Strategy Simplified

Strategy Simplified
How to incorporate strategy into your business

Overview
Laying the groundwork
Characteristics of a strong plan
The Strategy Map
The Balanced Scorecard
Bridging the gaps
Managing your strategy
Potential pitfalls
Next steps

Laying the Groundwork
Why is research important?
External research
State of market demand
Competitive Forces
Internal research
Current state capabilities
SWOT analysis

Characteristics of a Strong Plan
Strategic business plan must:
Have a strong financial model
Meet market demands
Identify key success factors
Align the organization
Be clearly communicated

The Strategy Map

The Strategy Map
Ensures the plan is comprehensive
Defines the strategy’s key objectives
Map captures the plan in one simple document
Provides the Foundation for the Balanced Scorecard

The Strategy Map
The Map ensures the plan is comprehensive
Result Objectives
Financial: The ultimate results of the strategy
Customer: The value the customer receives
Driver Objectives
Process: The activities that create the value
Learning and Growth: How people, technology
and organizational structure support the strategy

The Strategy Map
Defines the strategy’s key measurable objectives within each perspective
Financial: Increase GM%, Reduce SGA%, Improve EBITDA
Customer: Service Oriented, Consistent Quality, Responsive
Process: Increase Proposal Effectiveness, Pipeline Consultants, Improve Response Time
Learning and Growth: Improve Sales Skills, Increase Sourcing Automation

The Strategy Map
Sample Strategy Map

The Strategy Map
Acts as the foundation of the Balanced Scorecard
Objectives are defined within the four perspectives (Financial, Customer, Process, Learning and Growth)
Map ensures objectives are relevant to the strategy

Balanced Scorecard is organized by the same four perspectives as the Map
Refines the objectives by assigning measures and targets
Defines the gaps and determines initiatives
Tracks the progress of the objective

Sample Balanced Scorecard

Initiatives: Bridging the Gaps
Initiatives are projects designed address performance gaps of objectives

Initiatives: Bridging the Gaps
Good strategic initiatives should have:
Accountability at the leadership level
Milestones, along with start and end dates
Clear deliverables
Budget
Committed resource allocation

Managing the Strategy

Leadership team should conduct separate strategic reviews
Operational performance is a consideration but not the driving force
Meeting focuses on the results of the balanced scorecard and strategic initiatives

Potential Pitfalls
Strategy does not line up with capabilities
Poor communication and change management
Management rolls out strategy but doesn’t follow through
Organization becomes overly structured

Next Steps
Document your current strategy
Read “Strategy Focused Organization”
Robert Kaplan and David Norton
Harvard Business School Press
More Resources
http://hbr.org/
www.chartedpathllc.com

Strategy Simplified

by mcleland on Jun 01, 2010

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Strategy Simplified — Presentation Transcript