This class explains why the over-riding purpose for strategy is to help management
improve performance over time, rather than to hit ratio targets.
- For whole-business cases, this often means driving growth in cash-flow, whether through an
overall business plan sustained for long periods or taking on opportunities or challenges that arise
at particular times.
- Departments, teams and functions also aim to improve performance over time, on a wide range of possible
The aim of improving performance over time also applies to public-services and non-commercial
cases, though the main purpose may not be financial.
This dynamic view of performance exposes three fundamental questions:
- Why has performance followed the path that it has up to today?
- Where is performance likely to go into the future?
- How can management act to improve that trajectory, strongly and sustainably?
- Why performance-over-time is the issue management needs to address.
- Understanding why performance has developed up to now, where it may go in future, and how to improve it.
- Distinct purposes of strategy: (a) a sustained Plan for the future (b) dealing with specific issues.
- The different levels of strategy: (a) for the whole organisation (b) for a department, team or function.
- The vital need to quantify objectives and the time-scale for achieving them.
- Exploiting potential opportunity, whilst being realistic and avoiding bad consequences.
- How strategic performance leads to value for investors or business owners.
Lecture segments associated with this class are:
Class 1.0 - Summary - (17 min)
The Summary class explains how to specify the aims of a strategy or initiative clearly, to make it easier
to design the path to a solution. The class offers real-world examples of both whole-business cases and
issues facing specific parts of an organisation.
Class 1.1 - Setting appropriate objectives - (25 min)
How to set appropriate objectives that
fully exploit potential opportunities, whilst being realistically achievable and not exposing the
organisation to dangerous consequences.
Class 1.2 - Strategy and business value - (17 min).
The link between strategy and business value, recognising that business owners or investors
seek growth in the cash flows
This course is supported by a series of worksheets provided in both PDF format and as Sysdea online models. This course is concerned primarily with the Strategy Dynamics frameworks. To learn how to use Sysdea effectively we suggest taking our online Business Modeling course
There are no additional exercises for this class.
Additional materials are available to registered teachers as
well as free access to the complete course.
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register here for more information.