3- 5 Year Plans
A very good practice to implement and cascade the strategy is to entrench it through a holistic performance management system. Every company needs to formulate strategy and cascade it to all levels of the organisation. Most companies fail to do this and only a few privileged individuals have site of the strategy.
One of the best methodologies for achieving this is the “Balanced Scorecard” where the strategy is documented at the highest level of the organisation and translated into:
The process is repeated at each level of the organisation until all employees have been reached.
The next challenge is to keep the strategy alive and the plans on track.
In Prophix we translate the business strategy into a 3 to 5 year plan for the entire organisation and then translate those plans into meaningful targets at every level of the business including:
The numbers reconcile perfectly and as changes are made, the targets, plans and budgets can be recalculated at every level ensuring that everyone knows where they stand in terms of their targets.
Through reporting, analysis and what-if scenarios, variances to plans (budgets, forecasts, re-forecasts) are made visible and corrective actions can easily be made.