1. Business Strategy Lesson 4

2. Business Strategy  A business strategy is the means by which it sets out to achieve its desired ends (objectives).  It can simply be described as a long- term business planning.  Typically a business strategy will cover a period of about 3-5 years (sometimes even longer).  Business Strategy is a long term plan of action designed to achieve a particular goal or set of goals or objectives.  Strategy is management's game plan for strengthening the performance of the enterprise.  It states how business should be conduct to achieve the desired goals.  Without a strategy management has no roadmap to guide them.

3. Performance Management  Performance management helps organizations achieve their strategic goals.  It is how your resources and people are managed to deliver your objectives.  Performance management is really about good management, ensuring that your organization and team goals are achieved. It helps to:  prioritize what gets done and ensure there are sufficient resources to do it  ensure you provide value for money  motivate and manage staff  identify and rectify poor performance at an early stage  learn from past performance and improve future performance  increase customer satisfaction.

4. Performance Management  It is sometimes called Business Performance Management (BPM) and it helps improve:  Control  Coordination  Communication Performance management model which involves four steps: 1. Set a Strategy 2. Create a plan 3. Monitor and Analyze utilizing Business Intelligence and Business Dashboards 4. Make Decisions and Adjustments

5. Creating Business Strategy An essential first step in business performance management. 1. Set a Vision Statement (future – where they want to be), 2. Set a Mission Statement (purpose-what they do), 3. Doing a SWOT analysis - Strengths, Weaknesses, Opportunities and Threats, 4. Creating a Balanced Scorecard, 5. Setting Goals/Objectives, 6. Creating a Strategy Map, 7. Setting Key Performance Indicators or KPIs,and 8. Creating Dashboards to monitor KPIs

6. Vision Statement  It describes a picture of the company's future and the direction it is headed.  It encapsulates the customer focus and market position it should have.  Writing a vision statement should answer the following questions:  What will the business look like in 3 to 5 years from now  What things you are going to try and achieve  What customer needs you are going to address  Ideally it should be audacious and challenging and represent your dream.  It should inspire and excite.

7. Vision Statement “Where do we want to go?”  Vision statements capture your dreams and hopes for your business.  It reminds you of what you are trying to build.  It should act as an inspiration to all associated with the company - employees, customers and shareholders.  It may apply to an entire company or to a single division of that company.  The vision statement is usually short - a few sentences at most and should be memorable.

8. Vision Statement Examples: "We bring the good things to Life" - General Electric(GE) "To enable people and businesses throughout the world realize their potential" - Microsoft "Our ability to grow, innovate and deliver superb service, combined with our tested, highly successful business model, positions us to perform well in a wide range of economic scenarios. We're looking forward to our future — the best is yet to come." - Marriott Hotels "To be the most creative organization in the world.“ - BBC vision

9. Mission Statement  It is simply a statement of company's, team's or organization's purpose.  It describes what business the company is in and the customer needs it is trying to meet.  The goal of mission statement is to keep you headed in the right direction when trying to plan ahead. It could be said it is the company's compass. Here are the key questions to ask to create a mission statement:  Who are our customers?  What market do we serve?  What customers needs are you trying to satisfy?  What specialist knowledge does the company hold?  What specialist knowledge or competencies does the company hold? Write a mission statement that is clear, short and memorable

10. Examples Detailed Mission Statement examples:  The World's Largest Company by revenue - Walmart's Mission Statement  Engendering the 'Third Place’ - Starbucks  Evolved from Crisis to 'Best in The World‘ - Best Buy Mission To enrich people's lives with programmes and services that inform, educate and entertain. Six purposes 1. Sustaining citizenship and civil society 2. Promoting education and learning 3. Stimulating creativity and cultural excellence 4. Representing the UK, its nations, regions and communities 5. Bringing the UK to the world and the world to the UK 6. Delivering to the public the benefit of emerging communications technologies and services

11. INDIVIDUAL ACTIVITY  Name your company, define.  Compose your Vision and Mission.

12. SWOT  S stands for Strengths  W stands for Weaknesses  O stands for Opportunities  T stands for Threats SWOT analysis is an important tool for rapidly establishing the overall strategic position of a business and its environment.

13.  It is an important step in helping determine your business strategy and so lead you to your business intelligence strategy.  Once key issues have been identified, they feed into business objectives, particularly marketing objectives and goals. Sometimes you can apply it to projects and other ventures.  It is a very popular tool with business and marketing professionals because it is quick and easy to learn.  It is subjective though and is best done by involving a good cross section of staff and external people, so that you get as complete and objective set of SWOTs.

14. When to use SWOT  The use of a SWOT analysis is to organize information, provide insight into barriers that may be present while engaging in social change processes, and identify strengths available that can be activated to counteract these barriers.  A SWOT analysis can be used to:  Explore new solutions to problems  Identify barriers that will limit goals/objectives  Decide on direction that will be most effective  Reveal possibilities and limitations for change  To revise plans to best navigate systems, communities, and organizations  As a brainstorming and recording device as a means of communication  To enhance “credibility of interpretation” to be utilized in presentation to leaders or key supporters.

15. Strengths and weaknesses are Internal factors.  People - Skills, Attitude, Training, Knowledge  Products - Quality, Price, Life Cycle  Operations/Production - Capacity, Flexibility  Organization - Structure, Relationships  Systems - Computer, Databases, Monitoring Dashboards  Finance - Balance sheet, Cash Flow  Reputation - Customer opinion

16. Opportunities and Threats are External factors.  Economy - Strength of Currency  Market - Growth/Decline, Fashion Trend  Legislation - Pollution, Product Liability, Energy, Healthcare  Technology - Substitutes, New Tools, Artificial Intelligence  Society - Ageing Population  Environment - Recycling, Increased Testing, Protection

17. Benefits of SWOT  The SWOT analysis in Social Work practice framework is beneficial because it helps organizations decide whether or not an objective is obtainable and therefore enables organizations to set achievable goals, objectives, and steps to further the social change or community development effort.  It enables organizers to take visions and produce practical and efficient outcomes in order to effect long-lasting change, and it helps organizations gather meaningful information in order to maximize their potential.  Completing a SWOT analysis is a useful process regarding the consideration of key organizational priorities, such as gender and cultural diversity, and fundraising objectives.

19. Google Website  Use Google website to present your Vision, Mission and SWOT.

20. Leadership for Business is the most important factor for the outstanding and continuing success of a business.

21. Activity, I want to… 1. Drives Employee 2. Says We 3. Know how it is done 4. Asks 5. Uses People 6. Fixes the breakdown 7. Commands 8. On Goodwill 9. Says “Go” 10. Develops People

23. Leadership  is the art of motivating or inspiring a group of people to act towards achieving a common goal.  A leader provides a set of goals and a purpose of direction.  A leader is the person in a group that possesses the combination of personality and skills that makes others want to follow their direction.

24. Characteristics of Leaders  Unity of Purpose and Focus  Single-mindedness and clarity of thought  Stamina and perseverance(determination)  Confidence and Fearlessness

25. Six Leadership Styles 1. Coercive Leadership Style  The style is best described by the phrase “Do what I tell you”  It works best in a crisis and problem situations e.g. business downturn, problematic staff.  The effectiveness of this style is limited.  2. Authoritative Leadership Style ( Transformational )  Here the leaders focuses his folks on a better vision of the future.  They use their self- confidence and empathy to motivate the team. The phrase 'Come with Me' summaries the approach.  It works best when changes require a new vision or a clear direction is needed  This approach is usually highly successful.

26.  3. Affiliative Leadership Style (Affiliate)  This style emphasizes 'people'. The leader focuses on building relationships and good communication.  It works well when there is a stressful situation existing or when there has been a breakdown in teamwork.  This approach tends to work well. 4. Democratic Leadership Style  “What do you think?” is a common phrase used by this type of leader. They attempt to gain consensus through participation.  They use the formula: P + I = C Participation + Involvement = Commitment  It works well when you have to build consensus and buy in or need to get valuable information from key employees.  This approach tends to work well.

27. 5. Pacesetting Leadership Style  Here the leader sets high standard of performance. This is derived from their conscientiousness and inner drive to succeed.  It works well if you need quick results and your team is highly motivated and competent.  Because of this last qualifications it tends not to work too well in most situations. 6. Coaching Leadership Style  The leader here takes the long view. They try to develop people for the future with training and coaching.  It works well when employees are keen to self improve and build on their strengths.  This leadership style tends to work well. JAVA

28. ASSIGNMENT  Draw for different leadership,  Put an image  Make discussion

29. Activity  "Management is doing things right; leadership is doing the right things." — Peter Drucker  "Leadership is getting people to work for you when they are not obligated."— Fred Smith, Fedex  "Leadership cannot really be taught. It can only be learned."— Harold Geneen  "Management is efficiency in climbing the ladder of success; leadership determines whether the ladder is leaning against the right wall."— Stephen R. Covey

30.  “Innovation distinguishes between a leader and a follower.”- Steve Jobs  "Leadership is the art of getting someone else to do something you want done because he wants to do it."— Dwight D. Eisenhower  Don't tell people how to do things, tell them what to do and let them surprise you with their results.- George S. Patton  "A leader is a dealer in hope." Napoleon Bonaparte  "Never give an order that can't be obeyed."— General Douglas MacArthur  "Speak Softly and carry a big stick; you will go far."— Theodore Roosevelt

31. SMART Goal Setting  Setting objectives are important.  It focuses the company on specific aims over a period of time and can motivate staff to meet the objectives if set well.

32. 1. Specific – Objectives should specify what they want to achieve.  Use the Five Ws and one H.  WHAT am I going to do? This are best written using strong, action verbs e.g sell, design, implement etc.  WHY is this important for me to do?  WHO is going to do what? Who else need to be involved?  WHEN do I want this to be completed?  HOW am I going to do this?

33. 2. Measurable – You should be able to measure whether you are meeting the objectives or not.  Measurement is the most important consideration. When will you know that you’ve achieved your objective.  It is also important for feedback purposes, you might have make adjustments or solve problems.  This is where business intelligence comes in. Is a set of techniques and tools for the transformation of raw data into meaningful and useful information for business analysis purpose.

34. 3. Achievable - Are the objectives you set, achievable and attainable? Can we get it done in the proposed timeline?  Do you understand the limitations and constraints?  Can we do this with the resources we have?  Has anyone else done this successfully before?

35. 4. Realistic  Realistic – Can you realistically achieve the objectives with the resources you have?  Do you have the resources available to achieve this objective?

36. 5. Time  Time – When do you want to achieve the set objectives?  It is always good to build a bit of slack to account for the unexpected.