Mar 06

One Key Success in Business Lies in the Ability to Align Strategy to the Organization’s Capacity

One Key Success in Business Lies in the Ability to Align Strategy to the Organization’s Capacity

Strategy is a word often used by business leaders. Whereas many of them have a fair understanding of what it is, a good number of them will also struggle to explain what exactly it is. Moving to business strategy, Michael D. Watkins a professor at IMD defines it as a set of guiding principles that, when communicated and adopted in the organization, generates a desired pattern of decision making. Strategic management therefore involves the formulation, implementation and monitoring of the major goals and initiatives taken by a company’s top management based on consideration of resources and an assessment of the internal and external environments in which the organization operates.

In a broad sense, organizational capacity is about having the internal support and resources needed to effectively manage your business operations. It encompasses three major categories;

Human resources like number, quality, skill set and experiences of staff.

  • Physical and material resources like machines, land and building.
  • Financial resources like cash in the bank and credit facilities.
  • Information resources like a pool of knowledge and databases.
  • Intellectual resources like copyrights, designs and patents.

With many business executives attaching enormous significance to strategy and how it can be implemented in their businesses, often times they quickly get bogged down when it comes to the nutty-gritty of its implementation. It is therefore imperative to note that strategy is largely resources and more specifically how people in the entire company should make decisions and apportion resources in order accomplish key objectives.

Every time a strategy is being formulated, the big question should always be Do I have the capacity to deliver on the activities to reach my desired goal? A good strategy therefore offers a clear road-map, consisting of a set of guiding principles or rules, that defines the actions and resources people in the business should take (and not take) and the things they should prioritize (and not prioritize) to achieve desired goals.

By Brian Ahabwe Kakuru

Brian is the Managing Director at BLEGSCOPE®, and has 12+ years of management consultancy experience notably in the finance & banking industry, MSMEs, FMCG companies and in the service industry. You can follow him on twitter >> @BrianAhabweK

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