| |
Enterprise Strategy and Business Planning
Addressing strategic issues is at the heart of the work we do for our clients. By offering leading - edge economic solutions that drive earnings performance, R.E.V.O Group's
works with clients to refocus the enterprise towards building competitive advantage and raising business performance. We believe that developing a "robust" strategy involves combining proven analytical approaches with a deep understanding of implementation, thereby offering leading-edge economic solutions that drive earnings performance. Our strategy solution, although based on client-specific requirements, covers the full spectrum of future foresight and future insight development through to strategy development, action plan identification and strategy implementation.
R.E.V.O Group strategy service offerings cover a number of areas:
- Enterprise Futures Study and Scenario Development
- Corporate Portfolio Management
- Business Unit Strategy
- New Market Entry Strategy
- eBusiness Strategy
- Mergers and Acquisitions
- Marketing Strategy
- Channel Strategy
- Growth Strategy
- Measuring Success
The R.E.V.O Group Enterprise Strategy approach
While crafting strategies we work with clients to build the capability to evolve, reformulate and embed the strategy thus creating a strategically agile enterprise. Much emphasis is placed on creating a shared executive and organisational understanding and mindset in order to create buy-in and momentum behind the strategy.
Our typical approach entails the:
- Use of a structured process that achieves alignment and the development of actionable initiatives
- Review of the existing strategy which usually includes a detailed external assessment to drive the other strategy elements
- Refinement of the Existing Strategy
- Required Capabilities and Gaps identification
- Determination of the desired future state for which the required capabilities are defined, and the supporting initiatives, that are drafted to deliver the strategy
- Alignment of different strategy components to deliver the client's desired outcomes
The client now has a clearly articulated vision statement supported by an aligned customer value proposition, culture, leadership, foundations and implementation.
In summary, our approach involves a process that achieves ownership around values and the identification of levers to promote and support them.
Included in the R.E.V.O Group Enterprise Strategy and Business Planning Solution set, are 2 key stand-alone solutions, namely;
Back To Top
Enterprise Balanced Scorecard
The role of the Balanced Scorecard
Increasingly, companies are turning to the Balanced Scorecard as a methodology for linking vision to incentives, and, in the process, driving up their performance. Where traditional measures are typically financial or process-driven (and hence backward-looking) the Scorecard quite literally takes a more balanced view of an enterprise , past and future, by adding different perspectives on performance including those predictive of future business health, such as innovation and customer satisfaction.
Alignment of performance and reward with company strategy
All too often, we see businesses with inappropriate Reward and Recognition schemes. The schemes are usually well-intended, but ill thought-out with links back to individual and business performance that are tenuous at best. In principle, what we want to achieve is the alignment of individual "interest" with business direction; where individual behaviors support business strategy and individual performance has a direct and explicit relationship with business performance.
Link to variable compensation
In our view the measures attached to these four perspectives and their attendant strategic objectives should function as the primary drivers of (at least) variable compensation.
The principles are clear. We have a vision. We have strategic objectives to achieve that vision. We have measures which will indicate our progress towards the achievement of our strategic objectives. We also have measures which reflect our daily "business as usual" performance.
These measures may be cascaded through the organisation, driving strategic and operational alignment.
There is no doubt that measures, well-formulated and regularly reviewed, enhance performance. The Scorecard design and implementation processes are also both exciting and energising for an organisation. The challenge in the post-design phase, however, is to make the review process sustainable. In the medium- to long-term, the answer to sustainability is linking Scorecard performance to Reward and Recognition.
Link with individual and team performance contracts
R.E.V.O Group has developed a robust methodology for linking the Enterprise Scorecard with individual and team performance contracts.
The objectives of the scorecard are based on a clear definition of the vision and strategic intent at the highest level in the organisation.
As the Enterprise Scorecard is cascaded down the organisation, each Strategic Business Unit/section/department designs a scorecard which is aligned with the one above it.
In this way, individual and team objectives and performance are aligned with the overall company strategy.
Rating and rewarding individual performance
The individual's scorecard is derived from and aligned with the team of which he/she forms a part. This provides the basis for a performance contract as well as a training and development plan which is then used for regular performance reviews and appraisal. Weighting of measures enables the final rating to accurately reflect the nature of performance. In addition, the individual contribution to team performance should be factored in to the personal rating. This, in turn, directly drives the variable component of the individual's pay.
R.E.V.O Group believes that there are several ways to link performance management to the Balanced Scorecard. Whether at a team level or for the individual, performance based on a clear set of objectives and measures can be directly linked to the reward and recognition given for achievement of objectives set.
With a specific focus on "making strategy everyone's job", our workshop-based approach to Enterprise Scorecard development ensures alignment and buy-in at all levels of the organisation. Our methodology has been tried and tested in several engagements and has an outstanding track record of successful implementation across different industries and environments.
Back To Top
Public Sector Planning, Budgeting and Reporting
R.E.V.O Group believes that the purpose of strategic management is to transform the organisation. The planning team can expect tangible products (outputs) from R.E.V.O Group - a plan which features a vision, mission, guiding principles, goals, strategies and objectives.
It is important to note that strategic management has a specific role to achieve. This will be possible when clear tasks are set. Those tasks are as follow:
- Defining business, stating a mission and forming a strategic vision;
- Setting measurable objectives;
- Identifying Capital and Operational Budgetary requirements;
- Crafting a strategy to achieve objectives;
- Implementing and executing strategy; and
- Evaluating performance, reviewing new developments and initiating corrective adjustments.
- Recognise and reward performance
Each one of these tasks of strategic management requires constant evaluation and a decision whether to continue or change. Nothing about the strategic management process is final - all actions are subject to modification as conditions in the surrounding environment change and ideas for improvement emerge. Strategic management is a process filled with motion. Changes in the organisation's situation either from the inside or outside or both, fuel the need for strategic adjustments.
The task of evaluating performance and initiating corrective adjustments is both the end and beginning of the strategic management cycle. The march of external and internal events guarantees that revisions in missions, objectives, strategy and implementation will be needed sooner or later. It is always incumbent on management to push for better performance to find ways to improve the existing strategy and how it is being executed. Changing external conditions add further impetus to the need for periodic revisions in an organisation's mission, performance, objectives, strategy and approaches to strategy execution. Adjustments usually involve fine-tuning, but occasions for major strategic re-orientation do arise. Managers must stay close enough to the situation to detect when changing conditions require a strategic response and when not.
Although developing a mission, setting objectives, forming a strategy, implementing and executing the Strategic Plan and evaluating performance portray what strategic management involves, actually performing these tasks is not so cleanly divided into separate, neatly sequenced compartments. There is much interplay among the tasks. The direction setting tasks of developing a mission, setting strategic objectives and crafting strategy need to be integrated and done as a package, not individually.
The five strategic management tasks are not done in isolation from a manager's other job responsibilities, for instance supervising day-to-day operations, dealing with crises, going to meetings, etc. Thus, while managing strategy is the most important managerial function insofar as organisational success or failure is concerned, it isn't the only managerial function.
Change does not happen in an orderly or predictable way and their implications for strategic change can be easy or hard to diagnose. There is as much skill in knowing when to institute strategic changes as there is in knowing what to do.
Back To Top
| |
