

Becoming a world class, though an achievement is not the end of the process. To be a world class company you must continue to benchmark yourself against your competitors regularly.
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