Strategy development and delivery processes as iterative and diagnostic as the markets are so variable that there is a strong element of qualitative "art" along with the science piece.
Effective business oversight and governance practices require a strong commitment to being forward-thinking, knowledgeable, independent, and for ensuring business to reach well-set destinations smoothly. Here is a set of critical questions that a strategy oversight addresses to improve the success rate of strategy management.
Which products/services in which markets with what emphasis? Forethoughtful companies intend to become more customer centric; it is without a doubt that many organizations have come to the realization that in order to be successful within their industry, they have to focus their efforts on building people-centric business by embracing customers’ values and needs. It’s important to study how people-centricity should be pursued to improve the value delivered to the customer, and customers need to be coached accordingly.
In reality, new customer process changes, technology impacts, economic, and political policy trigger changes in the customers’ environment, thus, changing the need. The senior leaders’ oversight of strategy management helps to clarify: What are the distribution channels, sales channels? How do we add value for each product/service, and how to deal with a “make or break” situation where we build a vendor-customer, partner-relationship for mutual benefit?
Which capabilities need to be developed or acquired to make that happen: In face of fierce competitions and frequent disruptions, to survive and thrive, all competitive businesses have a set of core competencies which are composed of a unique set of capabilities to achieve strategic goals. The business leaders need to ask insightful questions for making an objective assessment of business capability maturity: Does the business capability deliver competitive products or services for delighting customers? Is the capability core because it supports your strategic direction and enables strategy implementation? Is it core also because the company excels in delivering that capability than competitors?
It is important to have a good understanding of current and future capabilities as well as their impact on implementing the strategic business goals. To shorten the capability development cycle and improve strategy management effectiveness, high performance organizations embed agility in processes, integrate modular capabilities into new business competencies which are nonlinear and dynamic, to create new experiences and expand its impact, for building long-term business competency.
Which processes need to be improved or transformed? Process management is fundamental to achieve business results. Process underpins business capabilities, which decide organizational competitive advantage. To improve business effectiveness, efficiency, performance, processes can continue to be improved for varying reasons. From an enterprise architecture perspective, or from a governance viewpoint, is the process robust to achieve business goals? A rigorous analysis is likely to discover that some processes in an organization need to be optimized for efficiency, but others need to be optimized for agility.
According to Pareto principle, you will get 80% of process improvement benefits from 20% of your business processes). The process oversight helps the management to decide the right processes to improve, and improve them in the right way, stay focused on key process improvement. Digital leaders should have a process-oriented perspective, seize the opportunity to take a fresh look at the processes, optimize organizational management practices
What capacity for marketing, sales, manufacturing, etc., and for projects and management - will you need? Organizations have limited assets, resources, talent, and time, capacity planning needs to be part of the corporate initiatives around continuous improvement. The key to successful capacity planning is to know what you are doing, being transparent, and clear leadership at all levels and governance so everyone knows what they are to execute on. Scientific capacity planning ensures the business assets/resources/talent management are in line with the corporate direction to achieve the well-defined business goals.
The degree of planning has a positive correlation with the degree of uncertainty and unpredictability. The key is to engage the whole organization in knowing and understanding the direction and capacity planning of the business. Take a deep look at the underlying business functions and processes, as well as take a wider look around at what’s going on inside and outside the organization, to make capacity planning effective and practical, the management should do the data based forecast, ensure that business investment and application development does not proceed without a "clear business rationale," ensure the business capacity plans are in line with the corporate direction to achieve the well-defined business goals.
What structure will move products to the markets with effective capacities and processes? Given the silo-based structure, the traditional management approach is based on linear thinking - thinking of the business as a mechanical system, so their strategy is perhaps more short term driven. There are organizational structures, cost structures, marketing structures, business management structures, etc. In traditional organizations the business processes and structure are formal and even overly rigid, often there are frictions existing between underlying functions, structures, or overall strategy management practices. When the speed of change is accelerated, organizations have to improve structural resilience for speeding up products/services deliveries and improving business agility.
Many organizations today are running in between - the mix of old and new; the different departments within an organization have different focus or speeds. Thus, the top leadership needs to ponder: What new options exist in structures that could support an emerging strategy? What structural optimization enables businesses to improve business manageability? It’s always a journey to keep tuning the organizational design and structure to improve the strategy management effectively; move products to the markets with effective capacity, process, and speed.
There is no “one size fits all” strategy management formula. Strategy development and delivery processes as iterative and diagnostic as the markets are so variable that there is a strong element of qualitative "art" along with the science piece. Thus, the top leadership teams such as BoD’s oversight helps the management to integrate the art and science of management discipline. Besides scientific process or capacity management, there is the "art" of bringing the team along to support and execute as well as the "art" of understanding the internal and external environments as they continue to evolve. It’s important to enforce accountability at all levels and achieve long term prosperity.
Which products/services in which markets with what emphasis? Forethoughtful companies intend to become more customer centric; it is without a doubt that many organizations have come to the realization that in order to be successful within their industry, they have to focus their efforts on building people-centric business by embracing customers’ values and needs. It’s important to study how people-centricity should be pursued to improve the value delivered to the customer, and customers need to be coached accordingly.
In reality, new customer process changes, technology impacts, economic, and political policy trigger changes in the customers’ environment, thus, changing the need. The senior leaders’ oversight of strategy management helps to clarify: What are the distribution channels, sales channels? How do we add value for each product/service, and how to deal with a “make or break” situation where we build a vendor-customer, partner-relationship for mutual benefit?
Which capabilities need to be developed or acquired to make that happen: In face of fierce competitions and frequent disruptions, to survive and thrive, all competitive businesses have a set of core competencies which are composed of a unique set of capabilities to achieve strategic goals. The business leaders need to ask insightful questions for making an objective assessment of business capability maturity: Does the business capability deliver competitive products or services for delighting customers? Is the capability core because it supports your strategic direction and enables strategy implementation? Is it core also because the company excels in delivering that capability than competitors?
It is important to have a good understanding of current and future capabilities as well as their impact on implementing the strategic business goals. To shorten the capability development cycle and improve strategy management effectiveness, high performance organizations embed agility in processes, integrate modular capabilities into new business competencies which are nonlinear and dynamic, to create new experiences and expand its impact, for building long-term business competency.
Which processes need to be improved or transformed? Process management is fundamental to achieve business results. Process underpins business capabilities, which decide organizational competitive advantage. To improve business effectiveness, efficiency, performance, processes can continue to be improved for varying reasons. From an enterprise architecture perspective, or from a governance viewpoint, is the process robust to achieve business goals? A rigorous analysis is likely to discover that some processes in an organization need to be optimized for efficiency, but others need to be optimized for agility.
According to Pareto principle, you will get 80% of process improvement benefits from 20% of your business processes). The process oversight helps the management to decide the right processes to improve, and improve them in the right way, stay focused on key process improvement. Digital leaders should have a process-oriented perspective, seize the opportunity to take a fresh look at the processes, optimize organizational management practices
The degree of planning has a positive correlation with the degree of uncertainty and unpredictability. The key is to engage the whole organization in knowing and understanding the direction and capacity planning of the business. Take a deep look at the underlying business functions and processes, as well as take a wider look around at what’s going on inside and outside the organization, to make capacity planning effective and practical, the management should do the data based forecast, ensure that business investment and application development does not proceed without a "clear business rationale," ensure the business capacity plans are in line with the corporate direction to achieve the well-defined business goals.
What structure will move products to the markets with effective capacities and processes? Given the silo-based structure, the traditional management approach is based on linear thinking - thinking of the business as a mechanical system, so their strategy is perhaps more short term driven. There are organizational structures, cost structures, marketing structures, business management structures, etc. In traditional organizations the business processes and structure are formal and even overly rigid, often there are frictions existing between underlying functions, structures, or overall strategy management practices. When the speed of change is accelerated, organizations have to improve structural resilience for speeding up products/services deliveries and improving business agility.
Many organizations today are running in between - the mix of old and new; the different departments within an organization have different focus or speeds. Thus, the top leadership needs to ponder: What new options exist in structures that could support an emerging strategy? What structural optimization enables businesses to improve business manageability? It’s always a journey to keep tuning the organizational design and structure to improve the strategy management effectively; move products to the markets with effective capacity, process, and speed.
There is no “one size fits all” strategy management formula. Strategy development and delivery processes as iterative and diagnostic as the markets are so variable that there is a strong element of qualitative "art" along with the science piece. Thus, the top leadership teams such as BoD’s oversight helps the management to integrate the art and science of management discipline. Besides scientific process or capacity management, there is the "art" of bringing the team along to support and execute as well as the "art" of understanding the internal and external environments as they continue to evolve. It’s important to enforce accountability at all levels and achieve long term prosperity.
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