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Strategic Direction

Discussion in 'ISO 9001:2015 - Quality Management Systems' started by KyleG, Jan 15, 2019.

  1. KyleG

    KyleG Active Member

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    Could someone give me an example of a "strategic Direction".
     
  2. Andy Nichols

    Andy Nichols Moderator Staff Member

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    Targeting a particular market such as Aerospace/defense, medical device, automotive etc as a place to develop the business. For example, an electronic assembly (PCBA) shop might decide to specifically enter the medical device market because the product volumes are relatively low, not subject to cyclic variation (like automotive is) and the margins are usually high(ish)
     
  3. KyleG

    KyleG Active Member

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    What if we have no intention on expanding into other markets?
     
  4. RoxaneB

    RoxaneB Moderator Staff Member

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    Your initial question is then quite vague. If you would like potential examples in a particular area, you may need to focus your question for us.
     
  5. KyleG

    KyleG Active Member

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    4.1, The organization shall determine external and internal issues that are relevant to its purpose and its strategic direction....
    how do i establish my strategic direction if we're not going to expand, some top level management has talked briefly about moving into pick up a different type of parts. we use Cerakote and Hydrographic film, those are the only "services" we offer.
     
  6. Golfman25

    Golfman25 Well-Known Member

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    Kyle, you generally have 5 strategic directions:

    1. Expand -- grow market share
    2. Maintain -- defend current market share
    3. Contract -- Prune the business, shrink sales but increase profitability.
    4. Milk -- minimize investment, maximize cash flow.
    5. Withdraw -- exit the market over time.

    Figure out which one suits you and go with it. Good luck.
     
  7. Andy Nichols

    Andy Nichols Moderator Staff Member

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    Do they have a business plan? Any "vision" for where they see the business in 12, 24, 36 months' time?
     
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  8. Ali.M

    Ali.M Member

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    You could also use SWOT analysis, Risk Analysis, Quality Policy and Business Manual to name a few. Basically, you need a documented statement of where the organisation is heading.
     
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  9. Andy Nichols

    Andy Nichols Moderator Staff Member

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    Where should this be documented?
     
  10. Ali.M

    Ali.M Member

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    We have a Business Manual and in Clause 4.1 Understanding the Organisation and its Context, there is a vision and mission statement where it is clear on where we are and where we want to be.
     
  11. Andy Nichols

    Andy Nichols Moderator Staff Member

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    For those who do NOT want a "business" or quality manual, where can this be documented? Also, if a company puts this in their manual and shares that with customers could that be giving away important, secure information?
     
  12. Ali.M

    Ali.M Member

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    A business manual doesn't necessarily have to give away important, secure information.

    You could also get the Strategic Direction from an organisations Quality Policy.
     
  13. BufferMess

    BufferMess Member

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    @KyleG. Strategic direction shapes your context, quality policy and objectives. The QMS of your organization needs to be in alignment with the strategic direction. Your question is hard to answer unless you provide some details about your bussiness.
     
  14. Andy Nichols

    Andy Nichols Moderator Staff Member

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    I don't believe that's true. In the 3 years of implementing a number of ISO 9001 based QMSs, nothing of strategic importance ever entered into the policy or the manual. The strategic direction is and should be kept secure. Best place is recorded in Management Review, where it belongs.
     
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  15. tony s

    tony s Well-Known Member

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    I just want to share a sample of how "strategic directions" were set to support a "vision" of an organization. A SWOT analysis was employed in this example.

    upload_2019-1-31_18-0-46.png

    After the "strategic directions" are established, these should be supported with measurable objectives.
     
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  16. Daniel Padilla T

    Daniel Padilla T Member

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    Hello Tony,

    Do you have one SWOT analysis for strategic directions and another for internal and external issues (context of the organization), or it's the same?
     
  17. Andy Nichols

    Andy Nichols Moderator Staff Member

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    The SW gives you the internal issues, the OT, the external. The SWOT isn't the strategic direction - that must come from the top management. The SWOT gives you risks and opportunities which may be linked to the strategic direction.
     
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  18. tony s

    tony s Well-Known Member

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    Andy is right. By having a SWOT analysis to establish the strategic directions of your organization you can already cover the requirements in 4.1 and 6.1.1. SWOT analysis is a good tool for planning at the strategic level. For the operational level. you can use FMEA, risks registers, structured what if technique (SWIFT), HACCP, etc. See a sample of a SWOT analysis in establishing an organizations strategic directions that will support their vision statement:
    upload_2019-6-1_9-36-17.png

    Notice that by combining the S and O, W and O, S and T, and W and T, an organization can develop their strategies.
     
    Last edited: Jun 1, 2019
  19. Daniel Padilla T

    Daniel Padilla T Member

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    Thank you all for your help. In addition, can you give me some books recommendations on strategic planning?
     
  20. may@ m.

    may@ m. Member

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    Hello.
    May i also ask for some insights, please.
    We conduct risk identification and assessment based on the identified Threats and Weaknesses from the SWOT. From that assessment, we come up with plans and strategies. We are doing the risk assessment because we thought that is the way to demonstrate 6.1.2 and 4.4.1.f.
    But our process gives us hard time and I am sure this should not be the case. I think we are overdoing something.
    Your thoughts please.

    TIA.
     

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