Management systems facilitate information sharing and help ensure the organization's alignment with strategic priorities.

Strategy-related choices also affect systems. This dimension is an integral part of the iterative process of strategy formulation.

Different Dimensions To Consider

Of course, it's possible to think in terms of applications. However, we need to go further and consider processes, structure, information, and competencies.

Collectively, these are all elements needed to implement decisions and monitor them to ensure the strategy's success.

Let's consider few perspectives:

1. Management applications
2. Strategic transformation management
3. Performance monitoring
4. Monitoring of success conditions
5. Development and reinforcement of competencies

1. Management applications

Ideally, integrated management applications facilitate decision-making, transactions, and operations monitoring while ensuring data integrity. Examples include ERP, CRM, and BI, to name a few. 

Different application choices will support value creation. They facilitate the critical activities necessary for the strategy's success, notably by promoting efficiency.

Question: What business applications are in place, and how are they integrated to support your key activities?

2. Strategic transformation management

Implementing transformations involves project management and periodic monitoring of different priorities. These mechanisms must enable shared visibility and facilitate a collaborative dynamic between teams. 

To ensure this integrated management, business applications now offer strategic portfolio management, making it easier for leaders to intervene where issues are present while having a global perspective on the business impacts.

Question: How do you keep track of your strategic priorities, and how do you keep the teams working on them aligned?

3. Performance monitoring

Management scorecards are used to maintain focus on key performance variables.

The Balanced Scorecard is an ideal tool, with its balanced dynamic of measures and indicators representing financial, customer and operational perspectives, as well as key systems and competencies.

Without weighing down the approach with a multitude of measures, it requires team reflection on the choice of measures, targets, data sources and frequency of updating.

Question: How many measures and indicators does your management dashboard incorporate, and what dimensions are present in it?

4. Monitoring success conditions

Each organization will have different assumptions about the strategy conditions for success. In this context, the sources of information concerning customers, competitors or the organization may vary.

To facilitate decision-making, we need to identify the sources, the methods of collection, the analyses required, their frequency, and the methods of communication. 

Question: Are you proactive in monitoring conditions, and what are the forums for reviewing and adjusting decisions?

5. Developing and strengthening competencies

A strategy’s success depends on more than just "hard" systems and flawless execution. Elements that enable the development of critical competencies require ongoing attention.

The equation “performance, processes, systems and key competencies” must continually be optimized and maintained to support the desired competitive advantage.

Question: What are the key competencies, and what proactive approaches have been developed to support them?

An Essential Step In Strategy Formulation

This 5th stage of strategic thinking is essential. It is part of the iterative process discussed over the last few weeks.

It enables us to identify the key elements needed to achieve the strategy and to be proactive in putting in place the resources required to support the desired performance.

To explore further the Strategy Choice Cascade: Playing to Win (A.G.Lafley & R.L.Martin, 2013)

Have a good week

Eric L’Heureux