Function Strategy And Organization Methods & Tactics
Functional Strategy
Function strategy operates at a level of functional areas such as marketing, finance, human resources, etc., and refers to the set of organizational methods(tactical actions) taken in those parts of the business organization to support the company's overall business and competitive strategy. Functional strategy refers to the set of strategic initiatives taken in one part of a business to improve capacity development. Function level strategy is tactical in nature, and refers to organizational methods concerned with how each individual functional area is organized to support and contribute to delivering the business strategy. Each functional area, or structural unit i.e., department, division, etc., will have its own set of needs; and the company must determine how to allocate resources to meet these needs. Functional strategies help in implementation of strategic choices and grand strategy by organizing and activating specific sub-units of the organization to pursue the business strategy in daily activities. Functional Strategy, for any business, large or small, focuses the achievement of a goal on the skills and abilities of individual functional areas/departments and their employees. Function strategy focuses on what their strategic objectives should be, and guide how they should manage their resources in pursuit of those objectives.
Organization Roles and Responsibilities
Once a company has established how functions are grouoed then tasks and activities in the processes that define the workflow in those functions are assigned to individual employees or group/teams who are given the responsibility to perform them. Positions with job descriptions help employees/workers know the scope, function, and limits of their roles, and for what tasks and results they will be held responsible.
Functional Goals
Functional goals are elaborations of the Organizational Operative Goals, and they outline a capability to be acquired in measurable terms, while including precise behavior to be accomplished and a specific criterion defined by the objective for measuring performance. The management of functional areas is guided by functional goals in seeking answers to questions in order to help formulate function strategy (tactics); these questions include;
Functional level strategy advocates for the business to see its management decisions as specific to a functional area of the organization such as marketing, human resources, finance, public relations, etc.
Function strategy operates at a level of functional areas such as marketing, finance, human resources, etc., and refers to the set of organizational methods(tactical actions) taken in those parts of the business organization to support the company's overall business and competitive strategy. Functional strategy refers to the set of strategic initiatives taken in one part of a business to improve capacity development. Function level strategy is tactical in nature, and refers to organizational methods concerned with how each individual functional area is organized to support and contribute to delivering the business strategy. Each functional area, or structural unit i.e., department, division, etc., will have its own set of needs; and the company must determine how to allocate resources to meet these needs. Functional strategies help in implementation of strategic choices and grand strategy by organizing and activating specific sub-units of the organization to pursue the business strategy in daily activities. Functional Strategy, for any business, large or small, focuses the achievement of a goal on the skills and abilities of individual functional areas/departments and their employees. Function strategy focuses on what their strategic objectives should be, and guide how they should manage their resources in pursuit of those objectives.
Organization Roles and Responsibilities
Once a company has established how functions are grouoed then tasks and activities in the processes that define the workflow in those functions are assigned to individual employees or group/teams who are given the responsibility to perform them. Positions with job descriptions help employees/workers know the scope, function, and limits of their roles, and for what tasks and results they will be held responsible.
Functional Goals
Functional goals are elaborations of the Organizational Operative Goals, and they outline a capability to be acquired in measurable terms, while including precise behavior to be accomplished and a specific criterion defined by the objective for measuring performance. The management of functional areas is guided by functional goals in seeking answers to questions in order to help formulate function strategy (tactics); these questions include;
- How does the function contribute to the business strategy?
- What are the strategic objectives of the function?
- How are resources managed in the function?
- What technology do we use in the function?
- What skills are required by workers in the function?
Functional level strategy advocates for the business to see its management decisions as specific to a functional area of the organization such as marketing, human resources, finance, public relations, etc.
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Marketing
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HR
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Finance
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Production
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Sales
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Marketing Function and Strategy
Marketing is a function in a company and its role within the company is to identify and source potentially successful products/services for the marketplace the company operates in and then promote them by differentiating them from similar products. Marketing involves the activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large. Marketing provides the means to persuade, influence and motivate a targeted audience and generate visibility. Marketing is primarily concerned with two things:
Typical marketing function types within a business might include performing tasks such as: market research, producing a marketing plan, product development, as well as strategically overseeing advertising, promotion, distribution for sale, customer service and public relations, sales and communications.
Marketing Management
Marketing management process involves planning, organizing, directing and executing marketing strategy - the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.
Marketing management is concerned with the development of policies that ensure effective implementation of marketing strategy. Marketing policies ensure for example, that every part of the organization is on board and promoting the organization in a consistent manner. A consistent image is what makes people remember a company. The strategic management aspects of marketing consists of four (4) areas of strategic considerations -
These considerations can be framed in terms of questions to guide answers to issues that help frame strategic decisions in marketing and marketing strategy.
Products and Services Considerations
These are decisions related to the goods and services the organization offers to its customers.
Place Considerations
This component identifies where, when, and by whom the product/services are to be offered for sale. These questions guides answers to strategic marketing decisions regarding channels to ensure consistency with the total marketing effort.
Pricing Considerations
[TBD]
Promotion and Communications Considerations
Promotion refers to the methods used to put products and services in the public eye. Promotion strategy should provide marketing managers with basic guides for the use and mix of advertising, personal selling, sales promotion, and media selection.
Marketing Strategy
Marketing strategy deals with product mix (product/service choices and features offered to customers), pricing, markets positioning, distribution, and promotion considerations. The marketing strategy is characterized by the decisions the company needs to make so the marketing tactics and actions work better, and toward achieving the marketing objectives. These decisions define keys to your particular and selected marketing strategy and are informed by the choice of answers to questions such as:
Providing simple, single answer to each of the above questions ensures focus; and committing not to change these for a period of a year or two make your tactics work better.
A typical marketing strategy is to determine the needs in an area where the company has a natural competing advantage as defined by the business strategy; such advantages might be in location, facilities, reputation, or staffing. Marketing strategy is concerned with matching existing or potential products and services with the needs of customers. Marketing strategy influences the other functions and function strategies, and forms the basis for these other function strategies. These Non-Marketing Function Level strategies are derived from Operations Strategy and/or Marketing Strategy; and they must support the marketing strategy that in turn, is a component of the overall business strategy.
Marketing Strategy Types
The types of marketing strategies include:
The marketing strategy selected by an organization is dependent on whether the organization is attempting to reach new or existing customers, and whether its products and services are new or already exist.
Some examples of selected marketing strategies may be a one of the following generic strategies:
A selected strategy would in addition have marketing mix options associated, such as pricing strategy options, positioning/place strategy options, and advertisement and promotion strategy options - .Outbound Marketing, Inbound Marketing, Blogging and Content Marketing, Search Engine Optimization, Email Marketing and News Letters. Visual Marketing, Media Attention, Press Releases, Guerrilla Marketing, eBooks and Content Marketing, Paid Search Advertising, Direct Mail campaigns, Cold Calling and Cold Emailing.
Formulating Marketing Strategy
Marketing strategies are defined in terms of the specification of intended outcomes, expressed in terms of marketing goals and objectives. Marketing strategy is defined by a plan of action for identifying and analyzing a target market, and developing a marketing mix to meet the needs of that market. The strategies state through outcomes "where" the company intends to be at some specific time in the future.
Marketing Goals
Marketing level strategic goals state "what" is to be achieved in a marketing functional area and "when" results are to be accomplished. Marketing goals are statements of what results you want to achieve with your marketing. What's the primary reason you are marketing? Marketing goals should fit into and support your overall business goals. One of the primary goals of marketing strategy is to establish customer loyalty and to reach out to new markets. A marketing goal can be a number, such as a certain year-end revenue figure; it might be a number such as four new clients per month. Marketing goals can also be quantitative translations that fit with your company's financial objectives, stated in marketing terms such as:
The goals are the building blocks of your marketing plan, the starting point of the plan. For any given company's situation not all these goals will be relevant, a subset of these goals will be part of the marketing plan. The right number of goals is the one that offers reasonably high probability of success over a given period of time. "Reasonably", "period of time", and "success" all have to defined by the company, and should be consistent with the overall business goals and management commitment.
Marketing goals and objectives are created by managers in marketing to guide the work of employees in the marketing department. Managers review the total company goals and identify ways that the marketing department can support those company goals. Each supporting action represents a goal for the department to continue and improve on. Marketing objectives identify specific actions that marketing employees can perform; each objective providing a method of achieving the company's goals.
Marketing Objectives
Marketing objectives are goals set by a business when promoting its products or services to potential consumers that should be achieved within a given time frame. In other words, marketing objectives are the marketing strategy set in order to achieve the overall organizational objectives. Typical marketing objectives may include:
Marketing objectives are short-term achievements to help you accomplish longer-term goals. They should be set on a weekly or monthly time line. These objectives help a business set out what a business wants to achieve from its marketing strategy.
Marketing Plan
The purpose of the marketing plan is to describe who your clients are and where they are, and how you can reach them. The marketing plan helps you outline your marketing goals and objectives and help your company understand how to get there. A Marketing Plan consists of several key pieces of information which can be divided into sections based on the organizations preference.
The marketing plan goes into the logistical details of executing your strategy such as budgets, more detail time scales for objectives and goals, who in the organization will manage the various points in the strategy, the logistics of various distribution channels and their incumbent costs. etc. The marketing plan is vital for small businesses; it help small businesses leverage their resources and audience for maximum impact at minimum cost. The marketing plan is a more lively document than your strategy, and will need to be updated more frequently and adjusted to accommodate changes in costings, market conditions, economic conditions and other factors. Monitor the results of marketing activity, and be ready to adapt both your strategy and plan.
Marketing is a function in a company and its role within the company is to identify and source potentially successful products/services for the marketplace the company operates in and then promote them by differentiating them from similar products. Marketing involves the activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large. Marketing provides the means to persuade, influence and motivate a targeted audience and generate visibility. Marketing is primarily concerned with two things:
- The creation of a customer
- The delivery of value to that customer
Typical marketing function types within a business might include performing tasks such as: market research, producing a marketing plan, product development, as well as strategically overseeing advertising, promotion, distribution for sale, customer service and public relations, sales and communications.
Marketing Management
Marketing management process involves planning, organizing, directing and executing marketing strategy - the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.
Marketing management is concerned with the development of policies that ensure effective implementation of marketing strategy. Marketing policies ensure for example, that every part of the organization is on board and promoting the organization in a consistent manner. A consistent image is what makes people remember a company. The strategic management aspects of marketing consists of four (4) areas of strategic considerations -
- Products/Market Selection - These are the goods and services offered to customers in selected markets to meet their interests or demand.
- Pricing - The cost people pay for a "product"; provides the means to capture value
- Place - Home where the "product" resides; this includes Channels of Distribution (or Location Outlets); these define the places where, when and by whom the products and services are delivered to customers.
- Promotion/Communication - "Product" exposure and public relations effort - this includes all the activities which are undertaken to communicate with the customer and increase the sale- such as promotion functions like advertising, sales promotion, personal selling, word of mouth, publicity, etc.
These considerations can be framed in terms of questions to guide answers to issues that help frame strategic decisions in marketing and marketing strategy.
Products and Services Considerations
These are decisions related to the goods and services the organization offers to its customers.
- What does the customer want from the product/service? What needs does it satisfy?
- What features does it have to satisfy these needs? Are there any features we are missing? Are you including costly features that the customer won't actually use?
- How and where will the customer use it?
- What does it look like? How will customers experience it?
- What size(s), color(s), etc., should it be?
- What is it to be called?
- How is it branded?
- How is it differentiated versus our competitors?
- What is the most it can cost to provide and still be sold sufficiently profitably?
Place Considerations
This component identifies where, when, and by whom the product/services are to be offered for sale. These questions guides answers to strategic marketing decisions regarding channels to ensure consistency with the total marketing effort.
- Where do buyers look for your product or service?
- If they look in a store, what kind? A specialist boutique or in a supernarket, or both? Or online? Or direct, via catalog?
- How can you access the right distribution channels?
- Do you need to use sales force? Or attend trade fairs? Or make online submissions? or send samples to catalog companies?
- What do your competitors do, and how can you learn from that and/or differentiate?
Pricing Considerations
[TBD]
- What is the value of the product or service to the buyer?
- Are there established price points for products and services in this area?
- Is the customer price sensitive?What discounts should be offered to trade customers, or to other specific segments of your market?
- How will your price compare with your competitors?
Promotion and Communications Considerations
Promotion refers to the methods used to put products and services in the public eye. Promotion strategy should provide marketing managers with basic guides for the use and mix of advertising, personal selling, sales promotion, and media selection.
- Where and when can you get your marketing messages across to your target market?
- Will you reach your audience by advertising online, in the press, on TV, on radio, or on billboards? By using direct marketing mailshots? Through PR? On the internet?
- When is the best time to promote?
- How do your competitors do their promotions? And how does that influence your choice of promotional activity?
Marketing Strategy
Marketing strategy deals with product mix (product/service choices and features offered to customers), pricing, markets positioning, distribution, and promotion considerations. The marketing strategy is characterized by the decisions the company needs to make so the marketing tactics and actions work better, and toward achieving the marketing objectives. These decisions define keys to your particular and selected marketing strategy and are informed by the choice of answers to questions such as:
- Who is your narrowly defined target customer?
- What are you selling to them?
- Where are they looking for your product or service?
- In which category does your business exist?
- What is your unique benefit?
- Who is your real competition?
- How are you clearly different from your competition?
Providing simple, single answer to each of the above questions ensures focus; and committing not to change these for a period of a year or two make your tactics work better.
A typical marketing strategy is to determine the needs in an area where the company has a natural competing advantage as defined by the business strategy; such advantages might be in location, facilities, reputation, or staffing. Marketing strategy is concerned with matching existing or potential products and services with the needs of customers. Marketing strategy influences the other functions and function strategies, and forms the basis for these other function strategies. These Non-Marketing Function Level strategies are derived from Operations Strategy and/or Marketing Strategy; and they must support the marketing strategy that in turn, is a component of the overall business strategy.
Marketing Strategy Types
The types of marketing strategies include:
- Targeted Marketing Strategy
- Outbound Marketing Strategy
- Inbound Marketing Strategy
- Blogging and Content Marketing Strategy
- Social Media Marketing Strategy
- Search Engine Optimization
- Email Newsletters and Email Marketing
- Visual Marketing Strategy
- Brand Awareness Strategy
- Media Attention
- Press Releases
- New product/Service Launch Strategy
The marketing strategy selected by an organization is dependent on whether the organization is attempting to reach new or existing customers, and whether its products and services are new or already exist.
Some examples of selected marketing strategies may be a one of the following generic strategies:
- Marketing Penetration - The firm attempts to gain greater control in a market in which it already has a product or services.
- Market Development - Introducing the firm's existing products or services to customers other than the ones it currently serves.
- Product Development - Creates a new product or service for existing customers.
- Diversification - Offering new products to new customers.
A selected strategy would in addition have marketing mix options associated, such as pricing strategy options, positioning/place strategy options, and advertisement and promotion strategy options - .Outbound Marketing, Inbound Marketing, Blogging and Content Marketing, Search Engine Optimization, Email Marketing and News Letters. Visual Marketing, Media Attention, Press Releases, Guerrilla Marketing, eBooks and Content Marketing, Paid Search Advertising, Direct Mail campaigns, Cold Calling and Cold Emailing.
Formulating Marketing Strategy
Marketing strategies are defined in terms of the specification of intended outcomes, expressed in terms of marketing goals and objectives. Marketing strategy is defined by a plan of action for identifying and analyzing a target market, and developing a marketing mix to meet the needs of that market. The strategies state through outcomes "where" the company intends to be at some specific time in the future.
Marketing Goals
Marketing level strategic goals state "what" is to be achieved in a marketing functional area and "when" results are to be accomplished. Marketing goals are statements of what results you want to achieve with your marketing. What's the primary reason you are marketing? Marketing goals should fit into and support your overall business goals. One of the primary goals of marketing strategy is to establish customer loyalty and to reach out to new markets. A marketing goal can be a number, such as a certain year-end revenue figure; it might be a number such as four new clients per month. Marketing goals can also be quantitative translations that fit with your company's financial objectives, stated in marketing terms such as:
- Increase Sales dollars
- Increase Units sold
- Increase Market share
- Increase Mix of products or services offered
- Increase ROI on advertising expenditures
- Increase Awareness and Visibility
- Increase Public relations placements
- Increase Number of new accounts/relationships
- Increase Share of customer's business
- Increase Sales conversion rates
The goals are the building blocks of your marketing plan, the starting point of the plan. For any given company's situation not all these goals will be relevant, a subset of these goals will be part of the marketing plan. The right number of goals is the one that offers reasonably high probability of success over a given period of time. "Reasonably", "period of time", and "success" all have to defined by the company, and should be consistent with the overall business goals and management commitment.
Marketing goals and objectives are created by managers in marketing to guide the work of employees in the marketing department. Managers review the total company goals and identify ways that the marketing department can support those company goals. Each supporting action represents a goal for the department to continue and improve on. Marketing objectives identify specific actions that marketing employees can perform; each objective providing a method of achieving the company's goals.
Marketing Objectives
Marketing objectives are goals set by a business when promoting its products or services to potential consumers that should be achieved within a given time frame. In other words, marketing objectives are the marketing strategy set in order to achieve the overall organizational objectives. Typical marketing objectives may include:
- Increase Sales - "To increase sales by 50% within 12 months"
- Build Brand Awareness - Achieve 75% customer awareness of our brand in our target markets.
- Grow Market Share - Achieve market share of 10%
- Target new customers
- Enter new markets internationally, or locally
- Improve shareholder relations
- Enhance customer relationships
- Improve internal communications - "To increase the number of enquires from our marketing communications activities by 20% by the end of the month"
- Increase profits
Marketing objectives are short-term achievements to help you accomplish longer-term goals. They should be set on a weekly or monthly time line. These objectives help a business set out what a business wants to achieve from its marketing strategy.
Marketing Plan
The purpose of the marketing plan is to describe who your clients are and where they are, and how you can reach them. The marketing plan helps you outline your marketing goals and objectives and help your company understand how to get there. A Marketing Plan consists of several key pieces of information which can be divided into sections based on the organizations preference.
The marketing plan goes into the logistical details of executing your strategy such as budgets, more detail time scales for objectives and goals, who in the organization will manage the various points in the strategy, the logistics of various distribution channels and their incumbent costs. etc. The marketing plan is vital for small businesses; it help small businesses leverage their resources and audience for maximum impact at minimum cost. The marketing plan is a more lively document than your strategy, and will need to be updated more frequently and adjusted to accommodate changes in costings, market conditions, economic conditions and other factors. Monitor the results of marketing activity, and be ready to adapt both your strategy and plan.
Human Resources Function Strategy
All businesses require capital such as financial capital to begin operations, whether to rent a building, purchase equipment, or pay for utilities; human capital - the employees hired to make the company run. The human resource function is about acquiring and managing this important resource, and ensuring that it is developed and sustained. The human resources function and departments of a company has the task of ensuring that the company has the best and effective workforce possible to achieve the mission.
The Human Resource function in an organization involves the management of employees in an effective and efficient manner to attain the organizational goals through planning, organizing, directing, and controlling organizational human resources. The Human Resources Management involves one or more of the following essential functions:
In small businesses without a dedicated HR department, it is possible to achieve the same level of efficiency and workforce management through outsourcing HR functions or joining a professional employer organization.
Human Resource Management Function Goals and Objectives
Human resource management function goals provide clear direction for managing the company's workforce. These include:
Human Resource Management Goals
The key HR management function goals include:
Human Resource Management Objectives
Human Resource Management objectives ...
Human Resource Function Strategy
HR Strategy is a business's overall plan for managing its human capital to align it with its business activities. The HR Strategy dets the direction for all the key areas of HR including hiring, performance appraisal, development, and compensation. The goal of HR strategy is to establish the number of employees needed by an organization to carry out their mission, their skills sets and levels, effective training needs, and compensation and rewards systems. To better apply HR strategy HR management must have a finger on the pulse at all times when it comes to the company's goals and objectives. The function must be able to constantly look at new ways to keep the employees happy, motivated and productive (on the right track). Management must understand the current environment including, current employees and their skills. There are very many different types of HR strategy but at their heart, they all start with the same foundation; to create a work environment that's synonymous with engaged, productive and loyal staff (employees and contract workers). Human Resources function strategy deals with decisions on:
Every organization is different and will be staffed by employees from different backgrounds, sectors, and with different goals and ambitions, values, beliefs, etc. The key to a successful HR strategy is to identify what unifies and motivates your employees, and to develop a strategic plan around that understanding.
All businesses require capital such as financial capital to begin operations, whether to rent a building, purchase equipment, or pay for utilities; human capital - the employees hired to make the company run. The human resource function is about acquiring and managing this important resource, and ensuring that it is developed and sustained. The human resources function and departments of a company has the task of ensuring that the company has the best and effective workforce possible to achieve the mission.
The Human Resource function in an organization involves the management of employees in an effective and efficient manner to attain the organizational goals through planning, organizing, directing, and controlling organizational human resources. The Human Resources Management involves one or more of the following essential functions:
- Talent Acquisition/Recruiting - This involves recruiting new employees, training those employees, and helping with conflict resolution.
- Compensation Management - This involves setting compensation structures and evaluating competitive pay practices. Payroll can be a component of the compensation and benefits function.
- Benefits Administration - This involves negotiating group health coverage rates with insurers and coordinating activities with the retirement savings administrator.
- Training and Development - This involves providing employees with tools necessary for their success which means giving new employees extensive orientation training to help transition into a new organizational culture. The department may also provide leadership training and professional development.
- Performance Appraisals and Management - []
- Employee and Labor Relations - This is concerned with strengthening the employer-employee relationship through measuring job satisfaction, employee engagement and resolving workplace conflict.
- Compliance Management - This is concerned with compliance with labor and employment laws.
- Workplace and Job Safety - This involves creating a safe work environment and support workplace training, and maintain federally mandated logs for workplace injury and fatality reporting.
In small businesses without a dedicated HR department, it is possible to achieve the same level of efficiency and workforce management through outsourcing HR functions or joining a professional employer organization.
Human Resource Management Function Goals and Objectives
Human resource management function goals provide clear direction for managing the company's workforce. These include:
- Maintain Productivity with Staff Planning- This goal requires providing the organization with an adequate number of skilled and efficient workers. HR managers must continually analyze the workload and know when there are potential problems with manpower, and when its time for additional help. Similarly, understanding turnover within the company will help identify problem areas and allow for policy corrections or other adjustments. To speed up the hiring process, develop a staffing plan including complete job description, roles and responsibilities as well as a clear understanding of the type of personalities that will fit well in your corporate culture. hen the HR Manager is familiar with the company's personnel needs, they will be able to attract and hire the most qualified candidates to open positions.
- Develop Evaluation Processes and Training Programs - Retaining skilled workforce should be a key focus within the HR department. Workers who are appropriately compensated and feel that they can develop professionally are among the most satisfied. Increasing the number of training and professional programs in your company will create a more skilled and productive staff. Employees desire to know if they are performing their jobs well through frequent feedback, rather than waiting for formal performance reviews. A "designing my success" review helps employees to honestly evaluate weaknesses and strive for improvements while setting goals for future advancement. These career assessments help HR department to be connected with the developing skills of employees; this knowledge informs management decisions when filling open management positions.
- Increasing Employee Engagement - The HR department's job is to develop and foster a corporate culture where employees feel included, engaged, and eager to perform well in order to achieve company;'s wide goals.Companies function well when employees are working at their best and they feel valued as important members of the corporate mission.
- Policy Creation and Education - Every organization should maintain a formalized set of policies and procedures. The HR department is responsible for creating policies and procedures that create a safe work place and competent workforce. HR policies and procedures establish guidelines on expected behavior of employees in how to appropriately relate to fellow workers and be in compliance to company and sometimes government regulations.
- Streamline Processes for Efficiency - Streamline routine processes so that more time can be spent on people-focused activities. HR Management Systems are software programs that allow repetive tasks to be completed easily and more efficiently than if performed manually. The tasks handled by HR Management Systems include: job postings, scheduling, time tracking, computing payroll, and routine communications about corporate policies.
Human Resource Management Goals
The key HR management function goals include:
- Achieving consistent employee engagement in the workforce -[Employee Engagement]
- Creating a safe environment that is supportive of productive relationships by aligning company policies with federal, state, and city employment laws - [Compliance Targets]
- Improved Recruiting - Providing the organization with well trained and motivated employees. - [Improved Staffing]
- Improved Retention - Reduce employee turnover or increase employee retention - [Improved Staffing].
- Increased employee satisfaction - To be employer of choice; employees are happy to be part of the company for which others want to work - [Employer of Choice]
- Improved Labor Cost Management - Ensuring effective utilization and maximum development of human resources - [Improved Staffing].
- Achieving and maintaining high morale among employees.
- Enhancing employee capabilities to perform the present job.
- Inculcating a sense of team spirit, teamwork and inter-team collaboration.
- Open and Honest Communication
- Open and Friendly Management style
- Organize leadership development courses for managers and employees
- Managers and employees tasked to define target organizational culture
- Design and development of corporate culture
Human Resource Management Objectives
Human Resource Management objectives ...
- Creating the right match between employee skills and job assignments- [Goal #1: Employee Engagement]
- Coordinating promotional opportunities and workforce capabilities - [Goal #1: Employee Engagement]
- Regular employment file audits to assess equity of compensation practices - [Goal #2: Compliance Targets]
- Regular employment file audits to assess workforce diversity practices - [Goal #2: Compliance Targets]
- Attracting qualified applicants - [Goal #3: Improved Staffing]
- Motivating existing workforce and inspiring long-term commitment - [Goal #3: Improved Staffing/Retention].
- Strengthening Employer-employee relationships - [Goal #4: Employer of Choice]
- Offering innovating compensation and benefits packages - [Goal #4: Employer of Choice]
- Investing in employees' development - [Goal #4: Employer of Choice]
- Identifying and satisfying the needs of individual employees - [Goal #3:Improved Staffing/Retention]
- Improve scheduling - This helps reduce labor costs by avoiding overtime, reducing turnover and the need to add more work
Human Resource Function Strategy
HR Strategy is a business's overall plan for managing its human capital to align it with its business activities. The HR Strategy dets the direction for all the key areas of HR including hiring, performance appraisal, development, and compensation. The goal of HR strategy is to establish the number of employees needed by an organization to carry out their mission, their skills sets and levels, effective training needs, and compensation and rewards systems. To better apply HR strategy HR management must have a finger on the pulse at all times when it comes to the company's goals and objectives. The function must be able to constantly look at new ways to keep the employees happy, motivated and productive (on the right track). Management must understand the current environment including, current employees and their skills. There are very many different types of HR strategy but at their heart, they all start with the same foundation; to create a work environment that's synonymous with engaged, productive and loyal staff (employees and contract workers). Human Resources function strategy deals with decisions on:
- Benefits Programs & Strategy - e.g., Provide a consistent level of service for all employees while communicating clearly to employees on choice, value and responsibility; Control costs and create value for employees through plan design so that the programs established are market competitive and sustainable; focus on giving employees choices and alternatives.
- Compensation Programs & Strategy -
- Employee Relations Programs
- HR Compliance and Polices
- Recruitment Programs
- Talent Management and Staff Development
Every organization is different and will be staffed by employees from different backgrounds, sectors, and with different goals and ambitions, values, beliefs, etc. The key to a successful HR strategy is to identify what unifies and motivates your employees, and to develop a strategic plan around that understanding.
Understanding how to geneFinancial Function Strategy
In a business, the finance function involves the accounting and utilization of funds necessary for efficient operations. Financial function is concerned with two sets of activities such as; acquiring funds to meet the organization's current and future financial needs; and recording, monitoring, and controlling the financial results of the organization's operations. The accounting aspects of finance function brings business to life, and passes through every part of the firm's operations.
The function types include strategic planning and budgeting, capital management, Cash management, Profit planning and cost controls.
Strategic Planning and Budgeting
Strategic planning and budgeting allows businesses to develop plans and budgets to inform the decisions of senior management's who define where they want the business to go, and determine the objectives that drive decisions on what actions to take. These plans for the basis of hiring employees, capital spending, raising capital, marketing campaigns and bonuses for management. Budgeting is the process of allocating financial resources for intended programs, projects, services, and activities to empower the organization to carry out stated goals and objectives.
Capital Management
This involves methods of funding a company's operations through raising/securing funding, classified into categories based on funding years:
Cash Management
The focus is on making sure there is enough money in the company's bank account. This function is concerned with making sure the business has enough liquidity to pay its suppliers and employees on time. If cash is getting tight, the finance people will make arrangements to use the firm's bank line of credit. Conversely, the company should find appropriate investments that produce better return for excess cash sitting in the bank account.
Profit Planning and Cost Controls
Since the basis of a business is to make a profit, its only fair that finance would play a major role in finding ways to improve profitability. This department develops financial statements for revenue, expenses, and capital expenditures, and use these plans to determine profitability of individual products and services.
Risk Management
Financial analysis informs management decisions on the concerns of the influence of factors such as; direction of interest rates, currency fluctuations, changes in commodity prices and risks that customers will not pay their invoices. Financial reports monitor these areas and give reports to owners and managers.
Financial Strategy
Most businesses require substantial amount of capital to both develop and operate; and therefore, cost and availability of capital have an enormous impact on the business. When demand is high, large amounts of cash is generated, and when demands drops cash gets used up very quickly. Businesses respond to and operate under a variety of financial strategy options. Strategy selection is influenced by the company's overall goals, ojectives, and mission statement. Finance and accounting operations implement strategies to reduce functional and operational complexity, streamline processes, optimize the use of technology, and efficiently use resources to deliver cost effective, high quality services.
Financial strategies deals with decisions about capital acquisition, capital allocation, dividend policy, and investment and working capital/cash flow management. Financial strategies concern objectives in key results areas such as: profitability, liquidity and cash management, leverage and capital management, asset management, investment ratios, and financial planning and control.
Return on On Investment Capital
The following financial strategy options can b mixed to achieve various business objectives such as accelerate growth, minimize investment, and improve returns and the timeliness of those returns. For example, for business objective such as Return on Investment, the mix of financial strategy options include:
Improve Return on Investment Capital (ROIC) involves the following financial strategy options:
Cash Generation
Understanding how to generate cash in relationship to your business' time horizon is essential to survival. The fastest way to generate cash is to rollover an asset. The longest time to generate cash is to develop a concept - opening an operating business model that is successful and worthy of franchise investment - and then providing for the marketing of the franchise.
In a business, the finance function involves the accounting and utilization of funds necessary for efficient operations. Financial function is concerned with two sets of activities such as; acquiring funds to meet the organization's current and future financial needs; and recording, monitoring, and controlling the financial results of the organization's operations. The accounting aspects of finance function brings business to life, and passes through every part of the firm's operations.
The function types include strategic planning and budgeting, capital management, Cash management, Profit planning and cost controls.
Strategic Planning and Budgeting
Strategic planning and budgeting allows businesses to develop plans and budgets to inform the decisions of senior management's who define where they want the business to go, and determine the objectives that drive decisions on what actions to take. These plans for the basis of hiring employees, capital spending, raising capital, marketing campaigns and bonuses for management. Budgeting is the process of allocating financial resources for intended programs, projects, services, and activities to empower the organization to carry out stated goals and objectives.
Capital Management
This involves methods of funding a company's operations through raising/securing funding, classified into categories based on funding years:
- Long Term Finance - This includes finance of investments three (3) years or more; this financing can be sourced from owner capital, share capital, long-term loans, etc.
- Medium Term Finance - This is financing done between 1 and 3 years; this can be sourced from bank loans and financial institutions.
- Short Term Finance - This is finance needed below one year; funds may be acquired from bank overdrafts, commercial paper, advances from customers, trade credit, etc.
Cash Management
The focus is on making sure there is enough money in the company's bank account. This function is concerned with making sure the business has enough liquidity to pay its suppliers and employees on time. If cash is getting tight, the finance people will make arrangements to use the firm's bank line of credit. Conversely, the company should find appropriate investments that produce better return for excess cash sitting in the bank account.
Profit Planning and Cost Controls
Since the basis of a business is to make a profit, its only fair that finance would play a major role in finding ways to improve profitability. This department develops financial statements for revenue, expenses, and capital expenditures, and use these plans to determine profitability of individual products and services.
Risk Management
Financial analysis informs management decisions on the concerns of the influence of factors such as; direction of interest rates, currency fluctuations, changes in commodity prices and risks that customers will not pay their invoices. Financial reports monitor these areas and give reports to owners and managers.
Financial Strategy
Most businesses require substantial amount of capital to both develop and operate; and therefore, cost and availability of capital have an enormous impact on the business. When demand is high, large amounts of cash is generated, and when demands drops cash gets used up very quickly. Businesses respond to and operate under a variety of financial strategy options. Strategy selection is influenced by the company's overall goals, ojectives, and mission statement. Finance and accounting operations implement strategies to reduce functional and operational complexity, streamline processes, optimize the use of technology, and efficiently use resources to deliver cost effective, high quality services.
Financial strategies deals with decisions about capital acquisition, capital allocation, dividend policy, and investment and working capital/cash flow management. Financial strategies concern objectives in key results areas such as: profitability, liquidity and cash management, leverage and capital management, asset management, investment ratios, and financial planning and control.
Return on On Investment Capital
The following financial strategy options can b mixed to achieve various business objectives such as accelerate growth, minimize investment, and improve returns and the timeliness of those returns. For example, for business objective such as Return on Investment, the mix of financial strategy options include:
- Manage Contracts
- Rollover Asset
- Additional Capacity
- Franchises
- Management contract with limited equity investment
- Buy out of negative leases
- Acquisitions
- Joint Ventures
- Management contract with major equity investment
- Ownership (Construction)
Improve Return on Investment Capital (ROIC) involves the following financial strategy options:
- Rollover Asset (sale)
- Manage Contracts
- Additional Capacity (assumes demand is high)
- Buy out of negative leases
- Buy in to joint ventures with management contracts.
Cash Generation
Understanding how to generate cash in relationship to your business' time horizon is essential to survival. The fastest way to generate cash is to rollover an asset. The longest time to generate cash is to develop a concept - opening an operating business model that is successful and worthy of franchise investment - and then providing for the marketing of the franchise.
- Rollover of an Asset
- Ownership
- Acquisitions
- Manage Contract
- Franchise
Production Function Strategy
Production function refers to the organization function responsible for the creation and delivery of products and services to customers. Typically, this function supports processes involved in converting labor, materials, etc., into goods and services with particular combination of qualities that a selected group of customers want.
In a competitive environment, offering a variety of products to meet customer demand is not enough for a manufacturer to achieve a high level of financial performance. At the same time, the products manufactured must be competitive on the basis of price, quality and product functionality. In addition, an organization must maintain high performance levels in the management of the flow of materials through an organization from the point of origin to the point of consumption and from raw materials to in-process inventory to finished goods. Achieving these latter goals requires that a manufacturer define appropriate logistics performance objectives or goals pertaining to procurement, production and distribution processes.
Performance Goals
A manufacturer can achieve competitive advantage, which is an advantage over other companies that operate in the same industry, by achieving operational performance objectives for its production and storage processes. Such objectives can be categorized as functional performance, customer accommodation performance or logistics performance objectives. For example, functional performance can be gauged according to the total dollars spent for such items as warehousing of materials, transportation and order processing as well as the number of complete orders delivered to the customer and the average number of days between order receipt and product delivery. In turn, customer accommodation performance criteria include the number of perfect orders and the level of customer satisfaction achieved by logistics processes. However, each performance goal in these categories, as well as the logistics performance objectives category, is defined for an individual business process. As Jan Olhage writes in “Advances in Production Systems,” a manufacturer can define specific objectives for the procurement, production and distribution logistics processes in particular.
Production Goals
Suitable production objectives for a manufacturer include attaining a high level of operational performance through high delivery reliability and short throughput times, which may be achieved by such activities as capacity planning and production scheduling. In turn, the manufacture may set a logistics and process costs control objective in the form of high utilization, which may be achieved by maintaining short and reliable lead times as a result of supplier relationships, internal controls and process improvements. The manufacturer may also focus on cost control by maintaining low work-in-process levels.
Distribution Goals
Olhage maintains a manufacturer’s valid distribution goals include maintaining a high service level, which may be achieved through a just-in-time inventory system that enables the manufacturer to minimize inventory levels and carrying costs, and low delivery delay, which is achieved through vendor relationships and supply chain controls. In addition, the manufacturer may set logistics process costs and inventory costs objectives, including a low storage costs goal, which may achieved in part by low inventory levels.
Production strategy is a broad long-term action plan made for achieving the main objectives of an organization. Production strategies tell us what the production function/department must do to achieve the top aim of the organization. Production strategy deals with decisions/choices about how and where the products or services will be manufactured or delivered, technology to be used, management of resources, plus purchasing and relationships with suppliers.
Operational Goals
Operational goals are the workflow methods that bring the strategy to fruition, and exist at all levels of the organization, from CEO down to part-time employees. Operational goals are the short-term tactics designed to achieve the company's long-term strategy. Operational goals lay out increments called benchmarks; they streamline the day-to-day activities of the business. They measure daily, weekly, and monthly benchmarks. For example, the monthly budget report shows if a company's financial goals are on track. Manufacturing examines production reports to ensure the number of units produced meets production goals with minimum waste.
Production function refers to the organization function responsible for the creation and delivery of products and services to customers. Typically, this function supports processes involved in converting labor, materials, etc., into goods and services with particular combination of qualities that a selected group of customers want.
In a competitive environment, offering a variety of products to meet customer demand is not enough for a manufacturer to achieve a high level of financial performance. At the same time, the products manufactured must be competitive on the basis of price, quality and product functionality. In addition, an organization must maintain high performance levels in the management of the flow of materials through an organization from the point of origin to the point of consumption and from raw materials to in-process inventory to finished goods. Achieving these latter goals requires that a manufacturer define appropriate logistics performance objectives or goals pertaining to procurement, production and distribution processes.
Performance Goals
A manufacturer can achieve competitive advantage, which is an advantage over other companies that operate in the same industry, by achieving operational performance objectives for its production and storage processes. Such objectives can be categorized as functional performance, customer accommodation performance or logistics performance objectives. For example, functional performance can be gauged according to the total dollars spent for such items as warehousing of materials, transportation and order processing as well as the number of complete orders delivered to the customer and the average number of days between order receipt and product delivery. In turn, customer accommodation performance criteria include the number of perfect orders and the level of customer satisfaction achieved by logistics processes. However, each performance goal in these categories, as well as the logistics performance objectives category, is defined for an individual business process. As Jan Olhage writes in “Advances in Production Systems,” a manufacturer can define specific objectives for the procurement, production and distribution logistics processes in particular.
Production Goals
Suitable production objectives for a manufacturer include attaining a high level of operational performance through high delivery reliability and short throughput times, which may be achieved by such activities as capacity planning and production scheduling. In turn, the manufacture may set a logistics and process costs control objective in the form of high utilization, which may be achieved by maintaining short and reliable lead times as a result of supplier relationships, internal controls and process improvements. The manufacturer may also focus on cost control by maintaining low work-in-process levels.
Distribution Goals
Olhage maintains a manufacturer’s valid distribution goals include maintaining a high service level, which may be achieved through a just-in-time inventory system that enables the manufacturer to minimize inventory levels and carrying costs, and low delivery delay, which is achieved through vendor relationships and supply chain controls. In addition, the manufacturer may set logistics process costs and inventory costs objectives, including a low storage costs goal, which may achieved in part by low inventory levels.
Production strategy is a broad long-term action plan made for achieving the main objectives of an organization. Production strategies tell us what the production function/department must do to achieve the top aim of the organization. Production strategy deals with decisions/choices about how and where the products or services will be manufactured or delivered, technology to be used, management of resources, plus purchasing and relationships with suppliers.
Operational Goals
Operational goals are the workflow methods that bring the strategy to fruition, and exist at all levels of the organization, from CEO down to part-time employees. Operational goals are the short-term tactics designed to achieve the company's long-term strategy. Operational goals lay out increments called benchmarks; they streamline the day-to-day activities of the business. They measure daily, weekly, and monthly benchmarks. For example, the monthly budget report shows if a company's financial goals are on track. Manufacturing examines production reports to ensure the number of units produced meets production goals with minimum waste.
Sales Function Strategy
The Sales function/department advises the marketing department based on its feedback with customers and focuses on customer contact to drive sales. Sales operations is about supporting and enabling front line sales teams to sell more efficiently and effectively by providing strategic direction and reducing friction in the sales process. To do this, sales operations fulfills both strategic and tactical functions. Sales operations teams accomplish their goals through a variety of roles and function including: strategy, data analysis, hiring and training, forecasting, territory design, and sales process optimization.
Sales strategy is a plan to achieve a sales goal and is what directs the selling activities of any business. Selling is crucial to the success of any business, but it must be orchestrated to deliver success, which is what the sales strategy does. The sales strategy describes how a business will win, retain, and develop customers. Sales strategy is different from marketing strategy - overall approach to marketing products (it is how you build sustainable competitive advantage for the company's products through positioning, and differentiation by managing the marketing mix of the 7ps.
A sales strategy is particularly important in addressing business challenges such as:
When creating a sales strategy be clear as to which challenge(s) you are addressing.
Key Building Blocks of a Sales Strategy
A winning sales strategy has a number of elements/building blocks including:
Sales Plan
The tactical plan for the Sales department needs to be developed in concert with the marketing department. The sales pla should address how the volume of calls will be handled, how many people will this require and how sales leads will be followed. The marketing department will need to provide sales department with information about the TV campaign so sales can complete its own tactical plan.
The Sales function/department advises the marketing department based on its feedback with customers and focuses on customer contact to drive sales. Sales operations is about supporting and enabling front line sales teams to sell more efficiently and effectively by providing strategic direction and reducing friction in the sales process. To do this, sales operations fulfills both strategic and tactical functions. Sales operations teams accomplish their goals through a variety of roles and function including: strategy, data analysis, hiring and training, forecasting, territory design, and sales process optimization.
Sales strategy is a plan to achieve a sales goal and is what directs the selling activities of any business. Selling is crucial to the success of any business, but it must be orchestrated to deliver success, which is what the sales strategy does. The sales strategy describes how a business will win, retain, and develop customers. Sales strategy is different from marketing strategy - overall approach to marketing products (it is how you build sustainable competitive advantage for the company's products through positioning, and differentiation by managing the marketing mix of the 7ps.
A sales strategy is particularly important in addressing business challenges such as:
- Stagnant sales revenues - Flat/declining sales
- Merger of Sales Forces - A need to align sales teams and have them pursue common objective.
- Start-up of new Venture - A need to get sales started and realizing the ambition of the founders and investors.
- New Product Introduction - A need to deliver the expectations set by management.
- Launch by a new competitor - A need to counter the threat from new competitors.
- Expansion to new markets - When a company is diversifying and expanding.
When creating a sales strategy be clear as to which challenge(s) you are addressing.
Key Building Blocks of a Sales Strategy
A winning sales strategy has a number of elements/building blocks including:
- Goal and Objectives - An effective sales strategy requires you know the goal of your business, i.e., what your overall aim for the business is.
- Target Market - You need to decide who will buy your products and services.
- Product and Services - Building the best products and services that meet the needs of their target markets.
- "What are the competitive advantages?" - This requires identifying the "strengths" and "weaknesses" of competitors that you will need to sell against and exploit.
- Route to market - How do you reach and sell to your customers?
- Selling Process -
Sales Plan
The tactical plan for the Sales department needs to be developed in concert with the marketing department. The sales pla should address how the volume of calls will be handled, how many people will this require and how sales leads will be followed. The marketing department will need to provide sales department with information about the TV campaign so sales can complete its own tactical plan.
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