Impact of strategic goals on a real-world organization

Business models are implemented in operations models by assigning resources. In practice, strategic goals are created for operations models. Remember, strategic goals can have an impact on designing the company and its organization and processes as well as on the way, the processes are executed. Using the metamodel of tasks and the resource metamodel in the M&A process, we can state that strategic goals have at least the following impact on different parts of the model as stated below:

Impact on Tasks

Strategic goals can be used for or can be translated into objectives and goals for tasks. The goals and objectives apply to all task owners, machines, application software and people. The strategic impact on application software is often ignored.

Tasks are executed using procedures. Strategic goals can, indirectly, influence the way the task is being executed. To achieve this, strategic goals are converted to goals and/or objectives of tasks, which can be used as goals and objectives for procedures or can help in the selection of the right procedure and level of automation.

In addition, strategic measures are implemented as tasks within the corporation.

Impact on processes

The creation, selection and the design of processes can be influenced by strategic goals.

Example

Our strategic goal “Reduce the production cost by 10 percent until 2024” is an obvious example that has massive impact on the design and implementation of production processes since it can lead to a redesign of the production process, to the selection or change of resources used in the production process (new machines, higher level of automation, new software to run production).

Impact on Resource Model, Capabilities and Resources

As stated in the example, during the creation of the operations model, strategic goals influence the selection or change of resources.

Strategic goals can be applied on different levels of organizational hierarchies. A department could have the goal to save cost (organizational hierarchy of people). A Production line consisting of robots could have the goal to minimize downtime (machine hierarchy). The IT team might have a goal to roll-out a new application software for global selling, which relates to software being used for operations of sales teams.

Example

If the strategic goal is “update our sales profile to generate 50% of revenue from international sales by 2026:”, the company needs additional resources to drive international sales, it  might select application software that provides the highest level of automation to manage international sales.

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