Foreign research shows that strategic execution is the key shortcoming of enterprises, especially those in China. The rapid economic development in China in the past 30 years has created a good external environment and development opportunities for enterprises. Some entrepreneurs even think that China enterprises don't need strategy, as long as they have good execution. As long as enterprises can unify their thoughts and actions, with the vitality of China economy and the diligence of China enterprises, the development of enterprises can be expected.
So, how to effectively improve the strategic execution? There are three key factors: one is to make the strategy clear, the other is to implement the strategy as the action of every organization and every employee, and the third is to test and correct the strategy. These three factors seem dull, but at present, less than 20% of domestic enterprises can operate according to them relatively effectively. Why is it so difficult? In fact, the lack of effective management tools is one of the most important reasons. Bachelor of Science. Balanced Scorecard (BSC) system is a set of strategic management ideas and tools with great influence in the world at present.
What can the balanced scorecard do for us?
In recent years, although there are still various problems in practice, the balanced scorecard has gained a good reputation in the theoretical and business circles, and has gained a good reputation for helping the North American Marketing and Refining Division of Mobil Oil, the Property & Casualty Division of CIGNA Group, Hanwha Bank, and the Petroleum Branch of Braungen Energy Service Group to become the fastest growing enterprises in the industry and even become industry leaders. At present, 80% of the global top 500 enterprises have applied the balanced scorecard. Enterprises applying balanced scorecard. The understanding and recognition of strategy has tripled on average. Compared with enterprises without a strategic implementation system, enterprises that have established a formal strategic implementation system by using the balanced scorecard have a strategic success probability of 2 ~ 3 times.
So, what can the balanced scorecard do for us? Here are some key points. Strategic map: explain the strategy clearly
One of the functions of strategic map is to construct a consistent strategic description framework and language, and at the same time to clearly and concisely explain strategic ideas. As an employee, the strategy of the enterprise must be understood and firmly remembered. Otherwise, it cannot be effectively implemented. However, the strategic planning report of an enterprise is rich in content and often a thick book. How can people clearly understand and remember it? In fact, with the strategic map, you can make the enterprise's strategy clear and let everyone understand. This map describes the enterprise's strategy from four aspects: finance, customers, learning and growth, and internal processes. This makes the strategy in everyone's eyes more clearly visible.
The second function of strategic map is to test the lack of strategy and let everyone reach a strategic understanding. Many enterprises that have finished strategic planning often think that their strategies are perfect, but in fact, when they put the contents of strategic planning in the strategic map, there is always the problem of missing strategic objectives. Therefore, the strategic map is used to illustrate the enterprise strategy. In fact, it is also helping enterprises to reorganize their strategies. The reason why strategic map has such a powerful function is that it shows all aspects of enterprise management in a systematic and balanced way with structured forms and logical thinking, and integrates many management theories.
Reach a high-level understanding through strategic map discussion. At the same time, it is also an important part of strategy implementation to reach a wide range of strategic knowledge through middle and high-level discussions. Realizing * * *' s cognition of strategic objectives is the premise of strategic implementation, and the key obstacle to realizing * * *' s cognition is different degrees of attention. The top management pays attention to the strategic direction and sets goals based on it, while the middle management pays attention to implementability and its own interests, which needs to be balanced. For example. The top management hopes to increase the market share through the new operation mode, while the middle management pays attention to the competitiveness and pricing of existing products, the number of sales staff, the expansion ability of existing channels and the after-sales support ability. If these conditions are restricted, middle managers will resist or treat the goals put forward by senior managers negatively. At this time, both sides need to communicate fully, otherwise the strategy is just empty talk. Therefore, strategic knowledge is not a simple strategic preaching, but the communication of strategic goals and the achievement of solving strategies. Only by understanding, recognizing and finding effective solutions can we unite people and achieve our goals.
From top to bottom, turn strategy into action.
The goal can only be achieved by putting it into action.
The company's strategy is often a sentence, seemingly uncomplicated, but there are many obstacles in the actual operation process. The company's annual strategic goal must be transformed into the daily actions of everyone before it can be implemented. The specific needs can be realized in three aspects: first, the strategic objectives can be implemented in specific actions and resource allocation by using the balanced scorecard; Second, through the decomposition of objectives, indicators and action plans, the strategy and actions will be implemented at the end of the organization and every employee; The third is to gradually decompose the annual goals and action plans into quarterly, monthly and even daily goals and action plans.
Unfortunately, for the strategy, the typical practice of domestic enterprises is usually that the leaders' reports talk a lot and finally go away. Meeting is not an end, preaching is not an end, the purpose is to point out the direction and need to be implemented. Execution requires action, and action must point to the goal. What is the actual situation? The executor is still doing what he did before, and he doesn't know where the relationship between his work and the direction pointed out by the leader is. What's more, what they did ran counter to the goals expected by the top management.
To change, we must first start from the top, start from the implementation of the top, and then decompose the goals and actions layer by layer. In China, the decline of strategic communication is amazing. From the top leader to the leading group, the strategic goal will drop 10% ~ 20%, and then drop by 20% ~ 30% at the middle level. For grass-roots employees, no more than 30% can accurately understand the strategic objectives of the enterprise. In this case, how can we act in unison? As the saying goes, there are advantages and disadvantages. We should start from the top management team, implement the goals as our own actions, and then link the goals and actions of middle-level cadres with the top management, so that the strategic execution will be significantly improved.
Goals can only be decomposed into layers and implemented as everyone's actions. Landing. When everyone in the organization clearly supports the goals and actions of the superior, and the goals and actions of the superior are supported by others, the enterprise must be efficient and executive.
Actions can only produce benefits if they are bound to resources.
Resources reflect actual power, and power without resources is a blank check. Therefore, if the responsibility is clear, it is necessary to achieve equality and give the actors the corresponding power to allocate and use resources.
Any goal will eventually fall to the benefit level, usually in two aspects, one is cost and the other is incentive. In practice. The budget management and strategy of enterprises are often "two skins"; When assessing and encouraging, it is only aimed at specific responsibilities and work, which is often out of touch with strategy. These two aspects make strategy a castle in the air, and the strategic departments of many enterprises are just furnishings. Rooting strategy means not only turning strategy into action, but also allocating resources through action plan to clearly present the allocation of strategic resources; And determine the strategic direction of incentive measures through indicators linked to goals.
A domestic telecom operator advocates enterprise management innovation. But after a long time, it was found that the innovation effect was not obvious and the employees did not respond enthusiastically. After investigation and analysis, it is found that the orientation is not clear and specific, and the incentive measures have not kept up. Later, through defining the innovation orientation, setting up innovation funds, formulating measurement standards and incentive methods, and establishing models, the atmosphere of innovation was gradually formed.
From left to right, realize horizontal collaboration.
Only when the indicators among peers are related can synergy be produced.
The biggest problem in the implementation of enterprise strategy is non-cooperation. The reason why an organization becomes an organization is division of labor and cooperation, if it is all alone. Then there was a mess. After clarifying their respective responsibilities and division of labor, they must cooperate. Only cooperation can lead to cooperation and success. In the process of applying the above-mentioned balanced scorecard, telecom operators not only indicate the lower-level undertakers of objectives, indicators and action plans in the company-level balanced scorecard, but also present the relevant undertakers together.
When each subordinate unit formulates the balanced scorecard, it first decomposes the company-level objectives undertaken by * * * *. For example, facing the company-level goal of "strengthening the development of innovative products", the R&D department aims to "strengthen the development of platform application products", the marketing department aims to "strengthen customer analysis and research" and the customer service department aims to "provide data and information for customer analysis and product development". Secondly, it is stipulated that company-level indicators need to be marked in red, and the action plan should be detailed. Company leaders personally participate in and review the production of the balanced scorecard of subordinate units, and make clear the collaborative decomposition of company-level strategic objectives, indicators and action plans. In the process of work, relevant departments need to inform their respective related work processes in time, communicate the overall work progress on a regular basis, and analyze problems. Put forward solutions to the problems and implement them in the follow-up action plan to ensure the orderly progress of the overall work.
Forming synergy with value chain partners will have more resources.
Only those who are fully aware of their own resources and can make full use of them can be regarded as outstanding talents. The same is true for enterprises. Unfortunately, many enterprises often have such a misunderstanding in their actual work: the relationship with other enterprises in the value chain is not "cooperation" but "calculation". In fact, the result of this understanding is equivalent to reducing friends but increasing opponents.
There is a classic case in international diplomacy: a country's foreign policy in the early days of the founding of the People's Republic of China is that friends agree with its policies and enemies disagree. So I made a lot of enemies. Later, the country changed its foreign policy and regarded all those who did not oppose its policies as friends. Therefore, there are more friends and the international environment has been effectively improved. Enhance the overall influence of the country.
At present, the domestic telecom industry is facing such a reality that telecom operators have changed from traditional telecom operators to information operators. The former telecom operators are undoubtedly the leaders of the value chain. If you want to talk, you must have access. If you master the lines, you master everything. Now the situation has changed, and the information operation emphasizes more on content, because the demand of consumers has been upgraded to a wide range of information services. Obviously, information service is not the strength of traditional telecom operators, and it is unrealistic to cover all information services in the whole value chain, so telecom operators are at a crossroads, although they are talking about a win-win situation with many partners in the value chain. But the action didn't keep up, and finally missed many opportunities.
Strategic review meeting: regularly check strategic gains and losses and implement PDCA of strategic management.
The steps of strategic monitoring and strategic review include: daily dynamic summary and analysis of process indicators and data; Indicator early warning, problem analysis and strategy formulation; Regularly review and adjust the objectives, indicators or action plans, and optimize the allocation of resources accordingly.
In strategic review, enterprises often confuse it with business analysis. When encountering performance pressure or market problems, enterprises often concentrate on discussing sales strategies, reasonable pricing, reducing costs and even layoffs. Business analysis points to the current performance, and related topics are related to the current survival of enterprises, which is easier for enterprises to pay attention to. The strategy focuses on the medium and long-term goals, which is related to the long-term sustainable development of enterprises. These two aspects are very important and complement each other. Many short-term performance problems are often rooted in the long-term development ability and goals of enterprises.
The sales revenue and sales volume of a leading household appliance enterprise in China are increasing month by month, but the profit growth is relatively slow. The usual practice of general enterprises is to reduce production costs and operating expenses, or to increase the prices of certain products and increase profits through promotion. However, after analysis, the company found that there are not many high-end and competitive products in its product list, because R&D is eager for quick success and instant benefit, and the research and development of high-end products has been in a spontaneous state. So the company adjusted its strategic objectives. Strengthen the research and development of high-end products and allocate corresponding resources. In recent years, the company's income and profits have shown an ideal growth trend.
Avoid misunderstandings in the application of balanced scorecard
In the practice of strategy implementation, enterprises often have many misunderstandings in understanding and application, which is also the main reason for the failure of balanced scorecard in some enterprises.
Myth 1: The lower levels copy the strategic objectives of the higher levels without decomposition.
Still taking the telecom operators mentioned above as an example, their company-level goal is "the transformation service capacity reaches the standard", and all subordinate units related to strategic transformation completely copy this strategic goal. As a superior, I know that my subordinates attach importance to this goal, but I don't know what the specific goal is because it is not clearly presented on the strategic map.
The correct way is to decompose rather than copy. As a subordinate, the way to strongly support the superior's goals is to focus on your key abilities. Put forward clear and specific goals. For example, the decomposition goal of the marketing department after undertaking the overall goal of the company can be "transformation marketing ability reaching the standard", and the decomposition goal of the product department can be "transformation R&D ability reaching the standard". Strategic objectives of units at all levels. One is to clearly support the goals of superiors, and the other is to guide the action direction of subordinates. Once the goal is too general, it will easily lead to subordinates' lack of sense of work direction.
Sometimes the goal of subordinate units is unclear, or it may be to blur the direction of action. For example, in order to complete the current performance, the marketing department focuses on channel construction, and the strategic goal of supporting the company's transformation needs to strengthen its own marketing ability construction. The overall goal is not to put forward specific goals for marketing ability construction. Therefore, from the strategic map of subordinate units, we can see their strategic understanding and goal decomposition of the superior company, and we can see whether they have their own independent thinking and correct direction. If there are problems, they can correct them from the beginning.
Myth 2: Only pay attention to assessment indicators and ignore non-assessment indicators.
This phenomenon still exists in practice. That is, there are many indicators when making measurement indicators according to strategic objectives. In fact, there are not many indicators of performance appraisal. If the index weight is less than 5%, the utility will be significantly reduced. Therefore, in terms of measurement indicators, assessment indicators and non-assessment indicators are generally distinguished. For example, in order to highlight the key points when assessing customer satisfaction, enterprises may assess "high-end customer satisfaction". In process management, if they find that this assessment index is well completed, but the "mass customer satisfaction" index is not well completed, it shows that the company still has problems in service system and other aspects. Therefore, performance appraisal is not omnipotent, and only paying attention to the appraisal indicators will lead to "turning a blind eye and not seeing Mount Tai". If enterprises and employees at all levels only work around assessment indicators, there will be hidden dangers in the development of the organization.
The correct way is to pay attention to both assessment indicators and non-assessment indicators in process control. In order to achieve the goal, we need to do every link well. There are many key points in practical work, that is, process indicators. The dynamic changes of these indicators indicate the possibility of performance results. Therefore, it is necessary to dynamically monitor and timely optimize or adjust the objectives, indicators or action plans according to the difference between the forecast and the banquet, so as to achieve the final organizational goals.
Myth 3: "The action plan is my business, and I only pay attention to the indicators."
When enterprises apply the balanced scorecard, although they know that it is difficult to achieve strategic goals without specific actions, they often pay more attention to assessment indicators and are more tolerant of the quality of action plans, which is also a difficulty in transforming strategies into actions. Of course, there are practical difficulties in actual operation. Subordinates can decompose goals and indicators when they undertake the goals of their superiors, but they often do not consider specific action strategies in advance. In fact, this is the key to strategy implementation. In order to effectively implement the strategy, a relatively clear strategy is needed before implementation. If there is a problem with the strategy, it can be adjusted according to the situation. However, if there is no specific strategy and action plan, it will easily lead to great uncertainty in the completion of the indicators.
Action plan is actually a strategic choice and plan layout in the early stage of whether the indicators can be completed. The so-called "plan first, then act", when the result is not good, it is too late to regret. It is also an important task for superior leaders to participate in the action plan at the lower level. Leaders should deeply participate in the discussion of the action plan in advance, do a good job, understand their goals and indicators decomposed into subordinates, and whether there are corresponding strategies and methods to have a full meal, instead of shouting slogans.
Enterprises that successfully apply performance management will feel this way, and a key point of performance management lies in. Communication and knowledge acquisition in performance planning include communication of action measures. Although leaders don't need to make action plans themselves, they must play their guiding role, because strategic communication before planning, rectification of problems found in the process and strategic counseling are the driving means to ensure the realization of goals and business performance.
Bsc theory has been put forward for a long time, but its application in Chinese enterprises has just begun, and the domestic application environment is not sufficient. An important reason is that China enterprises pay less attention to strategic management and pay more attention to performance appraisal. Bsc focuses on the long-term healthy development of enterprises, not just short-term business performance. For most enterprises and entrepreneurs in China, it is a development process to pay attention to all aspects of enterprise work in a balanced way and focus on the future. The application of balanced scorecard requires us to change the management habit of quick success and instant benefit.
This article comes from: NPC Economic Forum Innovation and Strategic Management Edition, and the detailed source refers to :http://bbs.pinggu.org/forum.php? . mod = view thread & amp； tid=874293。 page= 1