APM - Strategic Planning and Control: Rational Model / Mission / Mendelow
APM - Strategic Planning and Control: Rational Model / Mission / Mendelow
APM - Strategic Planning and Control: Rational Model / Mission / Mendelow
PRIORITISING STAKEHOLDERS:
- Employees; - Lenders;
- Managers; - Pressure groups;
- Customers; - Local community;
- Suppliers; - Government;
- Shareholders; - Other stakeholders.
- Shareholders may want a higher dividend, but employees may want higher salaries;
- Suppliers may like to be paid more for the goods they supply, but customers would prefer to pay less.
Compromises need to be made, and priorities need to be set. To do this, we can use Mendelow’s stakeholder
map:
MISSION STATEMENT:
Mission statement is the starting point for strategy formulation. Decision-makers can use it to help them decide
what to do next. However, too often mission statements are a public relations exercise and they are ignored as
they cannot be used to help formulate strategy. As a result, the head of finance struggles to define what good
performance is, and hence struggles to measure performance and manage it.
According to Campbell et al., a mission statement should address four specific areas:
1) Strategy;
2) Purpose;
3) People and behaviour standards;
4) Values.
RATIONAL MODEL:
Strategic
The finance professional can help with every stage of the rational planning process: