PODIUM DEL ESTRATEGA
FOCUS ON THE STRATEGIC BUSINESS PLAN OF THE XXI CENTURY THE DNA OF CORPORATE ORGANISMS STRATEGY VIRGILIO PAREDES MACHADO
2011
WWW.PODIUMDELESTRATEGA.COM
GENERAL OVERVIEW Strategic planning, known as the main tool for the management of modern organizations, experienced a shift from traditional to modern in the early 80's as a result of the work of strategist Michael Porter for whom the strategy is competitive advantage, being of more importance and of higher priority than planning, an approach that is highly relevant to a changing globalized world as the one initiated in the latter years of the past century. Gary Hammel (the biggest guru of strategies) also presents this by stating: “Strategic planning is not the same as strategy. Planning produces plans, not strategies.� This means that there is a noticeable difference between traditional strategic planning, where the focus is on plans of action in stable environments; and strategic planning of the twentyfirst century, which focuses on the Strategy for a changing environment. Michael Porter presented the Strategy in its true etymological sense of the word, he states that "The essence of strategy is choosing a unique and valuable position based on systems of activities that are much more difficult to harmonize"; which can be summarized simply by saying that: "It is the element or group of elements that give a competitive advantage to an organization or a unique position reached by an organization, which the others do not possess, being this difficult to imitate or equal." This means the Strategy is the main component of business administration of the XXI century which can cope with constant change successfully. That is why the author sees this as a major milestone in the development of the modern management of Peter Drucker. Stephen R. Covey states that the three constants of the present times are: "Change, Choices, and Principles" this means that times and conditions to be faced by companies in the globalized world in which they operate bear the constant of change, which is given as result of the innovative advances in communication and information technology in a world where all business niches are trespassing the bounds of all nations. The well-known strategist Alfred Dupont Chandler states: "If the structure does not follow the strategy the end result is inefficiency," quote that is very meaningful. The current business structures as well as the organic structures of living beings respond immediately to changes and influences of the environment
in which they operate. That is why these business structures are also called thinking or intelligent structures, they are becoming more horizontal with fewer lines of command, where all members or interested parties respond directly and immediately, for the change is so frequent and so thunderous that there is no time to walk or flee, for the decision-making, along lines of authority that characterize the traditional vertical or hierarchical structures. The above mentioned leads the author to propose that in times of constant change, business organizational structures, as well as living organic structures, are defined by a source code that contains the characteristics or qualities that they must possess in their entirety. This means that just as DNA (deoxyribonucleic acid) from living cells represent their genetic code, in the corporate organizational structure there is an element that determines the characteristics the organization must possess, which is the Strategy, which, like RNA (messenger of DNA) uses adaptation plans (SAPs) to determine all the traits, characteristics and qualities that the company must possess in relation to its entire organization, manpower, economy and technology; its policies, systems and procedures; organizational culture, etc. To create or design this business source code named Strategy, the author proposes that this be done from the principles suggested centuries ago by Sun Tzu in the Art of War (book which represents the main source of knowledge and tactics for modern executive strategists all over the world). These principles (modules or stages) that apply to the scheme proposed by the author consist of Commitment and Identity, Observation or Analysis, and the Preparation or Design of the Global Strategy of the company; leaving for a future phase the elaboration of the tactical plans which the author proposes to be called Strategy Adaptation Plans (SAPs), aimed to implement the elements of competitive advantage (doing unique things, different from the competition; things which are difficult to imitate) which as a whole represent that unique position that can be achieved only through Strategy; different from those that must also be derived from the chosen Strategy, the ones called Annual Operational Plans (AOPs) oriented (according to Porter) to achieve operational effectiveness (doing the same thing everyone else is doing but better.)
Consequently, in addition to the qualities the current managers possess, they must have a new leadership skill required to meet the challenges of the XXI century. They must be strategists and planners in such a way that allows them to deal with a double agenda or focus, or better said, the plans of the strategy without deadlines aimed at creating competitive advantage and the annual operational plans designed to ensure operational efficiency. Quotes of Added Value by the author: Peter Drucker´s major milestone in the development of modern management. Strategy is the main managerial tool of XXI century companies. It allows them to cope with constant change successfully. Business organizational structures, as well as living organic structures, are defined by a central source code in which the strategy has the same function as DNA. The Strategy Plans (SAPs) have the same function as the messenger RNA for DNA. Sun Tzu's principles should be applied in order to design a good strategy. Differentiation and innovation of the Strategy Adaptation Plans (SAPs), of the Annual Operational Plans (AOPs), and a double agenda or focus for the twenty-first century leading manager.
SUN TZU: Chinese general who lived around 500 BC. He wrote "The Art of War" Alfred Dupont Chandler (1918 -) Harvard Business School, "Strategy & Structure" (1962) Michael Porter, Harvard Business School, "Competitive Strategy" (1980) Peter F. Drucker, "Managing for Results" (1985) It has been nearly 25 centuries since Sun Tzu, but Strategy is new in the business field introduced in the 60s of the twentieth century by Alfred D. Chandler, continued in '65 with Igor Ansoff and reaching a high level with Michael Porter in the '80s and '90s.
VIRGILIO PAREDES MACHADO Biochemist, MBA Professor of Business Strategies at UNITEC - Honduras Biochemist, MBA Professor of Business Strategies UNITEC/HONDURAS
Vdfasdf
WWW.PODIUMDELESTRATEGA.COM