Ongoing monitoring of performance and progress · 4. The first step in the process of creating the dashboard begins with an evaluation of the organization's mission and vision, challenges (problems), enabling factors and values. The first step also includes preparing a change management plan for the organization and conducting a communication workshop focused on identifying key messages, media, schedules and messengers. Learn more about evaluation In the second step, workshop participants develop the elements of the organization's strategy, including strategic results, strategic issues and perspectives, to focus attention on customer needs and the organization's value proposition.
More information about strategy In the third step, the strategic elements developed in steps one and two are broken down into strategic objectives, which are the basic components of the strategy and define the strategic intention of the organization. The objectives are first initiated and classified at the level of the strategic topic, classified by perspective, linked into cause-and-effect links (strategy maps) for each strategic topic, and then merged to produce a set of strategic objectives for the entire organization. Learn more about the objectives In the fourth step, the cause-and-effect links between the strategic objectives of the entire company are formalized in a strategic map for the entire company. The thematic strategy maps created above are merged into a general strategic map for the entire company that shows how the organization creates value for its customers and stakeholders.
Learn more about strategy maps In the fifth step, performance measures are developed for each of the strategic objectives of the entire company. The main and overdue measures are identified, the expected objectives and thresholds are established, and reference and reference data are developed. Learn more about performance measures In the sixth step, strategic initiatives are developed that support strategic objectives. To promote accountability throughout the organization, ownership of performance measures and strategic initiatives is assigned to the appropriate staff and documented in data definition tables.
Learn more about initiatives In the seventh step, the implementation process begins with the application of performance measurement software to get the right performance information to the right people at the right time. Automation adds structure and discipline to the implementation of the comprehensive scorecard system, helps transform disparate corporate data into information and knowledge, and helps communicate performance information. In short, automation helps people make better decisions because it offers quick access to real performance data. Learn more about performance analysis In the eighth step, the business-level dashboard becomes a “cascade” in the dashboards of the business and support units, which means that the dashboard at the organizational level (the first level) translates into dashboards of business units or support units (the second level) and, later, into individual and team dashboards (the third level) and, later, into individual and team dashboards (the third level).
The cascade translates high-level strategy into lower-level objectives, measures and operational details. The waterfall is the key to the organization's alignment around strategy. Individual and team dashboards link daily work with department objectives and corporate vision. Performance measures are developed for all objectives at all levels of the organization.
As the dashboard management system cascades throughout the organization, objectives become more operational and tactical, as do performance measures. Accountability follows objectives and measures, as ownership is defined at each level. Throughout the organization, emphasis is placed on results and on the strategies needed to produce results. Once you are clear about the business plan, you can assess the current state of your functional activities, identify the future state and set goals and objectives accordingly.
If the plan meets the above criteria in the final stage of the strategic planning process, managers can be sure that the strategy works well and in accordance with their expectations. The strategy refers to the direction in which human and material resources will be applied in order to increase the chances of achieving the selected objectives that require 9 continuous steps. This will be an individual discussion in which subordinates will inform managers about their objectives and what objectives they can achieve in a specific time and with what resources. In management by exception (MBE), management only addresses cases in which objectives or regulations are violated.
In the fourth step, the cause-and-effect links between the strategic objectives of the entire company are formalized in a strategic map for the entire company. Once the formulation of the organizational objectives has been completed, the next step is to analyze the factors in the environment that could affect the management's ability to achieve them. For example, some managers are more concerned with offering new goods and services and, therefore, give more importance to research and the development of objectives. It must also be supported by strategic ideas, including having an appropriate organizational structure, an effective management information system, a budget system that facilitates the achievement of strategic objectives, and a rewards system that supports the strategy.
Objective management has been successfully implemented in industries that have competent and highly knowledgeable staff, such as information technology. The second step for management to develop a strategic plan is to explain what the organization wants to achieve in the future. While the management approach by objectives is necessary to increase the effectiveness of managers, it is equally essential to monitor the performance and progress of each employee in the organization. At this stage of the strategic planning process, managers are faced with the question of whether a new strategy is required and, if so, what type of strategy it will be.
Management by objectives (MBO) uses a set of quantifiable standards or objectives with which to measure the performance of a company and its employees. The results of the evaluation and control measures during this last step of the process inform managers about the actions needed to enforce a strategy that is not being followed or to review or improve a strategy that does not work. These nine steps provide a guide by which functional leaders can ensure a rigorous approach to planning, no matter how adaptable their company's strategy may be. .