| The gap between financial strategy and execution |
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| Written by By Chris Field, Performance Management Business Consulting Manager, UKIMEA, Infor | |
| Monday, 14 April 2008 | |
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Page 2 of 2 Management as ‘cause and effect’ The latest thinking behind many management methodologies links causal activities to strategic effect. Management must determine which activities are required to achieve an effect given certain assumptions on the prevailing business environment. Management should then monitor how each activity is implemented and its impact. This kind of reporting gives management an immediate view of whether strategic goals are being achieved and what supporting activities are needed. From this output management can then determine what adjustments are required. Assigned responsibilities Individuals are accountable for implementing activities that deliver strategic goals. They must be aware of their actions, with compensation linked to achieving strategic success. Critically, people must have authority for resources in implementing agreed tactics. Exploit technology High-performing organisations typically have single systems for developing, communicating and monitoring the plans deployed across the organisation. Each manager can see their area of responsibility and how they impact overall success. These systems invoke the different processes of planning, budgeting, forecasting and analysis and provide end-users with automated alerts when performance is either outside pre-set tolerances or predicted to be given current trends. They allow sophisticated end-user analysis to help determine the cause of a variance and to make adjustments to plans ‘on the fly’. Combining these new methodologies with motivational human resources and technology can give an organisation critical competitive advantage, extending its reach into markets and enhancing market share, even in difficult markets. Chris Field is performance management business consulting manager UKIMEA at Infor. Related articles
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