Why it is essential to formulate strategy supportive policies and procedure?

Why it is essential to formulate strategy supportive policies and procedure?

Strategy means the skill of managing any affair. It is used to describe a pathway along which the organization moves towards its goals or objectives. It is a method or plan chosen to bring about the desired future, such as the achievement of a goal, objective, or solution to a problem.

Policies and operating procedures aid the task of implementing the strategy in several ways:

  1. Providing guidance: New or revised policies and procedures provide top-down guidance to operating managers, supervisors, and employees regarding how certain things need to be done and what behavior is expected.
  2. Aligning actions and behavior with strategy: Policies and operating procedures paces limits on independent action and channeling individual and group efforts along the intended path.
  3. Enforcing consistency: Policies and operating procedures help enforce needed consistency in how’ particular “strategy-critical activities are performed in geographically scattered operating units.
  4. Changing the corporate culture: Instituting new policies and procedures invariably alter the internal work climate. Policy changing process can be a powerful lever for changing the corporate culture in ways that produce a stronger fit with the new strategy.

Company managers, therefore, need to be inventive in devising policies and practices that can provide vital support to effective strategy implementation and execution.

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