Strategy is a fundamental part of the success and sustainability of an organisation. It helps to understand core capabilities and identify and address weakness.Strategy also helps organisations to design themselves better and mitigate risks. It also helps to focus on the aspects that will help to deliver the best performance, productivity, and profit.
Strategy:
At the heart of company mission lies strategy. an organisation exists because of strategy.
Mission leads to Values and Vision at the core of an organisation.
Values decide what is essential for an organisation. On the other hand, Vision dictates what success will look like for the organisation.
Goals are derived from Visions. Specific, measurable, achievable, realistic and time-bound (SMART)
The progress towards these Objectives is then measured in KPIs or Key Performance Indicators. KPIs are measured by keeping 2 things, Targets and Actuals.
Targets define what must be achieved, expressed in terms of KPI, within a defined time period.
Actuals are progress towards Targets within the given period of time. If this is inconsistent with a target, then review and remediation may be required.
Goals are leads to initiatives and tasks. Initiatives are required for the Organisation to reach its end goals whereas Tasks are the specific steps taken within the initiative.
Operations:
The first step of Operations is receiving raw materials from suppliers and serving the output to customers. This is the Process by which inputs are converted into outputs and comes directly from the firm's Initiatives and Actuals.
The Process is also affected by People, who do the work for the organisation, and Technology which is the systems and equipment required to perform the processes.
The People of the organisation are ultimately affected by the Structure of the organisation, the Skills or the knowledge, experience, and capabilities of the people, and Capacity, or the number of people required to do the job.
