Enhancement of company performance using the right management tools: Their influence on corporate strategy

Abstract

Running a business today is harder than ever before. The major problems lie in the speed and complexity of changes in the economy. To succeed in this ever-changing competitive environment, companies must define right strategies and use right management tools as well as effective and dynamic leadership in order to enhance the corporate performance and compete with rivals. Many companies fail in performance enhancement because they cannot formulate right business strategies and strategy frameworks or fail to implement them effectively. There are many factors influencing the right implementation of strategies into action. These factors (if understood well) help firms to make necessary changes in the process of successful execution and determine if strategic models can be helpful in overcoming the potential factors of failure. Management tools belong to those that can have a significant influence on corporate strategy if applied sound. In order to realize strategies successfully and enhance companies' performance, firms must define processes that create value to customers, measures and responsibilities. The use of right management tools (aligned not only on measurement of processes) can influence the entire firm's strategy and, consequently, its performance. This often requires understanding the strengths and weaknesses of each management tool. However, the secret lies in using the tool in the right way and at the right time. Management tools help managers in finding the right business decisions (as well as strategies) and, in consequence, increase corporate performance and profits. Therefore, what are the most used management tools according to recent findings? Do the companies use one management tool only or do they prefer their combinations? What are the tools with the highest satisfaction rate according to the up-to-date research? These and other questions are to be answered on the following pages. Despite of many objections it is obvious that successful enterprises are aware of the importance of choosing the right management tools because of their considerable influence on corporate strategies and enhancement of performance.