Core objectives: clarity in designing strategy

Citation

(2006), "Core objectives: clarity in designing strategy", Strategic Direction, Vol. 22 No. 1. https://doi.org/10.1108/sd.2006.05622aaf.005

Core objectives: clarity in designing strategy

Core objectives: clarity in designing strategy

Chatterjee SCalifornia Management Review, (USA), Winter 2005 Vol 47 No 2, Start page: 33, No of pages: 17

Purpose – To demonstrate the importance of translating desired business outcomes into a few core objectives that drive competitive advantage. Design/methodology/approach – Explains that empirical analysis of the planning and control practices of world-class companies found that they focus on a restricted number of critical objectives. States that this improves control and communication, prevents information overload and avoids resource misallocation. Shows how a firm can identify its high-level objectives that capture the competitive logic of its business model, using Southwest Airlines as an example. Explains how the company can then develop a more focused set of core objectives that can be calibrated and tracked in real time. Findings – States that broad competitive objectives should deliver core customer outcomes. Notes that they should also explain how the firm can capture part of the value created for shareholders. Finds that core competitive objectives must be specific, measurable, leading or contemporaneous indicators. Adds that they should provide a shared framework for making trade-offs in business decisions. Discusses capabilities in terms of the activities and resources that are needed to deliver the core objectives and comments on the risks of failing to define core objectives properly. Considers how strategic clarity enables firms to modify capabilities and how awareness of core objectives enables challengers to take on existing firms, using JetBlue and Southwest as an illustration. Originality/value – Concludes that the core objectives model can be used by any company to develop greater clarity about its strategic objectives and to avoid unnecessary risks.Classification(s): Top Management – StrategyStyle: Technical paperISSN: 0008-1256

Keywords: Corporate strategy, Decision making, Objectives, Risk management