CORPORATE STRATEGIC DIRECTION
 

 

 

 

 

 

 

 

 

 

 

 

As can be noted, strategic direction is not an abstruse construct based on the inspiration of a solitary genius. It is a hard-nosed, practical concept based on the thorough understanding of the dynamics of industries, markets, and competition and of the potential of the corporation for influencing and exploiting these dynamics. It is only rarely the result of a flash of insight; much more often it is the product of deep and disciplined analysis. Formulating Strategic direction frequently starts out fuzzy and is refined through a messy Corporate Strategic process of trial and error. It generally emerges in its full clarity only when it is Direction well on its way to being realized. Likewise, changes in corporate direction occur by a long process and in stages. Changing an established direction is much more difficult than starting from scratch because one must overcome inherited biases and set norms of behavior. Change is effected through a sequence of steps. First, a need for change is recog- nized. Second, awareness of the need for change is built throughout the organi- zation by commissioning study groups, staff, or consultants to examine problems, options, contingencies, or opportunities posed by the sensed need.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third, broad support for the change is sought through unstructured discussions, probing of positions, definition of differences of opinion, and so on, among executives. Fourth, pockets of commitment are created by building necessary skills or technologies within the organization, testing options, and taking opportunities to make decisions to build support. Fifth, a clear focus is established, either by creating an ad hoc committee to formulate a position or by expressing in written form the specific direction that the CEO desires. Sixth, a definite commitment to change is obtained by designating someone to champion the goal and be accountable for its accomplishment. Finally, after the organization arrives at the new direction, efforts are made to be sensitive to the need for further change in direction, if necessary. Specific Statements Many companies make specific statements to designate their direction. Usually about Corporate these statements are made around such aspects as target customers and mar- Strategic Direction kets, principal products or services, geographic domain, core technologies, con- cern for survival, growth and profitability, company philosophy, company self-concept, and desired public image. Some companies make only brief state- ments of strategic direction (sometimes labeled corporate objectives); others elaborate on each aspect in detail. Avon products expressed its strategic direc- tion rather briefly: “to be the company that best understands and satisfies the product, service and self-fulfillment needs of women globally.