BUILDING THE STRATEGY MANAGEMENT OFFICE INTEGRATING STRATEGY AND - PowerPoint PPT Presentation

BUILDING THE STRATEGY MANAGEMENT OFFICE INTEGRATING STRATEGY AND EXECUTION STRATAEGOS.COM

STRATEGY MANAGEMENT IS CRUCIAL FOR EVERY ORGANIZATION 1 Industries are continuously disrupted by new entrants, new technologies, changing customer demands, increased globalization and the changing role of governments 2 Executives need to continuously adapt their strategy to maintain a ‘fit’ with the increasingly turbulent environment. For decades, survey after survey reveal that most strategies 3 fail or do not produce the envisioned results. This is the strategy execution problem : the failure to achieve 4 results after a seemingly viable strategy has been developed. BUILDING THE STRATEGY MANAGEMENT OFFICE | STRATAEGOS CONSUL TING 2

MOST ORGANIZATIONS LACK EFFECTIVE STRATEGY MANAGEMENT 1 Many organizations have a fundamental disconnect between the formulation of their strategy and the execution of that strategy. Organizations often lack an effective strategy management 2 process that allows executives and managers to turn the strategy into operational results. 3 Strategy management involves managing both the development and execution of a strategy. Many organizations separate strategy development and strategy 4 execution and focus on strategy development instead of strategy execution. BUILDING THE STRATEGY MANAGEMENT OFFICE | STRATAEGOS CONSUL TING 3

WHAT IS A STRATEGY MANAGEMENT OFFICE? AN INTEGRAL APPROACH TO STRATEGY DESIGIN, STRATEGY EXECUTION AND STRATEGY CONTROL 1 Many organizations have a strategic planning unit that is responsible for strategy development but lack a unit that is responsible for strategy execution and monitoring. 2 A strategy management office is an organizational unit that manages both strategy development and execution in an integrated way. The office is responsible for coordinating the whole process of 3 analysis, development, planning, execution and control of the strategy. The office facilitates senior management with strategy analysis and 4 development and middle management with strategy execution and monitoring and control. BUILDING THE STRATEGY MANAGEMENT OFFICE | STRATAEGOS CONSUL TING 4

MANAGING THE STRATEGY CYCLE INTEGRATING STRATEGY DEVELOPMENT AND EXECUTION STRATEGY STRATEGY 1 EXECUTION & FORMATION & STRATEGY CONTROL PLANNING FORMATION Execute the strategy Develop the strategy and translate the and control the 4 2 strategy by strategy into EXECUTION STRATEGY strategic objectives monitoring the CONTROL PLANNING and an execution progress of the execution and when plan with operational objectives, required, making 3 adjustments to the processes, and STRATEGY activities. strategy or its EXECUTION execution. BUILDING THE STRATEGY MANAGEMENT OFFICE | STRATAEGOS CONSUL TING 5

THE STRATEGY MANAGEMENT SYSTEM AN ANNUAL PROCESS FOR STRATEGY DESIGN, STRATEGY EXECUTION AND STRATEGY CONTROL 2 3 4 5 1 STRATEGY STRATEGY STRATEGY EXECUTION STRATEGY EXECUTION CONTROL MANAGEMENT PLANNING DESIGN • • • • Communicate the Develop goals & • Provide periodic Plan the annual Analyze the strategy strategy vision stratus reports strategy management and execution • process • • Translate the strategy Develop strategic • Organize progress Organize strategy • into tasks & activities options. review meetings Organize strategy & review meetings execution summits. • • • Assign responsibilities Develop scenario’s. • Adapt the Adapt the strategy. • execution of the • Support strategic • Develop annual Choose the strategy • Rewrite strategic plan strategy decision-making of the organization unit plan • Write strategic plan board. BUILDING THE STRATEGY MANAGEMENT OFFICE | STRATAEGOS CONSUL TING 6

STAGE 1 – ORGANIZE STRATEGY MANAGEMENT AN INTEGRAL APPROACH TO STRATEGY DESIGIN, STRATEGY EXECUTION AND STRATEGY CONTROL o Plan the annual strategy management process. o Organize strategy management summit for senior management. o Support strategy management decision-making of senior management. BUILDING THE STRATEGY MANAGEMENT OFFICE | STRATAEGOS CONSUL TING 7

STAGE 2 – DEVELOPING THE STRATEGY AN INTEGRAL APPROACH TO STRATEGY DESIGIN, STRATEGY EXECUTION AND STRATEGY CONTROL o Facilitate senior management in developing the strategic goals, and vision of the organization. o Develop strategic variants for each scenario. o Support senior management in developing a strategy that is able to achieve the strategic goals and vision. o Write down the strategy into a multi-year strategic plan. o Monitor the performance of the strategic plan and assessing whether adjustments need to made. o Translate changes in the external environment into strategic choices for top management. BUILDING THE STRATEGY MANAGEMENT OFFICE | STRATAEGOS CONSUL TING 8

STAGE 3 – PLANNING THE EXECUTION AN INTEGRAL APPROACH TO STRATEGY DESIGIN, STRATEGY EXECUTION AND STRATEGY CONTROL o Communicate the strategy to employees and stakeholders. o Translate the strategic plan into concrete objectives, tasks, activities and responsibilities. o Translate the strategic plan into annual plans for each organization unit. o Support organization unit heads in drawing up annual plans that outline how their department will contribute to the strategy. o Ensure that the annual organization unit plans are aligned to the strategy and do not conflict with each other. o Coordinate with finance and HR to ensure sufficient budget and resources for the execution of the strategy. BUILDING THE STRATEGY MANAGEMENT OFFICE | STRATAEGOS CONSUL TING 9

STAP 4 – MONITORING THE EXECUTION AN INTEGRAL APPROACH TO STRATEGY DESIGIN, STRATEGY EXECUTION AND STRATEGY CONTROL o Monitor the execution of the strategic plan and annual organization unit plans. o Provide periodic status reports to senior management and middle management about the progress of the strategy and its execution. o Organize three types of management control meetings: • Strategy review meetings in which top management discuss the progress of the strategic plan and its execution. • Execution review meetings in which top management discuss the progress of the annual plan and its execution with the responsible middle manager. • Operational review meetings in which middle management discuss the progress of the annual plan and its execution with team members. BUILDING THE STRATEGY MANAGEMENT OFFICE | STRATAEGOS CONSUL TING 10

STAP 5 – CONTROLLING THE EXECUTION AN INTEGRAL APPROACH TO STRATEGY DESIGIN, STRATEGY EXECUTION AND STRATEGY CONTROL o The strategy management office supports top management in decision-making about the strategy and its execution. o The strategy management office organizes periodic strategy review meetings in which top management makes decisions about the strategy and its execution. o When objectives are not being met the office assessed whether is because of a flawed strategy or poor execution. o When the hypothesis of the strategy are no longer valid the office proposes changes to the strategy or a completely new strategy. BUILDING THE STRATEGY MANAGEMENT OFFICE | STRATAEGOS CONSUL TING 11

DR. ARNOUD VAN DER MAAS STRATEGY EXPERT AND OWNER OF STRATAEGOS CONSUL TING o Dr. Arnoud van der Maas is a strategy consultant and author in strategy execution. o International expert in strategy execution. o Founder of Strataegos Consulting – specialized in strategy consultancy and research. o Received a PhD in Strategic Management from DR. ARNOUD V AN DER MAAS STRA TEGY EXECUTION EXPERT Rotterdam School of Management, Erasmus University. BUILDING THE STRATEGY MANAGEMENT OFFICE | STRATAEGOS CONSUL TING 12

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