BizAnalyst Network: Building a strategy focused organization.

Monday, June 04, 2007

Building a strategy focused organization.

Building a strategy focused organization.

Strategy expert Michael Porter describes the foundation of strategy as the “activities” in
which an organization elects to excel. If the foundation of strategy is, as Porter maintains,
the “selection and execution of hundreds of activities,” then strategy cannot be
limited to a few people at the top of an organization (Michael Porter, “What Is Strategy,”
Harvard Business Review, November/December 1996).

Strategy must be understood and executed by everyone. The organization must be
aligned around its strategy, and perf o rmance management systems help create that alignment.
Herein lies one of the major causes of poor strategic management. Most performance
management systems are designed around the annual budget and operating plan.
They promote short - term, incremental, tactical behaviour. While this is a necessary part
of management, it is not enough. You cannot manage strategy with a system designed for tactics. It is our belief that it is this need—the need for strategic enterprise management—
that has been driving the widespread adoption of the Balanced Score card .

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management stategy, business strategy, implementation, proactive strategic management

Labels: business strategy, implementation, management stategy, proactive strategic management