Strategy Simplified<br />How to incorporate strategy into your business<br />
Overview<br />Laying the groundwork<br />Characteristics of a strong plan<br />The Strategy Map<br />The Balanced Scorecar...
Laying the Groundwork<br />Why is research important?<br />External research<br />State of market demand<br />Competitive ...
Characteristics of a Strong Plan<br />Strategic business plan must:<br />Have a strong financial model<br />Meet market de...
The Strategy Map<br />
The Strategy Map<br />Ensures the plan is comprehensive<br />Defines the strategy’s key objectives<br />Map captures the p...
The Strategy Map<br />The Map ensures the plan is comprehensive<br />Result Objectives<br />Financial:  The ultimate resul...
The Strategy Map<br />Defines the strategy’s key measurable objectives within each perspective<br />Financial: Increase GM...
The Strategy Map<br />Sample Strategy Map<br />
The Strategy Map<br />Acts as the foundation of the Balanced Scorecard<br />Objectives are defined within the four perspec...
The Balanced Scorecard<br />
The Balanced Scorecard<br />Balanced Scorecard is organized by the same four perspectives as the Map<br />Refines the obje...
Sample Balanced Scorecard<br />
Initiatives: Bridging the Gaps<br />Initiatives are projects designed address performance gaps of objectives<br />
Initiatives: Bridging the Gaps<br />Good strategic initiatives should have:<br />Accountability at the leadership level<br...
Managing the Strategy<br />
Managing the Strategy<br />Leadership team should conduct separate strategic reviews<br />Operational performance is a con...
Managing the Strategy<br />
Potential Pitfalls<br />Strategy does not line up with capabilities<br />Poor communication and change management<br />Man...
Next Steps<br />Document your current strategy<br />Read “Strategy Focused Organization”<br />Robert Kaplan and David Nort...
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Strategy Simplified

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Overview of the process of creating a strategy leveraging the balanced scorecard management system

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Strategy Simplified

  1. 1. Strategy Simplified<br />How to incorporate strategy into your business<br />
  2. 2. Overview<br />Laying the groundwork<br />Characteristics of a strong plan<br />The Strategy Map<br />The Balanced Scorecard<br />Bridging the gaps<br />Managing your strategy<br />Potential pitfalls<br />Next steps<br />
  3. 3. Laying the Groundwork<br />Why is research important?<br />External research<br />State of market demand<br />Competitive Forces<br />Internal research<br />Current state capabilities<br />SWOT analysis<br />
  4. 4. Characteristics of a Strong Plan<br />Strategic business plan must:<br />Have a strong financial model<br />Meet market demands<br />Identify key success factors<br />Align the organization<br />Be clearly communicated<br />
  5. 5. The Strategy Map<br />
  6. 6. The Strategy Map<br />Ensures the plan is comprehensive<br />Defines the strategy’s key objectives<br />Map captures the plan in one simple document<br />Provides the Foundation for the Balanced Scorecard<br />
  7. 7. The Strategy Map<br />The Map ensures the plan is comprehensive<br />Result Objectives<br />Financial: The ultimate results of the strategy<br />Customer: The value the customer receives<br />Driver Objectives<br />Process: The activities that create the value<br />Learning and Growth: How people, technology<br />and organizational structure support the strategy<br />
  8. 8. The Strategy Map<br />Defines the strategy’s key measurable objectives within each perspective<br />Financial: Increase GM%, Reduce SGA%, Improve EBITDA<br />Customer: Service Oriented, Consistent Quality, Responsive<br />Process: Increase Proposal Effectiveness, Pipeline Consultants, Improve Response Time <br />Learning and Growth: Improve Sales Skills, Increase Sourcing Automation<br />
  9. 9. The Strategy Map<br />Sample Strategy Map<br />
  10. 10. The Strategy Map<br />Acts as the foundation of the Balanced Scorecard<br />Objectives are defined within the four perspectives (Financial, Customer, Process, Learning and Growth)<br />Map ensures objectives are relevant to the strategy<br />
  11. 11. The Balanced Scorecard<br />
  12. 12. The Balanced Scorecard<br />Balanced Scorecard is organized by the same four perspectives as the Map<br />Refines the objectives by assigning measures and targets<br />Defines the gaps and determines initiatives<br />Tracks the progress of the objective<br />
  13. 13. Sample Balanced Scorecard<br />
  14. 14. Initiatives: Bridging the Gaps<br />Initiatives are projects designed address performance gaps of objectives<br />
  15. 15. Initiatives: Bridging the Gaps<br />Good strategic initiatives should have:<br />Accountability at the leadership level<br />Milestones, along with start and end dates<br />Clear deliverables<br />Budget<br />Committed resource allocation<br />
  16. 16. Managing the Strategy<br />
  17. 17. Managing the Strategy<br />Leadership team should conduct separate strategic reviews<br />Operational performance is a consideration but not the driving force<br />Meeting focuses on the results of the balanced scorecard and strategic initiatives<br />
  18. 18. Managing the Strategy<br />
  19. 19. Potential Pitfalls<br />Strategy does not line up with capabilities<br />Poor communication and change management<br />Management rolls out strategy but doesn’t follow through<br />Organization becomes overly structured<br />
  20. 20. Next Steps<br />Document your current strategy<br />Read “Strategy Focused Organization”<br />Robert Kaplan and David Norton<br />Harvard Business School Press<br />More Resources<br />http://hbr.org/<br />www.chartedpathllc.com<br />

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