Thelong-term development of organization is guided by corporatestrategies. Corporate strategies guide organizations in allocatingtheir resources appropriately, establishing expectations, andadopting measures that will enhance the competitive position of thecompany for a specified period of time (Nordmeyer,2015). Thispaper will discuss the process of strategy formulation, with a focuson the interpersonal abilities, intrapersonal abilities, beneficialtools, incorporation of the inputs of stakeholders, and stepsfollowed in the process of strategy formulation.
Intrapersonaland interpersonal abilities
Thetraits of individuals involved in the process of formulatingstrategies influence the quality of strategies that are developed.One of the intrapersonal skills required in the process offormulating strategies is “planfullness”, which refers to abilityof individuals to choose functions that suit their talents and pursuethem effectively (NationalAcademy of Science, 2015). Aplanful person can easily identify roles that suit the talentsindividual employees, which leads to the development of viableorganizational strategies. A suitable interpersonal skills requiredin the process of strategy formulation is verbal communication.Verbal communication facilitates an efficient sharing of ideas duringthe process formulating strategies and communicating the finalstrategies to individuals who are expected to implement them.
Brainstormingis a beneficial tool in the process of formulating strategies. Thebrainstorming tool helps the management in collecting unique ideasspontaneously from employees (Price,2014). The tool allow the management to trigger the thoughts of employeesor individuals involved in the process of strategy formulation withthe objective of ensuring that ideas generated are innovative.
Incorporatingthe inputs of stakeholders
Incorporatingthe inputs of different stakeholders ensures that the strategies thatare formulated by the organization are accepted by all participants,which in turn increases the success of the implementation process.The inputs of different stakeholders can be incorporated intoorganization strategies by creating platform (such as meetings) thatcan give the stakeholders the opportunity to give their opinions(Sharma,2014). Theircontributions should then be taken into account when developing thefinal corporate strategies. However, the stakeholders should beengaged from the earliest stages of strategy formulation in order tocreate the sense of ownership of the final strategies.
Processof strategy formulation
Theprocess of formulating strategies follows six major steps. The firststep involves setting of organization’s objectives. Theseobjectives held the organization in ensuring that it achieves certaingoals after implementing certain strategies (ManagementStudy Guide, 2014). Thesecond step involves the evaluation of the organization’senvironment (including industrial and economic conditions) in orderto ensure that critical factors for the firm’s competitive successare integrated in the corporate strategies. Third, the organizationset quantitative targets. These targets make it easy to measure theimpact of the corporate strategies once the implementation starts.Fourth, contributions made at the departmental levels are integratedinto the final strategies, which ensure that the overall strategiesformulated at the organizational levels are in line with thedepartmental strategic plans (ManagementStudy Guide, 2014). Thefifth step involves the actual implementation of the corporatestrategies. This is followed by the process of evaluating the successof the implementation process. The process of evaluation allow themanagement to correct any faults in the strategies at an early stage.
Interpersonalskills and intrapersonal abilities of individuals given theresponsibilities of formulating corporate strategies influence theoverall quality of the strategies. Brainstorming employees triggerstheir brains, which leads to the generation of unique ideas thatenhance the quality of corporate strategies. Incorporating the inputsof different stakeholders ensures that all parties involved in theformulation of strategies support the final strategies since theyfeel that their contribution is appreciated.
NationalAcademy of Science (2015). Assessing interpersonal skills. NationalAcademy of Science.Retrieved January 27, 2016, fromhttp://www.ncbi.nlm.nih.gov/books/NBK84217/
ManagementStudy Guide (2014). Steps in strategy formulation process. ManagementStudy Guide.Retrieved January 27, 2016, fromhttp://www.managementstudyguide.com/strategy-formulation-process.htm
Nordmeyer,B. (2015). Whyis corporate strategy importance?Santa Monica: Demand Media.
Price,R. (2014). Theimportance of brainstorming.Santa Monica: Demand Media.
Sharma,R. (2014). Thesix principles of stakeholder engagement.Washington, DC: Reed Business Information.