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LEADERSHIP Strategy Focused Organizations By Dr. Kellen Kiambati C hanging trends within the business environment affect the performance of organizations and therefore have a bearing on the strategies adopted by organizations (Tsiakkiros, 2002). An important part of the strategic planning process is to recognize and explicitly state any key assumptions about what the future may hold. Craig (2011) further observes that to be successful, a business manager must find a fit between what the business environment wants and what the firm provides, as well as between what the firm needs and what the environment can provide. Organizations that plan to excel ensure that strategy is understood and executed by all employees because it entails the activities in which an organization elects to excel. The organization must be aligned around its strategy, and performance management systems help create that alignment. Most performance management systems are designed around the annual budget and operating plan which is a recipe for failure. They promote short-term, incremental, tactical behavior. While this is a necessary part of management, it is not enough. There are five major principles that are followed in building a strategy focused organization as enumerated here- under. Translate the strategy into operational terms Putting strategy at the center of the To move strategy out of the boardroom into the office and shop-floor and make it ‘everyone’s everyday job’ is the pre-eminent challenge for organizations and this principle considers per- sonal scorecards and balanced pay-cheques’. 82 MAL22/18 ISSUE management system implies that strategy should be described so that it can be understood and acted upon. Unfortunately, there are no standards for strategy. If managers do not build management systems around strategies, they end up describing strategy that is both unreliable and inconsistent. This principle comprises two sub- components: Strategy Maps and Balanced Scorecards that together describe the strategy and its implementation. It is by translating strategy into the logical architecture of a Strategy Map and a Balanced Scorecard that organizations create a common, unders