Strategy Map Objectives Drill-Down  

Creating Strategic Business Plan

Strategy Blue print has 2-5 year horizon. This blue-print needs to converted into more details & chewable chunk of work. Strategic business plan is typically an annual road-map born out of Strategy blue-print. It is shorter term, finer objectives & measures and lot of in-process and input parameters.


Strategy Map Objectives Drill-Down


The first step to develop a strategic business plan from strategy blueprint is to detail out the enterprise strategy map into lower level of details.

Creating horizontal and vertical sub-objectives linked to the strategic objective

The strategic Objectives so defined will be typically at an enterprise level and needed more to firm-up our thinking and also to align the management. They are not detailed enough to make someone work on them. The first step is to slice these objectives into sub objectives on two directions:

Horizontal

Splicing the objective in terms of segments. For example a strategic objective for ‘Retaining premium customers' could be spliced into 'Retaining Platinum Customers', 'Retaining Gold Customers', 'Retaining non-Gold/Platinum, but HNI customers'.

This kind of horizontal split is done, if each split requires a different approach OR if it needs to be given to two separate departments.

Another example of splicing horizontally is where an objective as two OR more distinct check points, and organization would be needing to re-assess the business case at the interim phase.
For example splitting 'Laying down ATM Network in all operational districts' into-->'Laying down ATM network in Class A districts' and 'Laying down ATM network in Class B & C districts'

Vertical

This is a hierarchical split, on how a goal is passed successively down to the Divisions-->Brigades-->Regiments…to the last fighting man. The examples are Retaining high value customers being split into 'Retaining high value customers from northern region' and 'Retaining High Value customers from southern region'.

NOTE- Some of the sub-objectives and Measures get loaded into the Strategy Blueprint, if they are having a good weightage.

Listing the Measures and Performance Standards

While the sub-objectives are developed, during OR after the process the Measures/KPIs and standards are worked out. The Measures OR standards follow the same path as followed by 'Objectives'-->'Sub-Objectives'

Initiatives in front of each strategic sub-objective/objective.

This part is gaining more and more importance, as quantum achievements in today’s world are typically being driven by well-identified projects/initiatives. Over the years, the improvement agendas are moving out of business as usual expectations to 'change management projects'.

Both initiatives and measures are in a way complementary and complete the picture. To achieve a goal, one needs to implement initiatives, with the final outcome to be measured in terms of production/sales numbers. No initiative is successful, until it has the expected impact on 'business as usual' numbers.

For example

To achieve an objective of 'Doubling the number of sales agents recruitment in two years', will have the initiatives:

  • Implement reference channels
  • Establish Agent Training school

The business as usual measures can be-

  • Rate of Agent Recruitment
  • Performance of Agent with in six months of recruitment.

As you can see both initiatives and measures have to be met to achieve the objective.

Link the Sub-objectives, measures and performance standards/initiatives with each other.

You must have heard of 'Lagging & Leading' measures. Here is the stage, when we firm-up this structure. Once you have all the sub-objectives and measures, the same are then carefully linked with each other. This exercise is done once at Strategy Map level during creation of a consolidated Strategy Blueprint. The same exercise is done again at a further level of detail during Strategic Business Plan.

The reason for doing this linking on 'leading-lagging/cause-effect' at next level of detail is to

  • Provide a thinking framework to next level of commanders.
  • Validate the strategy document.
  • Help in designing the MIS/Dashboards/Scorecards.

PLEASE REFER Execution-MiHPractice Tool Business Objective Drill-Down


All Topics in :- " Creating Strategic Business Plan "+ Chapter