About
Business Performance Management (E)
by
Laurus Nobilis
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How
do you transfer your Vision Statement into your
Business Strategy?
How do you transfer your Business Strategy into
Business Objectives?
How do you assign Responsibility for Result?
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| Back |
Posted:
Nov 2007 |
Modified:
Nov 2008 |
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Every
organization, whether profit or non-profit, has it's own
Vision Statement, meaning a destination place or state where an
organization wants to be. To be able to achieve a Vision
statement destination, an organization has to conduct it's Mission
that will bring them to their Vision. In order to
conduct their Mission every
organization
has to have developed Business Strategy that will enable organization
to conduct Mission that will lead them to
their destination – a Vision. |
Strategy
originally is an Art of War. Somebody might not like the
militaristic approach to the business, but some
parallels in organization are undeniable. Throughout the
history, the military was always ahead the civilian organization. This means that military research always
provide the newest advanced technology. Organizational structure was strictly defined. Procedures were defined.
Discipline was at high level. Responsibility was
assigned to individuals and groups. All activities are
promptly planned, executed, the results actions were
evaluated. Improvements were planned. Success was always
rewarded. Failure was sanctioned.
In
many ways, all successful organizations work on the same
principle. Organization has to know what they want to
achieve on long term and short term. Organization needs
to know how to do it, when to do it. It needs to know
how to capture planned part of market share, how to keep
it from competition, and how to milk it. It knows what
resources does it requires. It knows what are
expectations or results and how to measure them. Organization
knows how to motivate the people. Organization always tries to develop, to evolve in order
to maintain the growth.
In
order to execute the Mission, the Organization develops
and deploys the Strategy. The Strategy is defined by
annual business plan, and describes what this organization
wants to achieve in the next period, e.g.
the growth, sales, revenue, profit, organizational changes, development, image, ...
This
complex network of Business Performance Management
activities breaks down per functions,
and further more to units and individuals within every
function. Mission defines every team’s area of
activity.
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