Establishing Metrics and Mission/Vision Statements

Chapter Seven – Choosing the Best Strategy

When identifying how to choose the best strategy one of the first approaches might be to create a criteria matrix. A “criteria matrix is used to evaluate the bundles against multiple criteria using a scoring system that enables the results of using each criterion to be added up at the end” (Abraham, 2012, p. 207). One recommendation might be to choose five to six of the most important criteria and then to organize them and assign a numerical rating.  For example: if you were purchasing a home, you might have a list of the “must haves” and the “must not’s”. Ideally finding a home with all the must haves would be perfect, but that rarely happens. So one might list the “must haves” by importance. For example: first there has to be a two-car garage, second, there must be direct access from the garage to the kitchen, third, the master bedroom must have a roman tub. These are three essential items for the buyer. There might be other must haves, but they are willing to compromise on them (big yard, wood floors, and granite counter tops). Once you have the list of what is most important to what you would like and what is comprisable, you can then assign a numerical rating system. This will help you work out the best strategy for what you are seeking to accomplish. The same is true in business. There are things that must happen and then there are items that can be worked with later. Identifying these items will help you to create a criteria matrix that ultimately helps you identify the best strategy.  It should be noted, however, that when assigning a numerical rating, there are things that can alternate one’s views. According to Abraham (2012), “the danger with using such a quantitative yet still subjective method to choose a strategic alternative is that it invites criticism precisely because one person’s criteria chosen” (p. 209).  Another important aspect in terms of choosing the best strategy entails deciding on the objectives. There should always be a time frame when looking at objectives. When deciding on objectives there are three steps that need to take place; however, before these three can take place it is important to first decide on a strategy. The three step process in terms of setting objectives include: limit choices, set annual objectives, and match objectives to strategy (Abraham, 2012). Once the strategy and objectives are identified, it is important to always have a contingency plan. As the old saying goes “nothing ever goes according to plan”; therefore it is important to have a backup plan for if or when this happens. An interesting point in the textbook indicates that “triggers should be external, specific and quantitative” (Abraham, 2012, p. 217). However, if any of these three triggers are absent, the company may not know when to incorporate the contingency plan.  There are three guidelines stated in the textbook in regards to good contingencies:

1. “Do not renege the adopted ‘best’ strategy” (Abraham, 2012, p. 218).

2. “Do not make something that the company is already doing the contingency” (Abraham, 2012, p. 219).

3. “Make the contingency a solution to the problem implied in the trigger” (Abraham, 2012, p. 219).

Chapter Eight – Operational and Budget Planning

When conducting operational and budget planning it is essential that the plans coincide with the mission and vision of the company. For many companies there may be department visions and missions that target specifically what that area is working on. However, all goals within each department must relate to the organization’s mission and vision statement.  In terms of operational planning, this typically involves various activities, which may include looking at programs, projects, and activities in addition to identifying new strategies that may come into play (Abraham, 2012, p. 234). Budget planning involves looking at the financial resources in terms of what is available and how it will be spent to work with the organizational strategies in place (Abraham, 2012). 

Chapter Nine – Implementation