Strategic Planning for Value Growth™ – by aligning individual, organizational, and cross-departmental initiatives to identify and improve processes for meeting customer and shareholder objectives.
The best approach is to express your vision and strategy of your organization as a set of:
• Goals and their associated objectives,
• Projected values, and
A strategic planning and management system:
• Aligns business activities to the vision and strategy of the company’s management,
• Improves internal and external communications, and
• Monitors organizational performance against strategic goals and objectives.
The methodology should measure four integrated categories:
1. Internal Business Processes: Metrics based on internal business processes that help management monitor how well the business is running from the employees’ perspective and whether its products/services are well accepted by customers.
2. Customer Knowledge: Analysis of market share, account share, customer acquisition, customer satisfaction, and customer retention.
3. Learning & Growth: Includes employee training and corporate cultural attitudes related to both individual and corporate self-improvement.
4. Financial Performance: Timely and accurate financial data is a key to manage the business. Data should be centralized and of fast and easy access, and continually compared to budgeted and projected bank loan covenants, cash flow and EBITDA.
The approach should extend the scope of goals and objectives to the entire enterprise – to be used as a business-management system. By continually measuring progress toward the goals and objectives, the execution of a strategy can be monitored, corrections can be made, risks can be reduced, and the chances of success increased.
Companies with greater emphasis on the Internal Business Process perspective are more successful. These companies typically assign approximately 1/3 of all goals and objectives to internal processes and then equally divide the remaining goals and objectives among the other three perspectives. Just 20 to 25 goals and objectives, with measures, across these 4 perspectives, are sufficient to communicate and commence implementation of a strategy.