| Businesses could perform better by managing more | | | | Operating, stage. Let us consider each of them in a |
| strategically. The emphasis here, when discussing | | | | little more depth. |
| strategy, should be on managing, and not just on | | | | The Translation Stage |
| planning. Many companies limit their strategic thinking | | | | Oddly enough, many companies, even companies |
| to their planning cycle. Strategic planning is certainly | | | | that do a good job on the first, or Definition, stage, |
| important, but it is only one part of an overall | | | | miss the Translation Stage entirely. Those companies |
| strategic management process. An effective | | | | may have developed an effective market strategy |
| strategic management process just simply leads to | | | | during the first stage of the process, but they fail to |
| sustained growth and profitability. The purpose of | | | | translate it into what it means for their relevant |
| this brief article is to explore one of the key success | | | | stakeholders, such as customers, suppliers, |
| factors that can make a real difference in | | | | shareholders, and employees. Consider a company |
| performance when implementing a strategic | | | | that may have defined an unique, effective, |
| management process. That is, a company will be | | | | competitive market position, but they have not |
| more successful if it gets all stages of the process | | | | aligned the way their sales force are approaching |
| working, even if imperfectly. | | | | customers with that market strategy. In essence, |
| The structure of a strategic management process | | | | the company is keeping its market strategy a secret |
| can be described as having four major stages: | | | | from its personnel who are in the market every day. |
| - Definition Stage, which culminates in a defined | | | | In order to be effective, a market strategy must be |
| market strategy. | | | | well understood and accepted by all stakeholders, |
| - Translation Stage, which deals with business | | | | and that is accomplished during the Translation Stage. |
| philosophy. | | | | The Operating Stage |
| - Building Stage, which has the goal of designing | | | | The purpose of the Operating Stage is to create a |
| effective performance measurement. | | | | continuous improvement environment that enhances |
| - Operating Stage, which sets up an environment for | | | | the overall business strategy of a company and |
| continuous improvement. | | | | provides feedback to the other stages of the |
| In order to get all stages of the process in place, at | | | | strategic management process. Few companies have |
| least to some degree, companies may need to think | | | | implemented a continuous improvement program, and |
| more broadly, and focus less on perfecting any | | | | in those cases where they have, it is rarely |
| individual stages in the process. Many companies may | | | | connected to their strategic management processes. |
| find this difficult. Many companies seem to have a | | | | Business strategies become more effective when |
| tendency to focus on the technical, rather than think | | | | they are refined and strengthened over time through |
| broadly about the conceptual. In many cases, that | | | | continuous analysis and development of insights. That |
| natural tendency may be the correct one. However, | | | | is accomplished in the Operating Stage. |
| when dealing with a strategic management process, it | | | | When all stages of a strategic management process |
| is often the wrong one. The effectiveness of a | | | | are in place, even if imperfectly, the results achieved |
| strategic management process comes from | | | | by companies can improve dramatically. Two stages |
| implementing the overall process. Improvements to | | | | that are often missing from the strategic |
| individual stages can be done after the overall | | | | management processes of many companies are the |
| process is implemented. | | | | Translation Stage and the Operating Stage. When |
| To understand the need to have all stages of the | | | | one considers the potential impact of these two |
| process working, one needs only to consider the | | | | stages on companies' performance, it is surprising |
| impact on performance if a stage is missing. Two | | | | that there are many companies where they do not |
| stages that are often missing at companies are the | | | | exist. For a more effective strategic management |
| second, or Translation, stage and the fourth, or | | | | process, get all stages of the process working. |