The Office of Strategy Management 策略辦公室 耕讀筆記

Source: Harvard Business Review 作者：Robert S. Kaplan and David P. Norton Year: 2005

前言: Strategy at many companies is almost completely disconnected from execution. Establishing a dedicated unit to orchestrate both will help to bridge the divide.


概念簡述：策略與執行的落差，可以靠建立「專屬的策略管理辦公室」去彌補。

問題：研究事實 67% of HR and IT departments' strategies don't reflect corporate strategy. 60% of organization don't link their financial budgets to strategic priorities.
提出解法：Create an office of strategy management (OSM) ex. Chrysler克萊斯勒集團2004年的例子。

概念的執行(The idea in practice)：
Design your office of strategy management to perform these functions: 

1. Create and Oversee Your Strategy Management System
2. Align The Organization
3. Communicate Strategy
4. Review Strategy
5. Refine Strategy
6. Manage strategic initiatives
7. Consult with key strategy support functions 
1. planning and budgeting
2. human resource alignment
3. knowledge mangment 

過去的策略規劃: "isolation by different groups with different reporting lines" 沒有集中管理


(Source: HBR 2005 October)

問題：How to wide influence and stay informed? by Graham Sher, the CEO of Canadian Blood Services, based in Ottawa

One CEO's 3 big challenges in implementing a strategic agenda.

1. Spend a great deal of time dealing with external demands and constituents. So have limited time and information with which to manage internal issues. 
2. any CEO has a difficult time influencing his or her organization. Set the tone, and define the strategic agenda, communicate it, and ensure that it gets undertaken, but i don't command any parts of the organization. 
3. staying informed. Information, particularly bad news, is filtered before it gets to CEO. 

Solution: set up OSM(Office of Strategy Management)

1. Provide Balanced Scorecard, as a way of overcoming these three barriers to success. The BSC empowers executives, as opposed to invading their territory and undermining their authority. "Much of management is a search for the truth. The BSC provides CEO with easy access to timely, unfiltered information about our strategy implementation. 
2. Report directly to CEO, a way to highlight the importance of this office to CEO's strategic agenda. 
3. Created a dotted-line reporting relationship between the OSM and two other key executives, the CFO and the COO, who ultimately are going to help execute the change agenda. 

As for the OSM's responsibilities, strategy management as being made up of three high-level processes: strategy formulation, leading to strategy execution, leading in turn to strategy learning, which then cycles back to strategy formulation.

The Processes of Strategy

1. Strategy Formulation = Environmental assessments, Strategic planning, Budgeting
2. Strategy Execution = Balanced Scorecard performance reporting, Initiative management, Communicating strategy, Personal scorecards
3. Strategy Learning = Bench-marking, Best-practice sharing, Internal coaching and change management