ROLE OF STRATEGIC DIRECTION IN ORGANISATION DESIGN

1. THE ROLE OF STRATEGIC
DIRECTION IN ORGANISATION
DESIGN
PRISCILLA PRIYADARSHINI S
RA1952001020002
MBA 1 – A

2. STRATEGIC DIRECTION
 Strategic direction refers to the actions you are taking to achieve the goals of your
organizational strategy. The strategic direction includes the plans and actions you
have put in place to work toward this vision of the future for your company.
 Strategic direction includes the plans and actions that needs to be put in place to
work toward this vision of the future for the organization.
 Strategy is important because the resources available to achieve these goals are
usually limited. Strategy generally involves setting goals, determining actions to
achieve the goals, and mobilizing resources to execute the actions.
 A strategy describes how the ends (goals) will be achieved by the means
(resources).

3. HOW TO SET STRATEGIC DIRECTION
 The importance of strategic direction lies in its capacity to orient your company's
overall purpose.
 Consider your vision, or your big-picture reason for wanting to be in business.
 This can be as ethereal as wanting to make the world a better place or as practical
as wanting to earn as much money as possible while making the least possible
effort. Your vision should embody the "why" behind your venture
 Next, consider your company's mission, or the tangible way you will make your
vision into a reality.
 Your mission statement will likely include some specifics about your products and
services.
 For example, an auto mechanic might articulate a mission to keep its customers'
cars safe and mechanically sound, and a fair-trade importer might adopt a mission
to improve the quality of life for indigenous artisans by paying fair prices for their
offerings. Your mission is the "what" to your vision's "why."

4. STRATEGIC DIRECTION IN
ORGANISATIONAL DESIGN
 The primary responsibility of top management is to determine an organization’s
goals, strategy, and design, therein adapting the organization to a changing
environment.
 Organizational design is used to implement goals and strategy and also
determines organization success.
 Organizational purpose:
Major distinction between the officially stated goals, or mission, of the organization
and the operative goals the organization actually pursues.
 Mission statement:
the organization’s reason for existence. It describes the organization’s vision, it’s
shared values and beliefs and its reason for being

5.  Operative goals:
It designate the ends sought through the actual operating procedures of the organization and
explain what the organization is actually trying to do
These goals concern overall performance, boundary spanning, maintenance, adaptation and
production activities. They provide direction for the day-to-day decisions and activities within
departments.

6. KEYS TO DEVELOP AN EFFECTIVE
STRATEGIC DIRECTION
 Develop a plan– involve your stakeholders in identifying your future direction
and critical success factors.
 State your commitment– make it clear that you are committed to this process and
offer opportunities for the appropriate stakeholders to become involved and share
their passion for your success.
 Develop broad goals– these are statements of desired direction – key areas in
which you want to experience performance and change.
 They need not be measurable but should lend themselves easily to objective
setting. Goals rarely change and may succeed from one planning era to the next
 Develop specific, measurable objectives– these are action statements that tell the
reader what you want to achieve.

7.  They should meet the SMART criteria:
 Specific – they are tangible outcomes and real activities, for Measurable or
Monitorable – can we tell if it has been accomplished?
 Achievable – can we really do it?
 Realistic – should we really do it?
 Time-bound – when could we either expect to see some results or finally measure
the result?
 Tie to performance measurement– be aware of what you are actually measuring
 Keep the plan alive– hold regular meetings in which the plan is the key topic of
discussion. Once an objective is met, set a new one.
 Monitor, measure and motivate! Update and review the plan at least quarterly.
Encourage the use of the plan in all areas of ‘business’. This plan has impacts for
all of our committees and leadership groups.