Strategic direction and scheme has been developed for 40 old ages. Many organisations is still failure to develop successful schemes in their sectors.
This essay is intended to supply an overview of “ What is scheme ” and “ What is Strategy Process ” . It is besides intended to discourse the application of scheme and scheme procedure in modern-day built environment in Hong Kong.
Companies have built into its coprorate scheme a structured policy intended to assist accomplish a balance between the demands for economic profitableness and the societal, community and environmental impact of their concerns.
Strategic direction like a compass offers a way to the company as a whole. It provides a guidline to companies that how resources and clip should be invested for maximizies the net income for the stockholder. All stakeholders and Company members know where the Company is traveling on.
Current research workers on scheme do non pay much more attending on building sector, therefore deficiency of construct of scheme can be applied in building sector.
ORGANIZATIONS FAIL TO DEVELOP THEIR STRATEGIES
Current research workers Clegg et. Al. ( 2005 ) stated in his book that many organisations fail to develop successful schemes. It is non new things, Mintzberg ( 1994 ) believes that strategic direction / planning theoretical accounts for the period from 1960s to 1970s were failed because strategic planning and strategic thought could be distinguished. Traditional strategic direction / planning theoretical accounts were largely depended on quantitative analysis and the consequences which directed directors towards what scheme would be taken. These theoretical accounts really overturned strategic thought which involves integrating of experience, inherent aptitude, creativeness, and analystical accomplishment. Traditional strategic direction / planning did non useless, but strategic thought and vision development had taken topographic point foremost.
Mintzberg ( 1994 ) stated that another grounds for the traditional strategic direction / planning was failed because it was based on some cardinal drawback:
the falsity about formalisation ;
the falsity about anticipation ; and
the falsity about withdrawal.
The Falsehood about Formalization
This falsity was based on the impression that formal systems were superior to human systems in footings of determination devising and information processing. Mintzberg ( 1994 ) believed that though formal systems would be able to treat big sum of informations than people, formal systems could non incorporate or make a new way from such analyses-only people can execute the latter procedures. Peoples think in order to move, but people besides act in order to believe.
The Falsehood about Prediction
Strategic direction / planning theoretical account was assumed that one could mensurate all of the variables which were relevant to the concern hereafter, analyze the consequences, and concept schemes based on the consequences which would guarantee future success. However, even we had the best schemes experience, we were unanticipated economic, societal, industry and market displacements. The falashood about anticipation ineluctable led to the prostration of traditional strategic direction / planning, the schemes could non transport what they promised. i.e successful anticipation.
The Falsehood about Detachment
Strategic direction / planning was assumed that it was better to be detached from the directors and from the workers when analysing informations when prevent bias in the planning procedure. This merely will divide the scheme shapers from the scheme implementers which eventually to be a fatal error. When jobs arose during execution, both sides will accuse each other as a consequence caused the failure. In add-ons, traditional strategic direction / planning was frequently based on the inappropriate accumulated informations, i.e. there was non a current information, or informations that did non hold of import background information linked to it. Furthermore, directors frequently ignored the quality of informations, therefore a batch of unsighted musca volitanss was created.
Miller ( 1990 ) stated another point of position as why scheme frequently fail. He investigated the diminution of powerful companies, and his findings helped directors to understand the causes of scheme failure. He named his findings as Icarus Paradox. Icarus was a tragic figure of Greek mythology. The paradox of Icarus was that companies became successful to make something but this would do them cocksure and blind to the dangers that other developments pose to them. These behaviors frequently leads those companies downfall. He discovered that four major factors that might do scheme failure: structural memories, massive civilizations and accomplishments, leading traps, and power and political relations. All of these came out while an organisation was sing success, particularly in its strategic enterprises.
Strategic direction / planning are frequently failure due to the undermentioned grounds:
Fail to develop values and civilization to back up the programs.
Fail to unify organisations.
Fail to forestall legal and ethical jobs.
Fail to adequate put to deathing the strategic programs.
Fail to work as a squad at the executive degree or other degrees.
Fail to quickly making what is needed to be done.
Fail to back up and swear each other at the assorted degrees of the organisation
Fail to understand the organisation civilization.
Many professors & A ; book authors have tried to specify scheme. Cummingss ( 1993 ) define scheme as it is cognizing the concern you propose to transport out. It stresses that scheme requires a cognition of the concern, an orientation towards action and an purpose for the hereafter. The definition emphasizes the nexus between leading and scheme preparation.
Andrew ( 1971 ) defines scheme as the form of major aims, intents or ends and indispensable policies or programs for accomplishing those ends, stated in such a manner as to specify what concern the company is in or is to be in and the sort of company it is or is to be.
We noted that the scheme is concerned with the intent that will be achieved. It is besides implied that the cardinal nature of the concern must be addressed by scheme in the hereafter. Strategy will be sensitive to values, civilization and concern chance. Directors are responsible for doing picks about the range of their concern and the future nature.
Ansoff ( 1987 ) defines a scheme as is a regulation for doing determination. He distinguishes between scheme and policy. A scheme can use similar rules but allows difference determinations under different fortunes. A policy is a determination that is made in the same manner under the same fortunes arise.
Ohmae ( 1983 ) defines scheme as the manner in which a corporation endeavours to distinguish itself positively from its rivals, utilizing its comparative strengths to fulfill client demands. It addresses both the demand to construct capablenesss and the competitory facet of scheme. It mentions clients and their demands satisfaction as a driver of scheme.
Invention is one of a scheme introduced by Ian Stewart and Peter Fenn ( 2006 ) . Invention is a benefit for a company in development of thoughts. It is an of import function to play to seek in competitory advantage. There are some tools for strategic invention including “ The Value Chain ” , “ Game Theory ” and “ Delphi Technique ” .
Allio ( 2008 ) pointed out that directors do non hold ready entree to information as a consequence strategies that miss the grade, fail to prosecute stakholders or can non be implemented. He suggests that directors needed a “ strategic databank ” . The strategic databank shall incorporate Internal Performance Data, Industry / Market Data and Stakeholder Data. It helps directors fact-based determinations about strategic way, hammer better and precedence.
3. STRATEY PROCESS
The are assorted positions on scheme that lead to different definitions of scheme. Therefore, we used a wide construct of scheme that were introducted by De Wit and Meyer ( 2004 ) “ as a class of actions for accomplishing an organisation ‘s intent ” . The scheme involves all determination devising in a company sing its aims, intents, ends and all actions incorporated to prosecute an chance or work out a job ( Andrews, 1971 ) .
A scheme has three chief dimensions that are recognized as the strategic procedure, strategic content, and scheme context ( De Wit and Meyer,2004 ) . In this essay the scheme procedure is the most relevant to our research as it deals with the directors ‘ determination devising and behavior. The scheme procedure is traditionally in the literatures described as a two measure procedure that encompasses scheme preparation, where the director decides what to make, and strategic execution which refers to the actions taken.
However another theoretical account brough Forth by De Wit and Meyer ( 2004 ) describes a more multi dimensional position of the scheme procedure depicting three overlapping and incorporate stairss of the scheme procedure, viz. the strategic thought, organizing and strategic alteration.
To place a job is a first measure to the undertaking director needs to take before any counter steps can be taken. This measure may besides be referred as the measure of sense devising or recognizing. It requires a instead extended external and internal scanning of information to happen the beginning of strategic job. Having the job identified is non sufficient to make antagonistic steps. By farther diagnosis, analysing and reflecting on the information gathered, the construction and the beginning of the job should come up and do disciplinary action more efficient.
Equally shortly as sufficient information and cognition about the job is collected the director demand to explicate a scheme by analyzing the options available and find what option that is most suited and so take the appropriate action. This phase of the strategic thought is termed work outing and has two chief elements: conceiving and realizing. As the job has been defined, the director ‘s following undertaking is to gestate a set of options that are available and chose the 1 that brings the most benefits in the state of affairs. In the concluding measure of the strategic thought procedure the director ensures a proper realisation of the selected scheme by consciously be aftering and oversing the execution activities ( De Wit and Meyer, 2004 ) .
A scheme procedure can be explained as follows:
( a ) To specify the organisational intent: To clear up the intent of concern, to fix a mission statement and find the corporate value.
Environmental analysis. It involves the aggregation of information and analysis of the concern environment. It includes analyzing the external and internal environment.
Strategic Choice / Selection
Aims. It can supply a more elaborate look of intent and a footing to supervise the public presentation.
( B ) Strategies. It describe how the aims can be achieved.
( degree Celsius ) Options Analysis. Alternative scheme options can be identified. Options require to be appraised when the best can be selected.
( a ) Actions. An activities shall be specified and undertakings required to enable schemes can be implemented.
( B ) Monitoring and Control. Performance shall be monitoring and the advancement shall run into the aims, taking disciplinary action if necessary and reexamining the scheme.
Gluck, Kaufman and Walleck studied 120 companies for the development of strategic direction.
They recommended that strategic planning in most organisations should hold 4 stages.
First stage is a basic fiscal planning. Organizations in first stage stress to fix and run intoing an one-year budget. Financial mark should be established and costs and grosss are monitored carefully. This is short-run, and it is major to concentrate on the functional facets in the organisation. Most organisations in this stage develop few other features associating to the hereafter.
Second stage is forecast-based planning. Organizations in 2nd stage normally extend of the time-frame covered by the budgeting procedure. Some director will be given to seek more sophisticated prediction and to go cognizant of their external environment and its consequence on their organisations. Therefore, organisation in 2nd stage has more resource allotment effectivelly and more timely determinations associating to organisation ‘s long-range competitory place.
Third stage is externally oriented planning. Third stage is characterized by the effort to understand basic market phenomena. Organization hunt for new manner to specify and fulfill the client demands. Furthermore, 3rd stage differs from the earlier stages that the corporate contriver is expected to bring forth a figure of curative action for top direction. Top direction evaluate strategic options in a formalistic mode to planning and actions.
Fourth stage is strategic direction. Fourth stage is defined by the meeting of strategic planning and direction into a individual procedure. This incorporate attack is accomplished through the presence of three elements: permeant strategic thought ( directors all degrees have learned to believe strategically ) , comprehensive planning procedure, and supportive value system. ( Glueck, Kaufman, and Walleck 1982 )
A risk-based attack was introducted by Norman T sheehan ( 2010 ) to scheme executing. He explained that a house will endure loss when the hazard was non managed. In order to cut down the hazard, directors should better their strategic executing capacity to to the full incorporate scheme mapping with conformity, control and hazard direction activities.
4. STRATEGY AND STRATEY PROCESS IN CONTEMPORARY BUILT ENVIRONMENT
Construction market alterations
Industrial construction has been changed. Small figure of big international contractors compete for a scope of work. Local medium size contractors are hard to prolong their place. Many local contractors need to unify, spread out or go sub-contractors.
Demand for public sector has fallen. Contractors for whom relied on public sector work to follow more varied scheme. Private sector such as edifice and belongings market are frequently volatile.
Clients in private sector have become professional and necessitate an appropriate response from contractors.
There are great diverseness in procurement methods on offer in recent twelvemonth. In order to keep a stronger market place, many contractors are willing to come in intor partnering agreement.
In order to keep long term relationship between the assorted parties, partnering or partnership would be encouraged. A household of standard contracts should be used such as New Engineering Contract ( NEC ) . In order to protect moneys such as keeping, a compulsory trust fund could be set up which is held impermanent by one party on behalf on another. Adjudication can be used as a normal method of difference declaration.
The construct of scheme is complex than it might at first appear and has a figure of facets. Definitions of scheme tend to stress one or two of these facets but can non succinctly include all of them. Practitioners and faculty members have all studied scheme and written about scheme. The position of each of these groups is relevancy to the director but each besides has its restrictions.
While an apprehension of the beginning of the thoughts may be intellectually stimulating, the practical job for a director is to understand the nature of the peculiar strategic quandary that he or she must turn to. The director must choose ways of thought which are helpful in make up one’s minding what actions to take now to decide the quandary and guarantee success in the hereafter. A wide cognition of the relevant idea should assist to accomplish this but the ability to choose and prosecute utile ways of thought may be every bit valuable as comprehensiveness of cognition.
The simple position of scheme as a expansive program worked out by some originator at the Centre of the endeavor is excessively simplistic. A grade of intuition is necessary and the nature of cause and consequence is frequently more complex than may look at first glimpse.
The classical constructs of scheme still usefully organize a start point for strategic thought but are no longer sufficient. Any competent director has both to be able to understand other ways of believing about scheme and have the accomplishment to be able to judge which position is most valuable in peculiar state of affairss.
The greatest generals understood the current province of the art of war for their clip but besides knew when to interrupt the regulations. They entered their conflicts with a scheme but were still able to move spontaneously on the battleground. These should possibly be the ideals for the modern twenty-four hours concern director.