by Kedar BAGUL
Managing Strategy Execution in the right way.
Importance of orchestrating all elements of strategy well for effectively managing strategy execution process.
The success of the right strategy lies in how the same is executed in a right way. Strategy is all about creating, building and sustaining business value.
The success of the right strategy lies in how the same is executed in a right way. Strategy is all about creating, building and sustaining business value. It typically consists of following elements that are to be addressed well:
Strategy can be modelled well in terms of 'cause and effect' or strategy maps i.e. it necessarily depicts the relationship among business objectives. Objectives can be looked upon as KRAs i.e. Key Result Areas; whereas Business Goals as KPIs i.e. Key Performance Indicators. Objectives are grouped under 'Perspective'.
Metrics (historically they have been seen as measures) are the smallest measurable quarks. When we drive a car, there are gauges such as speedometer, tachometer, odometer, fuel meter etc. on its dashboard. So these can be considered as 'metrics'. Whereas, 'mileage' would be a KPI (and incidentally no car manufacturer seems to be interested in incorporating it as a part of their dashboard !).
There are multiple ways of measuring and monitoring Risks associated while fulfilling objectives. But it is important to start tracking them from business point of view. Technically there are quite a few standards such as ISO27K1, BS7799 etc to address risks in a structured way. Risk scores can be derived out their scale on probability and impact, while projects using techniques such as ABC or EVMS etc.
Metrics contribute to KPIs and typically they share mathematical relationship. Metrics can be qualitative or quantitative besides their granularity and other properties. KPIs would have 'targets' associated that business keeps on chasing over an identified timeline.
The famous framework of BSC (the Balanced Scorecard framework that was coined by Dr. Robert Kaplan and Dr. David Norton way back in 1992) has seen quite a few enhancements over the past years. I have successfully experimented in 'capturing' project outcomes in terms of KPIs and also considering those in the overall weighing mechanism.
Now it can be very easily understood that just by keeping an eye on KPIs would make your strategy execution management process lame if not blind.
I will be elaborating this all in my future articles soon.
The objective of this quick write-up is to stress the importance of orchestrating all elements of strategy well when it comes to managing strategy execution process.