MAKING S T R AT E G Y H A P P E N
SECTION PA G E
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Seeing the Big Picture Is Not Enough. No Process Is an Island. Connect the Dots. Building Strategy? Involve Those Who Are in the Know. Don’t Just Communicate the Strategy. Literally Drive It Home. Make the Strategy Wag theBudget. Find and Focus on the Leading Indicators. Tie Your Metrics to the Market. Target the Model You Want to Be. It Doesn’t Have to Be Annual. Be Careful What Compensation Buys. Cash Isn’t Always King. Motivate Beyond the Four Walls. Learn to Prioritize Among Great Options. One Size Doesn’t Fit All. Less May Be More. Reporting Is Dead! Welcome to Enterprise Dashboards. Use Information to PromptAction. Information Ubiquity Creates New Challenges. Leveraging Emerging Technology. Fire Up the Feedback Loop. Build a Winning Team. Think Big, Start Smart, Deliver Quickly.
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About the Authors
PIECING TOGETHER THE PERFORMANCE PUZZLE
SEEING THE BIG PICTURE IS NOT ENOUGH.
We can all think of organizations whosefortunes have rocketed because they were able to see the really “Big Picture” ahead of their competition—and realize their visions. FedEx®, for example, adapted a simple approach to a business nearly as old as time to become a global delivery giant. Microsoft’s® focus on software rather than hardware created a powerhouse company. But as much as we like to credit such fabulous successes to vision,winning companies are distinguished by more than their ability to see the Big Picture. Companies that truly excel can execute against their visions, getting their organizations—from top to bottom—to
Companies that truly excel know how to get their organizations—from top to bottom—to commit to a desired level of performance.
commit to a desired level of performance. No matter how big the BigPicture is for FedEx, Microsoft, or your company, it means nothing if the ability to implement strategy is lacking. Vision needs to be matched by execution. No matter how good your strategy is, performance against it has to be truly outstanding or competitors will defeat you in the marketplace. Recognizing the crucial importance of a well-orchestrated execution strategy, we developed the PerformanceCommitment framework. The framework encompasses three elements of commitment that demand attention— strategic, operational, and organizational commitment. A few organizations, public and private, address some aspect of Performance Commitment well. Others go through the motions but never quite derive true value. Few organizations, if any, are getting all of it right. The power of PerformanceCommitment stems from the linkage of these three components and their ability to motivate performance through a shared commitment. Effective Performance Commitment processes can help you convert those Big Picture ideas into reality. They can help you spot and execute on the next Big Idea ahead of the competition.
K P M G C O N S U LT I N G
NO PROCESS IS AN ISLAND.
In manyorganizations, the performance management systems and processes are fragmented and misaligned. Is it any wonder, for example, that many executives are critical of their annual budgeting process when it is fairly common for the budget to be created by one department while the strategic plan is created by an entirely different department? Think about your own organization, and ask yourself these questions: •When your strategy shifts, are team and individual goals and incentive compensation revisited and revised? • Are your training programs going beyond compliance-driven objectives to really developing employee skill sets that are consistent with your strategy? • In the next hour, can you get useful and relevant information about progress toward your strategy, performance against your metrics (and...