2 MAP THE STRATEGY

First Step:

• Identify the strategic themes and objectives to be reached

• Define the tangible results (financial, customer)

• Define the intangible assets and how they support value-creation

 

Second Step:

 Select measures and targets at a high level

 

Third Step:

• ID Strategic Initiatives (charter, budget required, accountabilities, time line)

• Group initiatives into portfolios if necessary

 

Fourth Step:

Fund the initiatives and create the teams (allocate financial resources to

 

STRATEX, i.e., strategic expenditures; owner = CFO)

(Note: the senior team manages cross-silo initiatives.)

 

3 ALIGN THE ORGANIZATION

• Align operating unit financial and customer results with the strategy's financial and customer measures (owner = COO)

• Create service line or business unit maps as necessary

(Most businesses have two or more service lines [e.g., strategy development and coaching in the case of McKnight-Kaney] or business lines [e.g., office equipment, consumer products]. Each of these need to build their own strategy map. Owners = unit leaders)

• Align support unit deliverables with line units needs as identified by the strategy (Job 4*; create service-level agreements; owner = senior team)

• Bring organization design into alignment with strategy (Job 4; this is a strategic initiative that very often gets overlooked, especially rewards system, performance mgt, and other people practices; owner = CHRO)

• Get all employees to understand the strategy and generate commitment among employees for the strategy (Jobs 1-2; owner = CHRO)

 

4 DETAILED OPERATIONAL PLANNING

• Identify key processes that need improvement

• Integrate the strategy with all planning processes (sales forecasting, resource-capacity planning, operating and capital budgeting)