Conducting Strategic of Organization with the Use of ISM

In order to survive in the complex environment, budget programming or forecasting models have been criticized as inadequate for today’s business environment. Organizations have to use strategic planning to evaluate internal and external situation, then formulate proper strategies and implement them. The key to execute strategy is to have people in the organization understand it. Strategy map has a significant role in the strategic management due to describing strategies of organization and to help people understand strategies. Strategy map is essentially a graphical depiction of the causal model of an organization’s strategy then developing the causal model of the strategy is also important. This paper presents innovative approach to determine causal relationship and levels of strategic objectives in strategy map. For this purpose an interpretive structural modeling (ISM) based approach has been employed to strategy map. This paper also utilizes the Interpretive Structural Modeling (ISM) methodology to understand the interrelationships among the objectives so that those driving objectives, which can affect others and those dependent objectives, which are most influenced by driving objectives are identified. It emphasizes that interrelationship among objectives isn’t only down to up, it is on both side. An actual example of a small case pipe and fittings manufacturing company provides some managerial insights into the methodology.