Strategic management flexes muscle

Issue Number: 
370
Author: 
Karine Jones
Published: 
2001-11-07


As surprising as it may seem, many employees don’t understand their company’s corporate strategy or their role in achieving its goals— and, as a result, stagger corporate growth by repeating the same mistakes or dwelling on past successes. But understanding their company’s corporate strategy is just the first step; employees should also play a role in forming it.

Dmitry Stolyarow, director of international relations at an Ulyanovsk-based airline Volga Dnepr, says the company has learned the basics of strategic management from its Western counterparts. As a result, it not has a department specifically dedicated to the task, but also has both senior and junior committees specializing in it. The junior committee generates fresh ideas and offers a good opportunity for talented young individuals to shine. Junior committee members also inform other employees of developments in corporate strategy.

Stolyarow says he is sure all of the company’s 860 employees understand Volga Dnepr’s corporate strategy, primarily because so many of them are involved in developing it, but also because the company has a corporate magazine and a Tree of Aims, a visual map of the the airline’s mission and corporate goals.

Even Russia, where unstable market conditions may make designing a long-term strategic plan more challenging, strategic management remain the only solid corporate approach to the future. Efficiency, performance, and competitive positioning of any organization will no doubt improve when the efforts of all employees are directed to common goals they helped define.

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