Situation
Construction group, successfully operating in the market of Moscow and the Moscow region, having its own production units, real estate agency. Despite the existing portfolio of projects, the shareholders were concerned about stagnation in the housing construction market and instructed the management of the group to draw up a development strategy. The development strategy presented raised a number of questions that the group's management could not answer with sufficient certainty. At the same time, the existing strategic management system did not suit shareholders in everything.
Project objectives:
- Assess the group's strategy and formulate recommendations for its adjustment
- Diagnose the strategic management system and draw up a program for its development
Approach
To assess the strategy, an approach called “express strategy” was used. It allows you to check the strategy for the integrity, consistency and accuracy of conclusions. If any questions are found in the company's strategy, strategy development tools are used to correct the situation. To characterize strategic management, we use the tools developed for the leading international rating agency, as well as the approach "Strategy Focused Organization" by David Norton and Robert Kaplan. Over the years, we have improved it and tested it on several projects in various industries.
Recommendations
Despite the overall quite good quality of the strategy, the following issues were identified during its assessments:
- Core competencies of the company have not been defined
- Scenarios were not considered despite uncertainties
- Weak analysis of competition and industry
- Lack of segmentation and sales forecast by segment
- Missing risk assessment
(bold highlighted coinciding with shareholder questions)
To search for answers to the questions, a program of measures was formulated that allowed them to work out deeper and adjust the strategy to achieve the goals of the shareholders.
During the strategic diagnostics, information was collected and analyzed about existing processes, decision-making methods and other elements of the strategic management system.
Outcomes
A program of refinement and adjustment of the strategy was developed within a month and a half, which allowed for a more in-depth analysis of the issues within a month and a half, consider alternative scenarios and clarify conclusions. The adjusted strategy was approved by shareholders and adopted as the basis for the five-year development of the group.
The implementation of the strategic management adjustment program within six months ensured the qualitative execution of the strategy and allowed shareholders to manage the group strategically.
