THE STRATEGY EXECUTION MODEL
At Strat.exe we are convinced that the true challenge of today’s organisations lies more in the Execution than in the Definition of their Strategy. Public and private companies usually struggle more when it comes to executing their plan, than when it comes to developing their strategy. A lack of internal discipline, capabilities, skills and processes for execution often explains this difficulty.
We have developed a model based on the Strategy Execution and Balanced Scorecard methodologies created by Drs. Norton and Kaplan, from Harvard University, and on our large experience on the field. This model covers from the definition of the strategy to its transformation into results. It is the reference in which we base our offering to help our clients:
1. STRATEGY DEFINITION
We start by helping our clients to define from within their strategy, involving from the beginning the key executors of the strategy.
Strategy Definition consists in defining the “strategic direction” of an organisation, making decisions on allocating the right resources to pursue this aspiration. In order to determine the direction of the organisation, it is necessary to understand its current position and the possible ways through which it can pursue a particular course of action.
The main steps include:
2. STRATEGY TRANSLATION
After defining the strategy, organisations must translate it into robust and clear strategy translation framework (known as “Balanced Scorecard framework”). This is the core know-how and expertise of Stratexe.
This framework is composed by three elements:
- The “Strategy Map” which contains, in one single plage, the key strategic objectives of the organisation,
- The “Strategic Scorecard” or “Balanced Scorecard” with few but relevant “measures” or “indicators”, in order to track the degree of achievement of each objective, and
- The “Strategic Action Plan” or “Strategic initiatives” that the organisation must define, prioritise and implement to close the gap between the current situation and the expected end goal. It is also very important to align this portfolio of Strategic initiatives with the budget (“Stratex”).
3. STRATEGY CASCADING AND ALIGNMENT
Stratexe also help its clients to deploy the strategy execution tools from the top to the bottom, by cascading the strategic objectives (strategy map), measures (balanced scorecard) and initiatives (strategic projects) into the different Business and Support Units.
This alignment filters down to individual level through the use of Personal Scorecards and Strategy Communication Plans to better understand what the individual’s contribution to the Strategy is. Stratexe has developed a unique “Personal Scorecard Model”, making everybody rowing in the same strategic direction.
4. STRATEGY MANAGEMENT
Finally we create a Strategy Management Process for our clients that will facilitate the internal discipline for the execution of their strategic initiatives and achievement of their strategic objectives, by continuous monitoring in Strategy Review Meetings.
This execution of the strategy in the day to day implies:
- Establish a dedicated unit that will orchestrate Strategy Definition and Execution: the “Office of Strategy Management”
- Develop a monitoring process (frequency, roles, templates, etc.) that will allow the organisation to report on the degree of achievement of the strategy and to run efficient “Strategy Review Meetings”
- Manage the execution of the portfolio of transformational initiatives
- Select and implement the IT tools required to monitor the whole strategy execution process