Documente Academic
Documente Profesional
Documente Cultură
Separate strategy
reviews from operational
reviews but account
for culture.
Month 2
Month 3
Operations
Review
Operations
Review
Strategy
Review
Day 2
Day 3
Operations
Review
Strategy
Review
Operations
Review
E10 units
E5 units
AM
PM
Operations
Review
Strategy
Review
Review strategy
quarterly but find
other ways to keep
strategy top-of-mind.
How frequently should an organisation meet to review its strategy? The last three examples provide no consensus on this
question. DataMart meets quarterly, PAS meets bimonthly, and
CellCo meets monthly.
Strategy, by nature, is long term. Market share, product quality,
new product development and employee competencies typical components of business strategy change little from month
to month. So progress on the strategy should theoretically be
reviewed on a less frequent basis say, quarterly. On the other
hand, if an organisation reviews strategy only once a quarter, the
strategy will not remain foremost on the management agenda
unless there is a concerted effort to keep it there: out of sight,
out of mind.
Eurobanks Portfolio Manager Solutions division adopted an effective solution. Their strategy consists of three themes: product innovation, customer relationships and service excellence.
The divisional management team meets monthly to review
the strategy, with each meeting focusing on one of the three
themes. Though each theme gets reviewed once per quarter,
the management team is still convening every month to manage strategy an interesting trade-off between the long-term
strategy review horizon and the short-term objective of building
a strategy-focused management team.
Create issue-oriented
meeting agendas.
Consider the two different approaches shown in Figure 2. DefiniData meets every quarter. The Balanced Scorecard serves as
the agenda for the meeting. Each executive with accountability presents and interprets the data associated with his or her
measures. The group then explores alternative interpretations.
From this data-focused discussion, a list of issues emerges.
Between review meetings, an ad hoc group refines this list, analysing the issue and identifying options. The groups analysis and
recommendations are presented at the next meeting for review,
modification and acceptance. Ultimately, this process yields an
update to the strategy.
Month n
At
meeting
Month n+1
Executive team reviews
recommendations
Issue list
identified
Strategy
updated
Decisions made
DefiniData:
Data-focused meeting
Between
meetings
Issues
focused
Executive team
explores issues
and selects
preferred options
At
meeting
Options
identified
Analysis
performed
Strategy
updated
Decisions made
Stratico, Inc.:
Issue-focused meeting
Between
meetings
Data and
status report
reviewed
off-line
Issues surface
CEO selects
meeting isues
Figure 2: The data-focused meeting ensures objectivity, but does not promote dialogue. The issue-focused meeting
ensures strategic discussion, but, by its nature, is less democratic.
6 | 5 Essential Principles for a Better Strategy Review
Copyright 2015 Palladium
Stratico Inc. also meets quarterly. BSC status reports are circulated to the executive committee well in advance of the meeting,
so members are expected to be familiar with them. Instead of
reviewing data, the meeting is devoted to discussing the two
or three most important issues, as determined by the office
of strategy management with input from the CEO and a poll
conducted beforehand. This issue-focused discussion generally results in consensus on the option to be pursued. Between
meetings, the office of strategy management guides a detailed
analysis of the options and prepares an implementation plan,
which members will review and decide upon at the next meeting. The strategy is then updated and the cycle repeats itself,
with new issues continually being introduced for discussion.
The data-focused approach ensures objectivity because the discussion is rooted in fact. It also encourages participation, allowing everyone to offer his or her own interpretation of the facts.
The downside: it invariably entails a one-way presentation of the
data, rather than dialogue. Attendees arent motivated to review
the data in advance since someone will be presenting it at the
meeting. Ultimately, this is not a good use of executives time.
A Governing Philosophy
Call meetings on subjects that matter and show up we have
seen that Eisners words are not quite as simple as they sound.
But our research demonstrates that this basic philosophy,
when augmented with important principles of effective meeting design, will help organisations achieve best practice-level
meetings. Managing strategy is different from managing operations:
this philosophy should govern your design of these meetings.
We must recognise what these differences are, especially since
the dominant culture of most organisations is operational. The
five principles discussed here are derived from an understanding
of these differences and provide a blueprint for better strategy
execution.
With our collective expertise and abiding commitment to exceeding clients objectives,
Palladium transforms lives, businesses, governments and societies around the world.
www.thepalladiumgroup.com