Review turning great strategy into

Our research and experience in working with many of these companies suggests they follow seven rules that apply to planning and execution.

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Rule 2 Challenge Assumptions Assumptions and information drive the numbers Early discussion of resource requirements promotes a better strategic plan and ensures a higher probability of success in execution. Or should he just cut his losses and sell the business? Rule 3 Speak the Same Language The dialog between top management and the organization or the board for that matter needs to be grounded in a simple, common language that prevents ambiguity and promotes understanding and confidence.

turning great strategy into performance ppt

So, rather than relying on the functions to provide these resources from the bottom up, corporate management earmarked a specific number of trained engineers to support growth in cable.

Create more realistic forecasts and more executable plans by discussing up front the level and timing of critical deployments. So commitments cease to be binding promises with real consequences.

Review turning great strategy into

Some 5. This article stresses a couple of points that I think even Dr. Rule 1 Keep it Simple At many companies the strategic planning process becomes an abstract or academic exercise obscured with lofty goals and unclear outcomes. More important, they risk embedding the same disconnect between results and forecasts in their future investment decisions. Their disciplined planning and execution processes make it far less likely that they will face a shortfall in actual performance. And because no one is held responsible for the shortfall, the cycle of underperformance gets repeated, often for many years. For example, market conditions and real competitive advantages must have a basis in fact for the financial projections to hold water. We wanted to see how successful companies are at translating their strategies into performance. He was cranky, single-minded and extremely demanding This real-time information allows management to spot and remedy flaws in the plan and shortfalls in execution—and to avoid confusing one with the other. Leaders then pull the wrong levers in their attempts to turn around performance—pressing for better execution when they actually need a better strategy, or opting to change direction when they really should focus the organization on execution. In our experience, this change occurs subtly but quickly, and once it has taken root it is very hard to reverse. So, rather than relying on the functions to provide these resources from the bottom up, corporate management earmarked a specific number of trained engineers to support growth in cable. A lot of value is lost in translation. In essence, managing to those elements that impact real economic performance trumps the financial forecast process that it should ultimately yield.
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