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Basic Strategy Overview of the complete process: VideoWhat is Strategy?
Split 6s vs dealer Split 7s vs dealer Split 9s vs dealer and Double hard 9 vs dealer Double hard 10 vs dealer Double hard 11 vs dealer Double soft 13 or 14 vs dealer Double soft 15 or 16 vs dealer Double soft 17 or 18 vs dealer Stand on hard 12 vs dealer Stand on hard vs dealer Stand on hard 17 or more.
Such cost leadership or low-cost operation is one of the three basic strategies. The key thing to note about a low-cost strategy, however, is that the firm needs to retain some of the cost savings in order to earn a higher profit level than its competitors.
A firm needs to be a low-cost producer and still be able to price products and services at a level high enough that some of the cost savings are retained as profits.
The second basic strategy is product differentiation. Product differentiators often sell a very unusual product or service. Cascading action items and to-dos for each short-term goal is where the rubber meets the road — literally.
Moving from big ideas to action happens when strategy is translated from the organizational level to the individual. Here we widen the circle of the people who are involved in the planning as functional area managers and individual contributors develop their short-term goals and actions to support the organizational direction.
But before you take that action, determine if you are going to develop a set of plans that cascade directly from the strategic plan, or instead if you have existing operational, business or account plans that should be synced up with organizational goals.
A pitfall is to develop multiple sets of goals and actions for directors and staff to manage. Fundamentally, at this point you have moved from planning the strategy to planning the operations; from strategic planning to annual planning.
That said, the only way strategy gets executed is to align resources and actions from the bottom to the top to drive your vision.
These goals should still be SMART and are generally short-term something to be done in the next months. Finally, you should develop an action plan for each goal.
Keep the acronym SMART in mind again when setting action items, and make sure they include start and end dates and have someone assigned their responsibility.
Since these action items support your previously established goals, it may be helpful to consider action items your immediate plans on the way to achieving your short-term goals.
In other words, identify all the actions that need to occur in the next 90 days and continue this same process every 90 days until the goal is achieved.
Implementation is the process that turns strategies and plans into actions in order to accomplish strategic objectives and goals.
Once your resources are in place, you can set your implementation schedule. Use the following steps as your base implementation plan:. Never lose sight of the fact that strategic plans are guidelines, not rules.
Every six months or so, you should evaluate your strategy execution and plan implementation by asking these key questions:. Once agreed upon, this topic should be developed to conclusion.
Holding meetings helps focus your goals on accomplishing top priorities and accelerating growth of the organization. Although the meeting structure is relatively simple, it does require a high degree of discipline.
In many organizations, retreats have a bad reputation because stepping into one of the many planning pitfalls is so easy.
Holding effective meetings can be tough, and if you add a lot of brainpower mixed with personal agendas, you can have a recipe for disaster.
Executing your strategic plan is as important, or even more important, than your strategy. Critical actions move a strategic plan from a document that sits on the shelf to actions that drive organizational growth.
The sad reality is that the majority of organizations who have strategic plans fail to implement.
You remain in this phase of the strategic management process until you embark on the next formal planning sessions where you start back at the beginning.
Remember that successful execution of your plan relies on appointing a strategy director, training your team to use OnStrategy or any other planning tool , effectively driving accountability, and gaining organizational commitment to the process.
Back to resources. Overview of the complete process: Getting Started: Introduction The strategic management process is about getting from Point A to Point B more effectively, efficiently, and enjoying the journey and learning from it.
Questions to Ask: Who is on your Planning Team? Who will be the business process owner Strategy Director of strategic planning in your organization?
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Basic strategy cannot overcome the house edge even if you get lucky with it from time to time. Think of it like a space shuttle.
Basic strategy is just the rocket booster. It gets the shuttle high enough in the atmosphere for the shuttle to do the rest of the work. The rocket booster never makes it to space.
Memorize it perfectly! This is where the rubber meets the road when it comes to beating blackjack. Vegas was built on guys who looked at the wallet-size basic strategy a couple times after they bought it in the gift shop on their last vacation.
Some people would claim that these operational values are really strategic goals. Don't get hung up on wording for now. Often, each objective is associated with a tactic, which is one of the methods needed to reach an objective.
Therefore, implementing a strategy typically involves implementing a set of tactics along the way -- in that sense, a tactic is still a strategy, but on a smaller scale.
Action planning also includes specifying responsibilities and timelines with each objective, or who needs to do what and by when. It should also include methods to monitor and evaluate the plan, which includes knowing how the organization will know who has done what and by when.
It's common to develop an annual plan sometimes called the operational plan or management plan , which includes the strategic goals, strategies, objectives, responsibilities and timelines that should be done in the coming year.
Often, organizations will develop plans for each major function, division department, etc. Usually, budgets are included in the strategic and annual plan, and with work plans.
Budgets specify the money needed for the resources that are necessary to implement the annual plan. Budgets also depict how the money will be spent, for example, for human resources, equipment, materials, etc.
Note there are several different kinds of budgets. Operating budgets are usually budgets associated with major activities over the coming year.
Project budgets are associated with major projects, for example, constructing a building, developing a new program or product line, etc.Nach Oben. Mehr lesen. That covers basic strategy for the beginner.