THE AIM OF STRATEGY
When you begin thinking of yourself as a
personal services corpora-
tion
, you separate yourself from all those people who think they
work for someone else. When you take charge of your career, you
begin thinking in terms of personal strategic planning, just like a
large business.You begin making plans for the long term.
The parallels between corporate planning and personal plan-
ning are very similar. The purpose of strategic planning in a busi-
ness is to achieve the highest
return on equity
(ROE) invested in the
business. All strategic plans and tactics are aimed at reorganizing
the resources and activities of the company in such a way that it
achieves a higher rate of financial return on its resources than it was
achieving before.
In its simplest terms, strategic planning is aimed at increasing
the ratio of outputs to inputs. All of the management practices pop-
ular today, such as
restructuring
,
reorganizing
,
reengineering
, and
rein-
venting
, are aimed at improving the functioning of the organization
so that it earns more money. They are aimed at increasing outputs
and rates of return on equity.
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