http://www.sciencedirect.com/science?

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73&_user=10&_coverDate=08%2F31%2F1989&_rdoc=1&_fmt=high&_orig=search&_sort=d
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A total of 6 critical success factors for ERP implementation have been identified based on
are review of the related
literature. Different analytical techniques were used to study critical success extensively.
The results of statistical
analysis concludes that though top management commitment is positively associated with
intention to use ERP and
end user training is negatively related with intention to use ERP, thus causing hindrance in
ERP applications
implementation. All other critical factors were found significant predictors of Intentions to
use and thus ERP
implementation. Based on the Findings and conclusions of this research study it is
recommended Top management
support and end user training are most serious factor which is obstacles in ERP
implementation in Pakistan. Hence,
it is recommended that all those organizations who are interested for High growth through
increasing reliable
business solution must pay attention on user/employee ERP training and top management
support.
Limitations of the study and Further Research
This study have several limitations, firstly this study was limited to four sectors of economy
that oil and gas sector,
government sector, Engineering sector and telecom sectors. These sectors were selected
particularly due
Implementations issues emerging in those sectors, although other sectors might have the
ERP applications
implementation issues but do to time and resources constraints these sectors were selected.
This study is conducted
in Pakistan and recommendations have been given for organizations while implementing
ERP applications in their
respective organization. Further research can be carried out by including the contents of
payback from
implementation of ERP, Pre-implementation business process performance and Post
business performance.

http://www.allbusiness.com/company-activities-management/management-corporate-
culture/7304235-1.html

It is very important to understand a company’s management strategy and management’s

ability to create wealth for its shareholders. By using The Applied Finance Group’s (AFG’s)
Management Quality score you have the ability to grade management’s ability to make
wealth creating decisions and eliminate wealth destroying firms from your list of
constituents. AFG’s Management Quality variable is used as an exclusionary variable to get
rid of companies which continue to grow their businesses when they are not even profitable
(generating negative Economic Margin or negative EM, which is AFG’s way of understanding
a firm’s economic profitability). When business units are unproductive and destroying
wealth, management teams should not be looking to grow that business unit and
concentrate on the parts of their company that have been creating wealth. Instead, the
corporation needs to fix the broken parts of its business first by divesting losers and work on
improving profitability to earn the right to expand. The best strategy AFG or an investor likes
to see is a very profitable business (generating positive EMs) that grows its assets to
maximize its profitability.

In the examples below we analyze GE’s Management Quality under the control of Jack Welch
from 1980-2001 and under Jeffrey Immelt’s reign as CEO from 2001-2009.

Welch, once the youngest CEO in GE’s history, is highly regarded for his innovative
management strategies, leadership style, and a good understanding of how to create
shareholder value. From 1980 to 2001, Welch was able to grow GE’s revenues from just over
$26 billion a year to $130 billion and took GE’s stock price from around $1.25 a share to
nearly $50 a share. Welch streamlined GE and made it a more competitive company in the
market through his dedication to identifying and improving ways of adding value to its
shareholders as well as numerous successful acquisitions. During the 1990s, Welch
transformed GE from a simple manufacturing company to one of the world’s largest
conglomerate. He even acquired the NBC network, and turned it into a success. Welch’s
compensation/termination policy added to the internal competiveness of its management
teams who knew if they ended up in the bottom 10% of performance of managers they
would no longer be working for GE and only those in the top 20% received bonuses and
stock options.

Jeffrey Immelt on the other hand has not been able to achieve the same success as Welch in
his time as CEO so far. To be fair, Immelt took over GE at an unfavorable time, just days
before the 9/11 terrorist attacks, which cost GE’s insurance arm over $600 million. Along
with 9/11 Immelt also had to deal with last year’s financial crisis and the prolonged
economic recession in developed nations, which dealt a huge blow to GE Capital and GE’s
Industrial business. Under Immelt the company lost two/thirds of its stock’s value, missed
earnings estimates for the first time and has continued to miss, and lost its place as the
largest company (by Market Cap) in the U.S. to Exxon Mobil. GE’s stock price has gone from
$39/share when he took over to less than $12/share, underperforming the Dow Jones
Industrial by nearly 60% (price return). Despite the above-mentioned environment Immelt
had to deal with, it is not encouraging as an investor to see Economic Margins evaporate
away while other businesses have adapted and been able to change their misfortunes. It is
yet to be determined if Immelt can recover but it is certain he has yet to prove his ability to
create shareholder value.

Below is a graphic representation of the value of GE’s stock under Welch vs. Immelt. This
highlights the importance of strong leadership to increase the value for shareholders’
investments. By understanding a company’s true economic profitability (EM) and relating
that to a company’s growth strategy will give investors a much clearer picture of whether a
company is likely to create or destroy wealth in the future. As you can see in the chart below
GE's Economic Margins have been closely correlated with the subsequent performance of
their stocks price. Welch was able to grow GE's EM's from 2 to 12 in his tenure and Immelt
has taken that EM level and diminished it to an expected negative EM in 2009.
Management Competence Factors
• Have there been any changes in the executive management team?
• Has the company had any significant write-offs or poor earnings quality?
• Has the company recently made any significant acquisitions and, if so, what are the
strategic implications and costs?
• How is the company spending any excess cash?
• What did we learn from the company’s most recent earnings call and what was the tone of
analyst questions?

Management Quality Score Insights:

• Measures a company’s EM+1 and LFY Asset Growth.
• Companies that have positive EMs should grow their business while firms with negative
EMs should focus on profitability and earn the right to grow.
• Un-bias quantitative way to analyze a company
• Holds management teams accountable for unprofitable growth

Most of the modern theories (post industrial X and Y) are saying the same things anyway,
right?

• Relationships rule.
• Engagement rules.
• Managers need to adjust their styles to meet the needs.
• People ought to be able to utilize their strengths.
• Remove barriers - weakest link - constraints - yada yada (what I call Mucky Muck in
"my" system)
• Hire the best - of course, this depends on our abilities to determine the best fit for
jobs, the bigger challenge, I think.
• Today's complex world demands focus (half the theories)
• Today's complex world requires chaos (other half, both are
• Over the years there have been numerous articles, books, and discussions regarding

the best and most appropriate strategic planning methods in business. The game

theory, judo strategy, scenario planning, and balanced scorecard are effective

strategic planning approaches yet would depend on the context and the nature of

organization. Each approach has efficiency level, weaknesses, and strengths, but

only when each strategy are being applied in its context and appropriately employ, it

would maximize the potential of the approaches.

• In Taylor's scientific management, it sees the importance of strategic planning as a

means in predicting the future, setting goals, and describing the process of achieving

the goals. Strategic to some theorists and management practitioners is obsolete, yet,

it could not be obsolete if strategic planning is "dynamic and reflect an adaptive

readiness to whatever the future may bring, a readiness that requires the capabilities
 of building connections and competencies, encouraging systematic rather than

reductionist thinking and stimulating quick responses to events as they unfold"

(Davis, 2002).

• The impact of a strategic plan on organization's activities can be measure on daily,

medium term and long-term scales. It provides guidance for daily decisions and helps

align them with the overall strategy and with the declared goals. It will help provide a

rational basis for establishing alliances with stakeholders and maximize leverage and

synergy with partners.

• Strategic planning processes will have to be focused on the continuous process of

orientation, adaptation, and navigation in a rapidly changing environment rather than

on a 'strategic plan'.

• Selecting an effective strategic direction requires a thorough stakeholder analysis to

best evaluate future options (Thibodeau, 2004). Furthermore, one should take into

account the differences private or profit sector and public or non-profit sector.

Porter's five forces model can be appropriately applied to a private sector, yet, a

different version of it, the sic forces model of Oster is applicable in the non-profit

sector. The stakeholder theory can be best employ in private sector than in the non-

profit organization.

• The use of systems theory approach to strategic planning and a framework for

conceptualizing and managing the process is more effective.

• Statement of the Problem

•
• Since the issue raised in this paper is on managing organizational strategic

plan being applied in different organizations, using different approaches, methods,

and theories, this study seeks to ask pertinent problems to the management of

organizational strategic plan.

• The following are the problems in which this paper would like to answer as

this work progresses.

• 1. What is management in relation to organization?

• 2. What is the importance of strategic plan in an organizational management?

• 3. What are effective strategic plan theories and approaches applicable to any

organization?

• 4. How organizational strategic plan does being managed effectively?

• 5. How management of organizational strategic plan affects the development and

growth of a corporation?

• Objectives of the Study

•
• In studying the management of organizational strategic plan, there are

several objectives which are needed to be underlined in order to serve as a direction

to fulfill the task of the whole work. In any kind of endeavor, objectives should be

clear in order to establish a flowing research discussion.

• This paper has following objectives necessary for the fulfillment of this task.

• 1. To understand the role of management in an organization.

• 2. To examine the relation between management and the organization.

• 3. To analyze the effects of strategic planning in managing an organization.

• 4. To assess the importance of managing effectively a strategic plan in an

organization.

• 5. To evaluate the significance of management organizational strategic planning.

• 6. To search for a single unit of strategic planning method that can be applied to

any kind of organization

•
•
• Hypothesis In pursuing this kind of study, evaluating and analyzing the role

of management organizational strategic plan, the researcher has hypothesized that

the management organizational strategic plan is effective when and if appropriate

theories and methods are employed in accordance to its context and type of

organizational they are suitable. It is quite difficult to come up or search for a unified
 and standard approach for strategic planning that is applicable to any kind of

organization.

• Moreover, the role of management and organization are highly valuable in

understanding and analyzing the strategic planning. And the effectiveness of

strategic planning lies on the way management treat it and handles the course of its

implementation.

• Significance of the Study

• The significance of this study is directly points to the development of

managing organizational strategic plan. There are several studies related to this one,

yet, those are more or less focused on different paths or issues pertaining to

management. Moreover, more are into case studies, in order to make a particular

and identified result. However, this study is taken in general context, and covered

broad area of management. This is in trying to attempt to cover significant areas and

elements in management that would help understanding the issue on managing

strategic plan, more so, to be able to find ways in search for a unified and possible

strategic planning approaches applied to any kind of organization.

• Definitions of Concepts
• Strategy – This refers to an operational principle in which an organization can carry

and achieve the declared goals and objectives.

• Management – It refers to a structure or a principle that pertains to an ability of an

individual to carry out tasks of an organization in line with the goals and objectives

defined.

• Organization – This pertains to a group of people, employees, managers, executives

that are lead to work in fulfilling and achieving a set of goals.

• Strategic plan – refers to a set of guidelines in which an organization or management

should observe and implement according to what is in record.

• Game theory – it pertains to understanding what is called the value net of players

outlined in a given strategic approach. In game theory, understanding the players is

the first key element. There are at least two ends of the player spectrum:

competitors and complement you receive in dealing with your competitors.

• Judo strategy – the principle required the need that organization should make a

conscious decision to move rapidly into new markets where there is uncontested

ground.

• Scenario planning – It refers to a process in which organization allows to look at

various avenues in detail before choosing what appears to be the best path.

• Balanced scorecard – it indicates the importance of developing a balanced strategy

that includes continuous learning, partnerships, and teamwork. It helps an

organization view itself globally while still seeing many of the intricate components

that are required for it to be successful.

• References:

• Thibodeau, B. (2004) Strategic Planning Methods: Which One is Right for your
Organization? Retrieved:
http://www.artsconsulting.com/pdf_arts_insights/insights_jan_2004.pdf Arts
Consulting Group: Los Angeles, USA).