From Planning to Execution - strategic readiness

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From Planning to Execution- strategic readiness

• Justin F. Keogan
• keoganj_at_tcd.ie

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Strategic Readiness

• When making strategy, one of the most important
  parts in aligning the organisations assets to
  the strategy
• This is easy with financial and capital assets
• It is difficult with intangible assets because
  they are difficult to measure
• A piece of city centre property vs. a workforce
  with a strong sense of customer service
• Any organisation can sell the property

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Intangible Assets

• Rarely create value by themselves but need to be
  combined with other assets
• e.g. investment in an IT system has little value
  unless people know how to use the technology
• An organisation cannot assign value to assets
  such as a well trained workforce in a vacuum
  it has to be in the context of a strategy
• A workforce well trained in EU funding
  procedures, when one of the goals is to give
  excellent EU funding procedures advice

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Intangible Assets and Strategic Alignment

• If the strategy is well defined and the
  intangible assets are aligned, then the assets
  will create value for the organisation
• If the assets are not aligned or the strategy is
  weak, it is next to impossible for the intangible
  assets to create value, no matter how much is
  spent on them

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Strategic Readiness

• So how do you measure strategic readiness?
• Link to balanced scorecard Innovation and
  Learning Perspective
• Three important elements
• Human
• Information and
• Organisational capital
• These factors influence an organisations
  performance by enhancing the internal processes
  most important to the organisation achieving its
  goals

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Balanced Scorecard
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Strategic Readiness

• Human capital
• Skills, talent and knowledge
• Information capital
• Databases, information systems, networks and
  technology infrastructure
• Organisational capital
• Culture, leadership, peoples ability to share
  knowledge and work in teams

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Strategy Map
Long Term Goals
Value Proposition
Critical Processes
Human, informational and organisational capital
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Strategy Map

• Map shows how intangible assets determine the
  performance of critical internal processes and
  hence to the goals and strategies of the
  organisation
• Makes it possible to align intangible assets to
  strategy

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• Human capital
• What competencies do you need and not have?
  identify gap
• Information capital
• What information or analytical applications do
  you need and not have? identify gap
• Organisational capital
• To what is extent is the appropriate culture,
  leadership and teamwork present? identify gap

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Strategic Process Innovation Innovation
Prerequisites Understanding client base Develop new services
Competency profile Market research Communication Business knowledge Etc. Service design Budgeting Business knowledge Negotiation Technical knowledge Etc.
Staff requirement 10 5
Strategic Readiness 6 2
Gap 4 3
Decision Have sufficient staff to start but over time staff will have to be developed to have these competencies Have to more than double staff that have these competencies
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Strategic Process Customer Service Imporvement Initiative in LCC Customer Service Imporvement Initiative in LCC
Prerequisites Customer responsiveness among staff Service delivery design and management
Competency profile Ability to ascertain customer needs Communication Knowledge of services Ability to use information systems Etc. Understanding of customer needs Negotiation Staff management and coaching Ability to use CRM system Etc.
Staff requirement 30 3
Strategic Readiness 15 1
Gap 15 2
Decision Have sufficient staff to start but over time staff will have to be developed to have these competencies Do not have enough managers that have the skills to redesign and manage services. Delay initiative until extensive training of managers is complete.
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Gaps

• The narrower the gaps the more strategically
  ready you are
• The wider the gaps the less strategically ready
  you are to achieve your strategy
• Arrangements need to be put in place to narrow or
  close the gaps

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Strategic Process
Prerequisites
Competency profile
Staff requirement
Strategic Readiness
Gap
Decision