Strategic priorities

From CEOpedia | Management online

Strategic priorities are set in order to address both capacity and capability properly . With them company increases chances to deliver established targets with good level of performance in proper time[1]. Usually strategic priorities are established just after defining or together with definition of mission, vision and shared values[2][3].

How strategic priorities should be set

Strategic priorities, similarly to strategic objectives should be set on basis of performance of many areas of company, the most important is to synchronise them with[4]:

Kumar J. points another four perspectives from which strategic priorities should be set. Each of them should have defined strategic management:

  1. financial performance,
  2. customer management,
  3. internal processes,
  4. learning and growth.

Strategies priorities should be transferred into strategic objectives and strategic map. Each of them should develop two dimensions: add value and add knowledge. Focusing on adding value would mean innovations, customer and operation management. Knowledge would be about learning, gaining information and data [5].

Strategy objectives and allocating of resources

If strategy objectives are not set clearly, many aspects of organization would probably not work properly. However, if they are set clearly and laid down in the organization structure, resources should be allocated more adequately and balanced. Allocation of resources and strategy priorities will impact quality of budgeting as well [6].

Example of strategic priorities

Below are examples of strategic priorities for Thompson Rivers University. Five strategic priorities for five years are increases in areas of [7]:

  1. Student Success,
  2. Intercultural Understanding,
  3. Research Capacity,
  4. Entrepreneurial Capacity,
  5. Sustainability.

Advantages of Strategic priorities

A strategic priority is an approach that focuses on achieving a desired outcome in a specific area. It can help a business or organization to stay on track and reach their goals in a timely manner. The advantages of strategic priorities include:

  • Improved focus - By having a clear strategy and well-defined priorities, organizations can focus their resources and efforts on the most important areas of their operations.
  • Increased efficiency - By setting and adhering to strategic priorities, organizations can maximize their efficiency. They can eliminate unnecessary activities and focus on those things that will yield the most positive results.
  • Streamlined decision-making - With a clear set of priorities, decision-making becomes easier and more efficient. All decisions are made within the context of the organization’s overall goals and objectives.
  • Increased accountability - By having a clear set of strategic priorities, organizations can hold their members accountable for achieving the desired results. Everyone in the organization is aware of the goals and objectives that they must meet.
  • Improved communication - With a clear set of strategic priorities, organizations can ensure that everyone is on the same page and that the goals and objectives are properly communicated throughout the organization.

Limitations of Strategic priorities

One of the primary limitations of strategic priorities is their tendency to be short-term solutions. *The overall strategy of the company may need to be adjusted in the future, which could render the current priorities irrelevant or obsolete. *Strategic priorities may also be too rigid, making it difficult to adapt to changing circumstances. *Additionally, the implementation of strategic priorities can be costly, requiring additional resources and time, as well as an understanding of how to execute them effectively. *Lastly, strategic priorities can also lead to a lack of focus on other areas of the business, potentially leading to missed opportunities.

Other approaches related to Strategic priorities

Other approaches related to strategic priorities are:

  • Formulating and reviewing vision and mission: This involves establishing a clear and concise vision and mission for the organization, which will provide guidance to employees and stakeholders in decision making and ensure resource allocation is focused on the right areas.
  • Conducting a SWOT Analysis: This process provides a comprehensive overview of the organization’s internal strengths and weaknesses, and external opportunities and threats that can be addressed through strategic planning.
  • Developing a Strategy Map: This is a tool that helps to visualize the interconnectivity of strategic goals and objectives, and how they are linked to the organization's overall vision.
  • Prioritizing Goals: This involves setting clear and measurable objectives for the organization, and ensuring sufficient resources are allocated to ensure successful achievement of those goals.
  • Identifying Key Performance Indicators: This process involves establishing key metrics that can be used to measure the effectiveness of the organization's strategies and the progress made towards goals.
  • Implementing Action Plans: This involves developing plans that outline the steps needed to achieve strategic goals and objectives, and providing guidance to employees on how to carry out these tasks.

In summary, strategic priorities involve establishing a clear vision and mission, conducting a SWOT analysis, developing a strategy map, prioritizing goals, identifying key performance indicators, and implementing action plans.

Footnotes

  1. ↑ Harfield C., Harfield K. (2008)
  2. ↑ Thompson Rivers University, (2014)
  3. ↑ U.S. Food and Drug Administration, (2018)
  4. ↑ p. 164
  5. ↑ Kumar S., Esteves J., Bendoly E. (2011), p. 270-271
  6. ↑ Kazmi A., Kazmi A. (1986)
  7. ↑ Thompson Rivers University, (2014)


Strategic priorities — recommended articles
Strategy — Strategic importance — Significance of strategy — Organizational planning — Strategic control — Critical success factors — Strategic and operational plan — Strategy of the organization — Strategic planning

References

Author: Andżelika Stefańska

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