A Platform for Strategy Management

Strategy model ; Build around a widely accepted framework that describes an organizations strategy (the Strategy Map) The process model: Build the platform around a widely used process that will create stability (the Palladium Execution Premium Process) The people and the organization: Build a cadre of certified professionals who will provide the knowledge and leadership to execute the new system) Technology and analysis: Create a platform of technology that mirrors the management process.
The Strategy Model
First level of science. If you cant describe a phenomenon, you cant measure itand if you cant measure

The Process Model.

To successfully execute strategy, organizations need a management process to translate the strategy described by the strategy map into action. Our continuing research into the formal approaches used by successful organizations led us to develop a six-stage management process, described in our latest book ,The Execution Premium.5 Each of the sixstt ages consists of a set of management best practices that have demonstrated

Stage 1: Develop the Strategy Strategy must be periodically reviewed and updated. The typical strategy cycle lasts three to five years, and is based on a clear statement and quantification other vision.6 Stretch targets become the foundation of the strategy.Thestrategymapsarchitecture should be established as Stage 2: Translate the Strategy. The strategy is translated from genera l themes into specific objectives, measures, targets, initiatives, and budgets. Tools such as strategy maps, BSCs, and StratEx (the dedicated allocation of strategic expenditures) enable organizations to link the details of planning to the generalities of strategy. Stage 3: Align the Organization. Alignments the way results are achieved. Communicating the strategy to the workforce, and translating the strategy into personal and departmental goals is an important precondition for success. Because most organizations lacks formal process for building alignment, they never experience its benefits. Initial alignment efforts should be focused on top-down linkages from the enterprise level to business units to employees. Stage 4: Plan Operations. Linking strategy to operations represents the area of greatest progress within the Kaplan-Norton methodology in recent years. Alignments benefits, derived from focus, are typically one-time. Superior Stage 5: Monitor and Learn. A strategy is a hypothesis about the actions needed to create desired results. To be effective, the strategy must be evaluated again stactual experience. Stage 6: Test and Adapt. Prompted by the recent growth in business intelligence and analytics, organizations are increasingly adopting quantitative approaches in their strategic

thinking.8 This represents not merely newer ground, but a particular opportunity or Balanced Scorecard users who have embraced the six-stage process
Technology and Analytics A recent survey conducted by Randal Russell, director of research at Palladium Group,
showed that an organizations strategy management capability grows over time. Russell noted a strong correlation between superior performance and the use of data analytics (DA) and the BSC. Specifically, he found that 78%of companies that had used both DA and the BSC achieved breakthrough results. If the two tools were used for less that three years, however, only 35% of companies achieved breakthrough results.9