K011553 - E2E - Vision To Strategy
K011553 - E2E - Vision To Strategy
K011553 - E2E - Vision To Strategy
A strong strategic planning process is vital to the success of any organization and ensures it is collectively moving in the desired direction. It requires the
organization to establishing a direction and vision for an organization, which is actualized by defining the business concept and long-term vision, as well
as developing the business strategy and managing strategic initiatives (Figure 1).
Plan Implementation
Strategic Vision Analysis Goal Setting
Development and Review
Figure 1
A common struggle for any end-to-end process management is identifying the right measures that encapsulate the value of the process. These key
performance indicators (KPIs) allow the organization to focus all participants on the end-to-end process, Vision-to-Strategy, on a shared goal that aligns
with the strategic purpose of the process. In addition, organizations will also use a Balanced Scorecard to track the success of their strategic planning
processes.
MEASURE
MEASURE NAME MEDIAN SAMPLE SIZE
ID
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PHASE DEFINITIONS AND MEASURES
This section of the article dives into each phase of the Vision-to-Strategy process and includes definitions, phase-specific KPIs, and available measures for
the relevant KPIs.
STRATEGIC VISION
Definition—The creation of a conceptual framework of the organization's business activity and strategic vision with long-term applicability. The process
includes setting the long-term purpose of the organization, codifying it through mission and value statements, and ensuring it is communicated
throughout the organization and with stakeholders.
Communicate
Define the business Develop overall
Establish strategic Define corporate strategic vision to
Start concept and long- mission statement
vision (10020) values stakeholders End
term vision (17040) (10037)
(10036)
Align stakeholder
Formulate mission
around strategic
(10045)
vision (10035
Communicate
mission (10045)
Figure 3
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ANALYSIS
Definition—The process of collecting inputs necessary for effective planning. The process includes the organization's internal capabilities, as well as the
customer's needs and desires, to identify a fit that can be used to advance a conceptual structure of the organization's business activity. It also includes
analysis of relevant externalities and large-scale shifts in the market landscape.
Analysis Process
Figure 4
Internal Environment Analysis Definition—Undertaking a review of the organization's in-house skills and resources to create a big-picture
understanding of internal capacities. The process includes assessing the organization's capabilities to advance the advantageous and weed out the
detrimental aspects. It also includes the identification of synergic associations within the backdrop of the forces and players active in the market and
considers all externalities.
Analyze
Create baselines for Identify core
organizational Analyze internal Analyze systems and Analyze financial
Start characteristics operations (19948)
current processes
technology (10032) health (10033)
competencies End
(10031) (10034)
(10030)
Figure 5
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External Environment Analysis Definition—Assessing all forces, entities, and systems that are external to an organization but can affect its operation.
The process includes analyzing far-reaching currents in the macroeconomic situation, assess the competition, evaluate technological changes, and
identify societal as well as ecological issues of concern. It also includes the creation of a big-picture understanding of externalities, with sufficient depth
across individual aspects.
Analyze and Identify political and Assess new Analyze Identify social and
Identify competitors Identify economic Identify ecological
Start (19945)
evaluate
trends (10022)
regulatory issues technology demographics cultural changes
concerns (10027)
competition (10021) (10023) innovations (10024) (10025) (10026)
Identify intellectual
property concerns
(16790)
Evaluate IP
acquisition options
(16791)
End
Figure 6
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Customer Analysis Definition—Examining the market to identify customer required solutions. The process includes assessing the relevant market(s) to
determine the products/services that are needed or wanted by customers. It also includes conducting quantitative and qualitative analyses to capture
and investigate products/services. It should also include employ creative techniques that allow for a closer appreciation of the customer, and design
relevant solutions.
Conduct qualitative/
Capture customer Assess customer
quantitative
Start research and
needs and wants needs and wants End
(19946) (19947)
assessments (10028)
Figure 7
Phase-Specific KPIs:
» Forecast and analysis accuracy
» Analysis timeliness
» Performance measures: cycle times, FTE hours, costs
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GOAL SETTING
Definition—The development of the overall goals for the organization that help in accomplishing its mission. This process includes defining and assessing
the various options available to achieve the goals highlighted in the mission statement. Delineate (in accordance with predefined criteria) the various
permutations of strategic decisions that would help the organization achieve the objectives outlined in the long-term strategy.
Identify implications
Identify Analyze business
for key operating
organizational goals unit strategies
model business
(19953) (19956)
elements that
require change
(13289)
Identify core
Identify implications competency for
for key technology each business unit
aspects (13290) (19957)
Figure 9
Phase-Specific KPIs:
» Long-term to short-term strategy ratios
» Alignment of corporate and business unit strategies
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PLAN DEVELOPMENT
Definition—Development of the portfolio of strategic projects that help fulfill long-term goals. This process includes the development of time-bound
projects that are discretionary in nature and lie beyond the scope of the organization's routine operations. It also includes the development of the
measures that will examine strategic projects. Such as the formulation of evaluation criteria to assess the strategic initiatives for the level of impact.
Determine business
Identify business
Identify strategic value for each Prioritize strategic
value drivers
priorities (19975) strategic priority initiatives (19980)
(19982(
(19978)
Communicate
Develop strategic Determine the
strategic initiatives Establish baselines
initiatives based on customer value for
to business units for business value
business/customer each strategic
and stakeholders drivers (19983)
value (19976) priority (19979)
(19981)
Review with
stakeholders
(19977)
Figure 11
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IMPLEMENTATION AND REVIEW
Definition—The process for managing the successful implementation of the strategic initiatives. Execution of strategy is also defined as the process of
implementing a portfolio of connected projects, setting timelines, and assigning resources by an organization to make a strategy work In addition to
managing the execution of the initiatives the process also includes a review cycle to track the performance of initiatives to achieve goals and adjust as
needed to the strategic plan and initiatives.
Develop project
plans (16413)
Execute projects
(16414)
Figure 13
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Phase-Specific KPIs:
» Project milestones
» Objective-specific KPIs
» Adoption rates of new behaviors, processes, and systems
» Stakeholder satisfaction
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