SFO BSC – Strategy Mapping Step 1: Developing a Strategic Theme R-WI-ABM-1002-1
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Objective of Step 1: Create a Strategic Theme that will provide the focus and direction of your strategy map. Method: The process of creating a Strategic Theme involves both an individual and team exercise. The questionnaire in the next pages will guide you individually to arrive at a possible Theme for your team’s strategy map, after which will be reviewed with everyone else’s suggestions. Through a team exercise, guided by the Moderator, the team will vote on a final Theme. Moderator: The role of the moderator in Step 1 is to do the following: x Facilitate an open discussion that encourages creative thinking x Guide the team members in their individual and team exercises x Facilitate a democratic process of reaching a consensus as a final Theme is voted on x Promote an atmosphere of non-judgmental participation to give everyone the freedom to express their opinions
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SFO BSC – Strategy Mapping Step 1: Developing a Strategic Theme
1. Guidelines What is a Strategy Map and a Strategic Theme? Strategy Maps are used to describe an organization’s strategy using the four Balanced Scorecards perspectives: Financial, Customer, Internal Process and Organizational Learning and Growth. Strategy Maps utilize Strategic Themes to allow organizations to focus actions and to provide a structure for performance management. Strategic themes are the building blocks around which the execution of strategy occurs. A Strategy Focused Organization utilizes Balanced Scorecards (BSC) to accomplish the following: x Communication Tool: Describe our strategy x Performance Measurement System: Manage our strategy x Strategy Execution System: Execute our strategy Balanced Scorecards have three basic components: x Strategy Map with a Strategic Theme x Strategic and Operational Scorecards x Action Plan (Initiatives) Characteristics of a Strategic Theme: 1. Rallying Cry Members of any group can benefit from a common focus or direction that will bind the team together. This simple statement of what the group wants to accomplish must provide the motivation or inspiration to effectively rally the group towards their objectives. The Strategic Theme must provide the group with the fervor and intensity that will drive them to work cohesively as one. 2. Broad It must be broad or high level in nature but specific to the group’s purpose. It should not be detailed or too specific to a member’s individual objectives but rather, should translate across all disciplines. 3. Long-Term Strategic Themes can have varied life spans, depending on the direction of the organization. A 3 to 5 year strategic theme is preferred in order to have alignment with corporate goals.
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SFO BSC – Strategy Mapping Step 1: Developing a Strategic Theme
4. Unanimity The group must agree on their strategic theme in order to dedicate their efforts toward a common end and efficiently identify their contributions toward that end. 5. Simple and Attainable It must be simple enough to be understood by anyone in order to gain the momentum it requires to rally the team. If it has to be explained or clarified, it loses its effectiveness as a motivational tool. It must also be a realistic goal or the team will not be able to provide attainable objectives to help execute the theme.
2. Individual Exercise A. Consistency of Theme: Choose one answer in each of the following multiple choice questions. These questions are designed to give you a high level understanding of what is important to your organization and the direction you plan to take in the next 3 to 5 years. Is there a consistency or pattern to your answers? 1. Which of the following is of utmost importance to your team in helping reach your goals? a. b. c. d.
Our customers (internal or external) Our profitability Our processes Our employees
Enter answer here: 2. Which of the following do you feel is of utmost importance to your team’s leadership in helping reach your business unit goals? a. b. c. d.
Providing the best overall solution to your customers Providing the best value to your customers (lower costs – higher margins) Providing the best products and services to your customers Attracting and retaining exemplary employees
Enter answer here:
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SFO BSC – Strategy Mapping Step 1: Developing a Strategic Theme
3. Which of the following is your team’s key growth and productivity priority over the next 3 to 5 years? a. Organic growth through customer acquisitions, contract renewals, pull-through work, and upsells b. Financial growth through higher profit margin goals c. Expansion of products and services d. Continuous organizational learning Enter answer here:
B. Interpretation: Is there a pattern to your answers? B1: A Pattern to your Answers: If a pattern emerged from your answers or in other words, you were consistently choosing the same letters, then consider these as starting points for the development of your strategic theme. Typically, if the organization’s direction is effectively communicated to all employees, a pattern should emerge from the respondents’ answers. If you consistently answered: A - Your strategic theme should be customer or stakeholder focused Example: Customers for Life B - Your strategic theme should be financially focused Example: Grow Earnings and RONA (return on net assets) C - Your strategic theme should be process driven or focused Example: Product and Service Innovation D - Your strategic theme should be focused on organizational learning and growth Example: Employees Come First It is important to note that focusing one of the choices above does not preclude the others when it comes time to execute your strategy. That is the nature of the Balanced Scorecards – a balanced approach to strategy execution based on the four perspectives: customer, stakeholder/financial, internal process and learning and growth.
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SFO BSC – Strategy Mapping Step 1: Developing a Strategic Theme
B1. Your Strategic Theme (with a pattern to your answers): __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________
B2. No Pattern to your Answers: If no pattern emerged from your answers or in other words, you chose a combination of different letters, then try these ideas for the development of your strategic theme. x
What goal would you like to achieve in the next 3 to 5 years?
Example Response: Double our revenue Your Response:_______________________________________________________________ x
How do you plan on achieving this?
Example: By expanding our service offerings Your Response:_______________________________________________________________ x
What processes need to be in place or improved in order to meet this goal?
Example Response: Operations and Sales processes Your Response:_______________________________________________________________ x
How will you prepare your workforce for the achievement of this goal?
Example Response: Provide sales training; link incentives with performance Your Response:_______________________________________________________________
Take a look at all your responses; what is the most important step in achieving your goal? Paraphrase or reword it to try and come up with your strategic theme. Strategic Theme based on example responses above: Deliver innovative services for revenue growth
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SFO BSC – Strategy Mapping Step 1: Developing a Strategic Theme
B2. Your Strategic Theme (no pattern to your answers): __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________
3. Team Exercise x The Moderator will ask each participant for his/her Strategic Theme, either from B1 or B2 of the individual exercise x Team will review the list of responses from all participants x Team will consolidate any redundant entries x Moderator will guide team in “word-smithing� the entries x Team will vote on the final Theme after several iterations, guided by the Moderator and the 5 Characteristics listed in Section 1 (rallying cry, broad, long-term, unanimity, simple and attainable) x If the final Theme needs modification to make it more inspiring, the team can do so at their discretion
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