Methodology for strategy definition

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Methodology for strategy definition
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Defining management strategies should be accomplished by the application of the proven practices and methodology. An example of one of the many methodologies for defining and implementing management strategies is a program of global activity (PGA), whose most important elements will be discussed below.

Development of Program of global activity

The initial task in PGA program development is the formulation of the company's goals.

We can distinguish between economic goals, which relate to the performance and other goals (organizational, intellectual, research, ecological, political, etc.). They should be aimed at meeting the needs and expectations of customers.

Goals can be formulated in material terms (e.g. achieving desired state or object) or in action terms (e.g. manufacture of products). They can be ranked in terms of the validity by individual manager or by group of managers. After ranking managers can create a goal tree, in which they divide main goal on several specific purposes and objectives.

Objectives should be quantified, appropriate, acceptable, reasonable and time-bound.

Objectives for the implementation of PGA program

Objectives of PGA:

  • determinants defining area of stability (they have primary influence on the activity of the company, managers cannot change them in a short time),
  • situational requirements of company's activity (relatively independent)
  • factors dependent on the company's activities.

Preparing stages of PGA implementation

Stages of implementation shall be constructed for middle time horizon (from 0 to 2 years), or for the long time horizon perspective (up to 25 years). In practice, the time frames are relative, they depend on the situation of the individual company.

Creating procedures for coordinating programs and plans

PGA program is the frame for all other strategic and operational plans (projects) in the company. The coordination procedure contains indications for adjusting other programs to the objective of the PGA program.