The Office of Strategy Management. Harvard Business Review, 72-80.
Kaplan, R.S. ve Norton, D. P. (2005).
A Summary by Ogunmokun Oluwatobi (15500595)
In many organizations, there is a disconnect between Strategy formulation and Strategy execution. This disconnects breeds a persistent gap between the ambition and the actual performance of these organizations. The statistics says it all. Seven out of eight global corporations fail to achieve profitable growth, though more than 90% have detailed strategic plans with much higher targets but no coherent approach to manage the execution of those plans.
Why do we need the OSM?
Companies that have achieved performance ...view middle of the document...
To change this state of affairs, companies need to bring all strategy-related activities into a single functional unit. The creation of a central office for strategy execution may appear to risk reinforcing top-down decision making and inhibiting local initiative, but it does just the opposite. A unit with the responsibility of implementing strategy becomes a convenient focal point for ideas that percolate up through the organization. These emerging ideas can then be put on the agendas of quarterly and annual strategy reviews, with the best concepts being adopted and embedded in enterprise and business unit strategies. The ideal OSM is a facilitating organization, not a dictating one!
What Good OSMs Do
Creating and managing the scorecard, aligning the organization, and setting the agenda for monthly strategy reviews, communicating strategy and managing strategic initiatives—are the natural turf of an OSM. They did not exist prior to the introduction of the Balanced Scorecard, so they can be given to a new unit without infringing on the current responsibilities of any other department. But many other activities—strategic planning, budget supervision, or HR training, for instance—are already the territory of other units. In these cases, the company needs to be explicit about the allocation of responsibilities between the OSM and other functional units.
Integrate strategic priorities with other support functions.
Existing functional departments retain prime responsibility for three other key processes necessary for successful strategy implementation: planning and budgeting, human resource alignment and knowledge management. These processes are critical for effective strategy execution, and the OSM should play a consultative and integrative role with the respective functional departments.
The New Strategy Calendar
“The New Strategy Calendar” illustrates the activities that a properly constituted OSM will be engaged in during the year. The strategy cycle launches at the beginning of the second quarter, when the OSM starts to plan strategy and update the enterprise scorecard. After the enterprise strategy meeting, the OSM starts the process of aligning the organization with the enterprise goals. Before the end of the third quarter, it will be coordinating with finance to bring unit-level plans and budgets in line with strategy, and by the beginning of the fourth quarter, it will be working with HR on aligning the...