The ABCs of Strategic ManagementTM: The Systems Thinking Approach® to Business SustainabilityThe 3 Goals of Strategic Management: Strategic Goal #1 - Achieve Clarity of Purpose & Direction. Strategic Goal #2 - Ensure Successful Transformation. Strategic Goal #3 - Sustain High Performance over the Long Term.The 3 Premises of Strategic Management: Premise #1 - Planning and Change are the Primary Job of Leadership. Premise #2 - People Support What They Help Create. Premise #3 - Focus on the Customer.© ALL RIGHTS RESERVED, STEPHEN LIN, HAINES CENTRE FOR STRATEGIC MANAGEMENT, 946 REDBUD ROAD, CHULA VISTA, CA 91910 USA / 3 RAFFLES PLACE #0701 SINGAPORE 048617PHONE: +1 6196633631 USA / +6563322033 SINGAPORE, EMAIL: STEPHEN.LIN@HAINESCENTRE.COM[Editor's Note: This is a StratML rendition of an infographic shared as via E-mail by Ed Regula, chair of the Strategic Management Forum's Strategic Management Book of Knowledge and Practice (SM BoKP) work group.]Haines Centre for Strategic ManagementHCSM_da40945e-b583-11e4-92ad-8785fc454b9bSustained high performance over the long term._1cf5edfe-19bf-11e5-b5b2-91e5bba59368To achieve clarity of purpose and direction to ensure successful transformation._1cf5efd4-19bf-11e5-b5b2-91e5bba59368PreparationPREPARE TO BEGIN_1cf5f088-19bf-11e5-b5b2-91e5bba59368Step 1PlanPlan-to-Plan_1cf5f114-19bf-11e5-b5b2-91e5bba593681AEducationEducate the Planning Teams on strategic management, and getting commitment_1cf5f1b4-19bf-11e5-b5b2-91e5bba593681AiPlanning TeamsAssessmentAssess the readiness of the organization to transform_1cf5f308-19bf-11e5-b5b2-91e5bba593681AiiOrganizationsTailoringTailor the adopted strategic planing process to the organization's needs_1cf5f39e-19bf-11e5-b5b2-91e5bba593681AiiiOrganizationOrganize the entire effort_1cf5f466-19bf-11e5-b5b2-91e5bba593681AivEnvironmental ScanningMonitor trends that could impact the organization_1cf5f4f2-19bf-11e5-b5b2-91e5bba593681BFuture External Environment Scan of the trends that could impact the organization in the areas:Demographics & SocialMonitor trends in socio-demographics and social_1cf5f588-19bf-11e5-b5b2-91e5bba593681BiCompetition, Alternatives & SubstitutesMonitor competition and alternatives / substitutes_1cf5f61e-19bf-11e5-b5b2-91e5bba593681BiiEconomicsMonitor economic trends_1cf5f6b4-19bf-11e5-b5b2-91e5bba593681BiiiEnvironment & EcologyMonitor trends in the environment / ecology_1cf5f74a-19bf-11e5-b5b2-91e5bba593681BivPolitics & RegulationMonitor political and regulatory trends_1cf5f876-19bf-11e5-b5b2-91e5bba593681BvTechnologyMonitor technology trends_1cf5f920-19bf-11e5-b5b2-91e5bba593681BviIndustryMonitor industrial trends_1cf5f9c0-19bf-11e5-b5b2-91e5bba593681BviiCustomers & CommunitiesMonitor customer and community trends_1cf5fad8-19bf-11e5-b5b2-91e5bba593681BviiiVisionENVISION THE IDEAL FUTURE_1cf5fb78-19bf-11e5-b5b2-91e5bba59368Step 2Creating your ideal future (Outputs of any organization as a system) -- The IDEAL FUTURE VISION step's main purpose is to formulate dreams that are worth believing in and fighting for. At this stage, the cry of "It can’t be done!" is irrelevant; how to turn it into reality is pursued after the vision is created. The four challenges met during this step are:ProcessConduct a visioning process and develop a shared Vision Statement of your dreams, hopes, and desired future._1cf5fc18-19bf-11e5-b5b2-91e5bba593682.1StatementDevelop a Mission Statement describing why your organization exists, what business it is in, and who it serves._1cf5fcc2-19bf-11e5-b5b2-91e5bba593682.2ValuesArticulate Core Values that guide day-to-day behavior and, collectively, create your desired culture._1cf5fd6c-19bf-11e5-b5b2-91e5bba593682.3PositioningDefine your Positioning and develop a Rallying Cry ..._1cf5fe20-19bf-11e5-b5b2-91e5bba593682.4Your competitive edge in the marketplace in the eyes of the customer and what you stand for.MetricsDEFINE KEY MEASURES OF SUCCESS_1cf5ff24-19bf-11e5-b5b2-91e5bba59368Step 3The KEY SUCCESS MEASURES step defines the quantifible outcome measurements of success in achieving the organization's Ideal Future Vision. High-level corporate Key Success Measures should ideally include measures on:EmployeesDevelop metrics for employee performance and satisfaction_1cf5ffec-19bf-11e5-b5b2-91e5bba593683.1EmployeesCustomersDevelop metrics for customer response and satisfaction_1cf600b4-19bf-11e5-b5b2-91e5bba593683.2CustomersFinancesDevelop metrics for financial viability_1cf60186-19bf-11e5-b5b2-91e5bba593683.3CommunitiesDevelop metrics for community stakeholders (social responsibility)_1cf60244-19bf-11e5-b5b2-91e5bba593683.4CommunitiesCurrent StateASSESS THE CURRENT STATE_a126a14e-19d9-11e5-9b85-c3ffbba59368Step 4The CURRENT STATE ASSESSMENT step is where internal and external analyses are conducted, to discover those Strengths, Weaknesess, Opportunities, Threats (SWOT) that have an impact on the Ideal Future Vision and Key Success Measures developed in Steps 2 and 3.SWOTDiscover organizational Strengths, Weaknesess, Opportunities, Threats_a126a3c4-19d9-11e5-9b85-c3ffbba593684.1StrategiesDEVELOP CORE STRATEGIES_a126a590-19d9-11e5-9b85-c3ffbba59368Step 5The STRATEGY DEVELOPMENT step creates the Core Strategies to bridge the gap between the Ideal Future and the Current State. There should be 3 to 7 broad Core Strategies that apply across all functions and units. The 21st Century has seen a proliferation of new strategies as businesses try to cope with these revolutionary times. In looking at Core Strategies, beware of those that are of the cost cutting variety only, such as reorganizations, layoff, business re-engineering, budget cutbacks, etc. "Cutting" is definitely necessary, yet not sufficient for success. Be sure to also have strategies that grow the top line and build for the future; this is critical for business sustainability. Each Core Strategies needs a set of Strategic Action Items to achieve that strategy over the planning horizon. From these, you need to identify the top three to five as Strategic Action Priorities over the next 12 months for each Core Strategy. These Strategic Action Priorities become the organizing framework used by everyone to set annual department plans and individual goals for performance appraisals.ActionsIdentify the top three to five as Strategic Action Priorities for each Core Strategy._a126a680-19d9-11e5-9b85-c3ffbba593685.1Business UnitsDEVELOP 3YR BUSINESS UNIT PLANS_a126a7b6-19d9-11e5-9b85-c3ffbba59368Step 6Business Units(Optional -- For larger firms with multi-strategic business units only.) This THREE-YEAR BUSINESS UNIT PLANNING step answers the question of how Core Strategies are to be implemented by the strategic business units. To do this, the business units that make up the organization's overall business portfolio must be clearly identified and prioritized based on their importance to the organization's future growth, profitability, and direction. Each business unit (and Major Functional Area (MFA)) must then develop concrete three-year Business Unit Plans to carry out the core strategies.Identification & PrioritizationIdentify and prioritize business units based on their importance to the organization's future growth, profitability, and direction._a126a8a6-19d9-11e5-9b85-c3ffbba593686.1PlansDevelop plans for each business units to carry out the core strategies._a126a996-19d9-11e5-9b85-c3ffbba593686.2Business UnitsAnnual Plans & BudgetsDEVELOP ANNUAL PLANS AND STRATEGIC BUDGET_694481da-19e1-11e5-9b0f-fbfcbba59368Step 7This ANNUAL PLANNING AND STRATEGIC BUDGETTING step is where "the rubber meets the road." It is where you develop department and unit Annual Strategic Work Plans with detailed actions and the resources to actually implement the cross-functional Strategic Action Priorities explained in Step 5._6944872a-19e1-11e5-9b0f-fbfcbba59368Implementation PreparationPREPARE TO IMPLEMENT_694488a6-19e1-11e5-9b0f-fbfcbba59368Step 8The Plan-to-Implement step is the bridge from Strategic Goal #1 to StrategicGoal #2, from planning to implementation. In this step, you should:Change LeadershipFormalize a Strategic Change Leadership Team, that usually comprises the Senior Leadership and co-opted managers._694489aa-19e1-11e5-9b0f-fbfcbba593688.1Change Leadership TeamsSenior LeadersProject TeamsUse cross-functional Core Strategy Project Teams._69448ad6-19e1-11e5-9b0f-fbfcbba593688.2Strategy TeamsCommunications & RolloutFinalize communications and rollout of the Strategic Plan._69448cb6-19e1-11e5-9b0f-fbfcbba593688.3Metrics CoordinationAssign Key Success Measures tracking coordinator._69448dba-19e1-11e5-9b0f-fbfcbba593688.4Performance Metrics CoordinatorsAppraisals & RewardsModify performance appraisal and rewards processes, to include strategic contribution._69448ed2-19e1-11e5-9b0f-fbfcbba593688.5Implementation MapsDevelop yearly Comprehensive Implementation Maps._69448fd6-19e1-11e5-9b0f-fbfcbba593688.6Program ManagementSet up a Program Management Office to ensure ensure implementation and successful transformation._69449170-19e1-11e5-9b0f-fbfcbba593688.7Program Management OfficesProcess & PrioritiesAllocate resources to support the change process/priorities._694492d8-19e1-11e5-9b0f-fbfcbba593688.8Critical MassDevelop a Game Plan to ensure a critical mass for change._694493dc-19e1-11e5-9b0f-fbfcbba593688.9TrainingTrain managers in managing transformation and change._694494ea-19e1-11e5-9b0f-fbfcbba593688.10ManagersImplementation & TransformationDRIVE IMPLEMENTATION AND TRANSFORMATION_69449634-19e1-11e5-9b0f-fbfcbba59368Step 9This step is where you monitor and drive implementation to Ensure Successful Transformation (Strategic Goal #2). This step requires:AppraisalsAppraise the focus of each staff person on their strategic contributions. _69449760-19e1-11e5-9b0f-fbfcbba593689.1StaffConsistent focus by all staff on their strategic contributions, which should form part of their appraisal.TrainingProvide adequate and appropriate training and resources to staff._69449968-19e1-11e5-9b0f-fbfcbba593689.2StaffAdequate and appropriate training and resources must be provided to the staff.MeetingsConduct monthly meetings of Strategic Change Leadership Teams_69449aa8-19e1-11e5-9b0f-fbfcbba593689.3Change Leadership TeamsStatus ReviewsReview the status of the Strategic Action Priorities_69449bde-19e1-11e5-9b0f-fbfcbba593689.3.1MetricsMonitor the top level Key Success Measures_69449d1e-19e1-11e5-9b0f-fbfcbba593689.3.2External EnvironmentReview the state of the Future External Environment for new developments that might impact the organization_69449e72-19e1-11e5-9b0f-fbfcbba593689.3.3PrioritiesUpdate or tweak the Strategic Action Priorities where necessary_6944a318-19e1-11e5-9b0f-fbfcbba593689.3.4Trouble-ShootingTrouble-shoot any issues with the Strategic Plan or the Implementation_6944a46c-19e1-11e5-9b0f-fbfcbba593689.3.5FacilitationPro-actively facilitate the process_6944a5ca-19e1-11e5-9b0f-fbfcbba593689.4Program Management OfficesCEOsCultureCreate the right culture throughout the organization_6944a70a-19e1-11e5-9b0f-fbfcbba593689.5Emphasis & CommunicationConstantly emphasize [the importance] and communicate [about the plan]_6944a854-19e1-11e5-9b0f-fbfcbba593689.6CEOSenior LeadershipLeverage PointsFocus on the leverage points of leadership practices (including human resource) and customer-centricity._6944a9a8-19e1-11e5-9b0f-fbfcbba593689.7Reviews & UpdatesCONDUCT ANNUAL STRATEGIC REVIEW AND UPDATE_6944ad4a-19e1-11e5-9b0f-fbfcbba59368Step 10This ANNUAL STRATEGIC REVIEW (AND UPDATE) step is similar to a yearly independent financial audit and is needed to keep pace with changing environments. This is the key to Sustaining High Performance over the long term. This step includes:Environment ScansConduct new Future External Environment Scans in order to be pro-activeviz-a-viz changes when updating the Strategic Plan._6944aec6-19e1-11e5-9b0f-fbfcbba5936810.1Audits & ReviewsFormally audit and review the Strategic Plan and the system in place for driving implementation._6944b02e-19e1-11e5-9b0f-fbfcbba5936810.2Updating & PrioritiesUpdate the Strategic Plan and decide on the Strategic Action Priorities for the next year._6944b254-19e1-11e5-9b0f-fbfcbba5936810.3Trouble-Shooting & RefinementTrouble-shooting and refining the system to drive implementation._6944b3a8-19e1-11e5-9b0f-fbfcbba5936810.42015-06-23https://hainescentre.com/OwenAmburOwen.Ambur@verizon.net