Businesses
exist in a rapidly-changing environment that can and will lead to radical
responses and strategic planning. There are many challenges that one
organization can have with the daily grind of responsibilities that despite
attempts to push forward, the shareholder value drops. Therefore, the solution
lies not to focus on improving the current situation but rather in taking the
necessary steps to realize what it takes for a business to succeed in sales.
COMPREHENDING THE SITUATIONS
Identifying the Dysfunctional
Elements
Most
people have difficulty stating their business’ strategy – what the business
wants to become, how it expects its people to conduct themselves, what it will
provide and sell, to which customers and future direction.
The
reality is that the majority of people in a business focus on day-to-day
operational matters and individual aspirations, while forgetting about
strategic planning. As a result, forward progress is slowed that leads to
further frustration by executives who will launch new communication,
reorganization and process redesign or technology initiatives. Everyone is
doing more, but seeing business performance and sales declining even further.
Disparity of Business and
Individual Performance Management
In all
businesses, there is a major gap between business and individual performance
management.
Business performance
management is
usually driven through an annual business planning process that sets
financial sales targets without specifying how they are to be achieved.
Individual performance
management is
conducted through a performance appraisal process that sets mainly
non-financial personal targets without explaining how they link to
financial ones.
Both need
to focus on initiating the necessary steps to change the organization if they
want to succeed in the future.
CONVERTING STRATEGY INTO ACTION TO
PROBLEM SOLVING
Aligning Business
This is a
unique new approach that:
- Defines the issues and
resources that are of value such as allocating crystal-clear
responsibility for them and measuring progress toward their delivery;
- Empowers people to set their
own objectives in the context of their corporate goals;
- Creates a results-oriented
performance culture, rewarding the delivery of outcomes rather than the
management of resources;
- Organizes around results
rather than skills;
- Challenges and justifies
partners’ and support units’ outcomes, replacing adversarial service-level
agreements;
- Integrates and automates
planning, budgeting, resourcing, measuring, reporting and rewarding –
therefore, releasing managers and support staff to deliver growth
outcomes;
- Combines business and
individual performance management;
- Identifies core processes and
prioritizes initiatives;
- Continuously reveals duplication,
streamlines processes and optimizes the allocation of resources;
- Aligns information technology
with the business through the IT alignment matrix;
- Integrates people and other
resources around common goals after a merger or acquisition.
Business alignment
forces everyone to specify what their organization needs to do to produce what
it needs to deliver to stakeholders in the future. It defines precisely what
needs to be done to extract value from a merger or acquisition once the initial
cost savings have been taken. Thus this enables long-term growth of shareholder
value.