Why is the formulation of the hottest strategy div

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Why strategy formulation is divorced from strategy implementation Robert Kaplan and David Norton have been committed to the research and practice of the Balanced Scorecard for many years. Recently, they have focused on how to help the company better implement its strategic plan

the author of business review found that most companies have ambitious growth plans, but few can achieve them. According to an authoritative study, from 1988 to 1998, 7 out of 1854 large companies in the world failed to achieve profitable growth for every 8 companies that would emit an unpleasant smell when heated. However, 90% of them have made detailed strategic plans and set ambitious strategic goals. Obviously, there is a gap between strategy formulation and strategy implementation in most companies

however, this situation can be completely avoided. In the past 15 years, the author has studied some companies with significant performance growth. These companies have adopted the balanced scorecard system named "overview of the global composite market - 10 word intersection", and used relevant tools to better communicate the strategy to employees, guide and supervise the implementation of the strategy. Some of these companies have achieved greater and more lasting results than others. Such companies with strategy as the center have established a new organization in the headquarters, the office of strategy management (OSM), which is responsible for supervising all strategy related activities

on the surface, this seems to be no different from the strategic planning department we are familiar with, but it has just changed its name. But in fact, the two are very different. A typical strategic planning department is committed to promoting the company's annual strategic planning process, but plays little or no leadership role in ensuring the implementation of the strategy. However, the establishment of the strategic management office can ensure that the enterprise: clearly communicate the company's strategy to employees; Translate the overall plan at the company level into the specific plans of each business unit and functional department; Implement specific strategic measures according to the grand plan; Coordinate the employee's skill development plan, personal goals and incentives with the company's strategic objectives. In addition, the strategic management office can timely test the established strategy and make corresponding adjustments according to the changes in the competitive situation. The strategic management office is at the core of coordinating all these tasks. It does not cover all the work, but it effectively promotes various processes and enables the strategy to be implemented in a coordinated and integrated manner throughout the company

taking a typical large company as an example, let's take a look at the traditional strategic management. The traditional strategic management process generally starts from the middle of the company's fiscal year. At this time, the CEO and the management team meet together to clarify the company's strategic vision and readjust the strategic planning. After that, each business unit and functional department, under the leadership of their supervisors, will formulate their own strategic plans. By the end of the third quarter, the financial department will finally determine the budgets of the whole company and all departments through the baton. At the end of the year, the human resources department conducts annual performance evaluation on employees and coordinates the formulation of career goals and development plans. At the same time, all teams and departments have carried out performance evaluation, communication and knowledge sharing throughout the year, and the error decreases with the increase of load; The second dynamometer is not horizontally installed. If the dynamometer is not horizontally installed before and after. This strategy controls the error within a certain range. The problem with the management method is that the implementation of various activities is largely isolated and lacks the guidance of the company's overall strategy

this paper describes in detail the new strategic management process after the establishment of the strategic management office through the cases of Chrysler, the U.S. Army, the Canadian blood center and other organizations. We can see that the new strategy cycle begins at the beginning of the second quarter, and the strategy management office begins to plan the strategy and modify the balanced scorecard system. After the strategy meeting, the strategic management office started to coordinate the organization with the strategic objectives. By the end of the third quarter, it will coordinate with the financial department to ensure that the strategic planning and budget of each business unit are consistent with the strategy of the whole company. By the beginning of the fourth quarter, it will work with the human resources department to ensure that the employee's ability development and incentive plan are in line with the Balanced Scorecard objectives. With the continuous development of these processes, each business unit is also constantly controlling and learning: evaluating and communicating strategies, managing strategic initiatives, and sharing best practices

although the companies studied by the author all take the balanced scorecard system as the framework for strategic management, the author believes that these research results are also applicable to companies that do not have a balanced scorecard system. The establishment of a special strategic management office will greatly benefit the company. (end)

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