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21download_doc-27.php - Strategy into Performance Closing...

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Strategy into Performance Closing the Strategy-to-Performance Gap o High-performing companies Focus improving their planning and execution processes separately to close the gap Work both sides of the equation o Raising standards for both planning and execution simultaneously and creating clear links between them o 7 rules apply to planning and execution Enables them to objectively assess any performance shortfall and determine whether it stems from the strategy, the plan, the execution, or employees’ capabilities Allow them to spot problems early also help them prevent performance shortfalls in the first place The Rules o 1. Keep it simple, make it concrete The link between strategy and performance can’t be drawn because the strategy itself is not sufficiently concrete Stick to clear language describing their course of actions By being clear about what the strategy is and isn’t, companies keep everyone headed in the same direction More importantly, they safeguard the performance their counterparts lost to ineffective communications o Their resource and action planning becomes more effective
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o And accountabilities are easier to specify o 2. Debate assumptions, not forecasts At bad companies a business unit’s strategic plan is little more than a negotiated settlement The result of careful bargaining with the corporate center over performance targets and financial forecasts o Therefore is a largely political process Forecasts that emerge from that emerge from these negotiations almost always understate what each business unit can deliver in the near term and overstate what can realistically be expected in the long-term
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21download_doc-27.php - Strategy into Performance Closing...

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