STRATEGY BUILDS ON RESERCH

THE PROCESS OF STRATEGIC MANAGEMENT - PART TWO

Part One of this series presented under the 5 “C” some guidelines the process of strategic management should follow. The readers can see in the next  articles how the advocated practice of management  – the SP.I.D.E.R. – implements these guidelines. But first, let us put strategy in its systemic context.

The advocated global management system integrates the five forces of enterprise, namely: the people, the power of the resources, the process of strategic management, the partners, the  products. (1)

Placed at the center of this model, the process of strategic management (hereafter PSM) activates the interactions between the internal and the external business environments.

The core of the global management system provides a common foundation to the five forces of enterprise with its 5 “S” namely: the strategy fundamentals, the shared values and the corporate culture, the systems of management, the  structures of the organization, the system technologies. The strategic fundamentals provide guidance to the strategy, and the  system technologies help manage information. Let us see how the other 3 “S” galvanize the advocated PSM,  the SP.I.D.E.R.

The systems of management promotes the company-wide application of agile management, which energizes the involvement of the personnel in the management by decentralizing, by delayering, and by delegating powers to the teams. Agile management fosters the shared values with “t.r.u.s.t”., which integrates the team-spirit, respect, urgency, support, and thrust.

To activate the dynamism of agile management, the SP.I.D.E.R.  animates the 5 functional value-chains that form the structures of the organization, namely: the consumer value-chain, the suppliers value-chain, the distributors and the allies value-chain, the production value-chain, and the management value-chain. In addition, the alert-innovation-committee is an in-house advisory body that serves all the 5 functional value-chains, and that participates in the executive committee. 

The teams interact with other teams of the same value-chain. In addition, they interact with teams of other value-chains. So, the functional perspectives developed in the frame of one value-chain interact with the functional perspectives of other value-chains.

The five forces of enterprise, agile management, the advocated structures, and the PSM energize also the interactions among the different levels. By disseminating the competencies, they boost the interest in the work, and they foster commitment, cooperation, and collectively creativity.

Part Two of this series of articles outlines the study of the past and of the future, important inputs to the development of strategy. Some of the well-known books on strategy do not specifically feature them. But we do also to extend the participation of the teams in the process of strategic management.

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