Ocg Strategy
Ocg Strategy
Ocg Strategy
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Overview
Synopsis
This section deals with what strategy management is and why it is done. It goes on to develop an outline of strategic thinking, the components of a strategy and how it is developed.
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What are business strategies? Business strategies are typically made up of a number of key
Senior manager
components:
Strategic planners
Business strategies express how the organisation will meet the
the business objectives
challenges that face it. They set out how organisations will meet the
challenge of providing better services, often in innovative ways, to
strategies for finance, HR, IT, estates
meet the rising expectations of the citizen. Business strategies form the
Documents required:
framework that enables the organisation to cope with the turbulence of
a governance framework
the modern world, where priorities change suddenly, uncertainty about
the future is the norm, and the pace of change is ever-accelerating. --
Useful techniques:
Without strategy, the organisation faces the risk of:
--
failing to deliver
What is strategic thinking? The attributes of successful, effective strategic thinking are:
Elements of strategies These elements are listed in the order in which they will be
created during the strategy development process.
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Overview 07/18/2005 04:13 PM
strategic vision: a blueprint for change, expressing: the need to provide e-business services
the desired future for the organisation the need for joined-up service delivery
its desired position in relation to its business an uncertain future and/or rapid change.
environment
The stages of strategy development These stages are covered in more detail in the following
sections of this workbook.
The three stages are:
The first three stages will normally be undertaken by a
nominated 'study team', who will require particular skills to
stage one: business analysis analyse the business as it stands and consider new directions
for the future. Strategic management is a task for senior
looking in detail at the issues facing the organisation, management, and requires their commitment.
how things are currently done
Strategic thinking is not the same as planning. As it progresses,
strategy development gradually moves from synthesis,
creativity and divergent thinking to analysis, quantification and
stage two: identifying the direction for the future convergent thinking (planning).
strategic management
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Business analysis 07/18/2005 04:09 PM
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Synopsis
This section deals with the first stage of the process, an analysis of an organisation’s business and its priorities. Through determining what makes the business tick it is possible to
identify strategic issues and opportunities for change and development.
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Overview of the business environment From preliminary information gathering comes an initial view of Senior manager
the business environment, describing the following aspects of
the organisation: Strategic planners
Business analysis is the first stage of strategy formulation. The
objectives of this stage are:
products and services provided Partners / suppliers as appropriate
to determine the objectives and priorities of the business structure and management Consultants providing independent
advice
to understand the current and future business and the policies business elements
of the organisation
business functions and processes, and how they relate
to establish the scope for change as a result of strategic to each other Documents required:
thought
relationships - with partners, customers and suppliers --
to determine the strategic issues that must be addressed
the issues facing the organisation, and other external
to think in a divergent and radical way about how things could areas of constraint or pressure
be done. Useful techniques:
basic assumptions regarding future direction
--
an initial view of the options and potential for change
Guidance/Briefings:
Diagrams may help to clarify these descriptions and the links
between them. Managing change
Identifying strategic issues You now need to make a provisional list of the issues that
must be addressed in the strategy. These issues will form the
basis of the strategic themes developed in the next stage.
Having assessed the business of the organisation and what 'makes it
tick', the next step is to look in more detail at the issues facing it. The questions here include:
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Identifying direction for the future 07/18/2005 04:13 PM
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Synopsis
This section deals with setting the new direction for the business. These changes can then be grouped into thematic, or related, changes. These themes can be drawn together to
express where we want to be in the future.
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--
Finding new directions The tasks carried out in this stage are:
better services.
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Defining the vision for the future It can be difficult to produce a meaningful and useful vision
statement. The statement should avoid the extremes of:
The vision summarise the desired future for the organisation; it
a bland high level 'vision' that could apply to almost any
expresses 'where we want to be' in relation to the business success of
organisation
the organisation. It indicates the areas of significant change and the
desired outcome of such changes and developments.
a detailed catalogue of specific planned developments,
which increasingly becomes invalidated as
circumstances and implementation plans change.
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High level planning 07/18/2005 04:12 PM
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Synopsis
This section deals with mapping out future as a high-level plan, taking into account the total requirement for change, any resource implications and prioritisation of the candidate
programmes or projects designed to move the business forward. All these elements are then summarised as the strategy statement.
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Identifying candidates for action As a first step in breaking down each broad theme into
candidates for action, you should address the following
questions for each theme:
For each strategic theme, it is necessary to identify ways in which to
make the changes or improvements required, or to move the what are the practical options for addressing this
organisation in the desired direction. This involves the search for theme?
candidate projects to realise the themes . Dividing strategic themes
into possible projects, each with some sort of definition of potential what are the barriers to realising the options, and how
benefits and resource implications, is an important step in moving from might we overcome them?
divergent to convergent thinking.
what major proposals might help achieve them?
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Selecting candidates for action As a first step, it should be possible to eliminate some of the
candidates for action at this stage as being inappropriate or
infeasible. They should be left for future reference.
Once a list of candidates for action has been created, those that will
actually be progressed must be selected.
Each of the remaining candidates should then be scoped in
terms of:
risk
constraints on timing
risks involved
feasibility
Note that defining more than one profile is not about choosing
between alternative ends (or prioritising them); it is about
alternative means.
The strategy statement This is the most important deliverable from the strategy study.
It is a declaratory statement of the strategic direction for top
and senior management agreement.
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Strategic management 07/18/2005 04:14 PM
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Strategic management
Synopsis
Once the strategy statement (see previous section) has been compiled it is the role of management to keep the organisation on course. This requires them to define factors critical for
a successful outcome. Production of a strategy is not sufficient in itself; it must be effectively communicated to achieve effective buy-in across the organisation. This is a dynamic
process in which flexible business focused decision-making will produce strategic review and change in relation to changes in the business environment.
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Strategic management is the continuous activity in which senior Once strategy has been developed and set out in the strategy --
managers engage, as an essential part of their management role. It statement, it is the responsibility of management to keep the
involves the often-competing requirements of setting and maintaining organisation on course and implement the high level plans that
the strategic direction of the organisation and its business, and making have been decided. This is what is meant by strategic
decisions on a day-to-day basis to deal with changing circumstances management. It is not a stage of strategy development but an
and the challenges of the business environment. Documents required:
ongoing process.
--
Critical success factors For strategic management to be successful, the following need to be in
place:
ownership of other key components such as HR and finance Business and supporting strategies
Making a communications plan The plan should address who to inform, how to inform them and
create an opportunity for the involvement of all staff (including service
providers where relevant). Communications should be based on a
An important part of implementing plans is to develop a policy of 'no surprises' so that all staff know what is expected of them
communication plan that will help to: and when.
Change and review Changes could occur in organisation and structure, business
functions and activities, product and service delivery,
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are there things 'on the back burner' that have become
more important now?
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Governance 07/18/2005 04:10 PM
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Governance
Synopsis
Senior management should be kept informed of changes being instigated through clear reporting structures. Some areas of change will require an accompanying policy to enable or
restrain the change for the greater good of the organisation. Risk management at the strategic level seeks to limit risk to an acceptable level by lessening the probability of the risk
occurring and ameliorating its severity, or both. However, some risk tasking is inevitable (and acceptable if properly managed) if the organisation is to achieve it strategic objectives.
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Reporting arrangements It is vital to consider the needs and priorities of those who --
receive reports as well as those who produce them.
Information must be digested and acted upon to be of benefit
Clear reporting arrangements ensure that management are aware of
to the organisation.
what is going well (or not so well) with implementation and understand
the consequences of their actions in strategic management. Documents required:
Reporting should be:
focused
in an appropriate format
Policies The issues for which policies may be required can be classified
broadly into management and technical categories. General
issues of standardisation are the concern of management
A policy is a specified and documented rule or set of rules that
policies (manifested in best practice), whereas the specifics of
governs the provision of systems and services through identification,
particular standards and their use are more the concern of
planning, development, implementation, operation and review. Policies
technical policies.
may relate to IS and IT , for example, or to wider organisational and
management issues. Policies are different from standards and best
Policies can also be regarded as either 'enabling' or
practice. The distinction can be expressed as follows:· policies define
'restraining'.
which standards and best practice are to be used· standards and best
practice are used to implement policies.
Enabling policies are those that aim to support, promote and
encourage the deployment of effective services and
information systems.
people
organisational structure
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Governance 07/18/2005 04:10 PM
information
information systems
technology.
Management of risk at the strategic level The minimum requirements for a risk management
framework are:
Management of risk at the strategic (or corporate) level is concerned existence of the organisation's risk policy
with setting strategic direction and balancing potential opportunity
against the costs and risks. A certain amount of risk taking is inevitable
clear identification of main stakeholders
if the organisation is to achieve its strategic objectives. The task of risk
management is to limit the organisation's exposure to an acceptable
clarification of the main approaches to be used to
level of risk by taking action on the probability of the risk occurring, its
identify; assess and report on risks; as well as look at
impact, or both. Risks must be managed in an integrated way at four
actions to deal with risks
key levels in order to manage interdependencies: strategic,
programme, project and operational. Risks at lower levels should be clear assignment of responsibilities for managing risk
escalated to the strategic level against set criteria where they exceed and reporting to senior management, especially risks
agreed tolerances - such as if there is an unacceptable exposure to which cut across core business activities and
risk, if risks fall outside agreed limits or if they could affect strategic organisational boundaries
objectives . Radical change can bring increased risk. The options for
new ways of working need to be assessed against the risks associated clear audit trail of decisions to ensure that risk
with relatively unproven technologies or new collaborative methods. management reflects current good practice, with quality
assurance of key decisions as input to audit.
tolerate it
terminate it
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