The strategic development analyzes the internal and external factors affecting the business and determines the procedures and steps that the business will take to achieve specific goals and objectives. Although the goals and objectives are very similar to the strategic plan, the strategic plan is more specific. This plan identifies the employees and customers that are necessary for success, as well as the budget and resources that must be used to complete the task. Here are the basic principles of strategy development.
Analysis of the position of the control object
To develop a strategy, it is necessary to analyze the organization’s previous activities, the general situation in the organization’s area of activity and the dynamics of its change, as well as its current situation.
It is necessary to determine the main factors affecting the development of the managerial situation and the position of the control object, and the dynamics of their change. In more complex cases, to determine the expected result of the implementation of the developed strategy, it is advisable to develop a forecast and possible scenarios for the development of the organization in the near and more distant future.
Well-established, well-grounded strategies can only be developed based on a thorough analysis with the identification of the main factors determining the development of the organization and the most likely trends for their change, based on the establishment of the main forces and mechanisms that can have a significant impact on them.
Consideration of external and internal factors of the organization
The functioning of the organization is determined by both external and internal factors. Strategic decisions made taking into account the influence of only external or only internal factors will inevitably suffer from a lack of completeness and consistency, which can lead to erroneous decisions.
Strategic decisions must be verified and effective due to their special importance for the organization’s activities since the results of subsequent activities not only of a single employee or project but of the whole organization depend on them.
The absence of strategic management in the organization can also be judged by the fact that planning its activities for the long term, the organization assumes unchanged conditions for its functioning throughout the entire planning period. Carrying out such planning “for centuries” and based only on the principle of extrapolation.
Compliance with the strategy and tactics of managing the organization
To ensure the success of the organization, both a sound strategy and effective tactics are necessary. It has been established that effective organization activity is possible provided that the organization’s tactics correspond to its strategy, and the formation of the strategy takes into account the real possibilities for solving tactical tasks.
The priority of the human factor
When developing a development strategy, it is necessary to understand that the organization’s strategy cannot be implemented if it is not accepted as a guide to action by its staff and, first of all, by its managers, who have delegated the right to make managerial decisions in the area entrusted to them. Also, it is required that the organization’s personnel have the professional skills necessary to implement the strategic decisions made.
Therefore, one of the main tasks facing the organization’s leadership is to select personnel that can provide a solution to the adopted management decisions, and organizes effective personnel management to implement the adopted strategy.
It should also be noted that the activities of a modern organization in business are aimed, as a rule, at satisfying consumer demand. This is a defining argument confirming the priority of the human factor in the activities of a modern organization.
The certainty of the strategy and the organization of strategic control
To ensure a clear understanding of the organization’s staff of the tasks facing it, the solution of which is necessary for the implementation of the strategy, it is advisable that it be formulated and defined.
Unclearly formulated strategic goals can lead to an ambiguous interpretation of the strategy by various structural units and services. The organization’s activity plans, reflecting the strategy developed by the management, in this case, may not provide the required level of solving strategic tasks.
There is a well-known need to use the action of the feedback law in strategic management for adequate management response to emerging deviations during the implementation of adopted action plans.
The implementation of feedback is impossible without effective monitoring of the implementation of decisions on the implementation of the strategy. Such control can only be effective if there are clearly articulated strategies and strategic decisions made.
Compliance of the organization’s strategy with available resources
If the organization’s strategy is not provided with resources, and by resources we mean not only raw materials, materials, components, energy, but also personnel, information, business partners, administrative resources, image, etc., then the implementation of the strategy is impossible or partially possible.
At the stage of developing a strategy, it is not always possible to accurately assess the resources that an organization will have in the future. However, an assessment of the necessary resources by which the strategy can be implemented is mandatory. Only being confident in the availability of resources necessary to achieve the set strategic goals can we make decisions about the adoption of the strategy.
Compliance of the organization’s strategy with available technologies
The implementation of any strategic plan is possible only if the organization has at its disposal technologies that can be used to solve problems ensuring the achievement of the strategic goal.
The technologies used in strategic management include not only technologies for the production of products or the provision of services, but also technologies for promoting and marketing their markets, as well as technologies for obtaining the necessary investments, organizing financial flows, creating a stable financial situation at the enterprise, etc.
If even the organization has the resources necessary to achieve the strategic goal, but there are no technologies for obtaining the expected result, then it is impossible to achieve the strategic goals set by the organization.
So, let’s say, all types of raw materials needed to create a modern airliner on Earth existed for a long time, but before the appearance of the necessary knowledge, skills, methods of obtaining the required materials, structures, etc., i.e. before the advent of appropriate aircraft manufacturing technologies, it was impossible.