Linking Strategy to Operations (Balanced Scorecard Approach)

The strategy has to drive the business and hence the business processes and operations should be aligned to the strategy. If we don’t do a proper alignment of strategy with operations, we always find redundant processes which are not required by the organization but still perform. This is a continuous process to optimize the business process in alignment with the strategy.

Integrating framework: Strategy themes, and objectives linked to key processes, provide a unifying framework for the management system.

Strategic themes/objectives provide a top-down framework to guide the governance process.

  • Theme teams
  • Objectives, Measures, targets
  • Resources
  • Reviews
  • Change management process

Key Processes provide a bottom-up framework to execute strategy at the operational level.

  • Change teams
  • Analytics
  • KPIs
  • Results and deliverables
  • Business process optimization priorities

Business Process Alignment:

Below are steps that can be used to start the alignment process:

  • The first step is to have the strategy map and balanced scorecard in place.
  • The strategic measures should be defined properly with targets and actuals which is required as part of the strategy translation exercise.
  • Prepare the list of high-level business processes (Level 1 & Level 2).
  • Prepare a matrix of business process versus strategic objectives.  
  • If any process is not aligned with any objectives, then they have to be reviewed.
  • Identify the processes which can be eliminated or simplified.

Some key ideas in linking strategy to operations:

  • Strategy Themes provide a bridge between high-level strategic objectives and operational drivers.
  • The process Model/Driver model provides e framework to describe and manage at the operational level.
  • Linking Pin defines the operational parameters which exert the greatest influence on strategic objectives.
  • Process Optimization is achieved through innovation and analytic projects that discover new ways to improve performance.
  • Dashboards provide ongoing focus on key operational KPIs.

Summary:

  • Identify operational processes key to executing strategy and manage those processes using analytical models rather than instincts
  • Analytical models identify drivers to the process and display these drivers on a dashboard accessible to managers that can make an impact
  • Drivers include not only financial (lagging) metrics, but operational, environmental, demographic, and other situational leading indicators
  • Identify the priority business process as per the strategy and introduce an operational excellence program in alignment with strategy

fruiStrategy ® EDGE empowers you to execute strategies consistently by linking strategy plan to strategy execution and aligning the whole organization’s actions towards a strategic direction. You can establish a robust strategy execution process empowered by plug-and-play modules to achieve overall organizational transformation in a systems driver approach.

Please contact Shaik Abdul Khadar, Strategy Management Expert at [email protected] or +917799798333 for a quick demo or more information.