А Key Element of Strategic Management

It is obvious that in order for the development of a strategic plan to be efficient, motivation is required. But without motivation, the successful implementation of this plan is impossible. The specifics of strategic planning largely determine the details of the systems of motivation.

The motivation system functions according to the qualities and mechanisms of motivation, which is developed during the stage of entry strategy preparation. First and foremost, this system has to inspire employees involved in the process of strategy development and implementation to orient their mindset toward a strategic way of thinking.




Formalizing the Strategic Motivation System

Formalizing the strategic motivation system includes establishing a system of daily incentives for employees, especially those who are responsible for strategy development and implementation. The formal system is presented in a document, where all suggestions about motivation and incentives are developed and described. It includes all moral, social, and financial instruments of motivation of individual employees and groups of employees. Special recognition and awards should be given to those who go above and beyond in creating and implementing strategic ideas.




How To Deal With the Lack of Initiative

One of the main challenges of motivation systems is the lack of initiative. This has implications for all major functions of management systems. It obviously makes it difficult for executives to delegate operational decisions to managers.




The Importance of Social Incentives

In establishing motivational systems, many executives and managers overemphasize financial incentives and ignore social incentives, which can be powerful. It goes without saying that employees will respond to changes in their pay. However, managers should also consider the effectiveness of social incentives, such as public recognition of accomplishments and mistakes.



The Most Difficult and Important Part

A strategic motivation system consists of a set of methods, procedures, and instruments to efficiently implement strategic plan in practice. The most difficult and important function is to motivate executives, managers and even professionals to think strategically, to permanently develop a vision of the future.





Case Studies Encouraging Initiative-taking Attitude in a Russian Organization

In an attempt to encourage an independent, initiative-taking attitude, the mayor of a city in an oil-reach province of Russia officially prohibited the use of the following phrases by any employee when meeting with superiors:

"I don't know."

"Why would I need that?"

That's impossible."

That would cut into my lunch break."

That's not my responsibility."

My secretary made an error."

I don't recall you telling me that."