Crafting And Executing Strategy

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<p>Crafting and Executing Strategy: Management by Objectives at</p> <p>Crafting and Executing Strategy:Management by Objectives </p> <p>Aygun Suleymanova, May 2010Structure/ to put the strategy in1Starting point: Defining Value Proposition</p> <p>bullets2DEFINITELY!</p> <p>Articulate it well through forming a MISSION statement around customer-centricityTogether with the Team create the longer-run VISION statement to tie your activities toAgain, with the Team, create key strategic priorities (no more than 5) for the year to focus onImmediately after, have the Direct Reports (Division heads) come up with the objectives/projects for their Division that would go under each strategic priority and a KPI for eachHave them continue the process down to individual level</p> <p>5NOT EXACTLY</p> <p>Identify, considering competition, the industry and the customers what you stand for and where you are goingTogether with the Team create the longer-run MISSION statement to tie your activities toAgain, with the Team, create key strategic priorities (no more than 5) for the year to focus onImmediately after, have the Direct Reports (Division heads) come up with the objectives/projects for their Division that would go under each strategic priority and a KPI for eachHave them continue the process down to individual level</p> <p>INPUTS FOR STRATEGY FORMULATION</p> <p>SWOT Analysis. Industry-wise, opportunities and threats should capture multiple industries that the company operates in: SaaS, HSE solutions, Sustainability VendorsCongruence of values analysisIndustry Success Factors and the ways to leverage them:BRAND STRENGTHCUSTOMER SERVICE/SATISFACTIONPARTNERSHIP &amp; TRUST</p> <p>7EXECUTIONSteps to Strategy FormulationVision &amp;Mission Formulation</p> <p>Up to 5 Company Strategic PrioritiesUnit ObjectivesIndividual Objectives</p> <p>Related Division Objectives [year]</p> <p>Target deployment12345Company CEO, Direct reports &amp;Key contributorsDirect reports to middle managers;middle managersto their teams and so forth downto individual levelExample (A technology consulting firm):Vision - Enabling freedom:We will lead by providing our clients with insights and capabilities that boost their freedom to achieve superior results.</p> <p>Mission - Enabling transformation:We enable our clients to transform and perform through technologies.We will lead by providing our clients with insights and capabilities that boost their freedom to achieve superior results.IncreasePresence in The MarketCutting EdgeSolutionsSuperior QualityB. Dev-t:1) Bring in X new Customers2) Launch CRM,Etc.</p> <p>Client Services:1); 2); 3) etc.Technology:Increase capacity of existing etc.1) Upgrade theCorporate Website Corporate LevelCompany VisionDivision LevelTeam or Individual Level**Depending on the depth of hierarchythe objectives will be cascaded down Strategic PrioritiesNature of Objectives &amp; KPIsType of ObjectiveDescriptionLevelShared or IndividualKPIProject-basedRelease the standard version of the X module/ product DivisionShared X, Y, Z divisions Project DeadlineProcess-basedClose the customer complaints in average of 24 hrsTeam/ IndividualIndividual24 hrsStill working on itStandards and milestones12Competency Integration into Performance Evaluation is important3-4 Core Competencies that are specific to the company depending on its vision, like: Adaptability to Changes, Quality, Customer Care, etc.Job Family Competences: STRATEGIC LEADERS; PEOPLE LEADER; PROFESSIONAL KNOWLEDGE WORKERS; CUSTOMER CONTACT; ADMINISTRATIVE SUPPORT </p> <p>Competences in ForceCompetence-based STARs/ARs that employees give one another will reinforce the development of competencesDefined competences will make the 360 degree evaluation well-defined as well Allows you to tie development activities toJanFebMarAprMayJunJulAugSepOctNovDecStrategy Review Meeting1Annual Operational Budget Approval2(Mass) Communication of New Strategy to Employees3Target Deploy-ment4Target Review 16Target Review 36Perfor-mance Appraisal7Individual Development Plans5Bonuses8Target Review 26Ideal Timeline for PM Process360 Review615CHALLENGES</p> <p>Geographical dispersion: time and cultural differencesKPI determination: the un-tested targets to be set (for e.g. in customer service, there might be set a target to close the customer issues in 24 hours, however, it might be either unrealistic or the gauges could be biased as to what is considered to be closed)It is imperative that all the processes running in the company are clearly designed and documented (in MS Visio map format) and the job responsibilities and reporting structure are as well clearly definedLack of incentive structure to complement the Management by Objectives framework could significantly impede the implementation of the concept </p> <p>16SOLUTIONS</p> <p>Research: corporate value analysis, defining the differences in beliefs and values between the two teams for tailoring the implementation and communication strategy accordinglyLeadership commitment and intensive communication through different mediaDevelopment: creating a competence framework consistent with the strategy to develop certain set of competences in employees to reach their (and ultimately corporate) objectivesMiddle management development and commitment: This is the most important communication channel for nurturing company values and implementing strategy; Creation of Succession planningCreation of a consistent STRATEGIC incentive structure (not just monetary, but also career and recognition rewards)</p> <p>17ENGAGEMENT ANALYSIS</p> <p>Conducting a survey among the company employees to define:How they feel about being a Company employee?What they value most in their job?What values they see/show most in their work?Is their vision and view of the company same with the leaderships?------------------------------------------------------------------------------------ Provide recommendations on how to tailor communication and implementation strategy within the company</p> <p>LEADERSHIP COMMITMENT</p> <p>In realizing its vision through the employees it is important that the leadership show their commitment in each step of strategy formulation and execution by:Getting the Team together for strategy formulation meeting, opening the meeting with a speech and demonstrating initiative ownershipUnderlining the importance of the execution to Direct reports and instilling belief in them in the vision Following through with the Target deploymentUsing the company Intranet and e-mail to announce the Companys Way Ahead in a text and video formatMonitoring the implementation throughout the year</p> <p>Too many wordsTitle the bullets19PROJECT MILESTONES:</p> <p>Formulating Vision: an interview with the CEOPresenting industry, company and customer analysis for:Formulating Mission, key priorities and Division objectivesPresenting competence framework for the strategyConducting Employee Survey (on corp. culture &amp; values)Company-wide communication of strategy to employeesFacilitating Objectives Deployment &amp; integration of competences into individual development objectivesMaintaining and constantly communicating the status of achievements</p>