Tuesday, November 23, 2010

Strategy and operational solutions

According to the Oxford dictionary this is the definition of strategy: "a plan of action designed to achieve a long-term or overall aim". In many companies this is a plan that covers somewhere between 2-5+ years.
The strategy is key to any organizations success because in that plan the organizations leadership should clearly state what the organization is going to do and what it is not going to do. Note that the decision what to do and what not to do is a key element of any strategic plan. A crisp and clear strategy will make it easier for your operations team to actively support you. In addition to the strategic goals there are also short-term or tactical or operational plans for up to 12 months.
How often are your short-term goals in conflict with your organizations long-term goal? I see on a regular basis that we have to come up with short-term solutions that might present a considerable departure from the strategic goal. In some extreme cases it might even be the opposite from the strategic goal. While I agree that in some special, isolated cases it is necessary to have these workarounds I disagree that this can be a valid default answer. You shouldn't always have to come up with a short term and a long term solution. If you have to do that you should have a hard look at your strategy process.
Make sure that the strategic goal setting provides a workable framework for your operations team. Stretch goals are desired but unrealistic goals should be prevented.