Strategic Management: Organizational Vision, Mission, Goals, KPIs, Business Initiatives, and Departmentalization

This article explains the significance of organizational vision, mission, goals, KPIs, business initiatives, and departmentalization in strategic management. It highlights how they help in defining core activities, guiding decisions, measuring success, and enhancing productivity. The article also provides relevant references for further reading.

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Organizational Vision and Mission
A vision is a precise and comprehensive description of what an organization desires to
become in the future. A mission, on the other hand, defines the purpose of the organization’s
existence. A vision and mission statement therefore explains the business’s activities and desired
outcomes. It also illustrates business’s purpose of existing to its internal and external
stakeholders. The vision and mission play an important role in the strategic management of an
organization since they define the organizations core activities. According to Taiwo, Lawal, and
Agwu (2016), mission and vision statements direct the formulation of organizational strategy and
guarantee important organizational elements such as survival and continuity, adoption of
technology, and the products and services provided to its clients.
Organizational Goals
Organizational goals are strategic objectives defined by the organization’s management
that detail the expected outcomes for a specific period (Taiwo, Lawal, and Agwu, 2016).
Organizational goals guide the decisions and actions of the organizations internal stakeholders
such as employees. Organizational goals play an important role in the strategic management of
an organization since they define the level of activity required from each department, process, or
employee in the given time (Taiwo, Lawal, and Agwu, 2016). This allows planning for key
resources such as procurement of raw material and time management. Organizational goals also
provide constraints on the decisions and actions of employees thus allowing the organization to
function sustainably.
Key Performance Indicators
These are quantitative measures used to determine or estimate the success achieved by an
organization in meeting its organizational goals (Velimirović, Velimirović and Stanković, 2011).

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Since businesses operate in dynamic environments, it is important to establish or define key
performance indicators that inform on the periodic or continuous performance of the
organization. The selection of appropriate KPI’s is important for any organizations since they
help identify any variance in the performance and they allow the managers to make appropriate
decisions based on the recorded performance (Velimirović, Velimirović and Stanković, 2011).
Business Initiatives
Business initiatives refer to the processes and actions undertaken by the business to
ensure that it achieves its organizational goals (Stefanović, Damnjanović, and Jaško, 2010). The
definition of the business initiatives is a critical element of strategic management since it allows
the managers to determine whether they have the capacity to meet the desired objectives.
Defining the business’s initiatives enables the management team to identify the required
resources and capacity and make appropriate decisions regarding important factors such as
production capacity and the size of the market (Stefanović, Damnjanović, and Jaško, 2010).
Departmentalization
Departmentalization is the division of tasks and responsibilities into functional units
within an organization according to the skills or resources required to enhance productivity and
sustainability. Departmentalization is important in strategic management since it leads to the
development of an organizational structure. Optimization of an organization’s departments is
critical to its performance since it influence cost factors such as human resource requirements.
The optimized departments ensure duplication of functions is non-existent. Duplication of
functions could result in conflicts among employees or increase the operating costs of the
business. optimal departmentalization also ensures adequate staffing in all portfolios thus
enhancing the organization’s capacity to meet its short and long term objectives.

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Reference List
María Martínez‐León, I. and Martínez‐García, J. (2011). The influence of organizational
structure on organizational learning. International Journal of Manpower, 32(5/6),
pp.537-566.
Stefanović, I., Damnjanović, P., and Jaško, O. (2010). The analysis of the contemporary
environments impact upon organizational operations, Serbian Journal of Management
5(1), pp. 97 – 109
Taiwo, A., Lawal, F. and Agwu, E. (2016). Vision and Mission in Organization: Myth or
Heuristic Device?. The International Journal Of Business & Management, 4(3), pp.128-
134.
Velimirović, D., Velimirović, M. and Stanković, R. (2011). Role and importance of key
performance indicators measurement. Serbian Journal of Management, 6(1), pp.63-72.