Strategic Planning, Execution, and Measurement

287 Pages·2013·2.786 MB·English

by  Girish P. Jakhotiya

Business Management / Strategy Planning J
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Strategic Planning,
Although there are countless books available on strategic management,
there are few, if any, that supply practical coverage of strategic planning,
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execution, and measurement—until now. Considering the entire value Execution,
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chain, this book covers the complete process of strategic planning, r and
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execution, and measurement.
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Based on three decades of field-tested experience, Strategic Planning, g
Measurement (SPEM)
Execution, and Measurement (SPEM): A Powerful Tool for CEOs i
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provides both a consultant’s view and an entrepreneurial approach to
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strategic planning, execution, and measurement. Walking you through
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the process, it begins by defining world-class status, visions, missions, a
business models, and value chains. Next, it discusses the two most n
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important prerequisites of strategic planning and includes a questionnaire
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to help you evaluate operations, systems, and structure in your n
organization. g
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The book provides a matrix of 25 parameters for assessing the status of E
your organization that can help to pinpoint the perceptional gaps between x
top executives and owners. It includes a strategy bank with 150 generic e Girish P. Jakhotiya
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strategies in the five performance areas of business and identifies meth- u
ods for monitoring strategy execution that provide early warning signals. t
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It also introduces the Entrepreneurial Score Card, a tool for improving the o
impact of strategic planning and execution in your organization. n
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Detailing the structure and preparation process for the strategic plan, the a
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book illustrates the financial impact of strategy execution and explains d
the various financial monitoring parameters used in the performance M
cards of individual employees. It concludes by describing an entrepre-
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neurial approach to strategic planning and with a comprehensive case a
study that illustrates the entire strategy formulation process and its s
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conversion into an annual budget.
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This book is ideal for CEOs, CFOs, COOs, business owners, heads of
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business verticals, heads of corporate planning or strategy, functional
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heads, teachers, students, and practicing consultants in the area of
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strategic planning. t

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www.productivitypress.com

Strategic Planning,
Execution,
and
Measurement (SPEM)
A POWE R FU L TO O L FO R C E Os

Strategic Planning,
Execution,
and
Measurement (SPEM)
A POWE R FU L TO O L FO R C E Os
G i r i s h P. J a k h o t i y a
Boca Raton London New York
CRC Press is an imprint of the
Taylor & Francis Group, an informa business
A PRODUCTIV ITY PRESS BOOK
CRC Press
Taylor & Francis Group
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© 2013 by Girish P. Jakhotiya
CRC Press is an imprint of Taylor & Francis Group, an Informa business
No claim to original U.S. Government works
Version Date: 20130401
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Contents
Preface ...............................................................................................xi
Author .............................................................................................xiii
1 Strategic Planning: A Tool for Reaching World-Class Status .......1
Defining World-Class Status .......................................................................1
Gaining World-Class Status ........................................................................2
Benefits of Strategic Planning .....................................................................6
Fundamental Factors Defining Scope of Strategic Planning .....................7
Institutionalization of Vision and Mission ..........................................8
Example 1.1: Indian Automobile Company ......................................10
Other Important Factors: Business Model, Core Competence,
and Value Chain ................................................................................11
Business Model and Return on Investment ..............................12
Core Competence ......................................................................14
Value Chain ................................................................................15
Example 1.2: A Company and B Company ......................................16
Example 1.3: ABC Company .............................................................18
2 Prerequisites of Strategic Planning:
Inquiry and Status Evaluation ...................................................21
Prerequisite 1: Examining Performances, Perspectives,
and Aspirations........................................................................................21
Part A: General Inquiry .....................................................................22
Part B: Business Development Inquiry.............................................34
Part C: Strategic Cost Management Inquiry ......................................40
Part D: Operations Management Inquiry .........................................45
Part E: Employee Productivity Inquiry .............................................50
Part F: Resource Management Inquiry .............................................60
Prerequisite 2: Status Evaluation ...............................................................66
Versatile Corporate Evaluation ..........................................................67
vii
viii  ◾  Contents
3 Strategic Plan: Components, Preparation,
Review, and Recommendations .................................................73
Structure and Components .......................................................................73
Duration ....................................................................................................74
Format .......................................................................................................74
Strategy for Performance Areas ........................................................74
Hurdle Management ..........................................................................75
Cost–Benefit Analysis (CBA) .............................................................75
Schedule for Execution .....................................................................75
Crisis Management and Exit Route ...................................................75
Execution and Impact Routes ...................................................................76
Execution Route ................................................................................76
Impact Route .....................................................................................76
Preparation ................................................................................................76
Implementation .........................................................................................79
Review and Recommendations for Improvisation ...................................80
Generic Strategies for Five Performance Areas ........................................82
4 Monitoring Parameters for Strategy Execution and
Impact Measurement ...............................................................119
Need for Monitoring ...............................................................................119
Periodicity of Monitoring ........................................................................120
Monitoring Process..................................................................................120
Monitoring Parameters ............................................................................122
Business Growth and Expansion Monitoring Tools .......................124
Strategic Cost Management Monitoring Tools ................................127
Operations, Logistics, and Technology Management
Monitoring Tools .............................................................................131
Employee Development and Satisfaction Monitoring Tools ..........134
Resource Management Monitoring Tools .......................................140
5 Measurement of Strategy Execution and
Financial Monitoring ...............................................................145
Pyramid Movement of ROI for Strategy Execution ................................145
Financial Impacts of Strategy Execution ................................................146
Financial Monitoring .......................................................................149
Common Characteristics of Financial Parameter Tables ........152
Level 1: Systemic Employees ...................................................155