Strategic Vision
A Primer on Reliability and Company Strategy
Reliability Centered Maintenance (RCM) ensures that manufacturing operations support a company's core values and strategies. This valuable control provides RCM with its its most compelling business case. The following paragraphs give a brief overview of the Strategic Vision Framework (Framework). The next page explains how RCM supports the integrity of the Framework.
Strategic Vision and Strategy
Most companies have a Strategic Vision (SV) that defines who they are and where they want to go. The SV provides guidance and general direction for all strategic activities. A successful SV is developed as a framework that aligns its different strategies. These strategies include the company's core competencies, financial plan, business charter, technology strategy, product strategy, and competitive strategy.
Strategy defines the art of execution. Each strategy provides the broad, long-range direction for how the company will achieve its Strategic Vision. Almost every company works with the following strategies:
- Competitive Strategy
- Product Strategy
- Technology Strategy
- Core Competencies
- Business Charter
- Financial Plan
The elements of the Strategic Vision framework must support each other. As a result, management teams must work collaboratively to maintain balance between the different strategies. The strategies, also must support the company's Strategic Vision.
The strategic elements of the Framework define the interfaces between the Strategic Vision and the company's many activities. These elements, working together provide a "battle plan" for the competitive marketplace.
Competitive Strategy - Competitive strategy defines how a company will respond to changing market trends. These trends include changes in the size of market opportunities, customer expectations, buying behavior and brand loyalty, and supply chain elements.
Product Strategy -Product strategy defines the capabilities of both current and future product offerings. The product strategy must remain aware of its ability to sustain its support for the Strategic Vision. The strategy ensures that current product offerings continue to be competitive in the marketplace. It also anticipates new market opportunities and plans the development of new products to expand a company's market.
Technology Strategy -Changes in technology trends can offer threat or opportunity to a company. Companies must use technology strategies to monitor changing trends, anticipate threats and opportunities, and respond to changing trends to avoid losing their competitiveness.
Core Competencies -Core competency defines special or unique skills and talents that allow a company to provide value to its customers. These speciial or unique skills and talents frequently provide product differentiation and competitive advantage.
Business Charter -The business charter defines what the company is and what it is not. The charter enables a company to maintain its focus on its initial CSV.
Financial Plan - The financial plan defines the company's long-term financial goals and provides capital for ongoing operations. The important elements of the financial plan include revenue growth, profitability and investment.