Strategy Focused Organization (SFO) Readiness Assessment:

How do you determine the organization’s ability to execute strategy? 

To answer the question, we need to understand how a strategy-focused organization is created.  The three dimensions of Strategy Focused Organization are;

  1. Strategy: Make strategy the central organizational agenda. The Balanced Scorecard framework allows organizations to describe and communicate their strategy which can be understood and acted on
  2. Focus: Create incredible focus. With the Balanced Scorecard as a navigator, every resource and activity in the organization should be aligned to the strategy
  3. Organization: Mobile all employees to act in fundamentally different ways.  The Balanced Scorecard framework provides the logic and architecture to establish the governance and linkages across business units, shared services, and individual employees

Principles of Strategy-Focused Organization:

  • Translate the strategy to operational terms:
    • The speed with which the new strategies delivered results indicates the capability of the organization to execute the strategy.
    • The mistakes can be identified faster and corrected faster
    • Strategy maps and Balanced Scorecards help organizations to support the principle

  • Align the organization to the strategy
    • Synergy is the key goal of organization design.
    • Organizations consist of numerous sectors, business units, departments, and shared services, and they have their own strategies.  The key is to ensure the alignment of the organization’s strategy
    • The business processes and systems should be aligned with the strategy
    • When people get aligned to the strategy the ultimate results are evident.
    • The role of a corporate to be defined properly
    • The synergies of business units and shared services have to be defined with a strategy focus

  • Make Strategy Everyone’s Everyday Job
    • SFO required all employees to understand their role to deliver the strategy and conduct day-to-day work in alignment
    • Executives can use the Balanced Scorecard to communicate and educate the organization about the strategies
    • Executives can use the Balanced scorecard to cascade the strategy to all sections and employees
    • The incentive program can be linked to a Balanced Scorecard which can help on doing what is required and what is good

  • Make Strategy a Continual Process
    • Introduce a strategy review process in addition to operational reviews.
    • Strategy reviews are focused on only strategy progress and focus on what to do
    • Link budgets and strategies to ensure the strategic initiatives get enough funding
    • Prepare reports, dashboards, and analytics to cover strategy reporting
    • Strategic learning needs to be documented properly against the strategic assumptions

  • Mobilize change through executive leadership
    • The above principles focus on a balanced scorecard tool, framework, and supporting business processes
    • The executive leadership should drive the strategy execution initiative
    • It should not be considered an IT initiative
    • Identify the strategy team with clear responsibility and communicate properly
    • Establish a sense of urgency
    • Creating guiding coalition
    • Develop vision and strategy
    • Manage change through all possible means with proper communication and focus

After starting the Balanced Scorecard Project, the periodic performance can be measured by conducting the survey and each member can score the SFO readiness assessment independently.  The assessment can be done once in a quarter during the implementation and once in two quarters after completion.

The following is the template for Assessment:

After all team members complete the assessment survey the results can be combined and captured through the strategy execution system automatically.

The strategy management can calculate the totals of all scores automatically and present on a graph.  Every quarter the scoring can be repeated, and we can see the progress of the organization towards achieving SFO status can be measured.

fruiStrategy EDGE system output for SFO assessment is as below with a comparison for multiple periods.

fruiStrategy ® EDGE empowers you to execute strategies consistently by linking strategy plan to strategy execution and aligning the whole organization’s actions towards the 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.