operational and strategic reviews. How many times will you be lucky?
The ability of a company achieve its strategy resides in the quality of its execution.
Patrick Jaulent , Club President Balanced Scorecard & Performance Europe, gives us the scoop of his reflections on "performance reviews" I observe in the private or public organizations to hold a multitude of "performance reviews" that interlock and overlap to succeed, most often to poor efficiency. We could also measure the number of operational or strategic decisions made at these magazines and canceled at the magazine n +1: "Do meetings on topics that are worthwhile" said Michael Eisner CEO of Disney ( implied that worth the "cost" given the "labor cost" of those present at these meetings).
Two types of reviews are carried out within these organizations: operational reviews and strategic reviews. I also note that there are two types of strategic reviews: reviews of strategic management adaptation and magazines / definition of the strategy.
What are the objectives of these reviews, their frequency and duration, what are the people, as are the questions that I propose to share from this article.
Operational Review
What is the objective of an operational review?
The purpose of an operational review is to analyze the main KPIs of the entity (department, faculty, process) such as those assessing the sales, orders, shipments, claims the most important customers, manufacturing defects, the performance of different machines (see . graph), the prolonged absence of an employee, the progress of IT projects, the level of user satisfaction with IT tools, etc. ...
This journal has different names: a review of service review process, sales meeting, project review (s), etc. ...
What are the frequency and duration of an operational review?
According to the business of the entity, the frequency and duration of an operational review can vary from 30 minutes to an hour or two per day or per week. If the entity has a short cycle of operations, with KPIs updated at the time, an operational review daily will promote rapid learning and solving problems. These magazines are targeted: they are directed by data from the KPIs and focused on immediate action.
Who is attending an operational review?
Those who attend this type of review generally belong to the same entity (service, department, process). For example, sellers can meet with the sales manager to discuss the depth of the pipe client. Similarly, machine operators (Turner, milling, ..) can review, with the head of the islet production of the various problems of production (defects, bottlenecks, maintenance schedules, equipment failure, downtime ,..). The finance staff may, with the financial manager, address liquidity problems in the short term, late payment, treasury operations, relations with banks. HR staff with his manager can analyze KPIs evaluating the performance of the recruitment process, requests for training not scheduled, the satisfaction level of training provided, etc. ...
review strategic management
What is the purpose of a review of strategic management ?
The objective of a strategic review is to examine the progress of the strategy. Is to answer the question: Are we on the right path of our strategy (do we deviated from our course)? We recall that a vision is encrypted. For example. We want to be considered in 2015, as the major player on the market 3D television. To be effective, this review of strategic management should encourage a full discussion and depth of each indicator, target and state action plans underway, and lead to policy decisions.
It is indeed rare to not have to correct some previously set performance targets (targets too ambitious or too little) and / or revise / create strategic action plans.
What are the frequency and duration of a review of strategic management? There is no consensus on the optimal frequency and duration of a strategic review that most organizations realize a review Strategy 2 to 3 hours to ensure that the strategy is always a priority for the short term usually takes precedence over the medium and long term. The frequency of such review is generally the quarter, quarter, and for certain month. The strategy is a commitment on the medium and long term (although some situations cause short-term strategies: cf. The current crisis) which looks at the strategic priorities such as development of key competencies, brand, new products, establishing new relationships with customers and partners, creating joint ventures, ..
Who are the people who attend a review of strategic management?
All officers of the entity involved in the review of strategic management of the entity. At the corporate level, it is the CEO of GM, and business managers and support (DAF, IT, HR, ...). It is the same in one direction (BU ,..). For example, all sales managers (responsible for industry, ..) are involved in piloting the review of business strategy (which contributes to overall strategy) under the responsibility of Sales Director.
Journal adaptive / strategy definition
What is the purpose of adaptation of a journal / definition of strategy?
When executing the strategy, following a major disturbance (external or internal), or a strategic opportunity, the management of the entity may need to plan a review to identify corrections make the strategy even redefine it.
What are the frequency and duration of adaptation of a journal / definition of strategy?
The frequency is naturally linked to the urgency and nature of work required. However, I found that this type of review takes place, under normal circumstances, every 2 years / 3 years for 3 to 4 hours. Of course in times of crisis or environmental change (new competitors, new regulations, ...) the frequency of these strategic reviews is adapted.
Who are the people who attend a review of adaptation / definition of strategy?
The entire management team. The participation of the "head" of the entity (CEO, COO,) and all executive committee members is required. In the case of an adaptation strategy based on a proposal from the "field", it is advisable to invite some leaders in the field. The best optimization strategy are often from the field: the business.
My advice
I advise you to make strategic reviews using strategic themes (see the themes of the strategy map). This will make it possible to dive deep into the / themes selected strategic (1-2 issues per journal).
Unlike an operational review, a review of strategic management is thoroughly prepared by the head of the theme. Thus, formalizing strategic progress report generally includes the strategy map (road) strategic themes (tactics) analyzed in the review (see the agenda for review), goals related to the topic, indicators and targets and action plans to achieve strategic targets. A color code is usually associated with these elements: "green" if the target is reached, "yellow" if progress is slower than expected but does not require the moment of immediate attention from the committee, "red "If progress is lagging behind and needs attention. Red should alert the committee: " Houston We Have A Problem" (Apollo XIII).
In practice I have observed that the strategy reviews are often made from a large number of KPIs from operational reviews. However, a KPI is a key indicator for an operational review, but certainly not for a strategic review. A KPI is not a "KSI (Key Strategic Indicator). You know my views on the plethora of signs related to indicators: KPI, KRI, KGI, .. but if it's one way to differentiate the indicators, so why not (see . a post on my blog )
I also observed that operational issues were addressed in a strategic review. This approach is not advisable, it is preferable to deal with strategic review that matters relating to strategy, except in cases of force majeure.
Conclusion
You can have the best organization in the world, but if your governance process does not allow the correct way to achieve operational and strategic success is then a matter of luck. How many times will you be lucky?
Jaulent Patrick, President of Balanced Scorecard & Performance Club Europe.
