Developing a strategy for world class business.[check] This checklist provides an introductory framework for managers whose companies wish to pursue the route to world class status. The responsibility for a world class strategy usually rests with the chief executive and senior management. Becoming a world class company is not a simple process, and requires effort and commitment from the entire organisation. Developing a strategy for action is essential if world class status is to be achieved. Definition 'World class' is a concept that is difficult to define. However, an accepted working definition is that a world class company should be able to compete with any other organisation in its chosen markets and that it aspires to world-beating standards in everything it does, in every department or division. 'World class' also embraces the practice of (and excellence in) techniques such as total quality management continuous improvement, customer service, international benchmarking, flexible working and training. 'World class' organisations also accept the necessity for continuous change. Action checklist 1. Consider outside influences Identify the factors in the external environment which call for a strategic response from your business. These can be grouped under main headings such as: economic factors; demographic trends; environmental factors, suppliers; competition; e-business (Electronic-BUSINESS) Doing business online. The term is often used synonymously with e-commerce, but e-business is more of an umbrella term for having a presence on the Web. and the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the ; and globalisation globalisation - internationalisation . Standard business models are being turned upside Upside The potential dollar amount by which the market or a stock could rise. Notes: This is basically an educated guess on how high a stock could go in the near future. See also: Bull, Downside down. 2. Establish the world class vision Determine the core business of your organisation--that at which your organisation should excel. Top management must make a vision of excellence clear in a brief statement that is impossible to misinterpret mis·in·ter·pret tr.v. mis·in·ter·pret·ed, mis·in·ter·pret·ing, mis·in·ter·prets 1. To interpret inaccurately. 2. To explain inaccurately. . In addition to helping form this vision, the chief executive's role is to clarify the message, push forward change, and champion the ideas and capabilities that will beat your competitors. 3. Analyse an·a·lyse v. Chiefly British Variant of analyze. analyse or US -lyze Verb [-lysing, -lysed] or -lyzing, your current position Benchmark your organisation against your competitors as far as you can. This can be very difficult, as much of the necessary information may not be available. There are several benchmarking organisations and clubs who can provide an impartial Favoring neither; disinterested; treating all alike; unbiased; equitable, fair, and just. assessment. The initial results may be disappointing, but may help to highlight areas that need to be addressed. (See Useful addresses). Consider the following areas: * your product innovation, quality, speed to market and availability * your pricing structures * your customer service * your policy for continuous improvement * your costs * your market share * your environmental and ethical policies. Do you match your competitors in these areas, or is your organisation considerably better or well below than them? Don't don't 1. Contraction of do not. 2. Nonstandard Contraction of does not. n. A statement of what should not be done: a list of the dos and don'ts. limit this measure to competitors in your own country--compare yourself against world wide competition. Identify which organisations are excellent within these areas and determine what makes them the best. Assess where you stand in your customers' eyes. It is their perception that matters most. 4. Focus on core capabilities From the analyses of the external environment, the core business of the organisation, and the standing of competitors, draw up a list of the core capabilities of your organisation which will enable you to compete in world markets. Core capabilities will include: * product knowledge/service skills * marketing skills * innovation/research capacity * financial planning Financial planning Evaluating the investing and financing options available to a firm. Planning includes attempting to make optimal decisions, projecting the consequences of these decisions for the firm in the form of a financial plan, and then comparing future performance against and control * human resource capabilities (including motivation as well as skills). Determine which of these core capabilities need extra focus, and resource their development. 5. Build a corporate strategy Focus on achieving better products or services, better factories or service operations, better organisation, better management, and better information and communication. Ask yourself questions such as: * Have the key business processes been defined and understood? * Does your organisation focus on processes or on departments? * Has a quality, or customer focus ethic eth·ic n. 1. a. A set of principles of right conduct. b. A theory or a system of moral values: "An ethic of service is at war with a craving for gain" been established throughout the organisation? * Are quality and reliability of products and services measured? * Are the key performance measures improving? * Is everyone in the organisation informed of results and developments? * Is customer satisfaction monitored on a regular basis? * Are employees multi-skilled? Are they flexible and willing to adapt? * Do you maximise people skills through equal opportunities policies? * How are creativity and innovation encouraged and nurtured? * Do you capture and utilise your knowledge base? * Is yours a learning organisation? * Do you see your suppliers as partners? 6. Set high targets for the organisation Set imaginative and ambitious targets by identifying where you intend to be in one, three and five years' time. If targets are easily achievable there is a danger that you will rest on your laurels. Being satisfied with these improvements means never becoming world class. * Ensure that organisational targets are translated into divisional and departmental goals which are incorporated into individual objectives. * Get staff into the habit of setting their own targets (they will usually be higher than those you would set them). 7. Develop balanced performance measures Measurement processes--as automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. and straightforward as possible--allow you to continuously monitor what is happening, and continuously report on progress. Performance measures must be relevant to your aims--concentrate on customer service, time reduction and quality--and remember that within a world class company, financial indicators are only one of a range of measures in terms of achieving your objectives. Don't, however, let measurement get in the way of getting on with the job. 8. Adopt straightforward reporting procedures Complex reports are time-consuming time-con·sum·ing adj. Taking up much time. time-consuming Adjective taking up a great deal of time Adj. 1. to understand, require a lot of preparation and consequently tend to be produced monthly at best. World class companies must be able to act immediately on the results of performance measurement; if a report takes three weeks to generate, then this three week lead-time lead-time n. The time between the initial stage of a project or policy and the appearance of results: a long lead-time in oil production because of the need for new exploration and drilling. will impact on continuous improvement. Adopt the one-page management reporting rule. 9. Communicate your progress Nothing inspires and motivates like success itself. Your employees must be kept fully informed of the organisation's progress (get your staff to produce their own progress charts if possible). By adopting simple measurement techniques, results can be given to employees on a daily basis via bulletin or notice boards--preferably in a graphic or pictorial form. Progress reports can be an inspirational in·spi·ra·tion·al adj. 1. Of or relating to inspiration. 2. Providing or intended to convey inspiration. 3. Resulting from inspiration. form of communication: poor communication is a reason why many things go wrong. 10. Revise your performance targets As your organisation raises its performance in the areas you have defined, identify new areas to be improved. As areas improve, their reports should reduce to exception reporting (a report showing only those items which deviate from plan or the established norm), allowing the organisation to focus on new needs. How to assess effectiveness Becoming world class, although an achievement, is only the beginning. To be a world class company you must continue to benchmark yourself against your competitors regularly. If you fail to do this, your organisation will slip from the position it has achieved to be replaced by another--staying world class is just as hard as becoming world class, if not harder. Dos and don'ts for world class firms Do * Continue to set challenging targets for your organisation. * Use flexibility and adaptability--but within limits. * Have a bias towards action and controlled risk. Adopt a blame-free culture. * Focus on continuous improvement. * Keep a close and continuous eye on major competitors. * Be sensitive to the conditions, context and methods of local cultures. Don't * Become complacent com·pla·cent adj. 1. Contented to a fault; self-satisfied and unconcerned: He had become complacent after years of success. 2. Eager to please; complaisant. once you feel you are world class. * Underestimate the importance of benchmarking, measures and reports. * Attempt to impose 'accepted' corporate ways and means WAYS AND MEANS. In legislative assemblies there is usually appointed a committee whose duties are to inquire into, and propose to the house, the ways and means to be adopted to raise funds for the use of the government. This body is called the committee of ways and means. across borders. Useful reading Books Strategic management of resources and relationships: concepts and cases: Jeffrey S Harrison New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of : NY John Wiley John Wiley may refer to:
Global and transnational business: strategy and management: George Stonehouse and others Chichester: John Wiley, 2000 Customer century: lessons from world class companies in integrated marketing and communications, Anders Gronstedt New York: Routledge, 2000 Total organizational excellence: achieving world class performance, John S Oakland Oxford: Butterworth Heinemann, 1999 Journal articles Tesco's tough act with record profits Britain's biggest retailer prepares for further challenges at home and abroad: Susanna Voyle Financial Times, 20 Apr, 2004 Pursuing competitive advantage through integrated global sourcing Robert J Trent and Robert M Monczka Academy of Management Executive, May vol 16 no 2, 2002 Innovative international strategies: Roland Calori and others Journal of World Business, Winter vol 35 no 4, 2000 Ten steps to world class, Phil Dourado Management Services, Mar vol 45 no 3, 2001, pp14-16 Competitive advantage in world class organisations, Kym Thorne and Malcolm Smith Malcolm Smith may refer to:
Useful addresses Best Practice Club, 39 Cambridge Place, Cambridge Cambridgeshire, CB2 1NS Tel: 01223 355 955 www.bpclub.com Benchmarking Centre, The Old Rectory The Old Rectory Chidham. Situated in Chidham at the very centre of the village The Old Rectory is an old and historic house. It was originally built at the start of the eighteenth century on the site of a an earlier dwelling. , Fulletby, Horncastle, Lincolnshire LN9 8JX Tel: 01507 534071 www.benchmarking.co.uk Centre for Interfirm Comparison interfirm comparison a technique for assessing the financial profitability of a veterinary practice by comparing it on the basis of a number of criteria with other practices in similar situations. The practices are rated according to their performance in each area, e.g. , 32 Thomas Street This article is about an English astronomer, for the street in central Dublin, Ireland, see Thomas Street. For the street in central Perth, Australia, see Thomas Street. Thomas Street (also spelled Streete) (1621—1689) was an English astronomer. , Winchester, Hants SO23 7 Tel: 01962 844144 www.cifc.co.uk Thought starters * Do you know the key performers in your industry? * How will e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. and the Internet affect your current business model? * A SWOT analysis SWOT Analysis A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. (Strengths, Weaknesses, Opportunities, Threats) may be a useful starting point Noun 1. starting point - earliest limiting point terminus a quo commencement, get-go, offset, outset, showtime, starting time, beginning, start, kickoff, first - the time at which something is supposed to begin; "they got an early start"; "she knew from the . * Self-awarded accolades are only meaningful if your customers agree with you. |
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