We don't care what the plan says
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Title: We don't care what the plan says
Research indicates that 60% of corporations don’t link resource
allocation (budgets) to their Strategic Plan. I am wondering how
companies manage to execute strategy when strategic planning and
resource allocation processes are not linked. To me it looks like the
company is on "auto pilot" and does not respond to new strategic
directions very well.
I have been following the work by Kaplan and Norton lately where they
talk about a specific resource allocation category – namely Stratex –
Strategy Expenditures. Strategy Expenditures are resources allocated to
“move your company towards your strategic goals”. This is an investment
program that you do in order to successfully implement your strategy.
By naming Stratex you know that these are funds that are not connected
to your day to day business, but it is specifically connected to
fulfilling your strategy.
I challenge companies that I meet to do one exercise – connect their
projects to strategic objectives. In doing this they can see how their
projects fits with the strategy.
If you work in the finance department with budgets and money – come down
from your money mountain and start engaging in Strategy Execution.
Author : Tor Inge Vasshus
Source: http://blog.corporater.com
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