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A common disappointment among managers in regards to measuring performance is that in practice, in many cases, the key performance indicators (KPIs) monitored do not seem relevant as they are not connected to the strategy.
Executives are familiar with Alfred Chandler, one of the more prominent strategic management scholars, along with Henry Mintzberg. Chandler perceives corporate strategy as the determining factor behind a firm’s long-term goals, after which you allocate capabilities and adapt actions & activities in a fashion that can achieve them in both an effective and efficient way.
Everyone loves the story of an underdog who eventually comes out on top. Just like the biblical story of David and Goliath, small businesses want to believe that they too can compete with the big boys and win. Believe it or not, the world is full of business upstarts that took on industry giants and emerged victorious.
Nowadays, supplier services and purchasing power are of major strategic importance to most companies.
Most would agree that a well-planned business strategy is necessary for an organization to achieve desired business results. Business leaders in the highest-performing companies understand that, and while a detailed business strategy is necessary for successful organizational performance, it is not sufficient.
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