What is the Strategy Articulation?
Corporate Strategy is about enabling an organization to achieve and sustain superior overall performance and returns. It is a core responsibility of senior executives and encompasses a range of critical activities, from defining and refining corporate vision to strategic performance measurement and management.
Corporate strategy practice helps senior executives address their organizations’ most complex and challenging business issues, enabling them to achieve and sustain superior overall performance and returns.
Focus： Performance information should be focused only on the key measures, including legislative requirements, which are important to the organization and the role. Measures should also be those that may drive an action or decision. This focuses management attention on the right issues and at the right level of detail.
Alignment： Performance measures should be aligned with the strategic objectives and integrated into the performance review process of the organization. The performance measurement system should have a hierarchy of objectives and measures which are cascaded down the organization. This ensures the employees are working cohesively towards the common objectives of the organization.
Action： Strategies and initiatives should be communicated in a way that they completely infiltrate people’s minds. Performance measures should be specific, actionable, and practical.
Behavior：Motivate strategic thinking in the organization and long for the rise of an entrepreneurial spirit among employees.
1. The business strategy aims to become a low-cost supplier, saying that the strategy is to cut costs. If the strategy aims to become carbon neutral, say that the strategy is to reduce fuel consumption and waste. After describing the overall business strategy in terms of actions, break down the actions to make them relevant to particular departments. Tell marketing that they must find less expensive ways to promote products. Tell production that they must reduce the time spent and materials used to make the products, without compromising quality. Articulate the business strategy to employees in terms of actions they can take, and they will try to implement the strategy.
2. Give employees clear and measurable goals that are relevant to the jobs they are doing. If the business strategy includes cost-cutting, assign reasonable cost-reduction shares to the different departments. Evaluate how many departments may be able to cut, share the calculations and assign perhaps a 20 percent cut to marketing, a 10 percent cut to human resources, and a 5 percent cut to production. Ask for feedback and make revisions if you have made a mistake. Leave the details of how to achieve the targets to the departments concerned, but track progress to make sure they are moving toward their goals.
3. Measure progress. In the case of cost cuts, share current cost information relevant to each department and maintain the current way of calculating costs to demonstrate progress toward the targets. If marketing cuts TV ads in favor of lower-cost alternatives, make sure they can see where the TV ad cost is subtracted and the lower costs come in. If human resources take over recruiting in-house and cancel the outside service, make sure the cost reduction is obvious in its cost figures