Strategic initiatives should be adequate, logical, and systematic efforts to lead radical changes and environmental shifts for achieving high performance results consistently.
The environment which the company is in changes over time, new competitors in the market keep evolving. In differentiation, competitive advantage is probably more to do with the maintenance of brand, reputation, and quality.
A good strategy includes a set of choices, a comprehensive guideline, a series of actions, and a right set of metrics to evaluate results. A strategy is to plan for the inevitable, while risk management is to prepare for the inevitable. Strategy execution success is more dependent on the business’s agility to respond to changes, capabilities to implement, and resilience to fail forward.
Change Management and strategy management are interdependent: Nowadays strategy management is not a linear step, but an iterative strategy-implementation continuum due to the dynamic business circumstances. Strategy Management and Change Management often goes hand-in-hand. Change management can be a strategic process if businesses spend more time on how to be effective in supporting a change in the chaotic environment that surrounds business. That will significantly improve strategy management success rate.
Leading organizations empower their change agents, as the programmers of a strategy, helping to specify the series of concrete steps needed to carry out the vision. Organizations can leap forward in developing change capability and capacity in supporting key business strategies to drive performance improvement and increase system resilience. Harnessing change and fostering collaboration is the key to creating a seamless organization when in pursuit of a strategy. It is the responsibility of the leader to initiate his or her team to break down the silos to realize the common goals of strategy for leading strategic changes collaboratively.
Information technology interweaves strategy management: Information technology is the backbone to run a contemporary company across vertical industries. IT leaders are not simply the leader of the enterprise’s IT departments, but the senior leader who co- creates digital strategy. They are in the unique position to capture the oversight of business processes, take responsibility to drive strategic changes, and manage a healthy “run, grow, and transform” portfolio in calibrating business growth with a steadfast pace.
There are different departments, with different roles and ways of leveraging the data and technology in the organization. The IT innovation trajectory to make strategic difference is about becoming a revenue generator and choice maker for driving business growth and delighting customers.IT savvy leaders need to have a very good grasp of the overall business, its strategy, the marketplace, business model and competitive distinctiveness to ensure that the IT-enabled business products or services supplied to the enterprise deliver maximum value at acceptable cost with optimum service.
Understanding business risks and addressing them is part of Strategy: Strategy planning is usually a management practice, and risk management is governance discipline, they have interdependent relationships to improve organizational agility and effectiveness. A quality strategy includes risk management guidelines. An effective risk management practice will make strategy closer to reality. The management needs to identify where the risks are within the strategy, particularly what factors may keep you from executing the strategy. Quality strategy is dependent on sound risk management practice to ensure effective implementation.
Strategy is more than risk management, it needs to identify what it is you want to do and how you want to do it. Strategy and risk management need to be managed independently at a higher level, an executive team develops a strategy, but the corporate board oversees risk and governance. They are not completely silo, and should always be interactive, communicative and mutually enforce either other at an operational level, to ensure business effectiveness.
With the faster pace of changes and abundant information growth, digital organizations today have to deal with uncertainty, and enable desirable emergent property. The problem is not uncertainty, rather, it is unpreparedness towards the efficient handling of uncertainty. Thus, strategy management is dynamic to deal with changed conditions and unforeseen circumstances, proactively structure and manage execution. Strategic initiatives should be adequate, logical, and systematic efforts to lead radical changes and environmental shift for achieving high performance results consistently.
