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