Integration of Organization Strategy with Projects:
Strategic Management Process Includes Four Activities

The typical sequence of activities of the strategic management process is outlined here (also see process diagram above); a description of each activity then follows:

1. Review and define the organizational mission.



2. Set long-range goals and objectives.



3. Analyze and formulate strategies to reach objectives.



4. Implement strategies through projects.

Review and Define the Organizational Mission

The mission identifies "what we want to become" or the raison d'etre. Mission statements identify the scope of the organization in terms of its product or service. Everyone in the organization should be keenly aware of the organization's mission. For example, at Arthur Andersen Consulting, partners who fail to recite the mission statement on demand are required to buy lunch. A written mission statement provides focus for decision making when shared by organizational managers and employees. The mission statement communicates and identifies the purpose of the organization to all stakeholders. Mission statements can be used for evaluating organization performance.

Traditional components found in mission statements are major products and services, target customers and markets, and geographical domain. In addition, statements frequently include organizational philosophy, key technologies, public image, and contribution to society. Researchers Pearce and David (1987) found that mention of such factors in mission statements related to business success. Mission statements change infrequently. However, when the nature of the business changes or shifts, it may require a revised mission statement. For example, the breakup of American Telephone and Telegraph (AT&T) required a shift in mission from one of telecommunications to information handling. More specific mission statements tend to give better results because of a tighter focus. Mission statements decrease the chance of false directions by stakeholders. For example, compare the phrasing of the following mission statements:

• Provide bridge design services.



• Provide waste plant design services.



• Provide engineering services.



• Increase shareholder value.



• Provide high-value products to our customer.

Clearly, the first two statements leave less chance for misinterpretation than the others. A rule-of-thumb test for a mission statement is, if the statement can be anybody's mission statement, it will not provide the guidance and focus intended. The mission sets the parameters for developing objectives.