Lecture 1 – introduction
There are three major challenges within strategy implementation, namely
having a different scope than the analysis, the need for coherence of
strategy to succeed, and the complexity of implementation, specifically
looking at interactions and the number of elements covered.
Scope
Anthony and Govindarajan, 2007: which programs will an organization
undertake and what is the number of resources that will be used in each
program over the years to come.
- When are the actual resources that can be allocated and used?
- The focus should not be on strategy formulation, but on strategy
implementation.
Keynote: as a company you will never reach CA if you only analyse and
create strategy instead of implementing it.
The differences between strategy creation and strategy
implementation:
Strategy creation is: Strategy implementation
is:
Analysis and planning Execution
Thinking Doing
Initiation Following through
At the top Top-to-bottom
Entrepreneurial Operational
Goal setting Goal achieving
,Coherence
There needs to be coherence
between not one of these things,
but across all elements. They work
together to create successful
implementation.
The supporting activities in this
diagram are e.g. IT systems and
other additions.
The alignment checklist
For creating coherence, the alignment checklist is made.
The following things are needed for alignment:
- People
o Having the skills to make the strategy work
o Supporting the strategy
o Aligned attitudes
o Available resources to be successful
- Incentives
o Alignment of strategy reward system
o Aligned performance goals with strategy
- Structure
o Optimized units that support strategy
- Supportive activities
o All secondary activities and handlings in support of the
strategy
- Culture
o Matching culture and strategy
Complexity
Not making the structure and how things work together too complex, so
that it does not match your business.
,Lecture 2 – Performance measurement
To measure performance, performance measurement systems are
introduced:
- Dashboards and cockpits
- Quality improvement systems like, the PDCA or Six Sigma
- Balanced scorecard consisting of:
o Strategy map
o Score card
The balanced scorecard
Limitations of the scorecards are:
- Reporting on events past
- Works well on companies that have physical assets. E.g.
manufacturing plants
Managing strategy with the balanced scorecard:
Four steps to the scorecard that never end:
- Translating vision
- Communicating and linking
o Setting goals
o Educating
o Link to measurable
performance
- Business planning
o Setting the targets
o Aligning initiatives
o Allocating resources
o What will be the milestones
- Feedback and learning
o How was the vision accomplished
o Feedback, review, learning and implementing new vision.
Top down view:
- Mission
- Values
- Vision
- Strategy
- Strategy map
- Balanced scorecard
, - Targets and initiatives
- Personal objectives
- Strategic outcomes
Explanation of the balanced scorecard
The balanced scorecard exists of three major parts
- The strategy map
- The actual balanced scorecard
- The action plan
together these form a cohesive overview of the strategy.
Strategy maps (Kaplan & Norton)
The balanced scorecard is built
from four perspectives. For
establishing you always work
bottom to top. Sarting from the
top you have:
- Financial perspective
- Customer perspective
- Internal perspective
- Leaning and growth
perspective
There are three major challenges within strategy implementation, namely
having a different scope than the analysis, the need for coherence of
strategy to succeed, and the complexity of implementation, specifically
looking at interactions and the number of elements covered.
Scope
Anthony and Govindarajan, 2007: which programs will an organization
undertake and what is the number of resources that will be used in each
program over the years to come.
- When are the actual resources that can be allocated and used?
- The focus should not be on strategy formulation, but on strategy
implementation.
Keynote: as a company you will never reach CA if you only analyse and
create strategy instead of implementing it.
The differences between strategy creation and strategy
implementation:
Strategy creation is: Strategy implementation
is:
Analysis and planning Execution
Thinking Doing
Initiation Following through
At the top Top-to-bottom
Entrepreneurial Operational
Goal setting Goal achieving
,Coherence
There needs to be coherence
between not one of these things,
but across all elements. They work
together to create successful
implementation.
The supporting activities in this
diagram are e.g. IT systems and
other additions.
The alignment checklist
For creating coherence, the alignment checklist is made.
The following things are needed for alignment:
- People
o Having the skills to make the strategy work
o Supporting the strategy
o Aligned attitudes
o Available resources to be successful
- Incentives
o Alignment of strategy reward system
o Aligned performance goals with strategy
- Structure
o Optimized units that support strategy
- Supportive activities
o All secondary activities and handlings in support of the
strategy
- Culture
o Matching culture and strategy
Complexity
Not making the structure and how things work together too complex, so
that it does not match your business.
,Lecture 2 – Performance measurement
To measure performance, performance measurement systems are
introduced:
- Dashboards and cockpits
- Quality improvement systems like, the PDCA or Six Sigma
- Balanced scorecard consisting of:
o Strategy map
o Score card
The balanced scorecard
Limitations of the scorecards are:
- Reporting on events past
- Works well on companies that have physical assets. E.g.
manufacturing plants
Managing strategy with the balanced scorecard:
Four steps to the scorecard that never end:
- Translating vision
- Communicating and linking
o Setting goals
o Educating
o Link to measurable
performance
- Business planning
o Setting the targets
o Aligning initiatives
o Allocating resources
o What will be the milestones
- Feedback and learning
o How was the vision accomplished
o Feedback, review, learning and implementing new vision.
Top down view:
- Mission
- Values
- Vision
- Strategy
- Strategy map
- Balanced scorecard
, - Targets and initiatives
- Personal objectives
- Strategic outcomes
Explanation of the balanced scorecard
The balanced scorecard exists of three major parts
- The strategy map
- The actual balanced scorecard
- The action plan
together these form a cohesive overview of the strategy.
Strategy maps (Kaplan & Norton)
The balanced scorecard is built
from four perspectives. For
establishing you always work
bottom to top. Sarting from the
top you have:
- Financial perspective
- Customer perspective
- Internal perspective
- Leaning and growth
perspective
