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1. COMMUNICATION
The Office of
Strategy
Management
Article By: Robert S. Kaplan
&
David P. Norton
Published: October, 2005 Presenter:
Saif Ullah
(FA15-ES-0017)
MS – MAJU, Karachi

2. Introduction
Most companies have ambitious plans for growth. Few ever realize them!!
• Book: Profit from the Core
• Sample: 1,854 global large corporations
• Period: Year 1988 to 1998
• Findings:
 90% org. had detailed strategic plans with much higher targets
 88% failed to achieve profitable growth
• Reason:
 Disconnection between strategy formulation and strategy execution
 95% of employees do not know or do not understand company’s
strategy

3. If employees who create value are unaware of strategy, they
surely can not help the organization implement it effectively!
Communication Problem:

4. Traditional Approach to Strategic
Management
• 2nd Quarter End: Process
Starts; CEO & Executives
meet to clarify strategic
vision and update strategy.
Similar process followed by
business & functional level
• 3rd Quarter: Finance Comes
in; finalizing corporate and
unit budgets
• 4th Quarter: HR conducts
employees’ annual
performance reviews

5. Problems in Traditional Approach
• Activities performed in isolation of enterprise strategy
• 67% business units not aligned with corporate strategy
• 60% organizations’ financial budget not linked to
strategic priorities
• Compensation of 70% middle managers and 90%+
employees has not link with strategy implementation
• Periodic management meetings, corporate
communication, and knowledge management are
similarly not focused on strategy execution.

6. How to Remove Communication Gap.
Office of Strategy Management (OSM):
• Establish OSM: New unit at corporate level
• Tasks Performed by OSM:
Communicating corporate strategy
Translating enterprise-level plans into the plans of various units
and departments
Executing strategic initiatives to deliver on the grand plan
Aligning employees’ competency development plans, and their
personal goals and incentives, with strategic objectives.
Ensuring that company’s strategy must be tested and adapted
to stay abreast of the changing competition
Facilitating & integrating processes for strategy execution

7. What Good OSM Do..??
• Create & Manage Scorecard
• Align the Organization
• Review Strategy
• Develop Strategy
• Communicate Strategy
• Manage Strategic Initiative
• Integrate strategic priorities with other support functions
Planning and Budgeting
Human Resource Alignment
Knowledge Management

8. Create & Manage Scorecard
• Users have achieved performance breakthroughs, using
Balanced Scorecard & associated tools.

9. Create & Manager Scorecard

10. Align the Organization

11. Review Strategy

12. Develop Strategy

13. Communicate Strategy

14. Manage Strategic Initiative

15. Integrate strategic priorities with
other support functions
Planning and
Budgeting
Human
Resource
Alignment
Knowledge
Management
S
t
r
a
t
e
g
y

16. OSM Approach to Strategic Management
• 2nd Quarter Beginning: OSM
starts to plan strategy and
update the enterprise scorecard
& align organization with the
enterprise goals.
• 3rd Quarter End: OSM
coordinate with finance to bring
unit-level plans and budgets in
line with strategy
• 4th Quarter Beginning : OSM
work with HR on aligning the
competency development and
incentives of employees with
scorecard objectives

17. Benefits, Positioning & Staffing OSM
• Benefits
 Control and learning
 Reviewing and communicating strategy
 Managing initiatives, and sharing best
practices
• Positioning
 Executing strategy involves making changes
that only a CEO can empower
 OSM will be most effective when it has direct
access to the CEO
• Staffing
 Fully functioning OSM should not need more
than six to eight full-time-equivalent
positions to cope with its activities

18. The End