Chapter 3 Strategic Advantages – Strategic Level

Our strategic advantage lies in the leverage of knowledge.

-          Bob Buckman

Developing Strategy

At the strategic level the corporate objectives are converted from carefully structured objectives and goals into rigorous strategies to ensure that these objectives are met within the timeframes required. Strategy definition represents step 2 and step 3 of the defining performance graphic first introduced within Chapter 1 of this book. (See Figure 3.1)

This area is a detailed section of work that requires a lot of understanding of the organization’s business and operating environment as well as asset management in general.

The key objectives of the work done at this level are-

1. Ensuring that corporate objectives or goals remain confidential where necessary.

2. Defining the strategies required for achieving the desired levels of performance that were defined as corporate objectives and goals.

3. Defining the indicators used to measure the achievement of the goals of these strategies.

The MSC is focused on the creation of competitive advantages, that is, identifying differentiating capacities or capabilities that will increase the organization’s ability to compete. Whether this information could compromise the competitive ability of the organization, it needs to remain confidential, which in itself poses a challenge. Some employees can often divulge confidential information accidentally if they are not accustomed to having such information. Furthermore they may deliberately divulge confidential information if they suddenly become disgruntled for some reason or other.

For example, in many minerals-producing and processing industries, one of the key client requirements is the continuity of supply. In others, such as utilities industries, client costs may be affected greatly by initiatives within the asset management sphere. In many sectors these industries are extremely competitive. As such, a leak of information from a market leader to another company can significantly change the business landscape within that industry, particularly given the importance of asset management in these industry types.

Leaking of information can be damaging enough if it occurs within private enterprise. However within government controlled institutions, its effect can be truly devastating. While government sponsored or controlled institutions have less of an economic driver, they are generally answerable, in no small amount, to the public.

Although confidentiality is paramount, there is also a need to provide enough information for the subsequent strategies to be created. Strategic level indicators directly represent the strategic advantages that the corporation needs to achieve in order to reach corporate objectives.