Page.

2
Figure 1.0 Impact of Strategy Execution Process
Do you have a formal strategy execution process in place? Describe your organizations current performance.

Yes (54%)

No (46%)

*.We have breakthrough results *we are performing better than our peer group

12% 7% 58% 20%

Sub-Total 70% 27%

Winners

*performing at the same level as our peer group. *performing at a lower level than our peer group *not performing at a sustainable level

18% 30% 9% 27% 3% 16% Sub-Total 30% 73%

Losers

Source: BSCol Research (Survey of 143 performance management professionals, drawn from BSCol On-Line Community, March 2006)

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Figure 1.1 OSM Processes
STRATEGY MANAGEMENT PROCESS

1. Scorecard Management Design 1 and report on the BSC objectives. 2. Organization Alignment Ensure all business and support units are aligned with the strategy.
3. Strategy Reviews Shape the agenda for management strategy review and learning meetings. 4. Strategy Development Help the CEO and executive team formulate and adapt the strategy. 5. Strategy Communication Communicate and educate employees about the strategy and performance. 6. Initiative Management Identify and oversee management of strategic initiatives. 7. Planning & Budgeting Link financial, human resources, information technology, and marketing to strategy. 8. Human Capital Alignment Ensure all employee goals, incentives and development plans link to strategy. 9. Best Practice Sharing Facilitate a process to identify and share best practices.

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Figure 2.0 The Strategy Focused Organization Framework
II. TRANSLATE STRATEGY TO OPERATIONAL TERMS
2.1 Strategy translated in strategy map 2.2 Strategy described in Balanced Scorecard 2.3 Targets identified for all measures 2.4 Strategic initiatives rationalized 2.5 Executives accountable for initiatives

I. MOBILIZE CHANGE THROUGH EXECUTIVE LEADERSHIP

1.1 Leaders drive strategy execution 1.2 Executives make case for change 1.3 Well articulated strategy exists 1.4 Leaders reinforce strategic priorities 1.5 Office of Strategy Management established

III. ALIGN THE ORGANIZATION TO THE STRATEGY

V. GOVERN TO MAKE STRATEGY A CONTINUAL PROCESS

RESOURCE MANAGEMENT 5.1 Budget is driven by strategy 5.2 Planning for HR linked to strategy 3.1 Corporate contribution to 5.3 Planning for IT linked to strategy strategy defined 5.4 Portfolio of strategic initiatives aligned 3.2 Enterprise scorecard guides to themes KEY PROCESS MANAGEMENT business units 5.5 Process improvement aligned to 3.3 Enterprise scorecard guides strategy support units 5.6 Best practice sharing in place 3.4 Scorecards align suppliers LEARNING & CONTROL 3.5 Scorecards align customers 5.7 Strategy reviewed on regular 3.6 Scorecard reports to board basis and/or shareholders IV. MOTIVATE TO MAKE 5.8 Analysis guides decision STRATEGYEVERYONES JOB making

4.1 4.2 4.3 4.4

Strategic awareness created Personal goals aligned Personal incentives aligned Competency development aligned

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Figure 2.1 Strategy Execution Domains

Strategy Management

STRATEGY
Key Process Management Resource Management

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Figure 2.2 Categorizing Performance Management Frameworks
Performance Category Goals
Track performance against strategic objectives.

Management Frameworks
Balanced Scorecard Performance Prism Hoshin Planning

Strategic

Operational

Optimize operational processes.

Total Quality Management Six Sigma Malcolm Baldrige

Tactical

Improve understanding of processes and activities.

Business Process Modeling

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Business Scorecards and Strategy Maps

Web-based and personalized performance dashboards let more employees work with information that is relevant, actionable and aligned to their organizations objectives.

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Performance dashboards and analytics

PerformancePoint dashboards and analytics provide better insight, allowing users to work with and understand complex information faster.

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Planning, Forecasting and Budgeting in Office

Connectivity with Office allows more employees to participate in the processes of planning, budgeting and forecasting, while relying on centrally-managed business definitions and security.