Few days ago we published an infographic regarding the reason for auditing strategy based on different changes in business (full infographic here). Today, we learn more about the methodology and the ways how to audit your own business strategy. Before that, let's agree on two issues:
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If you do a simple research on the internet, different sources inform you that there is a failure rate between 70% to 84% (based on different news sources) for digital transformation projects.
First of all, let's figure out what we expect from KRIs = Key Risk Indicators.
Do you want to digitalize your business operation and succeed in business analysis, cutting cost, faster & simpler processes and creating competitive advantage? In the infographic bellow we offer you 5 clear steps how to get there.
For those who know the meaning of both terms - Risk Management and Corporate Governance, question of how are they connected may seem obvious at the first look. But when we go deeper we figure out about hidden parts that if we don't explore, we may put our organization at a huge risk!
Will the Brexit ever happen? Well that's a billion dollars question!
Very important and economically crucial question for many businesses. Specifically the ones that need physical attendance with certain background and level of experience, might find difficult to figure out the best way
As we all know, Environmental, social and governance (ESG) is increasingly viewed as a key management theme every corporation must pursue. Not only investors pay close attention to the sustainability performance of the investee companies, but nowadays more and more potential employees are interested in the ethical impact of an investment in their...
How to give your customers what they need:
These two terms are speaking about daily issues of all businesses regardless the size.
It is obvious that when you cannot explain what you want, you fail to get it from your team!Strategy plans should be simple, clear and easy to start. The start point is important and if people do not understand it they never start it. Basically by designing sophisticated plans, we lose the chance of implementation.
There is difference between metrics and KPIs. KPIs are focused on measuring performance but metrics are more general. Any measurement can be a metric. For example number of people in different phase of a project is a metric but any measurement on reducing cycle time is a KPI since it is directly relevant to performance.
Simply both! Before explaining why, let us define both of the terms.
Let's define business agility to get on the same page. Agile business has two characteristics:
When we start setting up KPIs and addressing it to people and teams, everyone specifically higher management of the company is excited. They assume that from the day after, the profit of the company will jump to the next level remarkably and all other problems including retention rate, effectiveness, employee satisfaction and etc. will be solved...
After years of consultancy, we can see that in many organizations we repeat the reply of the above question. There are many definitions for strategy but as we always say we love the simplest one which makes sense and it is practical.
Let us tell you a story in the very beginning. Two guys were walking the same road and everything was great until they reached to a wall. They had no ladder and the wall was quite high. One of them sat in the shadow and started thinking. The other one was getting crazy and tired. He couldn't face the situation....
As leaders what we should focus on, is setting fair, doable but challenging targets so that we move forward based on the strategy map of our organization.
We use scorecards of our company and in lower level, we use the scorecards of our departments to measure how good we are aligned with our strategy and how fast we are moving towards our company objectives.
As soon as you start breaking down the major KPIs of an organization and start addressing them to the lowest levels of your organization, you face two issues:
The eventual role of implementing strategy in all companies is increasing profit or/and market share and here innovation plays a big role.
During our consultancy experience, many people asked us how many scorecards exist. They were wondering if there is a standard scorecard or template that they can use.
When we are reporting scorecards of companies, our executive boards are expecting something extra. Something that they didn't have time for it or they don't have enough information about and this is our job to tell them the story. We need to inform them about two simple things:
I have seen many board members in my life that are successful in creating their strategy map and connecting all four pillars of their balanced scorecard but after a while they get confused and things got disconnected.
Let's agree on two basic issues on Performance Improvement: