New mini series of posts in which we will focus on the different levels of strategic development. In this first post (part 1) we will look at the so-called corporate strategy.
There are three levels of strategic development and the level of strategy that an organization decides to use will depend on its size and structure. In this micro potst series we will look at the 3 types: corporate (for the organization as a whole), commercial (for each of the different lines of business) and functional (for the different departments within each of the lines of business).
Let’s look at the first of these types, the corporate strategy.
Levels of strategic development: Corporate strategy
This is the highest level strategy of the organization. It is the one that defines the general direction by providing how the objectives are going to be achieved. We are talking about more conceptual and futuristic strategies than business and functional level strategies, covering a broader period.
The so-called corporate strategic plan generally includes these points:
Vision of the organization
Describes the ideal future state of the company. It is one of the key elements of an effective strategic business plan. The mission, on the other hand, is a roadmap that is more current and closer in time. We could say that the vision is what the organization wants to be and the mission is what it really is.
Recommended post: Strategic concept of business mission and vision
Values
A fundamental part of the strategic planning process, as they go directly to the heart of the human asset, people.
Strategic focus areas
These are the cornerstones of the strategy. They extend the vision statement and are the basis of a structure that enables the objectives to be achieved.
Strategic objectives or results
These are high-level goals that describe what the organization wants to achieve, with a clearly stated deadline. Strategic objectives are very specific.
Recommended post: SMART objectives in marketing strategy
Action plan
These are those specific actions or activities that will be carried out to achieve a goal within the specifications of the objective.
Measurement (KPI’s)
Refers to a measurable value that shows progress in achieving key objectives. KPI’s are a way to track and control whether or not objectives are being met.
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