The document introduces the Strategic Management Maturity Model (SMMM), which was developed to help organizations assess the maturity of their strategic management capabilities. The SMMM evaluates performance across eight key dimensions of strategic management: leadership, culture and values, strategic thinking and planning, alignment, performance measurement, performance management, process improvement, and sustainability of strategic management. It is intended to help organizations understand where they stand compared to other high-performing organizations and identify best practices to improve their strategic management maturity over time.
Strategic leadership refers to a manager's potential to express a strategic vision for the organization, or a part of the organization, and to motivate and persuade others to acquire that vision. Strategic leadership can also be defined as utilizing strategy in the management of employees.
Organisational structure is a framework with a boundary. It must have a top and a bottom. Managers in successful businesses are clear about what they have to do and about the responsibilities of others; they know to whom everyone reports and who in turn reports to them; and these facts are widely communicated. There should be clarity about who has to make decisions and is accountable for outcomes. The structure of an enterprise greatly influences what it costs to run, and the design of that structure will affect everything that a business or institution attempts to do. Making profit is the primary purpose of a business in the private sector. Therefore, how and where profit is to be managed and measured is a principal factor in organisational design.
This book is based on the lessons learned by Collinson Grant during more than 40 years of helping organisations become more efficient and profitable.
It covers fundamentals, such as how to configure structure in the components of an organisation such as a department; the need to accommodate the staff and managers within a sound structural framework according to how many people there are, how they function and relate to each other to make processes work well; and how accountability is put in place. Particular concerns are layers of hierarchy and spans of control, of controlling costs by restricting the number of managers to what is strictly necessary, and of the relationships between operational and support staff.
The book also explains the tools and techniques needed to design mangerial structures, the application of lean techniques, and various models of corporate devolution.
To find out more, to go www.collinsongrant.com
Strategic leadership refers to a manager's potential to express a strategic vision for the organization, or a part of the organization, and to motivate and persuade others to acquire that vision. Strategic leadership can also be defined as utilizing strategy in the management of employees.
Organisational structure is a framework with a boundary. It must have a top and a bottom. Managers in successful businesses are clear about what they have to do and about the responsibilities of others; they know to whom everyone reports and who in turn reports to them; and these facts are widely communicated. There should be clarity about who has to make decisions and is accountable for outcomes. The structure of an enterprise greatly influences what it costs to run, and the design of that structure will affect everything that a business or institution attempts to do. Making profit is the primary purpose of a business in the private sector. Therefore, how and where profit is to be managed and measured is a principal factor in organisational design.
This book is based on the lessons learned by Collinson Grant during more than 40 years of helping organisations become more efficient and profitable.
It covers fundamentals, such as how to configure structure in the components of an organisation such as a department; the need to accommodate the staff and managers within a sound structural framework according to how many people there are, how they function and relate to each other to make processes work well; and how accountability is put in place. Particular concerns are layers of hierarchy and spans of control, of controlling costs by restricting the number of managers to what is strictly necessary, and of the relationships between operational and support staff.
The book also explains the tools and techniques needed to design mangerial structures, the application of lean techniques, and various models of corporate devolution.
To find out more, to go www.collinsongrant.com
human resources functions in government should be strategically integrated with the planning and management control tasks in agencies
1st Semester 2020
How Do You Measure The KM Maturity Of Your Organization Final Ver.Art Schlussel
This paper explores practical ways to measure the KM state of an organization, examines accepted KM initiatives used throughout the KM community, and identifies useful metrics for those KM initiatives. Included is the Army Knowledge Management Maturity Indicator tool. The tool will assist you in assessing your organization\'s overall level of KM maturity.
human resources functions in government should be strategically integrated with the planning and management control tasks in agencies
1st Semester 2020
How Do You Measure The KM Maturity Of Your Organization Final Ver.Art Schlussel
This paper explores practical ways to measure the KM state of an organization, examines accepted KM initiatives used throughout the KM community, and identifies useful metrics for those KM initiatives. Included is the Army Knowledge Management Maturity Indicator tool. The tool will assist you in assessing your organization\'s overall level of KM maturity.
This presentation is dedicated to PCMM maturity model. People Capability Maturity Model is about restructuring organizations based on organization involved persons' capabilities which is one of the best methods in its own.
Our Sales Enablement Maturity Model was designed to help organizations with a roadmap for improving their sales enablement capabilities. The model provides 4 stages of organizational maturity, which are:
Undefined
Progressive
Mature
World-Class
Additionally, it evaluates 8 components of Sales Enablement, as follows:
- Orientation
- Leadership
- Technology/Infrastructure
- Alignment
- Sales Support Tools
- Processes
- Metrics
- Results
To obtain this document, visit us at http://www.demandmetric.com/register
Are you a measured-manage organisation? Let's self-scan.
Do you have agreed-upon measures?
Do you have a financial and non-financial balance?
Do you link strategy and operations?
Do you update scorecards regularly?
Do you have effective communications?
Metamorphosis Management Group frameworks & approach to working with leadership team, and setting up effective organizational design. The approach - can be described in these slides. The WORK - to engage leaders & stakeholders to change their organization - you'll need to experience directly.
Alignment of Learning and Development activities to become value addding deeds that influence the corporate bottomline and act as enablers for achieving organisational goals thereby operating as strategic business partner.
Strategic Thinking and Repositioning Day1Timothy Wooi
This 2 day hand-on practical program consisting of 5 parts is specially designed to focus on creating stretch and inter-connectedness
PART A: INTRODUCTION TO STRATEGIC THINKING
Strategic Thinking Versus Strategic Planning
Strategic Management Process
The Purpose of Vision and Mission
(Team Activity)
PART B: THE BEGINNING OF THE STRATEGIC FORMULATION JOURNEY
Auditing General Environmental Influences
Thinking Tool for External Evaluation
(Team Activity)
PART C: EXPLORING THE INTERNAL ENVIRONMENT
Resources, Capabilities and Competencies
Thinking Tool for Internal Evaluation
(Team Activity)
PART D: EXPLORING CURRENT STRATEGIES
Value Chain and Activity Chain Analysis
Using SWOT - How comprehensive are our
current strategies?
Relevancy of Structural Analysis
Customer Intelligences
(Team Activity)
PART E: LATERAL THINKING WITH STRATEGIC POSSIBILITIES
Concept of Value Pioneering
Lack of strategic thinking by management staffs has been identified as a major shortcoming in organisations. Concepts in management and psychology had been drawn and used to remedy this situation.
Strategic thinking needs to be addressed at two different levels:
the individual level and
the organisational level.
Organisations that successfully integrate strategic thinking at these two levels will create a critical core competency that forms the basis of an enduring competitive advantage.
Getting A to C is the process of strategy formulation. To do strategic planning well, figure out A,B,C and how they should be connected. This is accomplish principally by understanding the issues that A,B,C and their interconnections must be address effectively. This summary makes it clear that strategic planning is not a single thing but a set of concepts, procedures and tools.
767
CHAPTER 22
CRITICAL RESEARCH
ISSUES IN TALENT
MANAGEMENT
Rob Silzer
In general, research on talent management in organizations has
been limited (see Gubman, 1998; Lawler, 2008; Lewis & Heckman,
2006), although much has been written about specifi c talent man-
agement components such as recruiting, selection, and perfor-
mance management. Doing rigorous research in organizations is
challenging because of the complexity of fi eld research and the
limited ability to hold some variables constant while others are
studied. The fi eld also lacks agreement on the appropriate type and
level of outcome measures to use.
Many of the previous chapters make suggestions for future
research in specifi c areas of talent management. This chapter
discusses the talent management areas that would benefi t from
further research investigation (see Table 22.1 ).
Key Strategic Links
At the beginning of this book, we identifi ed the key strategic links
in how talent management can be ingrained in a business organi-
zation. While business managers have generally developed strong
links among the business environment, the business strategy, and
business results, this process in the past has often bypassed human
resource (HR) and talent management systems. Business executives
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EBSCO Publishing : eBook Collection (EBSCOhost) - printed on 6/12/2020 10:12 PM via STRAYER UNIVERSITY
AN: 300763 ; Dowell, Ben E., Silzer, Robert Frank.; Strategy-Driven Talent Management : A Leadership Imperative
Account: strayer.main.eds-live
768 Strategy-Driven Talent Management
and human resource professionals are increasingly likely to see tal-
ent management as a core business process that has a major role
to play in linking business strategy to business results. However, the
links between these business elements are not yet well developed,
and many of them are relatively weak (see Figure 22.1 ).
A critical area for research is investigating these links and
identifying the factors that strengthen or weaken the links. We
probably have better insight into the link between a talent strat-
egy and talent programs and processes than for the other links
in Figure 22.1 . In this area, some HR and talent professionals are
experienced and knowledgeable. But linking these at the front
and back end with business practices is a relatively new fi eld. For
example, which changes in talent can directl.
767
CHAPTER 22
CRITICAL RESEARCH
ISSUES IN TALENT
MANAGEMENT
Rob Silzer
In general, research on talent management in organizations has
been limited (see Gubman, 1998; Lawler, 2008; Lewis & Heckman,
2006), although much has been written about specifi c talent man-
agement components such as recruiting, selection, and perfor-
mance management. Doing rigorous research in organizations is
challenging because of the complexity of fi eld research and the
limited ability to hold some variables constant while others are
studied. The fi eld also lacks agreement on the appropriate type and
level of outcome measures to use.
Many of the previous chapters make suggestions for future
research in specifi c areas of talent management. This chapter
discusses the talent management areas that would benefi t from
further research investigation (see Table 22.1 ).
Key Strategic Links
At the beginning of this book, we identifi ed the key strategic links
in how talent management can be ingrained in a business organi-
zation. While business managers have generally developed strong
links among the business environment, the business strategy, and
business results, this process in the past has often bypassed human
resource (HR) and talent management systems. Business executives
c22.indd 767c22.indd 767 10/1/09 9:22:28 AM10/1/09 9:22:28 AM
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EBSCO Publishing : eBook Collection (EBSCOhost) - printed on 6/12/2020 10:12 PM via STRAYER UNIVERSITY
AN: 300763 ; Dowell, Ben E., Silzer, Robert Frank.; Strategy-Driven Talent Management : A Leadership Imperative
Account: strayer.main.eds-live
768 Strategy-Driven Talent Management
and human resource professionals are increasingly likely to see tal-
ent management as a core business process that has a major role
to play in linking business strategy to business results. However, the
links between these business elements are not yet well developed,
and many of them are relatively weak (see Figure 22.1 ).
A critical area for research is investigating these links and
identifying the factors that strengthen or weaken the links. We
probably have better insight into the link between a talent strat-
egy and talent programs and processes than for the other links
in Figure 22.1 . In this area, some HR and talent professionals are
experienced and knowledgeable. But linking these at the front
and back end with business practices is a relatively new fi eld. For
example, which changes in talent can directl.
The Star Model™The Star Model™ framework for organization .docxalisondakintxt
The Star Model™
The Star Model™ framework for organization design is the foundation on which a
company bases its design choices. The framework consists of a series of design policies
that are controllable by management and can influence employee behavior.
The policies are the tools with which management must become skilled in order
to shape the decisions and behaviors of their organizations effectively.
POLICIES STRATEGIES
They are general statements
that guide organizational
decision-making.
They are specific plans made
to achieve specific goals.
They don´t require action plan. They require action plan.
They are standing plans made
for repetitive activities.
They are single use plan made
for non- repetitive activities.
They are guidelines to
managerial action and decision
making.
They guide commitment of
organizational resources in a
specific direction.
They are made for smooth
conduct of the organization as
a whole.
The are made for achieve a
specific objective.
Strategies and Policies:
Both strategies and policies help to make decisions to achieve
organisational goals.
Clear strategies and policies provide right direction and guidance to organizational goals and plans.
The Star Model™
Strategy.
Strategy is the company’s formula for winning. The company’s strategy specifies:
goals and objectives, values, missions, and the basic direction of the company.
The strategy specifically delineates the products or services to be provided, the
markets to be served, and the value to be offered to the customer. It also specifies
sources of competitive advantage.
Area Description
Specialization.
It refers to the type and numbers of job specialties used in
performing the work.
Shape.
It refers to the number of people constituting the
departments (that is, the span of control) at each level of the
structure.
Distribution of power.
In its vertical dimension, refers to the classic issues of
centralization or decentralization. In its lateral dimension, it
refers to the movement of power to the department dealing
directly with the issues critical to its mission.
Departmentalization.
Is the basis for forming departments at each level of the
structure. The standard dimensions include functions,
products, workflow processes, markets, customers, geography.
The Star Model™
Structure.
The structure of the organization determines the placement of power and authority
in the organization. Structure policies fall into four areas:
The Star Model™
Processes.
-Information and decision processes cut across the organization’s structure.
-Management processes are both vertical and horizontal.
Horizontal Processes.Vertical Processes.
VP allocate the scarce resources of
funds and talent. Vertical processes
are usually business planning and
budgeting processes.
HP are designed around the workflow,
such as new product development or the
entry and fulfillment of a customer
order.
The Star Model™
Rewards.
Th.
Strategic Planning, Execution Frameworks & Organizational Health – Executive Summary
There are many frameworks and components for strategic management, planning, and execution; like a Ferrari, a BMW, or a Volkswagen, they all do the job – just differently. Ultimately, every business needs to answer some key questions:
Where are we? Where are we going? How do we get there? How are we doing? How do we function effectively? How can we influence what we cannot control? How should we appear to Customers (BtoB, BtoC)? How do we look to our investors? How do we look to our workforce? How do we sustain, and continuously learn & improve? What must we excel at to satisfy stakeholders? How do we become The Employer of Choice, and the Provider of Choice in the markets we serve?
Led by an internal team (which frequently includes the CEO, CFO, COO, CHRO, sales & marketing, IT/IS, and other represented disciplines), and sometimes also key stakeholders (customers, suppliers), the output is practical & tactical, helping to enable sterling execution & organizational health.
Strategic management is a method by which leaders conceive of and implement a strategy that leads to a sustainable competitive advantage.
Strategic planning is a systematic, organizational effort that includes initial assessment, thorough analysis, strategy formulation, its implementation and evaluation, leading to the achievement of business goals, and competitive advantage. Continuous improvement / continuous learning includes benchmarking, best practices, change management, and performance excellence. Input frequently comes from senior management, and may also come from lead investors, the workforce, key customers, suppliers, and distributors.
Execution frameworks help align the organization’s talent, organizational structure, programs, projects, tasks, processes, and technology, to ensure strategy is executed on time, on budget, as required, meeting (and exceeding) business goals. In many instances, an execution framework has few strategic objectives, numerous (enabling) tactical initiatives, measures, and targets, plans operations, monitors and learns, validates & adapts, supported by budget & resources.
Organizational health is about making a company function effectively by building a cohesive leadership team, establishing real clarity among those leaders, communicating that clarity to everyone within the organization, and putting in place enough structure to reinforce that clarity going forward, and aligning rewards, metrics, and resources.
Our Contract Staffing Solutions can help your firm scale up quickly for planned or unexpected growth due to End-of-Year Budget Planning, Hiring Slow Downs or Continuous Improvement - Project Expansion/Extension. With no overhead, no payroll burdens and the benefits of specialized project-by-project hiring, Contract Staffing offers immediate solutions for your business needs, including Mid- to Long-Term Contract and Temp-to-Perm options.
https://benevagroup.com/clients
A proven way to maximize the achievement of strategic goalsSteven Bonacorsi
Many organizations have a strategic plan. Sadly, whilst almost all these organizations will invest significant amount of leadership effort in defining and deploying their strategy, only a fraction of them will get the results they hoped for. However, there is a proven way that guarantees the achievement of strategic goals
How and why to use strategy execution technology to deploy your 5 sSteven Bonacorsi
Do you want to run your 5S deployment faster, easier and more effectively?
Are you tired of wasting your time on non-value adding admin work aggregating spreadsheets, MS-Project, and presentation slides?
Then you will be pleased to know there is a better way to deploy your 5S program. With i-nexus Strategy Execution software you can easily deploy and execute your strategy and effectively run your 5S projects.
St John is the largest primary care provider in New Zealand and provides emergency ambulance service to nearly 90% of New Zealanders. They also provide a range of care-related community and commercial services, including medical alarms and an emergency telephone response service to at-risk individuals nationally through their Telecare and Home Health
division. St John has contact with over one million New Zealanders a year.
The Telecare division is charged with installing thousands of medical alarms in the homes of clients who have a diverse range of medical and other needs across the country. It then
monitors the alarm through a 24-hour telephone service staffed by consultants who triage distress calls to ensure an appropriate response.
Toyota Financial Services Corporation, the finance division of Toyota Motor Corporation in Japan, provides vehicle finance and leasing for individuals and business across 32 countries. Since 2001 their mission has been to: "Improve processes throughout the global network of sales finance companies by promoting a culture of best practices in the spirit of the Toyota Way."
Taupo District Council has three main towns, Taupo, Turangi and Mangakino.Population is 32,500 (Taupo town 22,000). Taupo town is nestled on the shores of Great Lake Taupo from which the mighty Waikato River flows.
SAI Global provides organizations around the world with information services and solutions for managing risk, achieving
compliance and driving business improvement.
They provide aggregated access services to Standards, Handbooks, Legislative and Property publications; they audit, certify and register products, systems or supply chains; they facilitate good governance and awareness of compliance, ethics and policy issues and provide training and improvement solutions to help individuals and organizations succeed
From small beginnings in 1954, McDonald's has grown to more than 30,000 restaurants in more than 120 countries on six continents. Every day, meals are served to more than 50 million people worldwide.
Genesis Energy is a NZ-state-owned generator and retailer of electricity, gas and LPG to commercial and residential customers. It is NZ’s largest energy retailer with 670,000 customers.
Genesis Energy owns thermal, hydro and wind farm generation sites mostly on the North Island, with some hydro sites on the South.
Genesis Energy is a multi-site operation (Auckland, Huntly and Hamilton) with 950 permanent staff, and short-term and long-term contracts taking it to 1000 employees.
Genesis Energy first used Promapp in 2009 in its Contact Centre. It has since been rolled out into the trading and wholesale operations, health & safety and the IT department.
Christchurch Airport is New Zealand’s second largest airport, welcoming over 5.7 million passengers a year. In a unique
position to the world's trade and tourism markets, the airport is a major driver of the regional C anterbury economy.
Christchurch Airport is owned and operated by Christchurch International Airport Limited (CIAL), ownership of which
is shared by C hristchurch C ity Holdings Limited (75%) and the New Zealand Government (25%).
Mildura Rural City Council is the local government organisation that represents and serves approximately 51,000 people who reside in or own land within Mildura Rural City. Located in North West Victoria, the municipality covers an area of 22,330 square kilometres.
In a world overflowing with products, packaging is big business. Colorpak, and their sub-business BrandPack, design, print
and manufacture cardboard cartons and packaging for a wide range of consumer products - from beer, to chocolate, to
paracetamol tablets.
The packaging industry is ultra competitive, with big brand clients expecting extremely high levels of quality and great service. Colorpak had a great product range, but they were looking for a better way to manage risk and deal with incidents as they arose. They were implementing a new ERP system and also wanted to improve customer service and increase staff engagement. That’s where Promapp came in.
Nexans Olex employs more than 650 people and is Australia’s largest manufacturer of electrical power cable. It has two Victorian plants in Lilydale and Tottenham, one in New Plymouth, New Zealand.
It became part of the French-owned international Nexans group, with more than 100 plants worldwide, in 2008.
Lumo Energy is a Tier 2 electricity and gas retailer based in Melbourne which supplies over 500,000 customers in SA, VIC, NSW and QLD. They employ around 600 people on the ground in Melbourne and use the services of a dedicated contact centre in Mumbai of around 150.
All the documents are from the FlevyPro Library (http://flevy.com/pro/library). FlevyPro is our subscription service for business frameworks, templates, and analysis tools. We continuously add more documents to our library each month, based on subscriber requests.
1. The Strategic Management Maturity ModelTM
Many Institute clients ask a similar question as they work to improve
their strategic management at their organizations: where do we stand
compared with other high performing organizations? Until now, there
was no clear method for answering that question. This recognition of a
need for organizations to assess the quality of their strategic
management led the Institute to develop the Strategic Management
Maturity ModelTM (SMMM).
The SMMM was designed by and for busy managers who need a quick
assessment of where their organization stands in terms of strategic
management, to monitor progress in improving maturity of strategic
management, and to allow benchmarking across organizations, or
departments within one organization, in order to identify best The SMMM Can Be Used
practices. to Assess Organizational
There are two basic questions to ask of management: are we doing Strategic Management
things right, and are we doing the right things? Operational Performance
management focuses on doing things right, and many tools have been
developed to improve this (e.g. TQM, Six Sigma, business process reengineering etc.), including many maturity
models. In developing the SMMM, the Institute has broaded the concept of “performance” to add strategic
management concerns, which answer the second question, are we doing the right things. In any organization, it is the
strategy, driven from the vision of the leadership, that defines what are the right things. Process improvements alone
cannot guarantee that a company will be successful, or that an agency will achieve its mission. These two aspects of
management – strategic and operational – complement each other, so both must be assessed to determine the
organization's total management capabilities.
Eight Dimensions of Strategic Management
The SMMM contains assessments of performance along eight different dimensions of strategic management:
Leadership
Culture and values
Strategic thinking and planning
Alignment
Performance measurement
Performance management
Process improvement
Sustainability of strategic management
975 Walnut Street, Suite 360 . Cary, North Carolina 27511 USA . Phone: 919.460.8180 Fax 919.460.0867 . www.balancedscorecard.org
2. The Strategic Management Maturity Model – Page 2 of 8
Following is a description of the aspects of strategic management
included within each of these dimensions:
Leadership
Effective strategic management starts with leadership. Ken Chenault,
CEO of American Express, said "My role is to define reality and to
give hope." Leaders question assumptions, look at problems in new
ways, and create and articulate a vision for the future. In the context
of strategic management, leadership includes the following traits: a)
leaders set a clear and consistent vision or "picture of the future" of
the organization; b) leaders are pro-active in preparing the
organization for the future; c) leaders are visible and engaged to
ensure that staff understand the common vision and can translate it
into terms relevant to their roles; d) leaders "walk the talk" in
exemplifying the values, ethics and policies of the organization; e)
leaders don't micromanage, but trust and encourage employees to
contribute their ideas and grow in their careers; f) leaders "walk
around" and work alongside staff to encourage teamwork.
Many employees are now considered "knowledge workers" – they
are hired for their thinking skills. In this environment employees
want to know why they are being asked to do their assignments.
Hence strategic management leads to increased employee empowerment and less "command and control"
management.
Culture and values
"A leader leads by example, whether he intends to or not." (Author unknown). This dimension refers to
the culture and values inside the organization, and it addresses leaders' and employees' shared understanding and
agreement with stated values. Most organizations post a values statement with a list of virtuous words. What
distinguishes maturity is the degree to which those values are communicated, understood and practiced – by the
leader as well as by all employees. Evidences of of mature workforce culture and values include: a) thoughtful
applications of change management principles and practices by the leadership; b) the degree of ownership that
employees feel for the vision and values of the organization; c) their degree of participation in shaping the
organization's culture and ways of working; d) the level of trust, transparency and freedom to communicate with
candor, as opposed to a culture of fear and denial; e) the degree of flexibility and willingness to change to align to
new strategic priorities; f) the level of awareness and consistency of adherence to stated values and policies.
Strategic thinking and planning
“I think and think for months and years. Ninety-nine times, the conclusion is false. The hundredth time I am right.”
(Einstein). Strategy development is not a "cookbook" process. It is a challenging, heuristic task that requires strategic
thinking. Strategic thinking involves several traits: a) the ability to use consistent definitions of planning terms and to
understand their distinctions; b) awareness of the distinctions between project planning and strategic planning; c) the
ability to discuss and describe items in plans at the appropriate "strategic altitude"; d) awareness of the dynamic
system effects in organizations, such as delays and feedback; e) openness to new ideas and encouragement of
creativity and innovation; f) openness of the planning process to a team of employees of various ranks and functions;
g) degree to which alternative strategies and scenarios are considered; h) linkage of strategic planning to budgeting; i)
975 Walnut Street, Suite 360 . Cary, North Carolina 27511 USA . Phone: 919.460.8180 Fax 919.460.0867 . www.balancedscorecard.org
3. The Strategic Management Maturity Model – Page 3 of 8
ability to write and speak with clarity and simplicity. Evidence for the degree of strategic thinking can be found in the
organization's strategic planning documents.
Alignment
"To be successful, you have to have your heart in your business, and your business in your heart". (Thomas Watson,
Sr.) Alignment refers to strategic alignment, that is, the degree to which the organization's people and resources are
focused on the strategy. The opposite of alignment is "chaos", where managers, programs and projects are aiming at
different goals and there is lack of a common vision, leading to wasted energy, delays, conflict and confusion.
Features of the organization that can be aligned include: values, vision, mission, strategic plans, budgets, policies,
procedures, functions, themes, objectives, information standards and organization structure. Alignment measures the
degree to which: a) people at all levels are motivated by a common vision and strategy; b) people understand that
supporting the strategy is their job; c) people are self-motivated, not merely by compliance to rules.
Performance Measurement
"Without metrics, managers are only caretakers." (Jac Fitz-Enz). Without performance metrics or measures, managers
are "flying blind". So most organizations by now have learned to measure some things, either for operational
performance or for compliance with requirements of outside stakeholders. But strategic performance measures or
metrics are aligned to the strategic plan – not just everyday operations and outputs, but strategic outcomes that tie
to the vision of the organization. Features to look for in strategic performance metrics are a) metrics derived from and
aligned to the strategy, not just "KPI's" for operations; b) metrics that focus on outcomes and results, not just money
spent, tasks accomplished, or outputs delivered; c) metrics that use appropriate ratios, sample sizes and other
features in order to be more meaningful; d) metrics that are measured and reported frequently enough to drive
decision making; e) "team" and "organization" performance, not only individual performance is being tracked; f) a
balanced set of metrics that cover a range of different dimensions including not only financial data but also customer
satisfaction, internal process performance and capacities of the organization.
Performance measurement also includes an assessment of the use of
technology in managing performance information. Spreadsheets and
paper documents for data collection are only adequate for the very
smallest, localized organizations. In most modern organizations the
collection and distribution of performance data requires an IT system
on a network, set up to allow appropriate users to see the data they
need in time to make decisions. The degree to which end users have
fast, reliable access to relevant, high-quality data thus becomes
another aspect of maturity in strategic management.
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4. The Strategic Management Maturity Model – Page 4 of 8
Performance Management
"Your most unhappy customers are your greatest source
of learning." (Bill Gates). It is one thing to collect data, it
is another to use it effectively. Performance
management deals with the degree to which
performance metrics are use in decision making.
Features to look for are a) recognition of the
organization as a dynamic system; b) the use of
feedback loops – so managers get to see the results of
their decisions; c) managers are able to change things
based on timely reporting; d) strategic performance
measures are available to test the strategy; e) leaders
have placed the entire organization into a "learning loop" so that they can validate their vision; f) ultimately the
organization is learning what works to satisfy customers and improve the organization. The degree to which leaders
and managers feel they have the information they need to make decisions defines the level of performance
management.
Process Improvement
"The first rule of any technology used in a business is that automation applied to an efficient operation will magnify
the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency.” (Bill
Gates). The role of strategic management is to identify which processes out of our entire portfolio are most in need of
improvement (doing the right things). This requires input from the strategy, which informs the allocation of resources
for planning improvements of the most strategically important processes in the near term and long term.
Process improvement includes an assessment of a) the organization's knowledge about its strategically important
work processes; b) how well these processes are being improved updated and documented; c) how efficiently these
processes perform compared to industry benchmarks; d) skills, practices and technologies used to improve process
quality and efficiency; e) knowledge of core competencies and capacities of the organization and how well they are
employed in running the processes; f) the level of employee awareness of customers and their expectations; g)
existence of contingency plans for future risks, such as disasters, funding shortages, and leadership succession.
Sustainability of Strategic Management
"Thought is the blossom; language the bud; action the fruit behind it." (Ralph Waldo Emerson) Sustainability of the
strategic management of the organization is defined by: a) how well the organization is maintaining its focus on its
strategic vision, plans and initiatives; b) people, systems, and communication activities are in place to maintain the
momentum of desired change; c) a sense of urgency in the staff and workforce; d) reward and recognition systems
that support efforts to motivate employees to do the right things; e) presence of "champions" to keep the workforce
informed about the strategic priorities and levels of performance that are desired; f) presence of an "Office of
Strategic Management" to deploy the strategy and track performance; g) degree to which strategic management has
been institutionalized, so that "strategy is everyone's job". When a high level of maturity is achieved, the organization
is on a journey of continuous learning and improvement.
Evaluate Your Organization's Strategic Management Maturity
For each of these eight dimensions, there are five levels of strategic management maturity (see Figure 1 below): Level
1: Ad Hoc and Static, Level 2: Reactive, Level 3: Structured and Proactive, Level 4: Managed and Focused, Level 5:
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5. The Strategic Management Maturity Model – Page 5 of 8
Continuous Improvement. You can evaluate your organization by scoring the level of performance on each of the five
levels of strategic management maturity.
TM
Figure 1: Strategic Management Maturity Model Levels and Dimensions
Level 5: Continuous
Maturity Levels Level 4: Managed Improvement
& Focused
Level 3: Structured
& Proactive
Level 2: Reactive Dimensions:
Level 1: Ad • Leadership
hoc & Static • Culture & Values
• Strategic Thinking & Planning
• Alignment
• Performance Measurement
• Performance Management
• Process Improvement
• Sustainability
Level 1: Ad Hoc and Static
It is characteristic of organizations at this level that they currently do not do any strategic planning or management in
a formal sense, tending to plan only on the tactical or operational level in an ad hoc and uncontrolled manner,
normally by senior management behind closed doors. Leaders spend a majority of their time addressing operational
issues and “putting out fires” and never address long-term strategy.
Level 2: Reactive
It is characteristic of organizations at this level that some elements of effective planning and strategic performance
management are being applied, only in an inconsistent fashion and often with poor results. Planning discipline is
unlikely to be rigorous, and only happens in reaction to events or to temporarily please an individual leader. These
organizations might measure performance or even use it to punish underperformers, but often these activities are
done by individuals to meet a routine policy need and are not taken seriously.
Level 3: Structured & Proactive
It is characteristic of organizations at this level that there are formal structures and processes in place to
comprehensively and proactively engage in strategic planning and management. These activities occur on a fairly
regular basis and are subject to some degree of improvement over time. Measurements are somewhat aligned with
strategy and employee accountability is taken seriously.
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6. The Strategic Management Maturity Model – Page 6 of 8
Level 4: Managed & Focused
It is characteristic of organizations at this level that
strategy drives focus and decision making for the
organization. Organization-wide standards and methods
are broadly implemented for strategy management.
Leaders formally engage employees in the process and a
measurement & accountability work culture help drive
strategic success for the organization.
Level 5: Continuous Improvement
It is a characteristic of organizations at this level that the
strategic planning and management excellence are
embedded within the culture of the organization and are
continuously improved in a formal sense. This means that as performance is evaluated, the organization first analyzes
how it is performing towards its strategic goals and then second studies how effective the strategic planning and
management processes are and adapts as necessary. Excellence in strategic management drives the organization’s
competitive edge or performance success.
Interactive Assessment
On the Balanced Scorecard Institute website, a free Interactive Assessment survey matching Figure 2 below is
available for organization’s to assess their organization’s strategic management maturity level. To assess an
organization's maturity, simply select the maturity level that best describes your organization for each dimension.
Read the descriptions and identify the most appropriate level for each of the dimensions in your organization. The
median value of these is your organization's maturity level. Knowing this level will allow you to determine appropriate
next steps to take your organization's strategic management to the next level.
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