Strategy and Policy 

If objectives are what you want, then strategies are how you plan to achieve it.  
With this in mind, we start with some basic definitions.   
 

1. strategies: a course of action to achieve objectives (how you achieve your objectives)

An objective should be focused, but a strategy should be wide ranging.
In other words, there may be many ways to achieve your objectives.

2. strategic planning: plans with strategies

In other words, strategic planning must address not just what you want, but how to proceed.

3. tactics: more specific action plans for strategies.

Tactics contain the more specific details within strategies.

Strategies depend on factors that are both internal to an organization and external (the environment in which they operate). These external and internal factors should be defined in relation to the objectives. Some examples are given below.

4. external factors: e.g., laws, economic climate, and competition may affect a companies strategies

5. internal factors: e.g., financial resources, technical resources, social resources  within an organization must be considered.

 

These basic observations have led to a tool that is basic to strategic planning -- it is called the TOWS matrix 
(also called the SWOT matrix).
 
6. TOWS matrix:  a consideration of internal strenths and weaknesses in relation to 
                               external opportunities and threats as the basis for strategic planning.


 
 
E
X
T
E
R
N
A
L

                                                 INTERNAL


 

    Strengths

   Weaknesses

  Opportunities
 

 

 

    Advertise

 

Develop

        Threats
 

 

 

Compete

 

Retreat

A checklist for T,O,W,S (threats, opportunities, weaknesses, and strengths):

  • People: knowledge, skills, relationships
  • Data: trends, uncertainty
  • Things: $, law

Notice in the upper left box, when external opportunities can be addressed with an organization's strengths, the strategy may be to advertise these strengths. Similarly, if the organization has weaknesses relative to this opportunity, the strategy is to develop. Threats to an organization can be met with competitition if the organization is relatively strong, and strategic retreat may be necessary if the organization is weak in this area. 

It is equally important to recognize threats and weaknesses as it is to recognize strengths and opportunities.
Towards this end, there are three more definitions to consider.

7. Bounded rationality: rational action is limited by various factors:

8. Satisficing: decisions considered sub-optimal but "good enough"

9. Brainstorming: a technique for generating ideas.

The key concept behind brainstorming is that criticism
is not allowed until after all the ideas are generated.

 

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For more information,  try:   management

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