Strategy Management Office
Most companies have ambitious plans for growth; however, few ever realise them. There such a persistent gap between ambition and performance. We believe this gap arises from a disconnect between strategy formulation and strategy execution.
BDO’s Strategic Management Services are a key enabler for success by aligning strategy, investment, and execution. This is paramount when your organisation looks to translate corporate strategy into tangible activities and results.
Many organisations have a fundamental disconnect between the formulation of their strategy and the execution of that strategy. Organisations often lack an effective strategy management process that allows executives and managers to turn the strategy into operational results. Strategy management involves managing both the development and execution of a strategy. Many organisations separate strategy development and strategy execution and focus on strategy development instead of strategy execution.
This process may seem familiar to you. Strategy development carried out in isolation by different groups with different reporting lines. More focus on strategy development, not much on execution. Management team spends less than 1 hr per month on strategy. 95% of the workforce do not understand the strategy and are not incentivised to deliver it. Unclear which project initiatives are going to deliver sustainable value.
A Strategy Management Office
BDO can act as a strategy management office to manage both strategy development and execution in an integrated way. This service is responsible for coordinating the whole process of analysis, development, planning, execution, and control of the strategy. BDO will facilitate senior management with strategy analysis and development and middle management with strategy execution, monitoring, and control, to create and manage Key Performance Indicators.
Once the executive team has approved the objectives and measures for the subsequent year, the Strategy Management Service coaches the team in selecting performance targets and measures, and identifies the strategic initiatives required to achieve them.
How BDO can help
Align your organisation
A company can execute its strategy well only if it aligns the strategies of its business units, support functions, and external partners with its broad enterprise strategy. The Strategy Management Service helps the entire enterprise to have a consistent view of the strategy and to systematically manage organisational alignment.
Review your strategy
We will help you create the time to manage your strategy. The underlying hypotheses of the company’s strategy can be tested, and new actions initiated. Managing this meeting is a core function of our Strategy Management Service. It briefs the CEO in advance about the strategic issues identified in the most recent reporting period so that the agenda can focus on strategy review and learning, rather than just a short-term financial performance review and crisis management.
Develop your strategy
Performance measures provide continual evidence about the validity of the assumptions underlying a company’s strategy. Those assumptions can be discussed periodically by the executive team, which can update the strategy if appropriate. Our Strategy Management Service can act as a filter for new ideas that come from within the organisation
Effective communication to employees about strategy, targets, and initiatives is vital if employees are to contribute to the strategy. We believe one of the most effective communication channels is having each employee hear about strategy directly from the CEO.
Manage strategic initiatives
The screening, selection, and management of strategic initiatives are what drive change in the company and produce results. Our experience suggests that such initiatives should be managed separately from routine operations. Our Strategy Management Service retains responsibility for monitoring the progress of strategic initiatives and reporting on them to top management.
Planning and Budgeting
For a strategy to be effective, all the functional plans must be aligned with the strategy. The budgets prepared by the finance department, for example, should reflect those established in the strategic planning process and should incorporate funding and personnel resources for cross-functional strategic initiatives.
Finally, our Strategy Management Service ensures that knowledge management focuses on sharing the best practices most critical for the strategy.
Key Benefits of a Strategic Management Office
We keep your strategy at the forefront our how you do business, building it into the fabric of how you operate. This has been shown to deliver benefits. Many organisations have achieved dramatic performance improvements by sustaining a focus on implementation of strategy.
Numerous studies from top consulting firms (including McKinsey, Bain, BCG and Harvard Business Review) have shown approximately 70% of strategies fail due to poor execution. We can help you be one of the 30%.
Partnership with StrategyWorks
Our Strategic Management Office services are supported by StrategyWorks.
StrategyWorks is a powerful, cloud-based strategy management solution that enables organisations to link their objectives and outcomes to the delivery of their strategic initiatives at all levels of the organisation. It provides a true, single real-time view of the strategy, what is working and how to deliver objectives faster.
Together, BDO and StrategyWorks brings the best of experienced professional services, supported by leading edge strategy management solution which can help accelerate customers’ ability to drive strategy and delivery their objectives faster and more efficiently than ever before.