The Strategy Process

Too many companies do not really address the challenge of devising and implementing their strategy until it becomes a ‘life and death’ issue. This process, however, is a unique opportunity for them to gain a decisive competitive advantage.

Their performance is thus directly related to the ability of their management to successfully manage the entire strategic process.

From the formulation of the Strategy, to its application into operations and then to the performance measurement, we follow a pragmatic approach based on the implementation of methodologies and tools adapted to the SME / SMI environment .

STRATEGIC ALIGNMENT:

  • Module 1: Formulation of the Strategy
  • Module 2: Structure & Organization
  • Module 3: Planning & Annual Budget
  • Module 4: Operations
  • Module 5: Performance Measurement

    Each of the five modules is the subject of collective workshops as well as individual implementation sessions in companies.

    All modules are designed as follows:

    • Presentation of the themes of each module in collective workshops,
    • Highlighting the challenges for SME performance,
    • Appropriation,
    • Implementation in company and individual follow-up,
    • Feedback workshops, personalization and support.

    The formulation of Strategy

    Having to cope with a hectic agenda, due to lack of resources, SMEs Managers may not pay enough attention to the strategic process.

    The strategy may exist – or have existed – in the founder’s mind, or the General Manager’s mind, but it is rarely disclosed into a thinking process, shared between the members of the management, formalized and then transmitted in an adapted way to the different collectives of the company.

    It is rarely reviewed, challenged, adapted. It is rarely declined by major functions (Sales, Marketing, Production, Finance, Human Resources, …). It rarely leads to the setting of tactical plans, KPIs, dashboards … Still, this is where lays one of the main source of efficiency and success for companies that will successfully perform this strategic approach.

    After a first phase of diagnosis of the companies involved, we will see how to:

    • Address and complete a comprehensive strategic thinking.
    • Express the strategic vision of the leader(s) and translate the strategy into objectives shared by the rest of the organization.
    • Put in place, in a practical way, adapted monitoring tools (industry survey, technology survey, competition survey).
    • Set up a methodology for choosing between the different strategic options.
    • Decline the strategy for the various Departments of the company (Commercial Strategy, Marketing, Industrial, Financial, Human Resources, …)
    • Establish the expected performance level of the chosen strategic options.
    • Measure the achievement of strategic objectives and their effectiveness.
    • Blend in the digital economy requirements, e-Business, mobile technologies and new technologies standards.
    • Take into account the challenges of the “Green Economy” into the strategy definition.

    Structures & Organization

    “Organization is a machine for maximizing human strength” (Peter Drucker). What is true in big groups, is even more critical in smaller structures.

    It is a mistake to believe that “human-sized” organizations, in other words SMEs, can overcome, in the name of a certain level of adaptability and responsiveness due to their size, a profound study of their mode of organization.

    How to make sure that the organization implemented increases the effectiveness of the resources committed by the company and facilitates the achievement of its objectives?

    Around this central question we will work on the different modes of organization and different types of structure / organization charts related to different business models. We will see, in a practical way, how to implement a real delegation of authority, together with a reporting system and a powerful internal control. We will focus on the main human resources policies to be implemented, so that the existing team can ensure the growth of the company. We will verify the existence of key procedures that allow management to maximize the resources invested, while meeting shareholder expectations.

    • Recruitment policy, motivation, training.

    • Evaluation policy, setting objectives, defining functions.
    • Compensation Policy.
    • Sharing information.

    Planning & Budgeting

    More than adding up, end to end, several annual budgets, the “Plan” is an exercise that few SMEs do. This is however, the way to assign resources to meet the strategic objectives requirements.

    The plan allows for example to analyze the company’s R & D policy, its “pipeline” and the time required to launch new products on the market. In contrast, which company does not have nowadays, a yearly based budget controlling? Said that, even if it remains one of the preferred tools for monitoring results, the “Budget process” is not always mastered and can reveal many shortcomings.

    Business control require leaders to anticipate and accelerate decision-making processes. It is only thanks to a defined methodology and adapted tools that the management teams will be able to formalize their forecasts correctly.

    We will ensure that the planning process and the budget process are conducted in the company in a coordinated and dynamic way between the different functions. The budget reference must be established within a short period of time, it must involve all those responsible and the commitments made must be achievable.

    But strategic planning and the annual budget are not the only rendezvous with the future. Depending on their level of exposure, other events in the life of the company may give rise to a specific business plan. This is particularly the case for external growth operations, for certain investments or for the launch of new activities.

    Operations

    The control of the operational processes is one of the essential elements so that the company has sufficient visibility and can ensure that its activities are driven within the framework of the selected strategic options: Commercial, industrial, logistic but also administrative and support activities. Only then, will it be able to confirm its strategic options, while pursuing a continual improvement process.

    This step of our approach should allow us to deliver the company with the methodologies and tools that will enable it to ensure the reliability of operational processes: purchasing, sales, production, logistics, support functions.

    In addition to the main operations, the company must also be able to initiate and complete projects with a direct impact on strategic issues: new information systems, external growth operations, industrial projects, spin-offs, outsourcing, etc.

    • Financial audit
    • Validation of the cost price
    • Contract review
    • ERP validation
    • Certifications
    • Total Quality
    • Project management

    Performance Measurement

    The performance measurement is reduced too often to a simple budget control, which means generally take notice of “what happened”.

    Difficulties for obtaining information in real time, overlay of different sources of information, poor restitution to operational departments, …, there are many reasons that reduce the company’s management system to an periodic income statement served with some dashboards.

    A successful company brings value to both customers and shareholders. We will work on a model of dynamic performance measurement, based on tools and methodology involving two areas of competencies inseparable from the company: Financial Control and Information Systems.

    The use of powerful technologies that allow real-time access, distribution and sharing of information is one of the challenges companies face: Datawarehouse, OLAP tools, Web technologies, information portals, mobile technologies …

    The implementation of the lessons of this fifth module will guide the management teams of SMEs towards decision-making rather than analyzing the past, increasing their visibility on the evolution of their business and accelerating their decision processes.

    Diagnostic / Values • Sector survey • SWOT – BCG • Competitive positioning • Merger & Acquisition • Contracts reviewing • Negociations • Legal chart • Organization chart • Procedures • Signing authority table • Cross-cutting fonctions • Internal control • Plan / Budget Process • Business Plan(s) • Investments approval • Time to market • Risk Management • Financial Audit • Forecast • Executive Information System • OLAP Tools • Business Intelligence • …