The strategy formulation process is an important assessment tool in understanding the effectiveness of strategic performance through- out organizations. The formulation process consists of three main components; strategic planning, strategic thinking and embedding.
In practice, strategic planning and strategic thinking supplement each other in a number of ways and are usually combined to yield a more successful strategy formulation process than either one could do alone (Heracleous, 1998). In addition to these planning and thinking aspects, embedding concerns the building of a shared understanding, the acceptance of strategic choice throughout the organisation, and thus the establishment of a basis for change.
Embedding is described in relation to strategic change and change management and concentrates predominantly on organisational focus.
Under these three headings – thinking, planning, and embedding – an assessment tool consisting of proactive success criteria has been formulated. Implicit in this assessment tool is the assumption that a good process leads to a good outcome and good performance.
The process of management is supported by a number of standard tools and frameworks to ensure its speedy and coherent implementation. These tools and frameworks focus on the critical business processes rather than functions. They can be categorized under the following headings: • envisioning;
• breakthrough objectives;
• ten-step business planning process;
• business strategy review;
• leadership and teaming;
• measurement and evaluation.
In summary, a successful strategy formulation process should meet the following success criteria:
-Develop awareness, draw on self-criticism and, not least, incorporate learning from experience, and facilitate decision-making through an adaptive process.
-State goals, achieve a general level of agreement and establish