How to create strategic focus area?
First of all, is to choose the direction of your focus. It can be determined by analysis of every area and part of the organization which tells the proceeding ways that will yield success. For example, the vision of cosmetic company XYZ is to “provide cost-effective and high-quality products to our customers”. To create success in this cosmetics company, the following areas will be focused on.
Four perspectives:
Now when an organization starts, it needs to define some of the focus areas so that it can execute the right strategy. Four perspectives have been developed to ensure success by the companies.
1. Financial Perspective:
Whenever an organization is developed, it takes a great amount of investment. That investment has been done on a specific cause to generate money. So, it is one of the most important focus areas for companies. They have to increase the amount of revenue and profit to reckon their company as a profitable business. For example, employing strategic values where more profit can be obtained by selling a product to a potential buyer can double the profits with his hidden capabilities. A lot of other components can be included in this, for example, building more revenue channels like making more products, establishing more production units, cost savings on manufacturing like using materials with high quality but not as expensive.
2. Customer Perspective:
This perspective solely belongs to the customer of the product and the market which the product will specifically target to increase sales and generate profits. This helps the organization to estimate the needs of customers and which markets they have to target. Its main focus areas include customer satisfaction like durable and authentic products and high quality of services like lesser time to respond to complaints and so on. Also, trends like brand awareness which deals with making the organization well known on social apps are included in this sector. While targeting market includes selecting the most favorable area for sales like choosing markets where more female customers visit so that they can buy cosmetics.
3. The Internal Process Perspective:
It includes all the processes that are involved in delivering customer service, improving the organization’s performance and other improvements that are needed to walk the company towards success. For example, improving machinery and techniques to increase production. Improving the quality of the environment like reducing the amount of waste produced.
4. The Learning and Growth Perspective:
It’s a wide-based focus area that is normally divided into three types. For example, Human focus area that deals with manpower in the organization and their skills, information capital that deals with all databases and information, and organizational capital that deals with leadership that exists with the system and culture of the organization.
Tips to Create Strategic Focus Areas:
I hope you enjoy reading this blog post.
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