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Global Solutions
January 2008
What's Inside:

● Business Success for 2008
● Improving Competitive Performance

BUSINESS SUCCESS FOR 2008

Success isn't a matter of chance but rather a matter of choice. You must look
into the future and create a plan directing yourself towards that goal you are
aiming for.   
If you are not sentential about the direction of your business or department,
you are not likely to get there.  

Everyone wants better results, correct? Those results may be a greater
profit, better resources better, creating a more effective and efficient team,
or improving your work/life balance and so on.  And strategic planning helps.
The benefits to strategic planning are both intangible and are reflected on
the bottom line ROI.
As business owners, you care about what falls to the bottom line. A major
reason we focus on strategic planning is because it does make a financial
difference. The research study below provides the results and explains what
you can expect to achieve as well.

Impact on sales volume:
● Of those firms whose top management had a high commitment to execute
strategic planning, 80 percent reported that their sales volume increased
during that year.

● Of the firms whose top management had a lower commitment (average or
below) to execute strategic planning; only 59 percent reported that their
sales volume had increased during the year.

From another perspective, firms whose top management had a high
commitment reported 12 percent greater increase in sales volume than did
those with a lower commitment.

Impact on net income:
● Of the firms whose top management had a high commitment to execute
strategic planning, 33 percent reported that their net income had increased
during the year.

● Of those whose top management had a lower commitment (average or
below) to execute strategic planning; only 19 percent reported that their net
income had increased during the year.
From another perspective, firms whose top management had a high
commitment reported 11 percent better net income than did those with a
lower commitment.

It is always great to have good ideas but there is often a challenge to make
them happen. A well thought out strategic plan is the means. Growth and
high-performance is the end to those means. I wanted to let you know of an
exciting new free business assessment tool that your can utilize online at http:
//gsms-report.speedsurvey.com. Our assessment can help you to begin the
process of steering your company towards the growth and performance you’
re looking for in 2008 and how Global Strategic Management Solutions can
get you there.


IMPROVING COMPETITIVE PERFORMANCE

Interventions are concerned choices organizations can make to improve their
competitive performance including integrated strategic change (ISC) and
mergers and acquisitions (M & A). Competitive strategies use a variety of
responses to better align the organization with pressing environmental
demands. ISC helps members manage the transition between current
strategic orientations and the desired future strategic orientation. M&A’s
represent the second strategy of competition.  These interventions seek to
leverage the strengths (and shore up the weaknesses) of one organization
by combining with another organization.  This is a complex strategic change
that involves integrating many areas within an organization.

Organizations are open systems that must relate to their environments by
acquiring resources and information needed to function, and they must
deliver products or services that customer’s value. An organizational strategy
that acquires resources and delivers outputs will survive and grow.  
Organizations must understand these different environments, select
appropriate parts to respond to, and develop effective relationships with
them.

The key features of ISC is that strategy and design are considered as an
integrated whole.  
We treat creating a strategic plan, gaining commitment, planning its
implementation, and execution as one integrated process which represents a
sustainable competitive advantage.  Individuals and groups are integrated
into the analysis, planning, and implementation process to create a more
achievable plan which results in higher levels of shared ownership and
commitment resulting in an improved performance and effectiveness of
organization. Integrated strategic change consists of several stages that we
go through.

By determining the readiness for change through character profiles, the
amount of resources necessary will depend on whether change is gradual or
radical.  Organizational design consists of frameworks to assess customer
satisfaction, product and service offerings, financial health, technology,
culture, structure, and system. Assessment models can be used to diagnose
the current environment.

Involvement from throughout the organization builds commitment and
ownership. Strategies and objectives are aligned to create the new vision.
The desired strategy defines the products or services to be offered; markets
to be served and the outputs to produced and positioned. The organization
design specifies the structure and processes necessary to support new
strategy. Aligning the organizational design with a strategy can be a major
source of superior performance and competitive advantage.

Moving from the organization from current strategy and organizational design
to future strategic plan through proper assessment can create an alignment
between values, strength, and brand/public awareness. Benefits of alignment
improve internal and external communication and efficiency in organization.
Deeper commitment to organizational value and ability to implement change.
Implementing the strategic change includes continue alignment, teamwork,
organizational, personal learning, and requires a strong commitment from
senior management who must initiate action and allocation of resources to
team building activities. There must be a willingness to adjust plan as
implementation unfolds to address unpredictable events and to take
advantage of new opportunities.

Mergers and acquisitions involve the combination of two organizations. M & A’
s have become a preferred method for rapid growth and strategic change.
Despite M & A’s popularity, they have a questionable record of success.  
One of the major failures is due to conflicting corporate culture.  M & A
intervention typically is preceded by an examination of corporate and
business strategy.  Corporate strategy describes the range of businesses
within which a firm participates, and business strategy specifies how the
organization will compete in any particular business. Organizations must
decide whether their corporate and strategic goals should be achieved
through strategic change or a merger and acquisition.  Cultural integration
activities include tasks that are aimed at building new values and norms for
the combined organization.

In closing, the key factors in optimizing the company’s future lie in the ability
for management to use all phases of the framework to ensure a sustainable
competitive advantage for the firm. By creating a superior performance in
market share, sales, and financial of the organization management will be
able to align the business processes to meet goals creates more efficient
organization thus improving strategic moves to match the external forces
improves performance and increases profitability of organization.


About Global Strategic Management Solutions Inc.
Global Strategic Management Solutions is a leading worldwide consulting firm
working with businesses to improve performance by managing changing
market conditions. Our services provide a direct contribution to your
profitability and long-term survival. E-mail us to request a copy of Survival of
the Fittest: Adapting Corporate Strategy to the 21st Century.
“We bring businesses to the next level”
Let us bring your organization to the next level of success!