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Strategic planning gsw Strategic planning gsw Presentation Transcript

  • Current Thinking on StrategicPlanning and ImplementationCap Gemini Ernst & YoungJuly 2001
  • We’re trying to answer two questions• How do global, multi-business line companies develop strategy? – Focused on the role of the corporate centre in helping companies make, communicate and implement strategies.• What is the latest thinking on how these companies should develop strategy? – What does “good” look like? – Best practice? – Useful approaches? It is intended to foster discussion about how to address the key challenges. Cap Gemini Ernst & Young • Proprietary and Confidential -2- LSLab6.07.01ab
  • Document structure• Corporate Strategic Planning?: – Why Do It? – How Does It Happen? – What Does It Look Like? – What Are Some of the Pitfalls?• Evolving Ideas on What “Good” Looks Like• Implementing Strategic Intent• Company Examples• Implications for Global, Multi-business Companies Cap Gemini Ernst & Young • Proprietary and Confidential -3- LSLab6.07.01ab View slide
  • Corporate Strategic Planning• Why Do It?• How Does It Happen?• What Does It Look Like?• What Are Some of the Pitfalls? View slide
  • Why have a corporate strategic planning function?• To be the custodian of the overall best interests of the corporation: – Maximise the overall performance of the business portfolio – Manage trade-offs across the business – Tee-up investment/resource-allocation choices and decisions• To set the “boundaries” of the company: – What’s in the portfolio – Manage merger and acquisition activity• To steer and influence “strategy making”: – Influence managers in the business unit – Determine key mechanisms (planning procedures, hurdle rates, control processes, organisational processes) – Develop culture in which business units propose and implement strategy. Cap Gemini Ernst & Young • Proprietary and Confidential -5- LSLab6.07.01ab
  • How does it happen? Formal Strategic Opportunistic Planning Process And/Or Process • Set calendar • One-off event or process • Links corporate and BU • Possibly triggered by internal strategic plans or external changes • Linked to planning and • Could be managed internally, budgeting cycle or draw on external help • May or may not be linked to planning and budgeting Cap Gemini Ernst & Young • Proprietary and Confidential -6- LSLab6.07.01ab
  • What does it look like? It’s very Varied Centre very involved in Centre very detached BU strategies Elaborate planning No planning systems systems Strategic discussions Strategy discussions ad very structured and hoc and informal formal Centre initiates and Centre reacts to BU executes acquisitions acquisition proposals etc Cap Gemini Ernst & Young • Proprietary and Confidential -7- LSLab6.07.01ab
  • What are the pitfalls? Pitfall Definition Habits of Mind • Tunnel vision, blindspots, or enthusiasms about the right strategy Barons • Senior group executives fight to build up their own territories with little regard for the corporate interest Interference • Corporate influence over business unit strategies seen as arbitrary, unpredictable, indiscriminate or uninformed Exercise in Cleverness • Fall into an adversarial mode in which corporate and business levels try to score points off each other Bureaucracy • Seen as a planning exercise, a repetitive annual event that adds little value Hockey-sticks • Over-optimistic projections which reduce the value, and credibility of planning and control Lip Service • Disconnect between strategic goals and what really influences promotion and financial rewards—people pay lip-service to the strategy Control Games • Control objectives can become ends in themselves and gamesmanship to meet defined targets can damage long term business health Moving the Goalposts • Shifting strategic objectives “Yes, Chairman” • Studies arrive at conclusions that already enjoyed wide support in the business Strategy and Inaction • Communication and consensus-building is not an integral part of the strategic decision making processSource: Michael Goold and Andrew Campbell, Strategies and Styles, 1987. Cap Gemini Ernst & Young • Proprietary and Confidential -8- LSLab6.07.01ab
  • Evolving Ideas on What “Good”Looks Like
  • This section is a “potted history” of ideas about “good” strategic management Hamel Hax and Majluf Markides Goold & Campbell Mintzberg Kaplan & Norton Gratton 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001T A “looser” Formalised How to Be creative.H Structure and roles. planning role for strategic operationalise Be different. process. strategy. “People” focus. planning.EMES Cap Gemini Ernst & Young • Proprietary and Confidential - 10 - LSLab6.07.01ab
  • GOOLD & CAMPBELLGoold and Campbell tried to describe the best role for thecorporate centre• How the centre should add value to the businesses.• What sort of relationship it should have with business unit managers.• How it should manage the process for making strategic decisions. But they found no “ right answer”—no single, universal to good strategic management.Source: Michael Goold and Andrew Campbell, Strategies and Styles, 1987. Goold & Campbell identified 8 strategic management styles, of which the above 3 were the most commonly used. Cap Gemini Ernst & Young • Proprietary and Confidential - 11 - LSLab6.07.01ab
  • GOOLD & CAMPBELLInstead they found different—but valid—strategicmanagement styles Framework to Describe Strategic Management Styles High Centralised Planning Influence • Degree to which centre shapes Strategic Strategic strategies 8 different strategic planning programming • Measure of top-down management styles involvement • About input to decision Strategic Strategic Financial venturing control programming Holding Financial company control Low Flexible Strategic Tight Strategic Tight Financial Control Influence • Targets the centre agrees with BUs • How centre reacts to results • About outputs of decisionsSource: Michael Goold and Andrew Campbell, Strategies and Styles, 1987. Goold & Campbell identified 8 strategic management styles, of which the above 3 were the most commonly used. Cap Gemini Ernst & Young • Proprietary and Confidential - 12 - LSLab6.07.01ab
  • GOOLD & CAMPBELLThe three most common styles were “strategic planning”,“strategic control” and “financial control” Strategic Management Strategic Planning Strategic Control Financial Control Style • The centre: • A variation on the Strategic • Centre’s influence exercised – Establishes extensive planning Planning style. mainly through budgeting process. process. • Centre prefers to leave – Makes major contributions to initiative in development of • Broad strategic direction left strategic thinking. plans to BU managers. to the business units. – May have a corporate strategy Management guiding BUs. • Centre “checks quality” of Approach plans, rather than provides • Less attention devoted to direction. control targets. • Targets set for strategic objectives (e.g. market share) as well as financial performance. • BOC • Courtaulds • BTRCompany Examples • BP • ICI • GEC • Cadbury Schweppes • Hanson TrustSource: Michael Goold and Andrew Campbell, Strategies and Styles, 1987. Goold & Campbell identified 8 strategic management styles, of which the above 3 were the most commonly used. Cap Gemini Ernst & Young • Proprietary and Confidential - 13 - LSLab6.07.01ab
  • GOOLD & CAMPBELLSuccessful companies matched their strategic management styleto the business circumstances Diagnostic to help making strategic Characteristics of Companies with management style to business successful decision-making process circumstances • Match strategic management style to • Nature of the business: the business circumstances – Diversity of the business portfolio, and • Central managers close enough to linkages between business units each business to be able to add value – Size and payback of investments • A free and open exchange of – Stability of the competitive battle facing the business information and views between the centre and business units • Resources in the organisation: • Shared commitment, energy and – Personality of the Chief Executive purpose between all levels of – Skills and experience of senior managers management. – Degree of financial stress on the organisation.Source: Michael Goold and Andrew Campbell, Strategies and Styles, 1987. Goold & Campbell identified 8 strategic management styles, of which the above 3 were the most commonly used. Cap Gemini Ernst & Young • Proprietary and Confidential - 14 - LSLab6.07.01ab
  • HAX AND MAJLUFHax and Majluf focused on the process to develop astrategic plan They outlined two Major Cycles in the Strategic Planning Process Strategic & Operational Strategic Formulation Budgeting Corporate Corporate Business Business Functional FunctionalSource: A.C. Hax, N.S. Majluf: “The Strategy Concept and Process, A Pragmatic Approach,” 1996. Cap Gemini Ernst & Young • Proprietary and Confidential - 15 - LSLab6.07.01ab
  • HAX AND MAJLUFThey prescribed the whole strategic planning processthrough to detailed budgets Planning Strategic and Strategy Formulation Perspectives Operational Budgeting Environmental Internal Scrutiny • Horizontal Strategy and Vertical Scan Integration Revisited Budgeting Corporate • Resource Allocation and Consolidation and Strategy Portfolio Management Approval Corporate Strategic Thrusts and • Budgeting guidelines Performance Objectives Mission Business Internal Scrutiny Environmental Scan Business Budgeting Strategy Proposed Strategy, Programs, and Budgets Functional Internal Scrutiny Environmental Scan Functional Budgeting Strategy Proposed Strategy, Programs, and BudgetsSource: A.C. Hax, N.S. Majluf: “The Strategy Concept and Process, A Pragmatic Approach”, 1996. Cap Gemini Ernst & Young • Proprietary and Confidential - 16 - LSLab6.07.01ab
  • HAX & MAJLUFIn this view, “good” strategic management involvesfollowing a disciplined process• Same process regardless of the company’s business circumstances• Strong focus on rational dimension, and data-driven approach• Although prescriptive, probably reflects key elements of many strategic management processes: – Strategy cycle feeding in to planning and budgeting cycle – Top-down and bottom-up iterations – Corporate, business and functional dimension to strategy making and planning and budgeting.Source: Michael Goold and Andrew Campbell, “Strategies and Styles,” 1987. Cap Gemini Ernst & Young • Proprietary and Confidential - 17 - LSLab6.07.01ab
  • MINTZBERGMintzberg puts forward a very different view about “good”strategy making and “good” strategic planning Deliberate Emergent Strategy Strategy • Realisation of the strategy matches • The strategy is identified from the intended course of action patterns of consistencies deserved • Planned strategy in past behaviour - despite, or in the absence of, intention • Strategy developed in a formalised process • Strategy develops inadvertently: • Essence of strategy formulation = –Without conscious intention of senior management analysis –Often through a process of learning • Provides the organisation with a • Synthesis of past and current sense of purposeful direction. behaviour • Essence of strategy formulation = creative act of synthesising experiences into a novel strategy.Source: Henry Mintzberg, “The Fall and Rise of Strategic Planning”, Harvard Business Review, Jan–Feb.1994. Cap Gemini Ernst & Young • Proprietary and Confidential - 18 - LSLab6.07.01ab
  • MINTZBERGFor Mintzberg, successful strategy making is looser,messier, and more creative than “conventional” planning • Strategy making needs to function beyond the boxes: – Understand the difference between strategic planning and thinking Search all those strategic – Strategic thinking involves intuition and planning diagrams, all those creativity. interconnected boxes that supposedly give you • Strategies often cannot be developed on strategies, and nowhere will schedule and immaculately conceived: you find a single one that – Must be free to appear at any time and at any explains the creative act of place in the organisation synthesising experiences into – Typically through messy processes at informal novel strategies learning – By people at various levels who are deeply involved with the specific issues at large.Source: Henry Mintzberg, “The Fall and Rise of Strategic Planning”, Harvard Business Review, Jan–Feb.1994. Cap Gemini Ernst & Young • Proprietary and Confidential - 19 - LSLab6.07.01ab
  • MINTZBERGHe saw five roles for strategic planners Role Specifics • Codify - clarify and express - the strategies in terms sufficiently clear to make them fully operational. Strategic Planning • Elaborate them into sub-strategies, ad hoc programmes, and action plans. • Convert them - e.g. consider their effects on budgets and performance controls. • Communicate strategic intentions - via programmes, schedules, budgets Communication & Control • Control pursuit of them • Gain support of influential outsiders • Help managers find fledgling strategies: Finding Strategy • Find patterns • Discover new ways of doing or perceiving things • Analyse specific issues Analysis • Provide simple, alternative conceptual interpretations of the world • Encourage managers to think about the future in creative ways Catalyst • Get others to question conventional wisdom, and help people out of conceptual ruts.Source: Henry Mintzberg, “The Fall and Rise of Strategic Planning”, Harvard Business Review, Jan–Feb.1994. Cap Gemini Ernst & Young • Proprietary and Confidential - 20 - LSLab6.07.01ab
  • KAPLAN & NORTONKaplan and Norton—in the 90s—shifted the focus tooperationalising the strategy• Kaplan and Norton, like others, linked shareholder value creation to strategy to tangible measurable performance at a grass roots level• Their unique insight was to balance the financial perspective against a customer perspective, an internal business perspective, and an innovation and growth perspective• Power of approach is in integration: – Links strategy to shareholder value creation through an integrated set of specific objectives with clearly-defined measures – Enables strategic goals to be translated into achievable, measurable objectives throughout an organisation.Source: Robert S Kaplan and David P Norton, “The Balanced Scorecard, Translating Strategy Into Action”, 1996. Cap Gemini Ernst & Young • Proprietary and Confidential - 21 - LSLab6.07.01ab
  • KAPLAN & NORTONIn 2001, Kaplan and Norton broadened the role of theScorecard to encompass mobilising and engaging people• The new scorecard has a stronger mobilisation focus: – Provides a mechanism for integrating the efforts of the whole organisation, involving all employees in the strategy discussion – Provides continuous feedback or the effectiveness of the strategy – Mobilises change through executive leadership• The most important broadening of the role is in the concept of the strategy map: – Provides the primary basis for conceptionalising how the strategy works – Maps all the underlying dynamics through which strategy drives performance• The strategy map is a visual tool to link the scorecard’s financial perspective with new, broader customer, internal and learning and growth perspectives:• Customer perspective - defines the customer value proposition that will deliver the financial performance – Internal perspective - outlines how internal operations and innovation will create customer value – Learning and growth perspectives show how to develop internal capabilities that the internal processes need.Source: Robert S Kaplan and David P Norton, “The Strategy-Focused Organisation: How Balanced Scorecard companies thrive in the new business environment.” Cap Gemini Ernst & Young • Proprietary and Confidential - 22 - LSLab6.07.01ab
  • HAMELHamel’s most recent view is “good” strategy making isabout “information” and “revolution”Key themes:• Today’s business environment is in an ‘age of revolution’• The status quo is doomed - the only chance for survival is innovation: – Business concept innovation – Innovation that changes the bases of competition in an industry• Call to create permanent revolution: – Continually challenge, refresh and overturn prevailing mindsets in an industry. Too influenced by the dot.com bubble?Source: Gary Hamel, “Leading the Revolution”, 2000. Cap Gemini Ernst & Young • Proprietary and Confidential - 23 - LSLab6.07.01ab
  • MARKIDESMarkides’ view is also about innovation—“good” strategymaking is about thinking and being differentKey themes:• Companies need to continually explore new opportunities for strategic innovation• Strategy innovation is about exploiting unique strategic positions. To do this companies need to answer some basic questions: – What business are we in? – Who are our customers? What will we offer them? – How will we do this efficiently? – What kind of organisation do we need to support our choices?• Unusual success in business derives from doing unusual things• The essence of strategy and competitive advantage is not doing the same things as your successful competitors, but doing it differently.Source: Constantinos Markides. “All the Right Moves”, 2000. Cap Gemini Ernst & Young • Proprietary and Confidential - 24 - LSLab6.07.01ab
  • GRATTONAnd Gratton’s perspective is that “good” strategy making isabout capturing the emotional commitment of peopleKey themes:• A company’s capacity to perform is dependent on its ability to: – Capture the emotional commitment of its members, and – Integrate this commitment into complex modem of co-operation and collaboration• Gratton proposes humanistic and action-orientated view of organisations: – Humanistic : corporations are social entities that provide meaning and purpose for people – Action-orientated : Companies exist not for the development of their employees, but to perform business tasks and deliver on business goals – Companies that successfully bridge those two ideas can enhance organisational performance• Gratton provides a six-step management process to link the nature and aspiration of human beings with the performance of the organisation.Source: Lynda Gratin, “Living Strategies: Putting People at the Heart of Corporate Purpose”, 2000 Cap Gemini Ernst & Young • Proprietary and Confidential - 25 - LSLab6.07.01ab
  • So, “good” strategy making (from corporate view) isabout . . . Emerging Themes . . . horses for courses (specific to each Situational Strategic company) Management Styles . . . following a disciplined, formal process A Formal Process . . . “between the boxes” stuff (creativity, learning) Fresh Creative Thinking/Ideas . . . operationalising the strategy Operationalising the . . . mobilisation Strategy . . . innovation Being Different . . . revolution Buy-in and Mobilisation . . . being different, being unusual . . . capturing the emotional commitment of people Cap Gemini Ernst & Young • Proprietary and Confidential - 26 - LSLab6.07.01ab
  • Implementing Strategic Intent• Mintzberg’s Three Step Operation• Balanced Scorecard• Business Management Process
  • STRATEGIC IMPLEMENTATIONHaving decided one’s strategy, implementing strategicintent is essential for operational reality to follow• The tools to develop an appropriate organisational Turning Vision into Reality strategy for change are well proven A powerful business strategy needs to be matched• However many businesses fail to deliver the strategy by a powerful delivery mechanism in order to turn they develop vision into reality High• Usually the fundamental business management process is at fault – the bridge between strategy and operation is not functioning Unfulfilled vision Challenging vision Operational Power of Strategy Strategy Engine c e Pa• Various models exist to ensure the machinery between strategy and operational engine are effective: No Pedestrian – Mintzberg’s three step operation vision vision – Balanced scorecard – Business management process. Low Low Power of Delivery Method High To exploit an organisation’s capability and potential, the power of its strategy needs to be matched by the power of its delivery mechanism and pace of implementation.Source: Alan Meeking, Business Strategy Review, Winter 1994. Cap Gemini Ernst & Young • Proprietary and Confidential - 28 - LSLab6.07.01ab
  • STRATEGIC IMPLEMENTATION: MINTZBERG’S THREE STEP OPERATIONStrategic planning must be differentiated from strategicthinking Strategic Planning Overview What is Strategic Planning? Strategic Planning Issues • Strategic planning is defined as “the • Many companies have a problem with the process by which an organisation envisions actual planning system. It often breaks its future and develops the necessary down because of faulty preparation and procedures and operations to achieve the implementation future… it requires the clear setting of goals – Line managers not involved and objectives which provide the organisation with its core priorities and a – Business units not designed correctly set of guidelines for virtually all day-to-day – Action steps not defined in detail managerial decisions” – Strategic plans not integrated with other organisational controls like budgeting • It is a structured process that organises and – Objectives not defined properly by top co-ordinates activities of managers who do management the planning. • However, the “how to do it” in practice varies significantly between companies – there is no one “right” solution. What is Strategic Thinking? • This is the creation of new business strategies in either a formal or informal setting.Source: “The Fall and Rise of Strategic Planning”, Henry Mintzberg, HBR, Jan-Feb 1994. Cap Gemini Ernst & Young • Proprietary and Confidential - 29 - LSLab6.07.01ab
  • STRATEGIC IMPLEMENTATION: MINTZBERG’S THREE STEP OPERATIONStrategic planning can be used to programme andoperationalise a company’s strategies in three steps Codification Elaboration Conversion• Strategies must be clarified and expressed • Codified strategies need to be broken • Consider the effects of changes on the in terms sufficiently clear to render them down into substrategies and adhoc organisation’s operations e.g effects on formally operational, so their programs as well as overall action plans budgets and performance controls consequences can be worked out in detail specifying what must be done to realise each strategy • Objectives need to be restated and• Care and attention to detail is essential so budgets reworked, policies and standard as not to lose nuance and subtlety • E.g. Build four new factories and hire 200 operating procedures reconsidered to take new workers. into account the consequences of the• E.g. A broad vision like “capturing the specific changes. market for a new technology” is very different from a specific plan to “increase market share to 35%, focusing on the high end”. • Co-ordination of strategy and formalisation into an operational plan. Programing of strategy in this way will also gain the tangible as well as moral support of influential outsiders such as financiers, suppliers and governmental agencies.Source: “The Fall and Rise of Strategic Planning”, Henry Mintzberg, HBR, Jan-Feb 1994. Cap Gemini Ernst & Young • Proprietary and Confidential - 30 - LSLab6.07.01ab
  • STRATEGIC IMPLEMENTATION: BALANCED SCORECARDThe balanced scorecard facilitates the development ofstrategic planning through to an operational plan• The four management processes on the scorecard separately, and in combination, contribute to the linking of long-term strategic objectives with short-term actions. Managing Strategy: Four Processes Translating the vision • Clarifying the vision • Gaining consensus Communicating and linking • Communicating and Feedback and learning educating Balanced • Articulating the shared vision • Setting goals Scorecard • Supplying strategic feedback • Linking rewards to • Facilitating strategy review and learning performance measures Business planning • Setting targets • Aligning strategic initiatives • Allocating resources • Establishing milestonesSource: “Using the Balanced Scorecard as a Strategic Management System”, Kaplan and Norton, HBR, Jan-Feb 1996. Cap Gemini Ernst & Young • Proprietary and Confidential - 31 - LSLab6.07.01ab
  • STRATEGIC IMPLEMENTATION: BALANCED SCORECARDThe balanced scorecard facilitates the development ofstrategic planning through to an operational plan Communicating and Translating the Vision Business Planning Feedback and Learning Linking• Helps managers build a • Lets managers communicate • Almost all organisations are • Existing feedback and review consensus around the their strategy up and down the implementing a variety of tends to focus on whether organisation’s vision and organisation and links it to change programs. Managers company/department/ strategy, in order for people to departmental and individual have difficulty integrating diverse employees have met their act on becoming “best in class”, objectives initiatives to achieve their budgeted goals “number one supplier”. – E.g An oil company uses the strategic goals, leading to Statements must then be scorecard as the basis of frequent disappointment • With balanced scorecard a translated into operational terms calculating incentive company can monitor short term that provide useful guides to compensation. • When managers use the results from three additional action at the local level. ambitious goals for balanced perspectives – customers, • Traditionally departments are scorecard measures as the internal business processes and evaluated by their financial basis for allocating resources learning and growth – and performance and individual and setting priorities, they evaluate strategy incentives are tied to short term undertake only the initiatives that financial goals help achieve their long term • Strategies can therefore be strategies. modified to reflect real-time • The scorecard gives managers learning. a way of ensuring that all levels of the organisation understand the long term strategy.Source: “Using the Balanced Scorecard as a Strategic Management System”, Kaplan and Norton, HBR, Jan-Feb 1996. Cap Gemini Ernst & Young • Proprietary and Confidential - 32 - LSLab6.07.01ab
  • STRATEGIC IMPLEMENTATION: THE BUSINESS MANAGEMENT PROCESSThe business management process is dynamic and is builtup in stages The Business Management Process (BMP) Framework 2 Key Performance Indicators 3 Customer and 1 Performance 6 Strategic Shareholder Targets Structured Business Needs Review Objectives 4 Gap Analysis 5 Improvement Initiatives 7 Linkage• The business management process is a framework to facilitate operationalisation of an organisation’s strategy• Its elements do not have to be implemented concurrently or in full to start producing an operational benefit and organisational learning• The framework is founded on the premise of Plan-Do-Review – new strategic objectives are set in the light of achievement and experience hence, institutionalising continuous improvement.Source: “Implementing Strategic Intent: The Power of an Effective Business Management Process”, Alan Meeking, Business Strategy Review, Vol. 5 No. 4. Cap Gemini Ernst & Young • Proprietary and Confidential - 33 - LSLab6.07.01ab
  • STRATEGIC IMPLEMENTATION: THE BUSINESS MANAGEMENT PROCESSThe seven elements of the business management processallow incremental progress to be achieved and reviewed Business Management 1. Strategic Business 2. Key Performance Indicators 3. Performance Targets Process Framework Objectives • Setting objectives based on needs of • Introducing a balanced set of KPIs • Setting challenging targets against the organisation’s primary stakeholders related directly to the strategic business KPIs as a spur to achievement and as a (customers and shareholders) objectives linked top-to-bottom foundation for systematic progress 2 throughout the organisation and derived review 3 • Translating these needs into a limited from the root causes and key drivers of 1 6 number of strategic business objectives operational and financial performance. • Targets must be cascaded throughout 4 to be achieved in a given time period. the organisation, broken down into sub- 5 targets for shorter time windows and communicated visually. 7 4. Gap Analysis 5. Improvement Initiatives 6. Structured Review 7. Linkage• Identifying the performance or capability • Developing a limited set of properly • Implementing structured, simultaneous • Replicating the basic BMP framework at gaps that must be closed in order to planned resources and managed and interactive review of progress each review level and connecting the deliver the targeted performance levels, improvement programs to close the against both KPI targets and organisation top-to-bottom through based on the premise that you cannot gaps in performance or capability improvement initiatives cascaded KPIs and structured review. have a performance target without some concept of the means for its delivery. • Identifying, prioritising merging and • KPIs are reviewed at an appropriate rationalising the large number of existing frequency initiatives thereby releasing energy, resources and goodwill across the • Performance information is factual and organisation. is simply presented • Focus is an action not on excuses • Follow up is well planned and conspicuous. The critical elements of this system are structured review and top-to-bottom linkage.Source: “Implementing Strategic Intent: The Power of an Effective Business Management Process”, Alan Meeking, Business Strategy Review, Vol. 5 No. 4. Cap Gemini Ernst & Young • Proprietary and Confidential - 34 - LSLab6.07.01ab
  • STRATEGIC IMPLEMENTATION: THE BUSINESS MANAGEMENT PROCESSImproved performance using the business managementprocess Reasons for BMPs Potential Pitfalls The Pull-Through Effect of KPIs and BMP Success• Top-to-bottom attention is • Barriers to change Cu o ces directed on achieving the – Managerial frustration pr sto s m i organisation’s key objectives Business M m e an m p bu ark ess – Staff cynicism r d ag rov sin et- str Need ri v e m e m co• Shortfalls in performance are foc ate – Lack of resources en en t en lla us gy promptly and systematically bo b u an t ed rat sin d Cr n an addressed • Lack of support from the top. io Effective os d p solv ess s s f ro in PI Leadership un bl g M• A continuous cycle of planning, K ct i em an f on ag supe iven eo objective-setting, achievement al em rv es Critical Success Factors s eff and review drives organisational en isor s dU ec ta y t learning and continuous n nd improvement • Support from the top io n a MP tat nd B Inv• n a me Activities not contributing to key olv • Target the enthusiastic first em le Te business objectives are quickly p am en identified and eliminated, Im t wo • External help in implementation L e g an releasing resources for more rk or arn isa productive use. to start the process off and ing tion move it to the point where Cu an g ch ltu e improvement is self-sustaining. re “The whole process gives a substantial boost to managerial productivity. Anything up to a 10- fold cut in unproductive meeting time is common place” Alan MeekingsSource: “Implementing Strategic Intent: The Power of an Effective Business Management Process”, Alan Meeking, Business Strategy Review, Vol. 5 No. 4. Cap Gemini Ernst & Young • Proprietary and Confidential - 35 - LSLab6.07.01ab