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Strategic Planning Warning Flag 1 – Business Unit versus Goal-Based Planning
Executives and managers maximize their company’s value when they focus the efforts of the entire workforce on the organization’s prioritized mission goals and supporting objectives. Some executives and managers, by making the mission measurable, prioritizing those measures, and sharing accountability for identifying and executing the most value adding initiatives, ensure their workforce focuses on those activities that maximize the organization’s overall value. In other organizations, planning and/or execution shortfalls allow the pursuit of initiatives that do not optimally support mission achievement; diminishing the organization’s value creation capacity. While many factors result in misaligned focus at all levels of the organization, one in particular, the failure to align the organization’s programs, budgets, and procedures to the mission’s prioritized goals and supporting objectives is the most devastating.
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Additional Information
The following StrategyDriven recommended best practices are designed to reduce the likelihood of business unit based planning while simultaneously fostering mission goal based planning:
- Strategic Planning Best Practice 1 – Make the Mission Measureable
- Strategic Planning Best Practice 2 – Prioritize the Mission
- Strategic Planning Best Practice 3 – Strategic Discipline
- Strategic Planning Best Practice 7 – Shared Accountability
- Strategic Planning Best Practice 8 – Results First, Action Second
- Organizational Performance Measures Best Practice 1 – Vertically Cascading
- Organizational Performance Measures Best Practice 2 – Horizontally Shared
- Organizational Performance Measures Best Practice 4 – Core Performance Measures
- Organizational Performance Measures Best Practice 5 – One Source of the Truth
StrategyDriven Contributors have created several illustrations to visually depict the mission to programs, budgets, and procedures alignment. The Strategic Pyramid Model highlights the alignment that should exist between an organization’s mission and its programs, budgets, and procedures. The Strategic Organizational Alignment Model reveals the typical executive and managerial responsibilities associated with identifying, reaffirming, and translating the organization’s mission into goals and objectives and then into programs, processes, and procedures.
About the Author
Nathan Ives is a StrategyDriven Principal and Host of the StrategyDriven Podcast. For over twenty years, he has served as trusted advisor to executives and managers at dozens of Fortune 500 and smaller companies in the areas of management effectiveness, organizational development, and process improvement. To read Nathan’s complete biography, click here.
Evaluation control programs must be credible in order to add meaningful value to the organization. Credibility is built not only by the quality of the data collected but also by the method by which it is collected, how it is combined, and how it is interpreted to create useful information in support of decision-making.
A picture comprised of only one color is not a picture at all; rather, it is simply a field of color. Likewise, a single performance indicator cannot paint a picture of performance.
An organization’s evaluation and control program is a data gathering and action initiation mechanism. This program monitors the external business environments, the internal performance of business units, processes, and individuals, and the output products and services of the organization. Once collected, data is processed to present a picture of the company’s overall performance and to trigger actions in response to conditions representing opportunities or threats.
Business Programs