Organisational Strategy
Before an organisation invests in a new system, product, or process, it first needs to decide what 'good' looks like for itself — that is the job of strategy. Strategy starts with clear objectives and a scan of the organisation's environment: a SWOT analysis weighs internal strengths and weaknesses against external opportunities and threats, giving management a picture of where the organisation stands and where it could go. Based on that picture, the organisation formulates a long-term plan that sets priorities and allocates resources. A strategy only works if it is matched to the internal organisation: structure, culture, and every functional area — marketing, operations, HR, finance — need to pull in the same direction, and tools such as a balanced scorecard help translate the strategy into concrete, measurable objectives that these functions can act on. As an IT professional, recognising an organisation's strategy helps you understand why a stakeholder prioritises one requirement over another.
Starting Points
- OpenStax – Introduction to Business (free open textbook: strategy formulation & the strategic planning process)
- Mind Tools – SWOT Analysis
- LinkedIn Learning – Understanding Business
Key Points
- You explain what an organisational strategy is and why it must start from clear objectives.
- You perform a SWOT analysis to weigh an organisation's internal strengths and weaknesses against external opportunities and threats.
- You scan an organisation's task and general environment to identify strategically relevant opportunities and threats.
- You explain how a strategy is translated into a long-term plan with concrete priorities.