DAY ONE - Monday, March 8, 2010
The New Strategy Management System
Stage 1: Develop the Strategy
Managing strategy execution should be a permanent part of an executive’s job. This requires a
management system. Most organizations have pieces of this system, such as budgeting and goal setting,
but the pieces are isolated and incompatible. Further, most organizations do not have a
formal process to translate the strategy, test it, and align the organization. This session describes the
six stage management system and reviews best practices of how leading organizations formulate
their strategies, including mission, values, vision statements, PESTEL and SWOT analysis, and the
strategic change agenda.
Key Issues
- Strategy execution: the #1 priority for senior executives
- Companies that deliver results: the Balanced Scorecard Hall of Fame
- The six stage management system for strategy execution
- Stage 1: Develop the Strategy
- Define Mission, Values and Vision
- Examine the external competitive environment and internal capabilities
- Formulate the strategic change agenda
- Select the strategy
Stage 2a: Leadership - Translate the Strategy with Strategy Maps, Scorecards, and Strategic Themes
This session describes the latest innovations in strategy mapping. Discover how to choose the right
strategic objectives directly from the strategy and construct a strategy map around four to six themes
that link human capital and process objectives to customer and shareholder objectives.
Key Issues
Creating the Strategy Map
The Role for Strategic Themes
How Strategy Influences the Selection of Strategic Objectives
- Total low cost strategy
- Complete customer solution strategy
Examples of Best Practice Strategy Maps in the Private and Public Sector
Stage 2b: Plan the Strategy: Targets and Strategic Initiatives
The discussion of Stage 2 continues by showing how to set targets for strategic themes and objectives,
the process to select portfolios of strategic initiatives, and the new funding mechanism of strategic
expenditures (StratEx). The role of theme owners and theme teams for managing the execution of
cross-functional and cross-business strategic themes will be introduced.
Key Issues
- Setting Targets
- Selecting and funding strategic initiatives
- Funding the Strategy (Stratex)
- Role for Theme Owners and Theme Teams
Best Practice Case Study: Lockheed Martin’s Management System:
Proving Customer Value
Stage 3a: Align Organizational Units for Corporate Synergies
Most enterprises consist of multiple business and functional units. For the full execution premium
to be earned, the enterprise must achieve both vertical and horizontal alignment in each unit’s
strategic objectives. Review how to achieve organizational synergies through cascaded and linked
strategy maps.
Key Issues
- Aligning corporate strategy to business unit objectives
- Aligning business unit objectives to support unit and shared services objectives
- Strategic alliances - aligning partners across the industry value chain
Stage 3b: Align Human Capital and Employees
Ultimately, strategy is executed by employees, not the senior leadership team. But employees cannot
help implement a strategy that they are unaware of, do not understand, or have little motivation to
execute. This session covers the important processes needed to communicate strategy, motivate
employees, and align the development of employees’ capabilities and competencies to strategic
objectives.
Key Issues
- Communicating strategy to employees (7 times, 7 ways)
- Linking employees’ personal objectives and goals to strategic objectives
- Aligning employee incentives and rewards
- Identifying strategic job families
- Defining and developing strategic competencies
Open Forum with the Strategy Experts