Page 45 - PRAGMATIC STRATEGY

5-1 General Principles.

Set out the broad almost philosophical aims of the company as set out
in the appendix. These should not need to be changed on an annual
basis.

5-2 Specific Long Range and Short Range aims.

Where possible the general objectives should be backed by quantifiable targets
for say a five year period. Profit ratios, Market share percentages are examples.
But other aspects can be similarly considered. Employee satisfaction can be
measured by falls in absenteeism, work stoppage or by improved morale checked
by motivational research. Ideally use figures which can be obtained from the
standard information system.

5-3 Priority of Objectives.

It may be possible to consider the prime objective of the enterprise as that most
appropriate to the principal beneficiary. Secondary aims can be viewed as
constraints. For example, a nationalised firm may have employment as the top
priority; but within a certain minimum profit/surplus level constraints.

5-4 Be Explicit.

The more the employees understand, accept and identify the objectives the
greater the chance of their reaching them and tailoring their own work to the aims
of the whole enterprise rather than parts of it.

6 Summary

An enterprise needs in order to plot its choice of strategy and to motivate its
members ideally explicit objectives. It is the responsibility of top management to
identify and communicate the objectives. This can be a painful and difficult task
particularly in relation to the choice of priorities.