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Saturday, June 13, 2009

Implementing/Tracking Organization Strategy

Many organizations have the competency and ability to develop their own strategy. Nonetheless, many organizations question their ability to implement/track their own organizational strategy. Is there a simple and practical way to implement/track this strategy?

Before we delve further, we need to understand what really matter in organization strategy. There are many frameworks in the market to assist in organization strategy. For the purpose of this article, we will focus on an improvised concept of Malcolm Baldridge framework. (Please refer to Diagram 1)

Diagram 1 : An Improvised Malcolm Baldridge Framework

With reference to Diagram 1, it is very clear that all criteria in the box (Criteria 1 to 9) are important elements that we need to focus on to ensure organization stability. Focusing on these criteria will ensure that we have a balanced outlook of any organization. In other words, all issues or initiatives that are important to an organization can be related to either one of the criterion.

To identify any initiatives worth pursuing by the organization, a SWOT analysis need to be carried out for each criterion.

To implement/track these criterions, obviously we need a tool that is easy to understand and practical enough to be communicated through out the organization. For that, what is more meaningful to use other than Strategy Map and Balanced Scorecard. A sample of a Strategy Map is in Diagram 2.

Diagram 2 : Strategy Map

The four perspectives in this Strategy Map namely Customer, Financial, Internal Process and Learning & Growth are the most commonly used perspectives for any commercial organization.

The strategic objectives or ‘bubbles’ in this Strategy Map are basically the criterion in the improvised Malcolm Baldridge framework plus two additional ‘bubbles’ which is related to Financial and Communication. Consideration on all these ‘bubbles’ will ensure a balanced view of the organization.

In turn, each ‘bubble’ in this Strategy Map needs to be acted upon. For that, each ‘bubble’ has been expanded into a table called Balanced Scorecard (BSC). A typical BSC is in Diagram 3. .

Diagram 3 : Sample of Balanced Scorecard (BSC)

BSC consists of four main elements namely Strategic Objectives, Measures, Targets and Initiatives. This is the logical steps to ensure each ‘bubble’ being taking care of. All initiatives within this BSC need to be distributed among all level of staff. This should be the basis of setting of each staff’s Key Performance Indicator (KPI). Thus, this will ensure the proper support at every level of the staff towards the strategy formulated.

The staff needs to be competent to carry out their KPI. To be competent is the question of getting a proper training. Training needs which is not aligned to competency enhancement to deliver KPIs are simply wasting of time, money and energy.

In summary, implementing/tracking of organization strategy can be classified into these three distinct levels;

Level 1 : Strategy Implementing/Tracking – Strategy Map & BSC
Level 2 : Performance Implementing/Tracking – KPIs
Level 3 : Competency Implementing/Tracking – Training

Any organizations which focus on these three levels of implementing/tracking are on track to achieve organizational excellence. To gain understanding and commitment on these implementing/tracking mechanisms, it is proposed the organization conducts a basic program to introduce the relevant staff to the followings;

- What is improvised Malcolm Baldridge framework (IMBF)?
- What is SWOT?
- What is Strategy Map?
- What is Balanced Scorecard (BSC)?
- How to merge the idea of IMBF and Strategy Map & BSC ?
- How to link BSC to KPIs and Competencies?
- How to do tracking based on the above tools.?

To promote participation and involvement of all staff in order to drive the strategy formulated, it is very important for all staff to be introduced to three main basic awareness ie;

Self Awareness - Ability to achieve personal goals at work which is aligned to Organization Goals.

Team Awareness - Ability to work in a team.

Leadership Awareness - Ability to lead a team

Many organizations may think that all these awareness programs have been conducted in the past but in many cases these programs are not synergized. ‘Program Produktiviti Bersepadu 3K’ (PPB3K) is a program that consists of 6 modules to tackle these issues. It is easy, practical, no-nonsense and ‘street-wise’ program. Synopsis of PPB3K is in diagram 4.

Diagram 4 : Synopsis of PPB3K