Architecture–Decompose the strategy into media strategic themes. e.g. improve antenna’s international presence, optimize antenna group’s convergence and digitalization business architecture
BY VASSILIS MOULAKAKISBUSINESS ANALYST
The Objective: Given that an organization has developed or updated its strategy, how does it ensure that the necessary financial, human and other resources are committed to the strategy? How is accountability clearly established?
PROPOSED STRATEGIC PLANNINGArchitecture–Decompose the strategy into strategic maps and strategic themes. e.g. improve customer satisfaction and social crm strategy brand presence, optimize group’s convergence and digitalization business architecture.Targets–Develop stretch targets through cause and effect scenarios, e.g. optimize group’s targets through corporate and international portfolio management. E.g. find the strategic portfolio of programs-projectsInitiatives–Define a portfolio of cross-functional initiatives for each strategic themeAccountability–Assign accountability by strategic theme, every theme that is strategic focus should have an owner and someone accountableFunctions –Align functional plans with enterprise strategy, functional plans on how sales management conducted or marketing campaigns should be linked to strategy.Funding–Link the strategy to the budget, very important issue budget will change solely from ground up, which means that strategy will drive Company not Budget.Purchasing- Theoretical cost model identified and consolidated to planning processes. E.g. production cost management through activities and contract alignment to cost model.The Strategic Execution toolset
TWO IMPORTANT ISSUES NEED TO BE TAKEN INTO ACCOUNT WHEN DESIGNING A STRATEGICALLYALIGNED MEDIA ORGANIZATION PLANNING AND BUDGETING PROCESS a) Strategy Planning–generally deals with the two to five year window, focused on long term direction and programs b) Operational Planning & Budgeting–focused on the one to two year horizon
Proposed Strategic ThemeMake organizational changes towards Customer Financial PROFIT MAXIMIZE SHAREHOLDER VALUE Grow Customer base Cost consolidation & containment ABC Customer Improve social CRM Power our relationships and Optimize risk mgmt on credit Partner strategy optimization Internal Develop convergence & Digitalization services Develop Optimize Back office Six sigma for Processes Technical Quality e.g. purchasing Learning IT alignment and convergence HR alignment and strategic focus training Organizational change towards full digitalization
The perspective strategic planning and budgeting mechanism in more detailfor a Media group
A perspective Company mechanisms to align strategy and budget
PROPOSED MEDIA OPERATIONAL PLANNING & BUDGETINGInformation–Enable the Operational Planning & Budgeting process through robust information architecture and enabling technology.Driver Models–Use driver-based models representing the business value chain as the foundation for operational and financial planning.Investments–Rationalize investments through a multi-criteria approach and dynamically manage resource allocation.Service Agreements–Align operational activities and strategic initiatives through service agreements.Initiatives –Estimate the financial impact of strategic initiatives (“STRATEX”) and track it separately to facilitate trade off decisions on expenditures.Forecasts–Use rolling forecasts to estimate expected near and mid-term future performance.Performance Analysis & Review–Take corrective action to address performance gaps based on causal analysis and review.
ROLLING FORECAST AS A PRIME BUDGETING PRACTICE FOR ORGANIZATIONS
DRIVER BASED MODELS FOR BUDGETING DERIVED FROM STRATEGY
Our performance GAP and how Performance management handles ourPerformance ???? The airline service paradigm
MY STRATEGIC VIEW Strategic themes should be the basis Targets should reflect the cause-effect nature for planning and execution of strategy. of strategy, rather than focusing on single They provide a convenient framework factors for cross-business integration. Accountability should be assigned byInitiatives should be bundled by theme, strategic theme at the executive level ofprioritized, funded and managed as a portfolio the organizationprior to the beginning of the budgetingprocess Strategic investments should be grouped as a common budgetEach function should identify a portfolio of category / account, (similar to G&A,strategic initiatives, derived from the themes of R&D, etc.) so they can be managedthe integrated strategic plan, as the input to appropriately.their functional plans. Operational investments should be prioritizedDriver based models, built on a deep and funded using a multi-criteria approach.understanding of the activities and core Investment management should then beprocesses supporting the economic business integrated in to the rolling forecast tomodel, are essential for successful rolling dynamically re-evaluate and re-allocateforecasts as they provide the bridge between resources.operational activities and financial outcomes Rolling forecast, based on driver models, support dynamic, continuous planning in everything from strategy refreshes and target setting to the development of the annual plan.