Why do 70% of Organisations Fail to Successfully Execute Strategy?

Strategic execution remains a major challenge for many organisations, with up to 70% of organisations failing to execute strategy successfully. Performance management is one of the key dimensions of strategic execution.

Performance management is about achieving strategic objectives. It is about clearly defining and communicating objectives across your organisation; aligning your organisation to meet them; and continuously planning for, monitoring progress of, and analysing exceptions to ensure they are achieved. Developed in the early 1990s the Balanced Scorecard, along with the Strategy Map is one of the most widely adopted performance management methodologies today. However many organisations continue to find Strategy Map and Balanced Scorecard deployment challenging. Others fail to grasp the opportunity presented by these tools to improve strategic execution and increase revenue whilst driving out costs.

In our experience Strategy Map and Balanced Scorecard projects often fail due to a lack of a compelling, well-understood business reason for undertaking the change programme. Additionally there is often a failure to address the business change and technology aspects of this type of project in an integrated, aligned manner. 

IT Governance and Systems Management

Systems management involves monitoring and managing the performance of, and risks and controls related to, operational systems to ensure the delivery of the strategy while operating within risk appetite.

Achieving strategic objectives, managing risks, implementing controls and delivering operational performance are all organisational activities which are underpinned and supported by an individual or a portfolio of systems. Managing the organisational portfolio of systems also enables organisations to become more innovative and to respond with greater agility to the needs of the market.

StratexPoint enables organisations to manage and align their portfolio of systems to deliver their strategic objectives; manage their risk; deliver a highly effective controls environment; and deliver operational performance. The solution enables users to:

· Define their key systems and visualize these using Microsoft Visio

· Define and manage risks and controls related to systems

· Conduct systems related risk and control assessments

· Define indictors for systems

· Align initiatives and actions to drive systems improvements 

Process Governance – Bridging the Gap between Strategy and Operation

Process management involves monitoring and managing the performance of, and risks and controls related to, operational processes to ensure the delivery of the strategy while operating within risk appetite.

By focusing on process management, organisations can improve their operational efficiency, become more innovative and respond with greater agility to the needs of the market. There is also evidence that process-managed enterprises are highly effective at cutting costs across the value chain.

From an operational point of view, many organisations have adopted process improvement methodologies such as Six Sigma and LEAN.

StratexPoint is the only SharePoint application which enables organisations to close the gap between strategy and operations by integrating process management within a performance and risk management solution. Within the solution, users can:

· Define their key operational processes and visualise these using Microsoft Visio

· Define risks and controls related to processes

· Conduct process related risk and control assessments

· Define indictors for processes

· Align initiatives and actions to drive process improvements

· Define accountability for processes using the RACI model

· Automated process and systems related risk and controls dashboards and reporting, while enabling advanced analytics

· Encourage a collaborative approach to executing processes via commentary, alerts and other web 2.0 collaboration capabilities

· Automated risk and controls dashboards and reporting, while enabling advanced analytics