6.1. Strategies in terms of WHAT and HOW

One of the practical methods for implementing individual strategic aspects is using the logic of “WHAT and HOW” (Hanzelková, Keřkovský, Odehnalová, Vykypěl, 2009). In other words, a strategy can be formulated in practice so that for each aspect of the given strategy you establish:

1. WHAT you wish to achieve, in terms of the individual aspects of the given strategy, or what basic features of a given strategic aspect should be set for the long term. This can be done either by providing brief descriptions of objectives, or determining long-term objectives.

2. As well as the basic, long-term measures or logic (i.e. HOW) for achieving these goals.

In order for your objectives to be realistic, in terms of the company’s actual business operations, they must be specific enough and easy to evaluate. That is to say, these objectives must succinctly articulate what the company would like to achieve, and assessing target fulfillment should not be too labour intensive or costly. Similarly, the company’s vision in terms of HOW to achieve these goals should be as specific as possible.

The easiest method is by expressing objectives numerically. For example, for a corporate or business strategy, the amount of profit, turnover, profit margins, number of clients etc. that your company wants to (either as a whole or within a given SBU) attain, can be articulated thusly: profit, for example, can be defined as a percentage of turnover, or in terms of its ultimate target level – i.e. in 2017, profits should make up a minimum of 15% of the company’s turnover; or, in 2016, profits should total a minimum of 10 mil. CZK. Other times, it may be beneficial to indicate the percentage of profit growth – compared to 2015, we would like an annual profit growth of 3% p.a. until 2017. Other objectives, primarily the main company objectives, can be defined in a similar manner, for example turnover, customer growth, market share (provided that the company has access to data for estimating market share) etc.

However, such statistical projections may not be suitable or even possible for certain company objectives. It is then advisable to set these goals in a manner that makes it easy to assess their fulfillment. These goals are typical for example in sub-strategic aspects of corporate identity (in the marketing strategy), where a company goal can be e.g. “by 2017, develop and implement new rules for a unified visual style and fully adhere to them in all company aspects and with key partners.”

Sometimes, it advisable to formulate objectives using the SMART system.  From this perspective, targets (on the basis of which the company can be efficiently managed ) should be (de Wit, Meyer, 1994, Keřkovský, Vykypěl, 2006):

- S – specific and stimulating, in order to achieve the best possible results
- M – measurable, i.e. easy to evaluate
- A –acceptable for all key members who have a significant impact on your company, i.e. all major stakeholders, management etc.
- R – realistic, i.e. realistically attainable
- T – timely, i.e. with a clearly defined time-frame

It is also necessary to determine the time frame or strategic horizon that your strategy (or sub-strategy) will be set for. In practice, strategies are usually set for two to three years ahead, due to the hard-to-predict environment. In more stable sectors, five-year strategies (or more) can be set, depending on the company’s situation (de Wit, Meyer, 1994, Keřkovský, Vykypěl, 2006).  

It is also advisable for the company to determine how a given objective will develop in the course of the strategic horizon – usually divided according to year. The company can then set and develop detailed annual plans, and also monitor strategy (or objective) fulfillment more frequently.

Example: An example of setting strategic objective development (numerical and non-numerical) within the given strategic horizon (three years 2015 – 2017)