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How Robust is your Strategy?
Isolated actions may be justified in some instances but opposed in common purpose - that of optimising Shareholder Value. Often, what may be seen as brilliant strategy, based on achieving a desired outcome, results in disappointment due to unforeseen structural deficiencies, it is therefore logical to carefully plan strategy within the scope of the organisation’s business capabilities and chosen market segment. Any neglect, oversight or intrinsic weakness in the structure supporting existing or new strategies, may lead to irreversible disastrous financial consequences.Despite success or failure in implementation, management endeavours should be guided by a strategy that is intended to deliver Shareholder Value. Furthermore, whether planned or emergent, strategy ultimately influences all aspects of a business to produce the desired results. Furthermore, lack of attention to the structural detail in developing a road transport strategy may leave it vulnerable to imbalances in strategic intent and direction. In relating these trends and their impact on a road transport business the QUAD Strategy Initiative (QSI) vividly illustrates the advantages of a robust and integrated strategy. The QSI has been developed around a borrowed concept from the fundamental principles applied in Structural engineering design.
How Robust is your Transport Strategy?
Author: Hugh Sutherland2014/09/21
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As a natural consequence of company structure, i.e. Administration, Marketing, Sales, Technical, Warehousing and Operations, there is an ever present danger of departmental, “silo” interests affecting strategic unison within an enterprise. Both positive and negative examples of this are to be found in private fleets for example; low fleet availability due to budget constraints on Fleet managers, and/or inefficient fleet utilisation by Operations managers attempting to improve service delivery to clients by part loading trucks for expediency reasons. In Carrier fleets there is a tendency to cut transport rates to secure additional business again, in isolation, this might achieve the desired result but seriously affect the company’s financial performance.
"The essence of formulating competitive strategy is relating a company to its environment", says Michael Porter.
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