“If, as you say, our rivals are only three years away from introducing microprocessors of their control models, why are they already talking about it in their annual reports? “What cost savings may our prospects achieve with microprocessor-controlled gear? ” It takes only one such grilling session to make division managers conscious of gaps in their competitive information. To keep away from such problems, one European conglomerate has ordained that each of its SBUs initially study its business totally, lay out a detailed technique, after which replan as necessary. It has discovered that well-managed companies in comparatively steady industries can usually exist fairly comfortably with routine monitoring towards strategic targets each quarter and an intensive strategic evaluate every three to 5 years. The time saved from detailed annual planning sessions for every enterprise is dedicated to companies in fast-altering environments or those not performing based on the company blueprint.
This helps focus personnel on what these key risks are and doubtlessly how important they could be. A second focus is the communication of administration’s expectations concerning risk to assist reinforce the message that the understanding and management of risk is a core competency and anticipated position of individuals across the group.
A principal weak spot of Phase II and III strategic planning processes is their inescapable entanglement in the formal corporate calendar. Strategic planning simply degenerates into a mind-numbing bureaucratic exercise, punctuated by ritualistic formal planning meetings that neither inform top administration nor assist enterprise managers to get their jobs … Read More