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STRATEGIC MANAGEMENT IN
POLICY AND STRATEGY:
BY
TANKO AHMED fwcSenior Fellow (Security & Strategic Studies)
Research Directorate, NIPSS, Kuru-Jos, NIGERIA
(+234) 080 3703 1744 - [email protected]; [email protected]
A PREAMBLE
Strategic Management is a blend of ‘strategy’ (astutethinking) and ‘management’ (action driver).
In the hands of abled leadership with well-articulated policyand sound strategy, Strategic Management is a veritableinstrument for vision and mission delivery.
Strategic management is the business of putting thinking intoaction to get things done.
This paper comes at the tail-end of the NIPSS SEC 39-2017leadership, policy and strategy module of the Senior ExecutiveCourse.
TYPICAL STRATEGIC MANAGEMENT SCENARIOSIn a typical strategic management scenario, Generals incommand of Theatres of War could actual drive themomentum, as well as, feel the heat of raging battles bysheer will power built sustained on an active orbitalfeedback system.
The same scenarios occur among leaders in theconduct business, industry, events, administration orgovernance, at all levels.
These scenarios lucidly reflect efforts by leadership inpolicy and strategy in strategic management cycleaimed at achieving sets goals or objectives
ABSTRACT
Strategic management involves complex cross-functional relationships of organizational components geared towards attainment of set objectives.
It is a veritable tool for navigating the complexity of applying the tenets of mission and vision of organizations.
This paper discusses, explains and relates how resources are harnessed in series of decisions and actions to influence performance and results.
THEOREM
The complex and contingency nature of strategic management blends an agenda resource-based, structure-conduct-performance, agency and other theories.
LITERATURELiterature survey on the subject reveals emphasis on ways to simplify and understand the multifarious nature of strategic management put to work for attainment of common set objectives.
CAPTIONSLeaders establish the vision for the future and set the
strategy for getting there - S. P. Kotter
Strategy without process is little more than a wish list.
– Robert Filek
However beautiful the strategy, you should occasionally look at the results.
– Sir Winston Churchill
INTRODUCTION
“Job must be do”
(An Ethos of the Nigerian Military with emphasis on getting the job done)
BACKGROUNDThe topic of strategic management coming at the tip end of theleadership, policy and strategy module of the senior executivecourse programme presupposes a clear understanding of theconcept and application of strategy by Course Participants.
Strategic Management blends the principles and practice of both‘strategy’ and ‘management’.
It is “… not only a process to form a strategy that overlays the …management system, but also a form of management based onstrategy” (Nanes, 2003, p. 47).
Its components include environmental scanning, strategyformulation, strategy implementation and evaluation in a circulardomain connecting thinking and action, determined byenvironmental stimulus.
THE STRATEGIC MANAGEMENT MODELVasile & Iancu (2009) and Niere (2012) explain the SMmodel as useful in the prediction and evaluation of theenvironment for possible modifications to harmonize withand achieve organizational mission and objectives.
According to Vasile & Iancu, the SMP Modelling originatedfrom ‘The First International Conference of StrategicManagement’ in 1973 and still applied to facilitateorganizational leadership.
The Strategic management model is dynamic andcontinuous as it seeks to identify vision, mission, objectivesand strategies for implementation (David, 2011).
MORE RECENT WORKSMore recent works also incline towards modellingand breaking down of strategic management stagesand activities for better understanding and moreeffective application (David, 2008; Vasile & Iancu,2009; Clayton, 2015).
Particular contributors of interest bring in contentshistory of strategic management and case studieswith emphasis on the need for elucidation.
This work treads on same guiding principles in itsdiscourse on strategic management.
ASSUMPTIONSThis paper projects the contingency nature ofstrategic management under the spell of ‘job mustbe do’ ethos the paper proposes the followingassumptions:
1) That policies bear specific objectives andguidelines on implementation;
2) That strategic management produces policydeliverables; and
3) That if there is Will and Effective strategicmanagement, policies are deliverable
AIM AND OBJECTIVES OF THE PAPER
This paper aims to decipher the complex and contingentnature of Strategic Management for clear understanding andapplication by organizational leadership or senior executives,with the following objectives:
1) To define and discuss strategic management and itsassociated key components.
2) To break strategic management into segments for ease ofdiscourse and explains the complex cross-functionalrelationship of organizational components.
3) To determine the challenges faced by leadership inapplying strategic management to mission and vision forattainment of set goals.
CONCEPTUAL DISCOURSE
STRATEGIC MANAGEMENT Strategic management is an objective, logical, systematicand continuous approach for making major decisions andtaking actions in an organization (Yousuf, 2016).
It is defined as a dynamic process of strategy formulation,implementation, evaluation and control (Parnell, 2005;David, 2008; Vasile & Iancu, 2009; Vatchkova, 2010; Hill,Jones & Schilling, 2015; Yousuf, 2016).
Yousuf (2016) reflects on central cross-functional feature ofthe strategic management, synonymous to strategicplanning, in exploiting and creating new opportunities forthe future based on present trends or conditions.
POLICY AND STRATEGYPolicy is means for achieving objectives supported by guidelines,rules and procedures for decision making (David, 2011).
Strategy is the interaction of ends (goals or objectives, means),resources, and ways or strategic plan of action for utilizing availablemeans (Owens, 2016).
Policy and strategy are intimately linked in the articulation of themode and techniques for attaining set-out objectives involvingdefinition or clarification of goals, description of the trends,analysis of conditions, projection of future developments, evaluationand selection of alternatives and choosing of the preferred options(Imobighe, 2014).
STRATEGY FORMULATION Formulation involves the assemblage, arrangement orputting together of different components into a workingstructure or relationship for the purpose of attaining setobjectives.
Strategy formulation is the task of analyzing theorganization’s internal and external environments, andselecting or devising appropriate plans or strategies insetting goals or objectives and ways of achieving them.
The baseline task of strategic management involves theestablishment of mission and vision statements,environmental analysis or scanning, setting goals orobjectives, and the ways and means for attainment(Nabradi, n.d; Mitchell, n.d).
DATA SYNTHESISData is a body of factual information in form of facts, figures,statistics, records, or documents assembled for use inplanning, decision making or drawing conclusions.
Synthesis refers to result of combination, mixture,amalgamation, blend or fusion of different ideas, influencesor data for the purpose of producing structures orrelationships, known as formulation (Berg, et al. 2013).
Data Synthesis combines outcomes from differentassumptions on overall effects of particular intervention toarrive at clear pattern for decision and action (Ellerby, 2009;Berg, 2013; Ryan 2013).
ENVIRONMENTAL SCANNINGEnvironment is the surrounding influence, settings,situation, atmosphere, conditions or circumstancesdetermining the activities or fate of given venture.
Scanning refers to detailed or thorough examination of givenenvironment for the purpose of extracting much needed datain formulation.
Environmental Scanning is the systematic process of closemonitoring or detecting for environmental signals for use intactical and strategic decision making, action or formulationof tasks by organizational leadership (Zhang, Majid & Foo,2010; Grant, 2010).
SWOT ANALYSISThe strengths, weaknesses, opportunities and threats orSWOT analysis is a veritable instrument or method ofstrategic planning use in strategy formulation.
It evaluates strengths or advantages over others;weaknesses or disadvantages relative to others;opportunities or chances for progress; and threats or causesfor concern.
SWOT analysis is the work room of strategy formulationwhere results of data synthesis and environmental scanningare put together for evaluation.
It is used to identify strategies and align them to availableresources and capabilities to realities of the environment.
STRATEGY IMPLEMENTATION Implementation is the process of carrying out, fulfilling,realization or execution of a task, an application or a plan.
Strategy implementation is the second stage task after strategyformulation, involving the application or execution of plansthrough series of decisions and actions in pursue of set goals orobjectives.
Brinkschroder (2014) put this task on the shoulders oforganizational leadership for communication of mission,allocation of tasks and resources and coordination of cross-functional relationships.
Strategy implementation has resource management as pivotalchallenge where planning assumptions faces situational realitiesof organizations.
STRATEGY EVALUATION AND CONTROLEvaluation is the act of considering, examining, assessing,calculating or appraising activities, functions or situation toascertain expected value, quality, quantity, extent or condition.
Control involves the exercise of power or authority tooversee, manage or adjust activities, tasks or ventures in linewith set direction.
Strategy evaluation and control constitutes the final tiercompleting the tasks of the strategic management cycle.
Strategy evaluation and control revolves on principles ofmonitoring and evaluation which completes the cycle orprocess of strategic management – and starts all over againand again.
STRATEGIC MANAGEMENT AND ORGANIZATIONAL
LEADERSHIP
RESPONSIBILITIES FOR STRATEGIC MANAGEMENTOrganizations run on multiple and overlapping functions and components with strategic responsibilities on certain level of leadership.
Parnell (2005) identifies the middle-to-high level executives as top managers who “… view strategy formulation as an art and science.” (p. 157).
Organizational leadership therefore exercises influence through timely decisions and actions on how missions are performed and objectives attained (Vigoda-Gadot & Drory, 2006).
STRATEGIC MANAGEMENT AND THE LEADERSHIP CADREThe Participants of the Senior Executive Course of theNational Institute for Policy and Strategic Studies (NIPSS)or the NIPSS-SEC are described as high level executiveswho provide key input policy formulation andimplementation.
This leadership cadre or core group facilitates generalmanagement; relates strategy and operations; re-orientperformance to set objectives; and establish long-termdirections and results.
By implication the Participants of the NIPSS-SECrepresent the leadership cadre or core group charged withthe Strategic Management Process of their variousorganizations.
WORKINGS AND PRACTICE OF STRATEGIC MANAGEMENT
BENEFITS OF STRATEGIC MANAGEMENT
The principal benefit of strategic management hasbeen to help organizations formulate better strategiesthrough the use of a more systematic, logical, andrational approach to strategic choice.
Communication is a key to successful strategicmanagement. The major aim of the communicationprocess is to achieve understanding and commitmentthroughout the organization.
It results in the great benefit of empowerment as moreand more organizations are decentralizing thestrategic-management process.
THEMATIC APPLICATION OF STRATEGIC MANAGEMENTA theme, placed beyond its ordinary meaning of atopic or subject matter, refers to a distinct andunifying idea usually aimed at problem-solving or astrategy format found at the end of policyframeworks.
Strategic themes are specific as they itemizeobjectives connecting key policy-focused areas forstrategy formulation and implementation in astrategic management process.
Strategy in this sense is built on the pillars of missionand vision of policy in thematic format.
EXAMPLE OF THEMATIC APPLICATION For example, the popular UNDP-SDGs Blog constructs itsstrategic themes by integrating ‘environment indevelopment’ www.undp.org .
In the same way and purpose, the NIPSS-SEC 39-2017theme seeks to integrate ‘science, technology andinnovation for the development of agriculture and agro-allied industries in Nigeria’.
The thematic discourse of this paper establishes strategicmanagement for science, technology and innovation for thedevelopment of agriculture and agro-allied industries inNigeria.
A THEMATIC DISCOURSE
THE THEMEThe NIPSS-SEC 39-2017 has its entire focus on itstheme and presidential assignment of ‘science,technology and innovation for the development ofagriculture and agro-allied industries in Nigeria’.
With human and material resources invested in a well-articulated Senior Executive Programme, diverserepresentation and presentations, it is like running avirtual government on a given agenda.
The main areas of concern are discussed as follows:
SCIENCE, TECHNOLOGY AND INNOVATION
Science refers to systemic knowledge and methods;technology, of techniques and application; and innovation, inpursue of radical change.
A Working Paper of the United Nations University states thecontinuous and rapid growth of science-technology-innovation system within public policies across the world(Freeman & Soete, 2007).
The Nigerian National Policy on Science, Technology andInnovation Policy 2012 aims at harnessing the enormousresourcefulness of Nigerians to effect breakthroughs asintegral part of the Vision 20-2020. Innovation, new ideas andmethods, here is the main driver for breakthroughs.
AGRICULTURE
The Policy and Strategy Document of the AgriculturalPromotion Policy 2016-2020 aims to fill the gaps ofself-sufficiency and export (FMARD, 2016).
One way to do this is to apply science and technologythrough innovation as the science, technology andinnovation has agriculture as one of its main areas offocus (FMST, 2007).
This process will in turn provide the required inputsfor a virile agro-allied industry in Nigeria.
AGRO-ALLIED INDUSTRYAgro-allied industries take in agricultural products as rawmaterials to process into finished goods for consumption,growth and development.
Industrial policy is the official effort employed to develop andgrow the manufacturing sector within the overall economicactivity for national development (Graham, 1994; Bingham,1998; Rodrik, 2004 & 2009).
A review of Nigeria’s industrial policies recommends forproper concept and implementation involving human capitaldevelopment, relevant technology acquisition, massiveinfrastructure investment and completion of core industrialprojects (Ekpo, 2014).
TRIPARTITE THEMEThis tripartite theme involves at least three majorpolicies of science, technology and innovation (STI);agriculture and industry assigned to a strategicmanagement process.
The burden of this rests on the shoulders of aleadership cadre currently assigned to a thematicpresidential senior executive course.
This same group of national leaders simulated a fewdays ago on how to tackle the assignment by way ofeffective strategic management (Choji & Ahmed,2017; NIPSS-SEC 39, 2017).
EFFECTIVE STRATEGIC MANAGEMENT
THE USE OF WILL POWERWill power is defined as the ability to resist short-termgratification in pursuit of long-term goals or objectives oftenassociated strength of character in decision making andimplementation (APA, 2017).
Political Will is the totality of combined willpower of bothleaders and followers.
The Nigerian Elite or leaders demonstrate ‘weakness of thewill’ so much so that they could not even ‘cut and paste’development breakthroughs they regularly seen andexperienced in other countries (Egwu, 2017).
A strong willpower would pursue goals and objectives indecision making and implementation.
FEEDBACK SYSTEMFeedback is the return of output to the input as it affectsperformance; it is a response, reaction or pointer to the nextstep of affairs.
A feedback loop is a cycle of mutual reinforcement whichenables the sensing and measurement of activities fornecessary response.
It is an instrument of leadership in policy and strategy,particularly in strategic management.
An effective feedback system allows for two-way freecommunication which encourages dialogues in a top-downand bottom-up combination rhythm (Verma, 2017).
STRATEGY AND MANAGEMENTA good blend of ‘strategy’ and ‘management’ wouldproduce ‘astute thinking’ and ‘action drive’ through‘will power’ on an effective ‘feedback system’.
In the hands of abled leadership with well-articulated policy and sound strategy, StrategicManagement is a veritable instrument for vision andmission delivery.
Strategic management is the business of puttingthinking into action to get things done.
EFFECTIVE STRATEGIC MANAGEMENT
HINDERANCE TO EFFECTIVE STRATEGIC MANAGEMENT
WEAKNESS OF THE WILLThe lack of willpower is the most significant hindrance toconverting the threshold of thought, intent or policy intogoal, result or objective through strategy as embedded inthe strategic management process.
Weakness of the will not only hinders implementation ofdecisions and responsibilities, but also responsible forculminated high rate of policy summersault, reversal orabandonment (Egwu, 2017).
Leaders and followers alike are often held to ransom in aculture of powerlessness and situation of progress trap.
LACK OF EFFECTIVE FEEDBACK SYSTEMThe absence of an effective feedback loop leads to stagnationin activities and weakens the necessary inaction amongfunction components of an organization.
It is also a sign of weak leadership and lack of direction,especial when situations are devoid of the commitment of keyplayers in affairs of governance (Egwu, 2017; Galadima, 2017;Bassey, 2017).
This is likened to the ‘Tomato Effect’ when you spend time,energy and materials planting and taking care of tomato only tolet it rot; what was the point of doing it in the first place.
THE WAY FORWARD
INTENT AND ACTION
To avoid the ‘Tomato Effect’ in policy making andimplementation, effective strategic management must beconducted for policies to be implemented through soundstrategies.
A strategy implementation therefore requires active driveto move ideas in thinking to results of action.
To be able to this, policy makers and implementors needto possess audacious mind capable of job deliverywithout weakness of will power.
INCULCATING AUDACITY
Audacity is boldness, daring, or willingness to challengeassumptions or conventions against all odds to tackle somethingdifficult or dangerous.
Chait (2017) describes President Obama as audacious byamassing an array of outstanding performances andachievements against all odds in his tenure at the White House.
All the objectives in Nigerian policies, especially the trio of STI,agriculture and industry which are at hand require audaciouspolicy makers and implementors to put them into practice.
Inculcating and promoting audacity among policy makers andimplementors would trigger and sustain an effective strategicmanagement process for Nigeria’s ailing policies.
CONCLUSION
SUMMARY
Strategic management involves complex cross-functional relationships of organizational components geared towards attainment of set objectives.
It is a veritable tool for navigating the complexity of applying the tenets of mission and vision of organizations.
This paper discusses, explains and relates how resources are harnessed in series of decisions and actions to influence performance and results.
SUMMARY
The paper projects the contingency nature ofstrategic management under the ethos of ‘jobmust be do’ with the assumptions that policiesbear specific objectives and guidelines onimplementation; that strategic managementproduces policy deliverables; and that if there isWill and Effective strategic management, policiesare deliverable.
CONCLUSIONThe paper concludes that the challenge and burden of strategic management rests on the shoulders of leadership or senior executives charged with decisions and actions; that a strong willpower and efficient feedback system are needed for effective strategic management process.
RECOMMENDATION AND IMPLEMENTATION
STRATEGIES
RECOMMENDATION ONEPolicy makers and implementers need to possess audacious minds capable of job delivery devoid of weakness of will power.
Implementation Strategies
NOA to embark on mass civil education with emphasis on sense of responsibility among policy makers and implementors; and
Members of the public be educated on how do demand for services from those engaged to provide them
RECOMMENDATION TWOInculcation and promotion of audacity among policy makers and implementors to trigger and sustain an effective strategic management process for Nigeria’s ailing policies.
Implementation Strategies
All public policies to be circulated in translated local languages for access at all levels Ministries, Departments and Agencies of Mass Information
Policy dialogue sessions be organized at community levels by leaders of thoughts, community activists and Non-governmental organizations.
ENDING QUOTE
“A true leader has the confidence to stand alone, the courage to make tough
decision, and the compassion to listen to the needs of others … by the equality of his actions and the integrity of his intent”
– Douglas MacArthur
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