Description
Kaplan and Norton articulate the five key principles required for building strategy-focused organizations: 1) translate the strategy into operational terms, 2) align the organization to the strategy, 3) make strategy everyone’s on a regular basis job, 4) make strategy a continual process, and 5) mobilize change through strong, effective leadership. The authors provide a detailed account of how a range of organizations in the private, public, and nonprofit sectors have deployed these principles to reach breakthrough, sustainable performance improvements.
In their previous book, The Balanced Scorecard, Robert Kaplan and David Norton unveiled an innovative “performance management system” that any company could use to focus and align their executive teams, business units, human resources, information technology, and financial resources on a unified overall strategy–much as businesses have traditionally employed financial management systems to track and guide their general fiscal direction. In The Strategy-Focused Organization, Kaplan and Norton give an explanation for how companies like Mobil, CIGNA, and Chemical Retail Bank have effectively used this approach for nearly a decade, and in the process present a step by step implementation outline that other organizations could use to attain similar results. Their book is divided into five sections that guide readers through development of a completely individualized plan that may be created with “strategy maps” (graphical representations designed to clearly communicate desired outcomes and how they’re to be achieved), then infused all the way through the enterprise and made an integral a part of its future. In several chapters devoted to the latter, for example, the authors show how their models have linked long-term strategy with day-to-day operational and budgetary management, and detail the “double loop” process for doing so, monitoring progress, and initiating corrective actions if necessary. —Howard Rothman