#TheStrategicProcess (II)

There are many important reasons why a company starts the development of #TheStrategicProcess. A generational change in ownership, a change of course in business, a renewal of an exhausted strategy, an extension of the current strategy, a change in the executive management of the company, going international, etc. What is beyond doubt is that in such a situation the company and its executives are facing a major challenge that must be analyzed very good the starting point (where are we?) and the end point (where we want to go?). Any change in the company involving the initiation of #TheStrategicProcess Development (SPD) entails additional costs which can be quite significant depending on the size of the change to be made. #TheStrategicProcess is not a simple change in the company. It represents normally a major change affecting all employees, processes and probably also the business model. Therefore we will dedicate time to analyze the starting point and the point of arrival. The middle road ahead, #TheStrategicProcess, will define the new Strategy.

The #Strategic Process(II)

Dear all: second part of #TheStrategicProcess is not yet finished. In the meantime following the request from the audience I come back with a renewed first part. I have introduce more examples to open the debate and to enrich this new first part. I hope to to have the same interesting audience as I had with first part. Enjoy and come back with interesting proposals to debate together.
Yours sincerely, José Carlos Álvarez Tobar
  
A Strategic Process is not too difficult to define but it is quite difficult to implement. Usually nine out of ten companies fail to implement their strategy. The percentage is too high to stay with folded hands not knowing what is necessary to do. The data are even more serious when you consider that only 5% of people that make a company truly understand the company strategy generally defined by their senior leaders. Furthermore only 25% of senior managers have incentives related to the success of the new strategy and at least 60% of companies have not related the annual budget with the new strategy. To make matters worse, 85% of executives spend less than one hour a month to discuss and debate with their work environment on the new strategy. Any strategic change that results in a new Strategic Process within the company is at least a process that costs money. So all the time we spend on analyzing why and how of these data and how should be defined and implemented a Strategic Process, will be well spent.