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For many individuals, the word strategy planning triggers a silent state of panic, conjuring up images of unfulfilled, time-consuming and expensive processes. Which when complete become distant memories or folders full of unfinished tasks, due to not enough or too many stakeholders involved. Leaders regularly get stuck in the midst of day to day tasks and need to be able to put time aside in order to plan strategically and to be convinced that their priorities are aligned with their reporting manager. But this is often not the case, with the need to create a strategy plan combined with the lack of time to be able to focus on building one, the term “strategy" is often misused. This is not just in procurement but in business. "let’s create a strategy to solve this problem, "or "what is our strategy to launch this project." these are tactical, operational issues, not strategic.
So what’s the difference?
The easiest way to remember the difference is to, Identify the What, Why and Who, This is what is best known as Strategy, setting long-term objectives is always a more productive way to make sure you’re driving your business in the right direction. Tactical planning, on the other hand, focuses on the How, dealing with solving short term issues.
Every organisation needs a strategy plan, without a strategic vision lacks direction and can therefore hardly hope to inspire its workers. Everyone likes to feel that they are going somewhere rather than just consolidating or marking time. People work better when they are aware of what the common goals are for the company and the needs of stakeholders. Sadly, most procurement officers get distracted and preoccupied with the immediate issues, resulting in losing complete sight of their ultimate objectives, finding themselves at the mercy of the competition, the economy, customers and cost savings-oriented activities that pull focus from having a true business impact, rather than taking the initiative and creating their own path.
Procurement strategy could no longer be one-dimensional saving functions; it must filter down to other functions and align the business to work cohesively. Organisations cannot thrive without strong strategy plans built around their business. Forward thinking organisations create forward thinking strategies. More organisations will consider technology in the future to increase revenue, better purchasing and supply chains, create innovative processes and increase customer satisfaction rates. With this technological shift and a well thought out plan, will enable many leaders to manage functions easier.
Our Q2 ebook "is your strategic plan business proof?" Highlights key elements and factors that are quite often overlooked, this ebook offers building tools to execute a fail proof strategy plan, by using Quick wins and checklist as easy guides to ensure you’re on the right path.