A strategic initiative must directly and effectively serve, and is crucial to, the achievement of the relevant Strategic Objective. Wikipedia defines Strategic management as, “Strategic management involves the formulation and implementation of the major goals and initiatives taken by a company’s top management on behalf of owners, based on consideration of resources and an assessment of the internal and external environments in which the organization competes. Before I go into how we distinguish strategic initiatives, I want to distinguish operational execution (running the day-to-day business) from strategic execution (putting in place what is needed to make the strategy work). A strategic objective can also help motivate employees and achieve full buy-in from stakeholders. It must depart from the status quo and focus on change. Like gifted children, though, we potentially set them up for failure by actually labelling them as strategic initiatives. Strategic decisions have major resource propositions for an organization. And due to time constraint, coupled with the fact that you were already exhausted, you said to your management team “We have completed the bulk of the strategy, now I’ll leave the details to the team”. Strategic initiatives are the collection of finite-duration discretionary projects and programs, outside the organisation’s day-to-day operational activities, that are designed to help the organisation achieve its targeted performance” – Kaplan and Norton. They introduced some new initiatives, but mostly tweaked the current ones here and there. This is where many organizations fall into the trap of confusing operations with strategy. As such, they need not restate the obvious, as most elements of a portfolio vision are well understood by portfolio stakeholders. This is the final of four articles that collectively provide key learnings for the basic architecting of the Balanced Scorecard. ESM Software helps teams execute and design their strategic plans with Balanced Scorecard software and coaching. These decisions may be concerned with possessing new resources, organizing others or reallocating others. Strategic Themes are differentiating business objectives that connect a portfolio to the strategy of the Enterprise. 1010 Blok A, Phileo Damansara II Jalan 16/11, 46350 Petaling Jaya Selangor Darul Ehsan, Tel:  +603 - 7956 1010 Fax: +603 - 7956 2010. Despite completing (most of) the strategic initiatives, the outcomes of your measures are not that encouraging, and you begin to wonder why. Specificity: Strategic goals are more specific than, let's say, your role statement, but then can't be too specific either, since you don't want too many of them in your strategic plan. In order to innovate you need to utilize data-driven decision making. Successful initiative management is at the core of strategy execution. It may deliver a service or product that is at a lower price, differentiated and mainly concentrates on a demanding market section, or which is innovative. Here are the differences we see between the two: A tactical thinker keeps opportunities and issue separate so they are digestible. This path is established as each initiative is mapped to one or more objectives in the strategic plan and to one or more goals. It’s meant to be the document that makes the vision a reality. It is a temporary endeavor with a definite beginning and end. The Characteristics of Nimble Execution. Greg Githens relates his advice to a CEO determined to succeed at a strategic initiative: recruit a capable program manager. Objectives state a clearly defined direction or outcome for an organization. Strategic decisions deal with harmonizing organizational resource capabilities with the threats and opportunities. Operational initiatives tend to be ongoing processes that remain fairly static. The Role of Business Intelligence In Strategic Planning, Global Performance Technical Consulting Sdn Bhd, When a new objective and measures/KPIs are introduced, When targets for existing measures cannot be achieved through normal operational means, When there is a significant increase in target that requires new approach/method, When there is a risk of a significant drop in current performance due to new circumstances, It is different from normal operations / current processes / departmental accountabilities / job description, It is specific in terms of objectives and scope, The completion, achievement or outcomes can be measured, It must be projectisable, i.e. However, because performance is always. What is the level of organisational readiness to embrace the change likely to be brought about by the initiative. Four key words can be used to sum up the desired characteristics of effective strategic initiatives: R.I.D.E. Strategic Initiatives ® helps our clients succeed in a time of disruptive change by providing exceptional thought leadership, vision, and organizational development expertise. Milestones and tasks should outline the top 4-10 deadlines within the scope of an overall initiative. Gaining and sustaining nimbleness is not easily or casually achieved. The Importance of Strategic Initiatives. their strategic initiatives and nearly half of respondents (46%) report that communications is an integral and active component of the strategic planning and execution process. An example of a Learning and Growth Objective might say something like, “Align Incentives and Rewards with Employee Roles for Increased Employee Satisfaction.”. Measurable: Strategic goals and objectives should be measurable so you can track success. Once a process has been stabilized, it becomes operationalized and can be removed from the scorecard. Being an operational business with standardised processes, life seemed to be going on as usual. Each strategic initiative you create should include clear start and end dates. The concept of removing an initiative from a scorecard is important because it highlights another key characteristic of effective strategic initiatives: the scope. Typical questions to be asked are: Only if a proposed initiative can satisfy the four criteria above can it be considered for implementation. These objectives would form the basis for formulating strategy: As stated earlier, there can be no strategy without objective. Strategic initiatives, on the other hand, focus on change. Add the font family you wish to use. What else need to be in place before the initiative can take-off? The logic behind how this initiative supports the objective may seem intuitive, but it should regardless be clearly expressed in the initiative definition. As a part of the implementation strategy, accountability measures are put in place to ensure implementation takes place. A strategic initiative should add a new process or modify an existing process. Strategic planning is the plan that’s put into place. Clearly defining your strategic initiatives with all of the suggested information is essential for the next steps in your strategy design, especially as you align initiatives with objectives, then prioritize initiatives based on need, resource restraints, etc. The full picture of the initiative is fleshed out by also incorporating key milestone/task dates. Imagine the scenario: As a CEO you were developing a 5-year strategic plan for the company. Collection Procedures” is more suitable as initiative if the current procedures fail to ensure timely collection. 3. It is therefore critical that organisations identify a balance between the cost of implementing the initiatives and the benefit to be reaped from it. 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