HRM/U2 Topic 11 Strategy factors
Strategic Factors are those things that your organization or business unit needs to get right in order to succeed with your key stakeholders, that is, your customers, suppliers, employees, owners and any other organization, business unit or individual that you depend on for success. The stakeholders use these criteria to evaluate you.
Examples of Strategic Factors. Chapter 3 onwards offers numerous examples of these Strategic Factors. For customers, the Strategic Factors are customer service, product quality and the like. With employees, they are items such as rewards, company reputation and job security. For owners in a public company, the Strategic Factors include dividends and capital growth.
Strategic Factors as Common Currency. Strategic Factors provide not only a pathway to success but also a common currency that links the way in which strategic planning and performance measurement are undertaken. The key word is link, and Strategic Factors form that link.
Strategic Factors across Sectors. Strategic Factors also provide the tools to be able to address the needs not just of private sector profit-seeking organizations, but also of non- profit organizations from both the public and private sectors. Here again Strategic Factors act as integrators because all organizations have them at their core.
Strategic Factors for Business Units. Strategic Factors also provide the way to move across the terrain from corporate to department, from organization to business unit. Because they apply just as well to a unit’s relationship to key stakeholders, they make it easy to link the unit’s strategic plan to the organization’s.
Strategic Factor System. Finally, Strategic Factors supply us with a system for streamlining strategy development and its measurement, a system for tying all the diverse strategy concepts and activities together. We call it the Strategic Factor System.