29 August 2008

Strategic Management Dynamics - Chapter 1 - Performance through time.

This Chapter explains why the over-riding imperative for Strategy is to help management improve performance over time, an issue just as vital to organizations in the voluntary and public service sectors as to commercial businesses. This exposes three fundamental questions – why performance has followed the path that it has up to today, where that performance will likely go into the future, and how management can act to improve that trajectory sustainably. The Chapter explains the problems with ratio-based objectives and establishes the importance of focusing instead on time-chart pictures of absolute performance measures. Two widespread risks in setting performance objectives are discussed – choosing aims that are either unrealistically ambitious or under-shoot the potential opportunity. Also discussed is the value of applying the same principles to functional performance. Connections are made to established concepts of economic profit and shareholder value.

This Chapter includes connections to the following Strategy concepts: Value-Curve, Value Chain, Generic Strategies, Industry Forces and Vision & Mission.

Materials to support Chapter 1 of Strategic Management Dynamics include -

For registered site users:

Worksheets that accompany Strategic Management Dynamics, both in PDF and mystrategy format - Login above or register here

For registered online students:

Class lecture segments 1.0 to 1.3.

For information on our 10-week online course in Strategy Dynamics see the course information page

For registered Teachers:

PDF slides from the book
Solutions to end of chapter questions.

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Strategic Management Dynamics - Chapter 1 - Performance through time.

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