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Strategies define how organizations optimize their use of resources to meet their mission and goals. The combination of a strategy, a mission and goals can be viewed as the overall vision of an organization. Having a vision guides managers and all others in the organization as they strive to successfully pursue their organizations objectives.
Strategy formulation makes strategy explicit, which is a prerequisite for effective strategy execution.
Well-conceived strategies are built upon organizational capabilities and are robust to changes in the (industrial) environment. Effectively formulated strategies contemplate every possible contingency. As such, strategy formulation is a craft that requires proven methodological frameworks and scientifically-supported definitions.
The aim of strategy formulation is to create value for stakeholders. A given organization might have several possible means by which to create value, but it is its management that needs to steer the efforts of the entire workforce in the same, right direction. To explain the need for change in a strategy, leadership teams might draw up a strategic change agenda. A strategic change agenda is a powerful tool with which to communicate transformational change as it compares the current status of organizational structures, capabilities, processes, activities, and behaviours, against what they need to become over the next strategic planning horizon.
All of the different tools and competences present in the Collaborative allow us to guide companies through this process of Strategy Formulation. Often, strategies are formulated in dynamic and uncertain environments. Consequently, certain events might make a strategy irrelevant or (even worse) could endanger the continuity of the organization. Strategy-linked risk management is about identifying, evaluating and managing the risks associated with a given strategy. The concept behind strategy-linked risk management is to prepare the organization for events that might occur, and to make the organization more agile in responding to events, if and when they occur. As you can already tell, strategies are not to be taken lightly. Formulating a solid strategy has a tremendous impact on any organization and should therefore be created with the greatest eye for detail including all the aspects of a companys environment.