Method and system for managing a strategic plan via defining and aligning strategic plan elements

A method and system for managing a strategic plan via developing and aligning strategy elements that include required business outcomes (RBOs), strategic business objectives (SBOs), and desired business outcomes (DBOs). RBOs are developed and assigned to key result areas (KRAs). RBOs are operational goals required by a higher-level organization, and deliverable via an execution of operational activities of a subordinate organization. KRAs are performance measurement categories included on the subordinate organization's scorecard and the higher-level organization's scorecard. SBOs are developed and assigned to KRAs, resulting in a first alignment of RBOs with SBOs. SBOs are strategic objectives of the subordinate organization. DBOs are developed and assigned to KRAs, resulting in a second alignment of DBOs with SBOs. DBOs are desired results of the subordinate organization. Strategic goals of the higher-level organization are monitored using RBO and DBO statuses and the first and second alignments.

FIELD OF THE INVENTION

The present invention relates to a method and system for managing a strategic plan via defining and aligning strategic plan elements, and more particularly to a technique for strategic management that incorporates defining and aligning an integrated set of strategic plan elements that includes strategic business objectives, required business outcomes, desired business outcomes, tactical programs and tactical projects.

BACKGROUND OF THE INVENTION

Known strategic planning techniques provides multi-year strategic plans, each of which includes statements of an organization's mission, vision, and objectives that describe the core strategies and success factors of the organization for a stated period of time. Activities associated with the strategic plan are quickly de-prioritized to focus on more immediate short-term activities, area-centric issues and the achievement of specific performance measures (e.g., financial) such as profit, utilization or sales. Conventionally, an organization lacks visibility as to what activities are being actioned, their status and how they align and contribute to the organization achieving its overall goals and objectives. Conventional strategic management systems make it difficult for staff members and managers to directly align and prioritize what they are doing to achieve an organization's strategic plan. These conventional strategic management systems hinder the ability of an organization to mobilize and utilize all of its resources to achieve a common objective and have visibility as to the contributions of that achievement. Further, conventional strategic planning produces broad statements of objectives that do not provide a clear direction to the organization. The response of the organization to such planning efforts is to attempt to interpret the strategy for local or operational execution; executing elements of the strategy without consultation across the organization, resulting in duplication of effort and lack of focus on the more difficult elements of the strategy; or even ignoring the strategy entirely. Still further, where an organization's direction is not described in a single strategic plan, but rather in a variety of formats (e.g., business plans, planning reports, annual or quarterly reports, progress reports, financial reports, internal and external service level agreements, value statements, etc.), it becomes more difficult for all members of the organization to understand the goals of the organization and to work towards the same goals as a unified force. Thus, there exists a need to overcome at least one of the preceding deficiencies and limitations of the related art.

SUMMARY OF THE INVENTION

The present invention provides a method of defining a strategic plan via developing a plurality of strategy elements of the strategic plan, the method comprising:

developing a plurality of required business outcomes (RBOs), the plurality of RBOs being a plurality of operational goals required by a first organization or a second organization and deliverable via an execution of one or more operational activities of a plurality of operational activities of the first organization, wherein the second organization is authorized to direct the plurality of operational activities via a plurality of strategic goals provided by the second organization;

assigning, in a many-to-one correspondence, the plurality of RBOs to a first set of key result areas (KRAs) of a plurality of KRAs that are performance measurement categories included on a performance scorecard, the performance scorecard being a measurement of performance of the first organization;

developing a plurality of strategic business objectives (SBOs) based on the plurality of strategic goals, each SBO being a multi-year strategic objective of the first organization;

assigning each SBO to one or more KRAs of the plurality of KRAs, wherein an effect of the assigning the plurality of RBOs and the assigning each SBO includes a first alignment of the plurality of RBOs with the plurality of SBOs;

developing a plurality of desired business outcomes (DBOs) based on the plurality of RBOs and the plurality of SBOs, each DBO being a description of an expected or desired result of the first organization;

assigning, in a many-to-one correspondence, the plurality of DBOs to a second set of KRAs of the plurality of KRAs, wherein an effect of the assigning the plurality of DBOs and the assigning each SBO includes a second alignment of the plurality of DBOs with the plurality of SBOs;

tracking a first status of the plurality of RBOs, the tracking the first status including tracking a status of the one or more operational activities;

tracking a second status of the plurality of DBOs, the tracking the second status including tracking a status of a plurality of tactical programs and a plurality of tactical projects associated with an achievement of the plurality of DBOs; and

monitoring, in response to the tracking the first status and tracking the second status, a status of the plurality of strategic goals, the monitoring including utilizing the first status, the second status, the first alignment and the second alignment, the monitoring performed via a computer-implemented strategic management system that stores a strategic plan in a data repository coupled to the strategic management system, the strategic plan including the plurality of SBOs, the plurality of RBOs, the plurality of DBOs, the plurality of tactical programs and the plurality of tactical projects.

A system, computer program product, and a process for supporting computing infrastructure that provides at least one support service corresponding to the above-summarized method are also described and claimed herein.

Advantageously, the present invention provides a technique that facilitates: (1) the alignment of an organization's strategic plan with the strategy of higher-level regional, geographic and business line organizations, and/or shareholders and other stakeholders; (2) the alignment of an organization's own strategy elements with its performance measurement criteria; (3) the alignment of an organization's own strategy elements with its business management system and business-as-usual management processes; and (4) continual review and improvement of the execution of an organization's strategic plan. Further, the technique disclosed herein provides: (1) workflow for the management and monitoring of the performance of an organization's execution of its strategic plan; (2) workflow for the management and monitoring of funding invested into the execution of an organization's strategic plan; and (3) real-time status that demonstrates the relative performance and success of each strategy element, as the strategy element is being executed. Still further, the disclosed technique provides: (1) a mandated alignment that prioritizes activities that directly support the achievement of strategic plans and objectives; (2) establishment of cross area/organization objectives that facilitate teaming and outcome driven decision making above area-specific measures; (3) real-time visibility to management of all of the organization's activities; (4) a direct alignment of projects and programs through a balanced scorecard to enable independent outcome-based performance management; and (5) employee visibility as to how their work directly contributes to the achievement of an organization's objectives and goals.

DETAILED DESCRIPTION OF THE INVENTION

The present invention provides a computer-implemented strategic management system (SMS) for the management of an organization's strategic plan. Hereinafter, the SMS is also referred to as the Business Outcomes Status System or BOSS. Further, the present invention provides a method of translating organizational strategy into clearly defined executable elements that are used as input into the SMS. Hereinafter, the method of translating organizational strategy is also referred to as the Strategic Enablement Method or SEM.

The terms listed in this section are referred to herein and are defined as follows:

Strategic plan or strategy: A multi-year plan that includes statements of an organization's vision, mission and strategic priorities. A strategic plan or strategy may be used to communicate the plans and targets prescribed by a higher-level organization and/or shareholders and other stakeholders to a subordinate organization. The strategic themes, objectives and/or the general business approach of the higher-level organization are translated by subordinate organizations into business priorities known as strategic business objectives. As used herein, a higher-level organization is an organization that is authorized to direct operational activities of a subordinate organization via strategic goals (i.e., strategic directives, objectives, plans and targets) provided by the said higher-level organization.

Strategic business objectives (SBOs): Multi-year strategic goals that articulate an organization's mission and strategy. SBOs clearly and succinctly describe the strategic business priorities upon which the organization's executives and managers must focus their decision-making activities. In order to achieve the multi-year SBOs, short-term objectives are defined—typically for annual execution and measurement. These short-term objectives become the organization's required business outcomes and desired business outcomes. An SBO is achieved through the success of the desired business outcomes and the fulfillment of the required business outcomes that have been categorized and aligned to the SBO via the organization's performance measurement categories.

Required business outcomes (RBOs): The operational and financial plans and targets that an organization must achieve, as required by the higher-level organization and/or shareholders and other stakeholders, or by the organization itself to ensure the continued or improved sustainability and viability of the organization. RBOs are aligned to the organization's multi-year SBOs by an assignment of performance measurement categories (a.k.a. key result areas or KRAs) that map each prescribed RBO to a related SBO. RBOs are delivered through the execution of “business as usual” (BAU) operational tasks. Each organization conducts planning and prioritizes and allocates resources to achieve the organization's RBOs. Typically, the achievement of each RBO is measured by performance indicators that are defined by the higher-level organization and reported using, for example, balanced scorecard or other business management, performance management and/or reporting techniques.

Desired business outcomes (DBOs): An organization's short-term (e.g., yearly) objectives established to close identified performance gaps and to transform the organization into a desired or expected future state. As used herein, short-term is defined as a time period shorter than the multi-year time period associated with an organization's SBOs. DBOs align directly to SBOs and are established to achieve the short-term successes required to ensure the viability and sustainability of the organization as the organization works toward the achievement of the longer-term SBOs. Together, RBOs and DBOs are year-to-year building blocks of measurement and achievement for the longer-term goals of an organization. To deliver each DBO, the organization specifically defines tactical programs and tactical projects associated with the tactical programs. An owner or owners are assigned to each DBO. Owners assigned to DBOs are responsible for not only achieving, but also tracking and reporting the progress and status of the DBOs.

Tactical programs: A tactical program is a portfolio of one or more tactical projects of any size. One or more tactical programs are established to achieve each DBO. A successful completion of the tactical project(s) included in a tactical program delivers desired outcomes of the tactical program. An organization's program management method deploys tactical programs. One or more owners are assigned to each tactical program. An owner or owners assigned to a tactical program are responsible for not only achieving, but also tracking and reporting the progress and status of the tactical programs. Each tactical program is also aligned to a business area or sub-business area responsible for the tactical program and is integrated into BAU management processes.

Tactical projects: Tactical projects are the translation of a strategic plan into operational terms that can be actioned by members of an organization. Tactical projects are the end-goal of the SEM and are established to execute the tasks (i.e., activities) required to deliver an associated tactical program, which in turn supports the delivery of an organization's DBO. An organization's project management method deploys tactical projects. One or more owners are assigned to each tactical project. An owner or owners assigned to a tactical project are responsible for not only achieving, but also tracking and reporting the progress and status of the tactical project. Each tactical project is also aligned to a business area or sub-business area responsible for the tactical program and is integrated into BAU management processes.

Scorecard: A report that provides a standardized measurement of performance across multiple strategic and operational perspectives of an organization. In a balanced scorecard, the measures presented on the scorecard are balanced between external measures (i.e., measures associated with clients, marketplace, shareholders and other stakeholders) and internal measures; between financial measures and non-financial measures; and between actual (i.e., past) outcomes and future plans.

3 Strategic Management System

SMS (i.e., BOSS) is an intranet-based tool that supports the execution of an Organization's business strategy. SMS provides a business management process that is embedded in the workflow of a software tool and that facilitates the delivery of required and desired business outcomes of an organization's business strategy.

SMS is used in conjunction with SEM, which identifies and defines executable elements of an organization's business strategy within three key objective types:Strategic business objectives (SBOs);Required business outcomes (RBOs); andDesired business outcomes (DBOs).

For a detailed description of the three objective types listed above, refer to the description of the Strategic Enablement Method in Section 4.

SMS supports and facilitates the alignment, monitoring, measurement, execution and evaluation (i.e., the overall management) of each executable element of an organization's strategy within the three above-listed objective types. Subsections 3.1-3.8 describe the process and procedural steps required in a strategic management process implemented by SMS.

In addition to the strategic management functions of SMS (i.e., alignment, monitoring, measurement, execution and evaluation), SMS also incorporates an “Investment” module. The Investment module enables an organization's investments and contingency tracking; spending and benefits tracking; roadmap benefit reporting; and the alignment of all RBO, DBO, tactical program and tactical project data to any other reporting system or process used by an organization through the use of report inclusion flags.

SMS also provides the ability to integrate its strategic management process with an organization's business intelligence system in order to provide the real-time status of each RBO and DBO, as well as the tactical programs and tactical projects associated with each DBO, to any type of scorecarding, dashboarding or other reporting system utilized by the organization.

FIG. 1is a block diagram of a strategic management system100for managing a strategic plan via defining and aligning strategic plan elements, in accordance with embodiments of the present invention. System100includes a web application server102that includes server scripts104to display and/or update BOSS objects and a BOSS database106that includes BOSS data such as the strategic plan elements defined by the SEM. As used herein, strategic plan elements (a.k.a. strategy elements) include SBOs, RBOs, DBOs, tactical programs and tactical projects. System100further includes a user computing unit108that communicates with web application server102via an intranet (not shown). Also coupled to web application server102and included in system100are data repositories110and112that include employee directory data and an organization structure, respectively. Employee directory data in repository110is used by server scripts104to allocate employee names to Owner, Delegate or Viewer fields related to BOSS functions described in more detail below. Data in organization structure repository112is used by scripts104to enter information related to strategy elements for different parts (e.g., business units) of an organization. A replication process114replicates BOSS database106to a BOSS report database116. A third party performance measurement system and business intelligence (BI) reporting tool118receives input data from database116. Executive users utilize an executive user computing unit120to communicate with performance measurement system and BI reporting tool118to generate reports that monitor the status of a strategic plan and the strategic plan's related strategy elements.

FIG. 2is a flow diagram of a strategic management process200implemented by the system ofFIG. 1, in accordance with embodiments of the present invention. Strategic management process200includes seven process phases:1. Align to Strategy2012. Apply Measures2023. Fund2034. Align to Business Management System2045. Execute2056. Monitor2067. Evaluate207

Strategic management process200begins at step208. Input to process200includes a strategic planning process, as executed by an organization, and a strategic plan as output by SEM210(see Section 4), and which includes strategy elements (i.e., SBOs, RBOs, DBOs, tactical programs and tactical projects) and performance measurement criteria, including targets, for each strategy element. In Align to Strategy phase201, strategy elements associated with the organization are established in the SMS and the strategy elements are aligned to strategy in step211. In step212in Measure phase202, measures, targets and priorities are established in the SMS. In step213in Fund phase203, funding source and funding details are established in the SMS. In step214in the Align to Business Management System phase204, strategy elements are aligned to the organization's business management system. In step215in Execute phase205, strategy activities and business (i.e., operational) activities are executed. In step216in Monitor phase206, the execution of step215is monitored. In step217in Monitor phase206, a strategy and business management meeting is conducted. Step218in Evaluate phase207assesses the final status and outcomes of strategy elements and the success of execution of an organization's strategy and BAU activities. The strategic management process ofFIG. 2ends at step219with an output of an executed strategic plan with all activities, including learning outcomes, documented in a format that is ready for review or rollover into the organization's subsequent strategic planning process.

3.1 Align to Strategy Phase

Before discussing the details of the Align to Strategy Phase depicted inFIG. 3, general comments about the usage of off-page connectors (i.e., the five-sided icons that include a single-digit number) inFIGS. 3-10are necessary. Each single-digit number included in an off-page connector indicates a single-digit step number. Each of these single-digit step numbers corresponds to an action in one of the phases depicted inFIG. 2. Each of these actions is also illustrated by one of the figures ofFIGS. 3-10. The correspondence between the single-digit step numbers and the phases and figures is shown in Table 1. Each off-page connector also corresponds to a particular manager, owner or committee that is indicated in the leftmost column of each row ofFIGS. 3-10, and that performs the one or more actions depicted on that row.

For example, a first off-page connector of a first figure (i.e.,FIG. 3) on the row corresponding to the business area owner16includes the single-digit number of “4”. The “4” in the first off-page connector indicates that a first action immediately preceding the first off-page connector (i.e., step302ofFIG. 3) is followed by a second action on a second figure that corresponds to the “4” in the first off-page connector. According to Table 1, an off-page connector number of “4” corresponds toFIG. 6.

In this example, the second action is located on the second figure (i.e.,FIG. 6) by first finding a second off-page connector on the second figure (i.e.,FIG. 6) that indicates the first figure (i.e., includes the number “1” which corresponds toFIG. 3according to Table 1) and is located on a row that includes the same manager/owner/committee (i.e., business area owner16) that corresponds to the first off-page connector. That is, the second off-page connector is the connector that contains “1” on the row ofFIG. 6that has business area owner16in its leftmost column. The second action is then identified as the action that immediately follows the second off-page connector (i.e., step605ofFIG. 6).

If a first set of identical off-page connectors appears in the same row of a first figure and the first set corresponds to a second set of identical off-page connectors in a corresponding row of a second figure, then each of the identical off-page connectors in the first set corresponds to a similarly aligned off-page connector in the second set. As used herein, off-page connectors are defined as being identical if the connectors include the same single-digit number and if the connectors each have an arrow pointing to the connector or each have an arrow emanating from the connector. For example, identical off-page connectors containing the number “2” follow steps307and308in the DBO owner row ofFIG. 3. Of the two identical off-page connectors in this example, the off-page connector that is aligned as the topmost of the identical off-page connectors in the DBO owner row (i.e., the off-page connector that follows step307ofFIG. 3) corresponds to the topmost of the identical off-page connectors in the DBO owner row ofFIG. 4(i.e., the off-page connector that precedes step403ofFIG. 4). Similarly, the off-page connector that is aligned as the lowermost of the identical off-page connectors in the DBO owner row ofFIG. 3(i.e., the off-page connector that follows step308ofFIG. 3) corresponds to the lowermost of the identical off-page connectors in the DBO owner row ofFIG. 4(i.e., the off-page connector that precedes step404ofFIG. 4).

If identical off-page connectors appear in a first figure, but only a single off-page connector appears in the corresponding row of the corresponding figure, then all of the identical off-page connectors are associated with the single off-page connector in the corresponding row and figure. See, for example, the two identical off-page connectors haying the number “4” in the tactical project owner row ofFIG. 5, which correspond to the single off-page connector having the number “3” in the tactical project owner row ofFIG. 6.

Returning to the discussion of the Align to Strategy phase,FIG. 3is a flow diagram of the Align to Strategy phase201of the process ofFIG. 2, in accordance with embodiments of the present invention. Align to Strategy phase201includes:Defining and documenting the planned activities an organization will perform to achieve its strategy.Ensuring alignment of all planned activities to the strategic objectives of an organization.Ensuring alignment of each planned activity to the key result areas of an organization.Ensuring alignment of each planned tactical program and tactical project to the business area or sub-business area responsible for execution of the program or project.Centrally managing all planned activities.

The Align to Strategy phase201starts at step208, A strategy manager11receives input to step208which includes organizational structure112(seeFIG. 1) and a strategic plan output by SEM210(see Section 4), which includes strategy elements and performance measurement criteria, including targets, for each strategy element. In step301, strategy manager11provides all RBO, measure, SBO, DBO and tactical program owners with access to the organization's finalized strategic plan provided by SEM210. Step301is followed by step302, step303and steps401and402ofFIG. 4. In step302, business area owner16confirms the currency and accuracy of business area organization structure112(seeFIG. 1) in SMS. Step302is followed by step605ofFIG. 6.

In step303, an SBO owner14creates or clones SBOs in SMS (i.e., enters into SMS the SBOs that were previously developed in the SEM; see Section 4). In step304, SBO owner14enters or updates SBO details in an SBO Summary module of SMS. The details entered or updated in step304include a name and description of each SBO, and the owner(s) of each SBO. In step305, SBO owner14creates DBOs in SMS (i.e., enters into SMS the DBOs that were previously developed in the SEM; see Section 4).

In step306, a DBO owner15enters DBO details into a DBO Summary module of SMS. For each DBO created in step305, the details entered in step306include the DBO's name, description, owner(s), and desired outcomes, and an alignment of the DBO to KRAs and KRA elements. In step307, DBO owner15aligns each DBO created in step305to KRAs and to an SBO created in step303. Step307is followed by step308and by step403ofFIG. 4. In step308, DBO owner15creates tactical programs (i.e., enters into SMS the tactical programs that were previously developed in the SEM; see Section 4). Step308is followed by step404ofFIG. 4.

In step309, which follows step404ofFIG. 4, a tactical program owner17enters tactical program details into a Tactical Program Summary module of SMS. For each tactical program created in step308, the details entered in step309include the tactical program's name, description, owner(s), start and end dates, dependencies, and expected outcomes, an alignment of the tactical program to KRAs and KRA elements, and an alignment of the tactical program to the business area or sub-business area responsible for execution of the planned activities. In step310, tactical program owner17aligns each tactical program entered in step309to KRAs and to a DBO created in step305. Step310is followed by step311and by step405ofFIG. 4. In step311, tactical program owner17creates tactical projects (i.e., enters into SMS the tactical projects that were previously developed in the SEM; see Section 4). Step311is followed by step406ofFIG. 4.

In step312, which follows step406ofFIG. 4, a tactical project owner18enters tactical project details into a Tactical Project Summary module of SMS. For each tactical project created in step311, the details entered in step312include the tactical project's name, description, owner(s), start and end dates, dependencies, and expected outcomes, an alignment of the tactical project to KRAs and KRA elements, and an alignment of the tactical project to the business area or sub-business area responsible for execution of the planned activities. In step313, tactical project owner18aligns each tactical project created in step311to KRAs and to a tactical program created in step308. Step313is followed by step407ofFIG. 4.

The output of the Align to Strategy phase201includes:1. Current SBO Summary modules in SMS.2. Current DBO Summary modules in SMS.3. Current tactical program Summary modules in SMS.4. Current tactical project Summary modules in SMS.5. Current and accurate organizational structure112(seeFIG. 1) in SMS.
3.2 Measure Phase

FIG. 4is a flow diagram of the Measure phase202of the process ofFIG. 2, in accordance with embodiments of the present invention. Measure phase202includes:Defining and documenting the measurement criteria for all planned activities an organization will perform to achieve the organization's strategy.Prioritizing the executable elements of an organization's strategy—that is, the tactical programs and projects—to ensure the appropriate level of focus is applied to the activities being executed.Centrally managing the measurement criteria applied to all planned activities.

Input to Measure phase202includes:1. Strategic plan (output from the organization's strategic planning process).2. Current SBO ‘Summary’ modules in BOSS (output from Step1.0).3. Current DBO ‘Summary’ modules in BOSS (output from Step1.0).4. Current tactical program ‘Summary’ modules in BOSS (output from Step1.0).5. Current tactical project ‘Summary’ modules in BOSS (output from Step1.0).

In step401, measure owners12receive enter measure definition and characteristics in a Measure Definition module of the SMS. For each measure, the definition and characteristics entered in step401include: name of measure, source location, calculation method, output format and decimal places, frequency, alignment to KRAs and KRA elements, and owner(s). In step402, RBO owner13selects RBO measures and targets in an RBO Definition module of SMS. Step402includes developing the RBO Definition module with the following data: name of RBO, target(s), tolerance, owner(s), and selected measure(s) to be applied to the RBO, where the selected measures have been aligned to the organization's KRAs and KRA elements in step401. Step402is followed by step601ofFIG. 6.

In step403, which follows step307ofFIG. 3, DBO owner15selects DBO measures and targets in a DBO Measurement module of SMS. Step403includes DBO owner15updating the DBO Measurement module with the following data relative to DBOs: selected measure(s) to be applied to the DBOs, target(s), tolerance, and owner(s). Step403is followed by step501ofFIG. 5.

In step404, which follows step308ofFIG. 3, DBO owner15prioritizes tactical programs in a Tactical Program Alignment module. Step404includes DBO owner15updating the Tactical Program Alignment module with a relative priority of each tactical program within a DBO. Step404is followed by step309ofFIG. 3.

In step405, which follows step310ofFIG. 3, tactical program owner17selects tactical program measures and targets in a Program Measurement module of SMS. Step405includes tactical program owner17updating the Program Measurement module with the following data relative to tactical programs: selected measure(s) to be applied to the tactical programs, target(s), tolerance and owner(s). Step405is followed by step501ofFIG. 5. In step406, which follows step311ofFIG. 3, tactical program owner17prioritizes tactical projects in a Project Alignment module of SMS. Step406includes tactical program owner17updating the Project Alignment module with a relative priority of each tactical project within a tactical program portfolio. Step406is followed by step312ofFIG. 3and by step501ofFIG. 5.

In step407, which follows step313ofFIG. 3, tactical project owner18selects tactical project measures and targets in a Project Measurement module. Step407includes tactical project owner18updating the Project Measurement module with the following data relative to tactical projects: selected measure(s) to be applied to the tactical projects, target(s), tolerance and owner(s). Step407is followed by step501ofFIG. 5.

The output of the Measure phase202includes:1. Current Measure Definition modules in SMS.2. Current RBO Definition modules in SMS.3. Current DBO Measurement modules in SMS.4. Current tactical program Measurement modules in SMS.5. Current tactical project Measurement modules in SMS.6. Current tactical program Alignment modules in SMS.7. Current tactical project Alignment modules in SMS.
3.3 Fund Phase

FIG. 5is a flow diagram of the Fund phase203of the process ofFIG. 2, in accordance with embodiments of the present invention. Fund phase203includes:Determining the appropriate source of funding and investment for each strategy element. Funding sources may include: (1) External investment committee; (2) External client; (3) External business area/organization; (4) Internal business area/organization; and (5) Internal business-as-usual.Centrally managing and monitoring the level of funding and investment allocated to and used by all strategy elements.

Input to the Fund phase203includes:1. Strategic plan output from the organization's SEM.2. Current DBO Summary modules in SMS output from Align to Strategy phase201.3. Current tactical program Summary modules in SMS output from Align to Strategy phase201.4. Current tactical project Summary modules in SMS output from Align to Strategy phase201.5. Funding decision criteria, which is typically provided in an organization's investment processes.

In step501, DBO owner15determines a funding source for all required strategy elements. Step501follows each of steps403,405,406and407ofFIG. 4. In inquiry step502, DBO owner determines whether a DBO requires an external funding (i.e., investment) request. If the DBO does not require an external funding request, then step503includes DBO owner15entering DBO internal funding details into a DBO Summary module of SMS. The DBO internal funding details entered in step503include the funding source and the funding requirements relative to the DBO of step502. In step504, DBO owner15allocates internal funding to tactical programs.

In step505, tactical program owner17enters tactical program internal funding details into a Program Summary module. The tactical program internal funding details entered in step505include the funding source and the funding requirements relative to the tactical programs of step504. In step506, tactical program owner17allocates internal funding to tactical projects.

In step507, tactical project owner18enters tactical project internal funding details into a Project Summary module. The tactical project internal funding details entered in step507include the funding source and the funding requirements relative to the tactical projects of step506. Step507is followed by step610ofFIG. 6.

Returning to inquiry step502, if the DBO requires an external funding request, then DBO owner15develops an external funding request in step508. In step509, an appropriate investment committee or funding area owner reviews the external funding request developed in step508. Inquiry step510determines whether the investment committee or funding area owner approves the external funding request. If step510determines that the external funding request is approved, then in step511, DBO owner15enters DBO investment funding details into a DBO Investment module of SMS. The DBO investment funding details entered in step511include the following data relative to a DBO: investment type, investment status, request date, approval or rejection date, currency type, labor cost, depreciation cost, capital cost, payback, current year return on investment (ROI), total ROI and investment notes and conditions.

In step512, DBO owner15allocates investment funding to tactical programs. In step513, tactical program owner17enters tactical program investment funding details into a Program Investment module. The tactical program investment funding details entered in step513include the following data relative to tactical programs: investment type, investment status, request date, approval or rejection date, currency type, labor cost, depreciation cost, capital cost, payback, current year return on investment (ROI), total ROI, and investment notes and conditions. Step513is followed by step514and by step606ofFIG. 6.

In step514, tactical program owner17allocates investment funding to tactical projects. In step515, tactical project owner18enters tactical project investment funding details into a Project Investment module of SMS. The tactical project investment funding details entered in step515include the following data relative to tactical projects: investment type, investment status, request date, approval or rejection date, currency type, labor cost, depreciation cost, capital cost, payback, current year return on investment (ROI), total ROI, and investment notes and conditions. Step515is followed by step610ofFIG. 6.

Returning to inquiry step510, if the external funding request reviewed in step509is not approved, then the process ofFIG. 5repeats starting at step501.

The output of the Fund phase203includes:1. Updated DBO Summary modules in SMS.2. Updated tactical program Summary modules in SMS.3. Updated tactical project Summary modules in SMS.4. Funding decision.5. Allocated internal or external budget for execution of strategy.6. Current DBO Investment modules in SMS.7. Current tactical program Investment modules in SMS.8. Current tactical project Investment modules in SMS.
3.4 Align to Business Management System Phase

FIG. 6is a flow diagram of an Align to Business Management System phase204of the process ofFIG. 2, in accordance with embodiments of the present invention. Align to Business Management System phase204includes:Facilitating the alignment of an organization's strategy elements with its day-to-day business management system in order to make strategy operational.Ensuring that the execution of strategy is embedded into the systems, processes and structures of the entire organization, such as performance measurement systems and processes, financial management systems and processes, reporting systems and processes, and organizational (i.e., administrative) structures.

Input to the Align to Business Management System phase204includes:1. Strategic plan that is output from the organization's strategic planning process.2. Current DBO Alignment modules in SMS (i.e., output from phase202).3. Current tactical program Alignment modules in SMS (i.e., output from phase202).4. Current tactical project Alignment modules in SMS (i.e., output from phase202).5. Funding decision (i.e., output from phase203).

In step601, which follows step402ofFIG. 4, RBO owner13aligns an RBO to a performance measurement system in a Scorecard module. Step601includes the RBO owner developing RBO Scorecard modules in SMS with the following data: (1) selected measures to be applied to the RBO scorecard, where the measures have been aligned to the organization's KRAs and KRA elements in step401ofFIG. 4; (2) ranking of measures within each KRA and KRA element; and (3) weighting of measures within each KRA and KRA element. Step601is followed by each of step602, step605and business management processes704ofFIG. 7.

In step602, which follows step601and step511ofFIG. 5, DBO owner15enters DBO financial alignment details into a DBO Alignment module of SMS. The DBO financial alignment details entered in step602update the DBO Alignment module with financial management system data that includes investment tracking identifiers and account tracking identifiers. In step603, DBO owner15aligns a DBO to a reporting system. Step603includes the DBO owner updating the DBO Alignment module with reporting system data that includes reporting system alignment and report alignment. In step604, DBO owner15aligns the DBO to other defined areas of the business management system and business management processes. Step604includes DBO owner15updating the DBO Alignment module with any other data required to align the DBOs to the organization's business management system and processes. Within the SMS tool, the fields into which data is entered in step604are fully customizable to the requirements of an organization. Step604is followed by step701ofFIG. 7.

In step605, which follows step610, step602and step302ofFIG. 3, business area owner16aligns business areas to RBOs in the Scorecard module. Step605includes business area owner16developing business area Scorecard modules in SMS with the following data: (1) selected measures to be applied to the business area scorecard, where the selected measures have been aligned to the organization's KRAs and KRA elements in step401ofFIG. 4; (2) ranking of measures within each KRA and KRA element; and (3) weighting of measures within each KRA and KRA element.

In step606, which follows step605and step513ofFIG. 5, tactical program owner17enters tactical financial investment alignment details into a Program Alignment module of SMS. The tactical financial alignment details entered in step606update the Program Alignment module with financial management system data that includes investment tracking identifiers and account tracking identifiers. In step607, tactical program owner17aligns a tactical program to the reporting system. Step607includes the tactical program owner updating the Program Alignment module with reporting system data that includes reporting system alignment and report alignment. In step608, tactical program owner17aligns the tactical program to an organizational structure stored in organizational structure repository112(seeFIG. 1). Step608includes tactical program owner17updating the Program Alignment module with organizational structure data that includes, for example: geographic unit, regional unit, organizational unit, business area, and sub-business area. In step609, tactical program owner17aligns the tactical program to other defined areas of the business management system and business management processes. Step609includes tactical program owner17updating the Program Alignment module with any other data required to align the tactical programs to the organization's business management system and processes. Within the SMS tool, the fields into which data is entered in step609are fully customizable to the requirements of an organization. Step609is followed by step702ofFIG. 7.

In step610, which follows step606and steps507&515ofFIG. 5, tactical project owner18enters tactical project financial alignment details into a Project Alignment module of SMS. The tactical project financial alignment details entered in step610update the Project Alignment module with financial management system data that includes investment tracking identifiers and account tracking identifiers. In step611, tactical project owner18aligns a tactical project to the reporting system. Step611includes the tactical project owner updating the Project Alignment module with reporting system data that includes reporting system alignment and report alignment. In step612, tactical project owner18aligns the tactical project to an organization structure from repository112(seeFIG. 1). Step612includes tactical project owner18updating the Project Alignment module with organization structural data that includes, for example: geographic unit, regional unit, organizational unit, business area, and sub-business area. In step613, tactical project owner18aligns the tactical project to other defined areas of the business management system and business management processes. Step613includes tactical project owner18updating the Project Alignment module with any other data required to align the tactical projects to the organization's business management system and processes. Within the SMS tool, the fields into which data is entered in step613are fully customizable to the requirements of an organization. Step613is followed by step703ofFIG. 7. In step614, which follows step612, business area owner16confirms or amends alignment of tactical programs and tactical projects to business areas. Step614includes the business area owner reviewing the tactical program and tactical project Summary and Alignment modules of all tactical programs and tactical projects aligned to a business area to ensure that the business area has the capability to achieve the expected outcomes of all tactical programs and tactical projects aligned to the business area. Step614is followed by business management processes704ofFIG. 7.

The output of the Align to Business Management System phase204includes:1. Current RBO and Business Area RBO-Scorecard modules in SMS.2. Updated DBO Alignment modules in SMS.3. Updated tactical program Alignment modules in SMS.4. Updated tactical project Alignment modules in SMS.
3.5 Execute Phase

FIG. 7is a flow diagram of an Execute phase205of the process ofFIG. 2, in accordance with embodiments of the present invention. Execute phase205includes executing the strategy using the organization's prescribed business, program and project management processes.

Input to execute phase205includes:1. Strategic plan which is output from the organization's strategic planning process.2. Current RBO Scorecard modules in SMS (i.e., output from phase204).3. Current DBO Summary, Alignment and Investment modules in SMS (i.e., output from phases201-204ofFIGS. 3-6, respectively).4. Current tactical program Summary, Alignment and Investment modules in SMS (i.e., output from phases201-204ofFIGS. 3-6, respectively).5. Current tactical project Summary, Alignment and Investment modules in SMS (i.e., output from phases201-204ofFIGS. 3-6, respectively).

In step701, which follows step604ofFIG. 6and step908ofFIG. 9, DBO owner15manages a DBO. Step701includes the DBO owner utilizing program management process705for managing and controlling performance to achieve DBOs. Step701is followed by step815ofFIG. 8. In step702, which follows step703and step609ofFIG. 6, tactical program owner17executes tactical programs. Step702includes the tactical program owner utilizing program management process705to manage performance and execute activities to achieve the tactical programs. Program management process705relative to the tactical program owner follows step910ofFIG. 9and is followed by step809ofFIG. 8. Program management process705relative to the tactical project owner follows step911ofFIG. 9and is followed by step804ofFIG. 8. In step703, which follows step613ofFIG. 6, tactical project owner18executes tactical projects. Step703includes tactical project owner18utilizing project management process706to manage performance and execute activities to achieve the tactical projects.

Business management processes704relative to RBO owner13follows step908ofFIG. 9and is followed by step800ofFIG. 8. Business management processes704relative to business area owner16follows step912ofFIG. 9and is followed by step822ofFIG. 8.

It should be noted that management and control of performance to achieve the organizational RBOs and business area RBOs, as selected on each business area scorecard, are executed as ‘business-as-usual’ activities.

The output of the Execute phase205includes:1. Initiation and execution of DBO activities.2. Initiation and execution of tactical program activities and tasks.3. Initiation and execution of tactical project activities and tasks.
3.6 Monitor Phase—Monitor Execution

FIG. 8is a flow diagram of a Monitor Execution step216of the Monitor phase of the process ofFIG. 2, in accordance with embodiments of the present invention. Monitor Execution step216includes:Assessing the current status of execution of an organization's strategy and ‘business-as-usual’ activities.Monitoring the progress and achievement of outcomes (i.e., milestones) for each strategy element.Centrally monitoring the level of funding and investment used by all strategy elements.

The input of Monitor Execution step216includes:1. Strategic plan which is output from the organization's strategic planning process.2. Current DBO Summary modules in SMS (i.e., output from phase203ofFIG. 5).3. Current tactical program Summary modules in SMS (i.e., output from phase203ofFIG. 5).4. Current tactical project Summary modules in SMS (i.e., output from phase203ofFIG. 5).5. Current tactical program Alignment modules in SMS (i.e., output from phase204ofFIG. 6).6. Current tactical project Alignment modules in SMS (i.e., output from phase204ofFIG. 6).

In step800, which follows step704ofFIG. 7, RBO owner13monitors RBOs via a reporting system801that uses data from the Scorecard modules in SMS. Step800is followed by step802. If inquiry step802determines that the RBO measurement (a.k.a. assessment) period has not ended, then in step803, RBO owner13develops an RBO status report using data from the Scorecards modules in SMS. Step803is followed by step901ofFIG. 9. If inquiry step802determines that the RBO measurement period has ended (i.e., allowing final measurement of the RBO to occur), then step803is followed by step1000ofFIG. 10.

In step804, which follows the project management process706ofFIG. 7, tactical project owner18updates tactical project status in a Project Status module of SMS. Step804includes the tactical project owner developing the Project Status module with the following data: status period, overall status, overall assessment, schedule status, schedule assessment, deliverable status, deliverable assessment, financial status, and financial assessment. In step805, tactical project owner18assesses the tactical project actual outcomes and updates the actual project outcomes and the status of actual project outcomes in a Project Summary module. If inquiry step806determines that the tactical project is receiving investment funding (i.e., determines whether the status of external investment funding is to be assessed for the tactical project), then in step807, the tactical project owner updates tactical project investment tracking in a Project Financial Tracking module of SMS. The update in step807includes an update of the following data: forecast spend, actual spend, forecast gross benefit, actual gross benefit, savings (cost) percentage allocation, forecast net savings (cost) allocation, and roadmap spend management. Step807is followed by step913ofFIG. 9. If inquiry step806determines that the tactical project is not receiving investment funding, then inquiry step808determines whether the tactical project has achieved its expected or desired outcomes. If the tactical project has not achieved its expected or desired outcomes in step808, the monitor execution process continues with step809; otherwise, step808is followed by step1003ofFIG. 10.

In step809, which follows the No branch of step808and the program management process705in the tactical program owner portion ofFIG. 7, tactical program owner17reviews the status of tactical projects and assesses project priorities (i.e., reviews the relative priority of each tactical project). In step810, tactical program owner17updates tactical program status in a Program Status module of SMS if such an update is required by the assessment in step809. Step810includes the tactical program owner developing the Program Status module with the following data: status period, overall status, overall assessment, schedule status, schedule assessment, deliverable status, deliverable assessment, financial status, and financial assessment. In step811, the tactical program owner assesses the tactical program actual outcomes and updates the actual program outcomes and status of actual program outcomes in a Program Summary module of SMS. If inquiry step812determines that the tactical program is receiving investment funding (i.e., determines whether the status of external investment funding is to be assessed for the tactical program), then in step813, the tactical program owner updates the tactical program investment tracking in a Program Financial Tracking module of SMS. The update in step813includes an update of the following data: forecast spend, actual spend, forecast gross benefit, actual gross benefit, savings (cost) percentage allocation, forecast net savings (cost) allocation, and roadmap spend management. Step813is followed by step913ofFIG. 9. If inquiry step812instead determines that the tactical program is not receiving investment funding, then inquiry step814determines if the tactical program has achieved its expected or desired outcomes.

If the tactical program has not achieved its expected or desired outcomes, as determined by step814, then step815follows step814; otherwise step814is followed by step1010ofFIG. 10. In step815, which follows the No branch of step814and step701ofFIG. 7, DBO owner15reviews the status of tactical programs and assesses program priorities (i.e., reviews the relative priority of each tactical program). In step816, DBO owner15updates DBO status in a DBO Status module of SMS as required by the assessment of step815. Step816includes the DBO owner developing the DBO Status module with the following data: status period, overall status, overall assessment, schedule status, schedule assessment, deliverable status, deliverable assessment, financial status, and financial assessment. In step817, DBO owner15assesses the DBO actual outcomes and updates the actual DBO outcomes and status of actual DBO outcomes in a DBO Summary module. If inquiry step818determines that the DBO is receiving investment funding (i.e., determines whether the status of external investment funding is to be assessed for the DBO), then in step819, the DBO owner updates investment tracking in a DBO Financial Tracking module in SMS. The update in step819includes an update of the following data: forecast spend, actual spend, forecast gross benefit, actual gross benefit, savings (cost) percentage allocation, forecast net savings (cost) allocation, and roadmap spend management. Step819is followed by step820, which is described below, and by step913ofFIG. 9.

If inquiry step818determines that the DBO is not receiving investment funding, then inquiry step820determines whether the DBO has achieved its expected or desired outcomes. If step820determines that the DBO has not achieved its expected or desired outcomes, then step820is followed by step821; otherwise step820is followed by step1017ofFIG. 10. In step821, the DBO owner develops a DBO status report. Step821includes the DBO owner monitoring DBOs and developing a status report using data from the DBO Status, Summary and Financial Tracking modules in SMS. Step821is followed by step903ofFIG. 9.

In step822, which follows the business management processes704in the business area owner portion ofFIG. 7, business area owner16monitors the status of RBOs, tactical programs, and tactical projects aligned to the business area owned by the business area owner. If inquiry step823determines that the business area's RBO scorecard measurement (a.k.a. assessment) period has not ended, then the business area owner develops a business area RBO status report in step824. Step824is followed by step905ofFIG. 9. If inquiry step823determines that the business area's RBO scorecard measurement period has ended (i.e., allowing the final measurement of the business area's RBOs to occur), then step823is followed by step1024ofFIG. 10.

The output of Monitor Execution step216includes:1. RBO status report.2. DBO status report.3. Business Area RBO status report.4. Updated DBO Status, Summary and Financial Tracking modules in SMS.5. Updated tactical program Status, Summary, Alignment and Financial Tracking modules in SMS.6. Updated tactical project Status, Summary, Alignment and Financial Tracking modules in SMS.
3.7 Monitor Phase—Strategy & Business Management Meeting

FIG. 9is a flow diagram of the Strategy & Business Management Meeting step217of the Monitor phase of the process ofFIG. 2, in accordance with embodiments of the present invention. Strategy & Business Management Meeting step217includes:Reviewing the current status of execution of an organization's strategy.Reviewing the progress and achievement of outcomes (i.e., milestones) for each RBO and DBO.Reviewing the status of funding and investment used when executing an organization's strategy.Encouraging cross-organizational decision-making, consensus and understanding of the execution status of an organization's end-to-end strategy.

The input of Strategy & Business Management Meeting step217includes:1. Strategic plan, which is output from the organization's strategic planning process.2. RBO status report (i.e., output from Monitor Execution step216ofFIG. 8).3. DBO status report (i.e., output from Monitor Execution step216ofFIG. 8).4. Current DBO Status, Summary and Financial Tracking modules in SMS (i.e., output from Monitor Execution step216ofFIG. 8).5. Current tactical program Status, Summary, Alignment and Financial Tracking modules in SMS (i.e., output from Monitor Execution step216ofFIG. 8).6. Current tactical project Status, Summary, Alignment and Financial Tracking modules in SMS (i.e., output from Monitor Execution step216ofFIG. 8).

In step901, which follows step803ofFIG. 8, RBO owner13presents RBO status reports. In step902, SBO owner14reviews the RBO status reports. Step902also includes the SBO owner reviewing the relative priority of each program and project and updating where required. Step902is followed by step906. In step903, which follows step821ofFIG. 8, DBO owner15presents DBO status reports. Step903is followed by step904and by step913. In step904, the SBO owner reviews the DBO status reports. Step904also includes the SBO owner reviewing the relative priority of each program and project and updating where required. Step904is followed by step906. In step905, which follows step824ofFIG. 8, business area owner16presents a business area RBO status report. In step906, which follows steps902,904, and905, SBO owner14reviews the business area RBO status report. Step906also includes the SBO owner reviewing the relative priority of each program and project and updating where required. In step907, the SBO owner confirms or amends the strategy. Step907is followed by steps908,909, and912.

In step908, RBO owner13confirms or amends the RBOs, measures and targets in the RBO Status, Summary and Financial Tracking modules in SMS. Step908is followed by business management processes704in the RBO owner portion ofFIG. 7. In step909, which follows step907, DBO owner15confirms or amends DBOs, measures and targets in the DBO Status, Summary and Financial Tracking modules in SMS. Step909is followed by step910and by step701ofFIG. 7. In step910, tactical program owner17confirms or amends tactical programs, measures and targets in the Program Status, Summary and Financial Tracking modules in SMS. Step910is followed by step911and by program management process705in the tactical program owner portion ofFIG. 7. In step911, tactical project owner18confirms or amends tactical projects, measures and targets in the Project Status, Summary and Financial Tracking modules in SMS. Step911is followed by project management process706ofFIG. 7.

In step912, which follows step907, business area owner16confirms or amends business area RBOs, measures and targets in the business area RBO status report. Step912is followed by step business management processes704in the business area owner portion ofFIG. 7. In step913, which follows step903and steps807,813&819ofFIG. 8, investment committee or funding area owner19reviews the investment status (i.e., the status of DBOs, tactical programs and tactical projects receiving investment funding) using data from Financial Tracking modules via an investment management process914.

The output of the Align to Strategy phase201includes:1. Updated/confirmed RBOs, measures and targets.2. Updated/confirmed DBOs, measures and targets.3. Updated/confirmed tactical programs, measures and targets.4. Updated/confirmed tactical projects, measures and targets.
3.8 Evaluate Phase

FIG. 10is a flow diagram of the Evaluate phase207of the process ofFIG. 2, in accordance with embodiments of the present invention. Evaluate phase207includes:Updating the final status and outcomes of a DBO, tactical program and tactical project in order to request closure.Reviewing and validating that the desired or expected outcomes of a DBO, tactical program or tactical project have been achieved, prior to closure.Determining and evaluating “lessons learned” during DBO, tactical program and/or tactical project execution.Assessing the overall success of execution of an organization's strategy and BAU activities for use as input into the organization's performance measurement and strategic planning processes.

The input to Evaluate phase207includes:1. Strategic plan, which is output from the organization's strategic planning process.2. Current DBO Status, Summary and Financial Tracking modules in SMS (i.e., output from Monitor Execution step216ofFIG. 8).3. Current tactical program Status, Summary and Financial Tracking modules in SMS (i.e., output from Monitor Execution step216ofFIG. 8).4. Current tactical project Status, Summary and Financial Tracking modules in SMS (i.e., output from Monitor Execution step216ofFIG. 8).

In step1000, which follows the Yes branch of step802ofFIG. 8, RBO owner13reviews the scorecard performance of an RBO. The review of step1000uses data from the Scorecard modules in SMS. The RBO owner review portion of Evaluate phase207ends at step1001. The output of step1000is input into performance measurement process1002.

In step1003, which follows the Yes branch of step808ofFIG. 8, tactical project owner18updates tactical project actual outcomes in a Project Summary module of SMS. Step1003includes tactical project owner18assessing, updating and finalizing tactical project actual outcomes with actual outcome status and actual outcomes. In step1004, tactical project owner18evaluates and enters tactical project learning outcomes in the Project Summary module. Step1004includes tactical project owner18evaluating, updating and finalizing tactical project learning outcomes and updating the Project Summary module. In step1005, the tactical project owner requests tactical project closure via a Project Closure module of SMS. In step1006, tactical program owner17reviews the final status and actual outcomes of the tactical program whose closure is requested in step1005. The review in step1006uses data from the Status, Summary and Financial Tracking modules associated with the tactical project. In step1007, tactical program owner17reviews tactical project learning outcomes entered in step1004. The review in step1007uses learning outcomes data in the Project Summary module. In step1008, the tactical program owner closes the tactical project whose closure was requested in step1005. The closing of the tactical project in step1008is performed via the Project Closure module of SMS. The tactical project closure portion of Evaluate phase207ends at step1009.

In step1010, which follows the Yes branch of step814ofFIG. 8, tactical program owner17updates actual outcomes of a tactical program in a Program Summary module of SMS. Step1010includes tactical program owner17assessing, updating and finalizing tactical program actual outcomes with actual outcome status and actual outcomes. In step1011, tactical program owner17evaluates and enters learning outcomes of the tactical program of step1010in the Program Summary module. Step1011includes tactical program owner17evaluating, updating and finalizing tactical program learning outcomes and updating the Program Summary module. In step1012, the tactical program owner requests closure of the tactical program of steps1010and1011via a Program Closure module of SMS. In step1013, DBO owner15reviews the final status and actual outcomes of the tactical program whose closure is requested in step1012. The review in step1013uses data from the Status, Summary and Financial Tracking modules associated with the tactical program. In step1014, DBO owner15reviews the tactical program learning outcomes of step1011. The review in step1014uses learning outcomes data in the Program Summary module. In step1015, DBO owner15closes the tactical program whose closure is requested in step1012. The closure of step1015is performed via the Program Closure module of SMS. The tactical program closure portion of Evaluate phase207ends at step1016.

In step1017, which follows the Yes branch of step820ofFIG. 8, DBO owner15updates actual outcomes of a DBO in a DBO Summary module of SMS. Step1017includes DBO owner15assessing, updating and finalizing DBO actual outcomes with actual outcome status and actual outcomes. In step1018, DBO owner15evaluates and enters learning outcomes of the DBO of step1017in the DBO Summary module. Step1018includes DBO owner15evaluating, updating and finalizing DBO learning outcomes and updating the DBO Summary module. In step1019, DBO owner15requests a closure of the DBO of steps1017and1018via a DBO Closure module of SMS. In step1020, SBO owner14reviews the DBO's final status and actual outcomes of step1017. The review in step1020uses data from the Status, Summary and Financial Tracking modules associated with the DBO whose closure is requested in step1019. In step1021, SBO owner14reviews the DBO learning outcomes of step1018. The review in step1021uses learning outcomes data in the DBO Summary module. In step1022, SBO owner14closes the DBO whose closure is requested in step1019. The closure in step1022is performed via the DBO Closure module of SMS. The DBO closure portion of the Evaluate phase207ends at step1023.

In step1024, which follows the Yes branch of step823ofFIG. 8, business area owner16reviews the scorecard performance of a business area's RBOs using data from the Scorecard modules in SMS. The review of step1024ends at step1025. The output of step1024is input into performance measurement process1002.

The output of Evaluate phase207includes:1. Updated tactical project ‘Summary’ module in BOSS.2. Activated tactical project ‘Closure’ module in BOSS.3. Updated tactical program ‘Summary’ modules in BOSS.4. Activated tactical program ‘Closure’ module in BOSS.5. Updated DBO ‘Summary’ modules in BOSS.6. Activated DBO ‘Closure’ module in BOSS.7. Activated RBO ‘Closure’ module in BOSS.

4 Strategic Enablement Method

The Strategic Enablement Method (SEM) is a step-by-step procedure for defining an organization's overall strategic plan and then translating the strategic plan into clearly defined executable elements—down to project definition. Further, SEM includes identifying and defining the executable elements of the strategic plan in a way that can be easily understood and actioned by all members of the organization. SEM provides clear insight into an organization by providing visibility to all the activities performed by the organization in support of its strategy. Because SEM is a single, inclusive and clear method for defining and describing the strategic plan and the strategic plan's executable elements, an organization can focus its energy and resources with shared goals and decision-making based upon organizational priorities, and plan for and be responsive to the changing internal and external circumstances of the organization's environment. SEM facilitates driving organizational and operational activities and behaviors by shared strategic objectives.

SEM can be applied to any organizational size, and is particularly applicable to large organizations where higher-level organizations and/or shareholders and other stakeholders develop strategic priorities and subordinate organization(s) are required to execute and manage the implementation of the strategy. SEM facilitates the alignment of such priorities, including goals and objectives, from regional, geographic and business line higher-level organizations to subordinate organizations.

SEM is used to translate broad strategy into an integrated set of executable elements within three key objective types:1. Strategic business objectives (SBOs)2. Required business outcomes (RBOs)3. Desired business outcomes (DBOs).

SEM is executed by an organization using its defined RBOs, where BAU activities occur, and using its defined DBOs within which the following two deployment methods are used:1. Tactical programs2. Tactical projects

Together, the aforementioned SBOs, RBOs, DBOs, tactical programs and tactical projects are the strategy elements that form the foundation of the Strategic Enablement Method.

FIG. 11is a system (i.e., Strategic Enablement Model)1100for translating strategic priorities of an organization into executable elements that are incorporated into the system ofFIG. 1, in accordance with embodiments of the present invention. Although system1100provides the Strategic Enablement Model in the context of a business organization, the present invention contemplates analogous models for any type of organization. System1100includes shareholder value1102that is communicated and delivered to the organization and its shareholders via the higher-level organization's strategic and business planning processes (e.g., yearly or quarterly planning process) at the higher-level organization's worldwide (WW) or corporate headquarters (CHQ)1104. The strategic and business plans typically include vision statements1106, mission statements1108, broad corporate strategy1110, objectives1112, and plans and targets1114(e.g., financial, information technology, human resources, etc.). Plans and targets1114that must be achieved are typically quantitative and are mandated to subordinate organizations. Mandated plans and targets are directly stated by the higher-level organization and require no translation—or only minor variation or translation (where geographically, environmentally or operationally required)—of the higher-level plans and/or targets to enable achievement of said plans and targets. Broader strategies1110and objectives1112that influence the organization are typically qualitative and are cascaded to subordinate organizations. Cascaded plans and targets are those that a subordinate organization defines to deliver the outcomes of the higher-level organization and that require variation or translation of the higher-level plans and/or targets to enable achievement of said plans and targets.

Hereinafter in Section 4, the organization that mandated and cascaded the strategy1110, objectives1112, and plans and targets1114is referred to as the “higher-level organization” and the subordinate organization that receives the mandated and cascaded strategy, objectives, plans and targets is referred to simply as “the organization”.

Strategy1110, objectives1112, and plans and targets1114are distributed across the organization via layers of an organizational structure1116that include, for example, geography1118, region1120, country1122, business line1124, and competency/business unit1126. Mandated plans and targets1114are replicated, directly translated or modified (where geographically, environmentally or operationally required) into subordinate strategies. Cascaded strategies1110and objectives1112are translated into subordinate strategic priorities.

As strategy1110, objectives1112, and plans and targets1114are passed through each organizational layer, strategic plans become more focused and applicable to a subordinate organization (e.g., organizational unit1128), while plans and targets become increasingly specific.

Required business outcomes (RBOs)1130are the operational and financial plans and targets that the organization is required to achieve. RBOs1130are delivered via execution of BAU operational tasks. RBOs1130are an important element of the organization's strategic plan, as this integration of BAU activities with the activities addressing the desired future state of the organization (see DBOs below) significantly increases the chance of success of the organization's strategic plan.

The organization's RBOs1130are established by any combination of the following:

a) Mandated by the higher-level organization in plans and targets1132;

b) Translated from the strategy or business plan(s)1134of the higher-level organizational layers with some modification required for geographic, local marketplace or language differences, or other reasons; or

c) Developed independently by the organization to ensure the continued or improved sustainability and viability of the organization.

RBOs1130are confirmed early in the Strategic Enablement Method to ensure that the required outcomes of the organization are considered when the strategic goals are being established. RBOs1130are then aligned to the organization's multi-year strategic business objectives (SBOs) (see the discussion of SBOs presented below) by the assignment of key result areas (KRAs) that align RBOs and SBOs to the performance measurement categories of the organization.

SBOs1136are the multi-year strategic goals that, when achieved, will enable the organization to fulfill its organizational mission1137and impact its long-range vision1139. SBOs1136clearly and succinctly describe the priorities upon which executives and managers of the organizational unit1128must focus their decision-making activities. SBOs are typically limited to a maximum of five SBOs for any one organization, to help focus energy and resources on the priority areas of the organization.

In order to achieve the multi-year SBOs, short-term objectives are defined—typically for annual execution and measurement. These short-term objectives are the organization's RBOs and desired business outcomes (DBOs)1138(see the discussion of DBOs presented below).

SBOs1136are therefore achieved through the success of the DBOs1138and the fulfillment of the RBOs1130that have been categorized and aligned to SBO1136via the assignment of KRAs.

DBOs1138are an organization's yearly objectives established to transform the organization into its desired or expected future state. DBOs1138are also established to close identified performance gaps. DBOs1138align directly to multi-year SBOs1136and are established to achieve the short-term successes that ensure the viability and sustainability of the business as it works toward the achievement of the longer-term SBOs1136. DBOs1138are delivered via a translation into objectives1140and the execution of tactical programs1142and tactical projects1144.

DBOs1138describe the desired or expected results for the organization, as well as the actions needed to achieve them. DBOs1138are specific objective statements that are measurable, achievable, realistic, time-based and directly aligned to SBOs1136. DBOs are typically limited to a maximum of seven DBOs for any one organization.

Where the organization's RBOs1130require a level of performance that the organization is not currently—nor on track—to achieving, a DBO1138is established to close the performance gap. The measures and targets for such a DBO1138are the same as those measures and targets established to evaluate the performance of the RBO1130. In these cases, the organization has identified that significant change or improvement is required to a business process or system, and so the achievement of the DBO1138can only be the attainment of the RBO1130. That is, achievement of the RBO1130is the minimum level of achievement for the DBO1138.

Together, RBOs1130and DBOs1138are the year-to-year building blocks of measurement and achievement for the longer-term goals of the organization.

Tactical programs1142are established to achieve each DBO1138. Tactical programs1142are a portfolio of projects of any number or size and are deployed using the organization's program management method. Each tactical program1142is directly aligned to a DBO1138, and a tactical program owner or owners are assigned. Tactical program owners are responsible for not only achieving, but also tracking and reporting the progress and status of the program.

Tactical programs1142are also aligned to the responsible business area (or sub-business area) and integrated into BAU management processes.

Tactical projects1144are the end-goal of the Strategic Enablement Method. Tactical projects1144are the translation of the strategic plan into operational terms that can be actioned by the members of the organization.

Tactical projects1144are established to execute the required activities and tasks of the associated tactical program1142, and are deployed using the organization's project management method. Each tactical project1144is directly aligned to a tactical program1142, and a tactical project owner or owners are assigned. Tactical project owners are responsible for not only achieving, but also tracking and reporting the progress and status of the project.

Tactical projects1144are also aligned to the responsible business area (or sub-business area) and integrated into BAU management processes.

The management and execution (i.e., enablement and achievement shown inFIG. 11) of the organizational unit's strategic plan (including SBOs, RBOs, DBOs, tactical programs and tactical projects) is controlled by the organization's strategy management process(es) such as SMS described in Section 3. RBO, DBO, tactical program and tactical project status, deliverable status, financial status and overall achievement of organizational unit plans and targets1132is also controlled by the organization's strategy management process(es) such as SMS described in Section 3. Measurement of the success of the strategy elements managed in the SMS is performed in the organization's performance measurement system1148, which is an element of an organization's business management system providing performance management data to all organizational units across the entire organization. The type of performance measurement system and the method employed by the organization for measuring performance do not affect the application of the Strategic Enablement Method.

Results, with appropriate analysis1150, are reported back through the layers of the higher-level organizational structure1116, creating a continuous cycle of management, execution, measurement and analysis of the organizational unit's performance against its strategic plan.

Within the results & analysis element1150of the Strategic Enablement Model, the organizational unit1128is also able to integrate strategic execution with its BAU reporting, through the application of KRAs. As KRAs are assigned to each strategy element within the Strategic Enablement Method, so too are KRAs assigned to the BAU reporting of the organizational unit1128, using the SMS described in Section 3, via the DBO, Program and Project Alignment modules, as described in steps603,607and611in the Align to Business Management System phase204inFIG. 6(and described above in section 3.4), thus providing a holistic view of the organizational unit1128and its activities: strategic, tactical and day-to-day operational.

Reporting and analysis systems (e.g., results & analysis element1150) are an element of an organization's business management system. The type of reporting systems employed by an organization does not affect the application of the Strategic Enablement Method.

Value is returned to an organization, its shareholders and other stakeholders1152. Exceptions to expected results are reviewed. Required changes are incorporated into the broad corporate plans and targets that are subsequently communicated through the organizational structure1116(typically, as mandated targets) as the continuous cycle of refinement and improvement of the organization's strategy continues.

The technique to develop the aforementioned executable elements from a translation of the strategic priorities of the higher-level organization into the three aforementioned objective types (i.e., SBOs1136, RBOs1130and DBOs1138) and two deployment methods utilizing tactical programs1142and tactical projects1144is described below relative toFIG. 12.

FIG. 12is a flow diagram of a process1200(i.e., Strategic Enablement Method) for developing strategy elements in the system ofFIG. 11, in accordance with embodiments of the present invention. The objective of the Strategic Enablement Method (SEM)1200is to develop a strategic plan with specific objectives that can be clearly understood—and actioned—by all members of an organization. The SEM collates all strategic and planning elements from any higher-level organizational layers1116(seeFIG. 11), and guides the translation of strategy1110(seeFIG. 11), objectives1112(seeFIG. 11), and plans and targets1114(seeFIG. 11) into five strategy elements:1. Strategic business objectives (SBOs)1136(seeFIG. 11)2. Required business outcomes (RBOs)1130(seeFIG. 11)3. Desired business outcomes (DBOs)1138(seeFIG. 1)4. Tactical programs1142(seeFIG. 11)5. Tactical projects1144(seeFIG. 1)

Strategy elements are assigned performance measurement criteria to align all executable elements of the strategy to the tactical programs1142, tactical projects1144and activities of the organization, thereby making strategy operational.

To ensure cross-organizational alignment of all developed strategy elements, and to encourage consensus on the definition, intention and scope of each strategy element, two key meetings are included in SEM1200:1. DBO Review Meeting12172. Strategic Enablement Meeting1220

The development of the strategy elements, meeting conduct and other activities described in SEM1200occur during a six-phase cycle:1. Align phase12012. Develop RBOs phase12023. Develop SBOs phase12034. Develop DBOs phase12045. Develop tactical programs and projects phase12056. Manage phase1206

The input to SEM1200includes:1. Strategic planning process, as executed by the organization.2. Higher-level organization strategic directives, priorities, objectives.3. Higher-level organization financial, operational, managerial business plans and targets.

SEM1200starts at step1208. In step1211of the Align phase1201, the strategy of the higher-level organization(s) is collated. In step1212, which begins phase1202, RBOs1130(seeFIG. 11) are determined. In step1213, RBO performance measures and targets are determined. In step1214, which begins phase1203, SBOs1136(seeFIG. 11) are determined. In step1215, which begins phase1204, DBOs1138(seeFIG. 11) are determined. In step1216, DBO performance measures and targets are determined. In step1217, a DBO review meeting is conducted.

In step1218, which begins phase1205, tactical programs1142are determined. In step1219, tactical program performance measures and targets are determined. In step1220, a strategic enablement meeting is conducted. In step1221, tactical projects1144are determined. In step1222, tactical project performance measures and targets are determined. Following step1222, Manage phase1206begins. SEM1200ends at step1223. The output of the SEM is a strategic plan, incorporating SBOs1136(seeFIG. 11), RBOs1130(seeFIG. 11), DBOs1138(seeFIG. 11), tactical programs1142(seeFIG. 11), and tactical projects1144(seeFIG. 11). The strategic plan output by the SEM is input into strategic management process200which is implemented by the SMS described above in Section 3.

FIG. 13is a flow diagram of a process of collating strategy of one or more higher-level organizations in step1211of Align phase1201of the process ofFIG. 12, in accordance with embodiments of the present invention. The process of collating and aligning strategy of one or more higher-level organizations in the process ofFIG. 13is the initiation point of the Strategic Enablement Method and describes Align phase1201of the SEM. The process ofFIG. 13typically occurs prior to an organization's annual strategic planning workshop or another form of collaborative activity performed to develop the organization's strategic plan, which is typically a key activity in the organization's strategic planning process. Step1211includes steps1301-1306, which are described in this section.

Step1211of Align phase1201includes the sub-steps1301-1306(hereinafter also referred to as “steps”), all of which are performed by strategy manager11. In step1301, the strategy manager collates strategy1110(seeFIG. 11) and objectives1112(seeFIG. 11) of one or more higher-level organizations. The collation in step1301includes a collation of all strategic directives, priorities and objectives from one or more higher levels of an organization (i.e., one or more higher-level organizations). For example, these higher levels take the form of corporate headquarters, a parent company, owners or directors, worldwide or geographic or regional business units, shareholders and/or other stakeholders. Stakeholders may include customers, clients, governments and/or the wider community.

In step1302, the strategy manager aligns cascaded strategies1110(seeFIG. 11) and objectives1112(seeFIG. 11) to KRAs. Step1302includes the alignment of all cascaded strategies and objectives from the higher-level organizations to the KRAs of the organization. KRAs are defined below.

In step1303, the strategy manager prepares a draft view of the cascaded strategies1110(seeFIG. 11) and objectives1112(seeFIG. 11). Step1303includes a development of a draft view of all higher-level strategies1110(seeFIG. 11) and objectives1112(seeFIG. 11) that may influence the strategy and execution of activities by the organization and that should be cascaded to the organization. The higher-level strategies and objectives of step1303are typically qualitative.

In step1304, plans and targets1114(seeFIG. 11) from one or more higher-level organizations are collated. The collation in step1304includes a collation of all financial, operational and managerial business plans and performance targets from higher levels of the organization.

In step1305, mandated plans and targets1114(seeFIG. 11) are aligned to KRAs. Step1305includes the alignment of all mandated plans and/or targets from the one or more higher-level organizations to the KRAs of the organization.

In step1306, a draft view of mandated plans and targets1114(seeFIG. 11) is prepared. Step1306is followed by the RBO determination process ofFIG. 15. Step1306includes a development of a draft view of all higher-level plans and targets1114(seeFIG. 11) that the organization is required to achieve and that are mandated to the organization. The higher level plans and targets of step1306are typically quantitative.

Output of the process ofFIG. 13includes:1. Draft view of strategies and objectives (typically qualitative) that may influence the organization, aligned to the KRAs of the organization.2. Draft view of plans and targets that the organization is required to achieve (typically quantitative) aligned to the KRAs of the organization.
4.1.1 Key Result Area Definition

FIG. 14is an example of key result areas (KRAs) identified by the process ofFIG. 12, in accordance with embodiments of the present invention. The Strategic Enablement Method identifies a set of KRAs. The KRAs are designed to be used as the performance measurement categories on an organization's business performance scorecard. This section identifies the Strategic Enablement Method KRAs and a recommended structure for KRAs that could be applied to any organization. Some variation or customization of the KRAs of this section, however, may be required by an organization to ensure a complete view of the organization's activities. Whether directly used, or customized, it is important that all business areas (or sub-business areas) across the organization use an identical set of KRAs.

For each KRA in set1400, KRA elements associated with that KRA are listed below the name of the KRA. As an example, business reputation & referenceability and challenged accounts & projects are the first two listed KRA elements of Client, Market & Growth KRA1402.

Assigning each element of the organization's evolving and final strategic plan to KRAs, facilitates the development of a strategy that is directly linked to the performance measurement categories of the organization's scorecard. This direct alignment of strategy to performance measurement provides the organization with: an ability to measure the success of the strategy and the strategic planning process; comparable historical data for future strategic planning; and a means to quickly identify areas of the business that may have too little, or too much, business focus.

During each major development phase of the Strategic Enablement Method (i.e., phases1202-1205ofFIG. 12), each objective, outcome, program or project is assigned KRA(s). This assignment to KRAs facilitates the production of a strategic plan that is balanced across all key areas of the business.

In addition, the application of KRAs to an organization's strategy elements enables the organization to integrate its strategic execution with its BAU activities. As KRAs are assigned to each strategy element within the SEM, so too are KRAs assigned to the BAU activities of the organizational unit, using the SMS described in Section 3, via the DBO, Program and Project Alignment modules, as described in steps603,607and611in the Align to Business Management System phase204inFIG. 6(and described above in section 3.4), thus providing a holistic view of the organization and its activities: strategic, tactical and day-to-day operational.

It should be noted that it is beneficial for an executive leadership team to be familiar with the organization's KRAs and the KRA elements prior to, and during, the development of the strategic plan. This familiarity facilitates an inclusive, end-to-end business view when determining strategic priorities and developing SBOs, RBOs and DBOs.

FIG. 15is a flow diagram of a process of determining RBOs in step1212of the Develop RBOs phase1202of the process ofFIG. 12, in accordance with embodiments of the present invention. The input to determine RBOs step1212includes the draft view of plans and targets that the organization is required to achieve (i.e., output from the process ofFIG. 13).

During step1212of phase1202, strategy manager11performs a number of activities in preparation for the strategic planning workshop or another form of collaborative activity performed to develop the organization's strategic plan. Step1212includes steps1501-1514, which are described in this section.

In step1501, which follows step1306ofFIG. 13, strategy manager11reviews the draft view of the mandated plans and targets1114(seeFIG. 11). In step1502, strategy manager11identifies higher-level organizational plans and targets1114(seeFIG. 11) that can be directly translated to RBOs1130(seeFIG. 11). The plans and targets identified in step1502are translated directly into RBOs1130(seeFIG. 11) by the strategy manager in step1503. In step1504, which follows steps1502and1503, strategy manager11identifies higher-level organizational plans and targets1114(seeFIG. 11) that require modification into RBOs. In step1505, the plans and targets identified in step1504are translated and modified by the strategy manager into RBOs1130(seeFIG. 11).

If strategy manager11determines in inquiry step1506that all mandated plans and targets have been translated into RBOs1130(seeFIG. 11), then the process ofFIG. 15continues with step1507; otherwise the process repeats starting at step1502. If strategy manager11determines in inquiry step1507that any other plans or targets are required by the organization (i.e., required to ensure the continued or improved sustainability and viability of the organization), then the strategy manager develops organization-specific RBOs1130(seeFIG. 11) in step1508. Step1509follows step1508and also follows a determination by inquiry step1507that no other plans or targets are required by the organization. In step1509, strategy manager11assigns to KRAs all RBOs1130(seeFIG. 11) that were developed in steps1503,1505and1508.

Starting at step1510, responsibility for execution of the SEM passes to an executive leadership team20. In step1510, executive leadership team20reviews and amends the RBOs created in steps1503,1505and1508. In step1511, executive leadership team20reviews and amends the step1509assignments of RBOs to KRAs. In step1512, strategy manager11finalizes the RBOs created and reviewed in the previous steps ofFIG. 15. In step1513, executive leadership team20confirms and agrees the RBOs finalized in step1512. In step1514, executive leadership team20assigns owners to the RBOs of step1513. Owners assigned in step1513are responsible for the achievement, management and monitoring of each RBO created in steps1503,1505and1508.

In one embodiment, steps1510-1514occur during the organization's strategic planning workshop as, for example, whiteboard activities, thereby facilitating the development of shared RBOs and encouraging consensus on the definition, intention and scope of each RBO developed for the organization. The output of the process ofFIG. 15(i.e., RBOs aligned to KRAs and identified RBO owners) are utilized by strategic management process200. For example, the strategy manager populates the SMS with the RBOs finalized in steps1512and1513and the ownership details assigned in step1514. Step1514is followed by step1601in the process of determining RBO performance measures and targets inFIG. 16.

FIG. 16is a flow diagram of a process of determining RBO performance measures and targets in step1213of the Develop RBOs phase1202of the process ofFIG. 12, in accordance with embodiments of the present invention. Input to the process ofFIG. 16includes the RBOs aligned to the KRAs of the organization (i.e., output from the process ofFIG. 15). During step1213, strategy manager11gathers performance measurement data from across the organization to develop draft performance measurement criteria for each RBO input into the process ofFIG. 16. Step1213includes steps1601-1606, which are described in this section.

In step1601, which follows step1514and strategic management process200ofFIG. 15, strategy manager11assigns mandated measures and targets to RBOs that were developed by direct translation in step1503ofFIG. 15. In step1602, strategy manager11develops draft measures and targets for modified RBOs (i.e., RBOs developed in step1505ofFIG. 15). In step1603, strategy manager1603develops draft measures and targets for organization-specific RBOs (i.e., RBOs developed in step1508ofFIG. 15). In one embodiment, steps1601-1603occur prior to the strategy planning workshop or other form of collaborative activity performed to develop the organization's strategic plan. The measures and targets of steps1601-1603are measurement criteria associated with RBOs that include measure definitions, source data location, output formats, measure frequency, targets and tolerance criteria for each RBO.

In step1604, executive leadership team20reviews and, if necessary, amends the RBO measures and targets of steps1601-1603. In step1605, the measures and targets reviewed in step1604are confirmed and approved by executive leadership team20. Steps1604-1605finalize the characteristics of each RBO and the criteria for achieving each RBO. Step1605is followed by step1606and by step1701of the SBO determination process ofFIG. 17.

In inquiry step1606, RBO owner13reviews the ownership of each RBO to ensure that the appropriate member of the organization is assigned ownership. If step1606does not confirm the ownership of an RBO, the process ofFIG. 16continues with the review and amending of RBO measures and targets by the executive leadership team at step1604. Otherwise, if step1606confirms the ownership of the RBOs, then the process ofFIG. 16outputs the confirmed RBO performance measurement criteria of measures, targets and owners to strategic management process200. In one embodiment, RBO owner13populates SMS with the output of the process ofFIG. 16.

FIG. 17is a flow diagram of a process of determining SBOs in the Develop SBOs phase1203of the process ofFIG. 12, in accordance with embodiments of the present invention. Determining SBOs is step1214of phase1203, and includes steps1701-1713, which are described below. Input to the process ofFIG. 17includes:1. Draft view of strategies and objectives that influence the organization (i.e., output from the process ofFIG. 13).2. Draft view of plans and targets that the organization is required to achieve (i.e., output from the process ofFIG. 13).3. RBOs (i.e., output from the process ofFIG. 15).4. RBO performance measurement criteria (i.e., output from the process ofFIG. 16).

The process of determining SBOs in step1214of phase1203typically occurs within an organization's strategic planning process, during the annual strategic planning workshop or other form of collaborative activity performed to develop the organization's strategic plan.

In step1701, which follows step1605ofFIG. 16, executive leadership team20reviews the draft view of cascaded strategies and objectives prepared in step1303ofFIG. 13. In step1702, executive leadership team20uses the collated and aligned strategies and objectives of the higher-level organizations, as developed by the strategy manager inFIG. 13, to develop strategic priority statements for the organization. In step1703, executive leadership team20assigns the strategic priorities determined in step1702to KRAs. If executive leadership team20determines in step1704that SBOs1136(seeFIG. 11) are currently in place, then the executive leadership team reviews KRA-assigned strategic priorities. If the executive leadership team determines in step1706that the SBOs determined in step1704require amendment or realignment to priorities then in step1707, the executive leadership team refines and/or updates the SBOs determined in step1704. In step1708, executive leadership team20reviews the assignment of the SBOs determined in step1704and amends the assignment of the SBOs if necessary. In step1711, executive leadership team20confirms and approves the SBOs that were determined in step1704. Step1711also follows a determination in step1706that none of the SBOs determined in step1704require amendment or realignment to priorities.

Returning to inquiry step1704, if no SBOs are currently in place, executive leadership team20translates the strategic priorities into SBOs1136(seeFIG. 11) in step1709. In step1710, the executive leadership team assigns all SBOs of step1709to KRAs. Step1710is followed by the confirming and approving of step1711as described above, except that the SBOs of step1711in this case are the SBOs developed in step1709. In step1712, which follows step1711, executive leadership team20assigns one or more owners to the SBOs1136(seeFIG. 11). Step1712is followed by step1713and by step1801of the DBO determination process ofFIG. 18.

If SBO owner14in inquiry step1713does not confirm the ownership of the SBOs, then the process ofFIG. 17repeats starting at step1712; otherwise, ownership of the SBOs is confirmed and the SBO owner is then required to enter the details of the finalized SBOs into the organization's strategic management tool (e.g., SMS), per the organization's strategic management process200.

The output of the process ofFIG. 17includes:1. Strategic priority statements, aligned to the KRAs of the organization.2. SBOs aligned to the strategy of the higher-level organization, and to the KRAs of the organization.3. Identified SBO owners.

In one embodiment, during the strategy planning workshop, the executive leadership team20analyzes the breadth of the organization, using their chosen strategic planning method and/or tools, including such activities as:SWOT (strengths, weaknesses, opportunities & threats) analysesSituation analysesClient case studiesCompetitive market analysesIdentification of key market trendsIdentification of opportunities for growthReview and assessment of strategies, priorities and/or objectives (i.e., goals) from other areas of the organization—both vertically (“higher” and “lower”) and horizontally aligned.

The typical output of the above-listed activities is a significant number of statements—both broad and specific—that identify the strategic focus areas of the business. Using these statements, executive leadership team20then proceed to either: (a) develop new SBOs if required by the organization (see step1709); or (b) review and refine the organization's current SBOs (see step1707).

In one embodiment, a maximum of five SBOs are defined—one for each KRA or, where synergies exist, an amalgamation from no more than two KRAs.

As one example, ownership of the agreed SBOs is assigned to the organization's Chief Executive Office (CEO) or General Manager.

The agreed SBOs (see step1711), aligned to KRAs (see step1710), set the tone for the next steps in the SEM where the executive leadership team works to analyze, refine and define the executable elements of the organization's strategy. It should be noted that performance measures and targets are not assigned to SBOs, as organizational performance is measured at the DBO, tactical program and tactical project levels.

FIG. 18is a flow diagram of a process of determining DBOs in the Develop DBOs phase1204of the process ofFIG. 12, in accordance with embodiments of the present invention. In one embodiment, the process of determining DBOs in step1215of phase1204occurs within an organization's strategic planning process, during the annual strategic planning workshop or other form of collaborative activity performed to develop the organization's strategic plan. In one embodiment, the process ofFIG. 18is typically facilitated by strategy manager11, even though the strategy manager is not responsible for any specific activities. Step1215includes steps1801-1810, which are described in this section.

Input to the process ofFIG. 18includes:1. Strategic priority statements (i.e., output from the process ofFIG. 17).2. SBOs (i.e., output from the process ofFIG. 17).3. RBOs (i.e., output from the process ofFIG. 15).4. RBO performance measurement criteria (i.e., output from the process ofFIG. 16).

In step1801, which follows step1712ofFIG. 17, executive leadership team20reviews strategic priorities developed in step1703ofFIG. 17, SBOs developed in step1711ofFIG. 17and RBOs developed in step1513ofFIG. 15to provide input into the development of DBOs1138(seeFIG. 11) for the organization. In step1802, executive leadership team20develops DBOs (a.k.a. DBO statements) as a result of the review in step1801. The DBO statements developed in step1802describe the desired or expected results for the organization, as well as the actions needed to achieve them. In one embodiment, step1802results in a set of up to seven DBO statements constructed during the strategy planning workshop using the SMARTA method that provides simple criteria for objective development, stating that objectives should be written in the imperative and be:1. Specific2. Measurable3. Achievable4. Realistic5. Time based6. Aligned

The DBOs developed in step1802translate the SBOs reviewed in step1801into operational terms that can be understood by all members of the organization. The aforementioned translation of the SBOs provides an alignment of the DBOs developed in step1802to the strategic priorities of the organization. In one embodiment, one or more of the DBOs developed in step1802encourage cross-organizational communication and collaboration to develop a sense of shared goals and decision-making based upon shared organizational priorities.

In step1803, executive leadership team20reviews KRA-assigned RBOs. If executive leadership team20determines in step1804that, in order to achieve an RBO, the organization is required to make dramatic improvements or significant changes to the organization's current level of performance, then the executive leadership develops a DBO statement to close the performance gap(s) in step1805. In the case of moving from step1804to step1805, the DBO developed in step1805is directly linked to the RBO by the DBO's performance measurement criteria and by the DBO's KRA assignment. See Section 4.6 for more details about this direct linking of the DBO to the RBO via the DBO's performance measurement criteria. In step1806, which follows both step1805and the No branch of inquiry step1804, executive leadership team20assigns all DBOs to KRAs. In the case of step1806following step1805, a DBO directly linked to an RBO is assigned KRAs that are identical to the KRAs assigned to the RBO in step1509ofFIG. 15, thereby providing an alignment between the DBO and the RBO. In step1807, executive leadership team20confirms and approves (i.e., agrees) the DBOs developed in step1802.

In step1808, primary owners of the agreed DBOs of step1807is assigned. In step1809, secondary owners of the agreed DBOs are assigned. Assignment to both primary and secondary owners ensures continued focus and continual management and control of the DBOs. In one embodiment, ownership of the agreed DBOs is assigned to members of the organization's executive leadership team20. Following steps1808and1809, DBO owner15determines whether to confirm the assigned ownership of the DBOs. If DBO owner15does not confirm the assigned ownership of the DBOs in step1810, then the process ofFIG. 18repeats starting at step1808. If DBO owner15confirms the assigned ownership of the DBOs in step1810, then the process ofFIG. 18ends and the SEM process continues with step1901ofFIG. 19.

The output of the process ofFIG. 18includes:1. DBOs aligned to the KRAs and SBOs (and RBOs, where required) of the organization.2. DBO owners identified.
4.6 Develop DBOs Phase—Determine DBO Performance Measures & Targets

FIG. 19is a flow diagram of a process of determining DBO performance measures and targets in the Develop DBOs phase1204of the process ofFIG. 12, in accordance with embodiments of the present invention. In the determining of DBO performance measures and targets in step1216of phase1204, strategy manager11collates the performance measurement data gathered for the RBOs in the process ofFIG. 16and gathers any additional data required to facilitate the development of performance measurement criteria for the DBOs developed in the process ofFIG. 18. Each DBO owner establishes measurement criteria in step1216, including measure definitions, source data location, output formats, measure frequency, targets and tolerance criteria for each DBO. Step1216includes steps1901-1905, which are described below.

Input to the process ofFIG. 19includes:1. DBOs (i.e., output from the process ofFIG. 18).2. SBOs (i.e., output from the process ofFIG. 17).3. RBOs (i.e., output from the process ofFIG. 15).4. RBO performance measurement criteria (i.e., output from the process ofFIG. 16).

In step1901, which follows the Yes branch of step1810ofFIG. 18, strategy manager11develops draft measures and targets for the DBOs developed in the process ofFIG. 18. If strategy manger11determines in step1902that any of the DBOs are directly linked to RBOs, then the strategy manager assigns RBO measures and targets to the directly linked DBO in step1903; otherwise, DBO owner15performs step1904. Where a DBO is directly linked to an RBO (see Section 4.5 presented above), the performance measurement criteria for the DBO is the same as the performance measurement criteria established to evaluate the performance of the RBO. In these cases, executive leadership team20(seeFIG. 18) has identified that significant change or improvement to a business process or system is required, and so the DBO can be achieved only via the attainment of the RBO. That is, achievement of the RBO is the minimum level of achievement for the DBO.

In step1904, which follows step1903and the No branch of step1902, DBO owner15develops measures and targets for all other DBOs (i.e., DBOs not assigned RBO measures in step1903).

In step1905, DBO owner15develops a DBO Overview for review by executive leadership team20(seeFIG. 18) at a DBO Review Meeting (see Section 4.7 presented below). The purpose of the activity in step1905is to document the definition, interpretation, scope and performance measurement criteria of the DBO for presentation to—and consideration and final approval by—the executive leadership team (seeFIG. 20). Step1905is followed by step2001in the process of conducting a DBO review meeting inFIG. 20.

The output of the process ofFIG. 19includes:1. DBO performance measurement criteria that includes a review-ready version of measures and targets for DBOs.2. DBO Overview.
4.7 Develop DBOs Phase—DBO Review Meeting

FIG. 20is a flow diagram of a process of conducting a DBO review meeting in the Develop DBOs phase1204of the process ofFIG. 12, in accordance with embodiments of the present invention. Conducting a DBO review meeting is the third and final step (i.e., step1217) of Develop DBOs phase1204of the Strategic Enablement Method. The key objective of step1217is to convene a review and consensus meeting attended by executive leadership team20. Step1217includes steps2001-2003, which are described in this section.

Input to the process ofFIG. 20includes:1. DBO Overviews (i.e., output from the process ofFIG. 19).2. SBOs (i.e., output from the process ofFIG. 17).3. RBOs (i.e., output from the process ofFIG. 15).4. RBO performance measurement criteria (i.e., output from the process ofFIG. 16).

In step2001, which follows step1905ofFIG. 19, each DBO owner assigned in the process ofFIG. 18is required to present her or his DBO Overview at a DBO review meeting. The purpose of the DBO review meeting is to achieve consensus on the description, intention, scope and measurement criteria for each DBO developed in the process ofFIG. 18. In step2002, executive leadership team20reviews the DBO Overviews presented in step2001and, if necessary, amends the measures and targets of the DBOs associated with the reviewed DBO Overviews. In step2003, executive leadership team20confirms and approves (i.e. agrees) the measures and targets of every DBO that is reviewed by the executive leadership team. Final approval for each DBO must be achieved by the end of the DBO review meeting. The output of the process ofFIG. 20includes approved DBO Overviews, which includes approved DBO definitions and performance measurement criteria for the DBOs developed in the process ofFIG. 18. Step2003is followed by step2101of the tactical program determination process ofFIG. 21.

FIG. 21is a flow diagram of a process of determining tactical programs in the Develop tactical programs and projects phase1205of the process ofFIG. 12, in accordance with embodiments of the present invention. During the Develop tactical programs and projects phase1205, the executable elements of an organization's strategy become increasingly clear and more easily understood by all members of the organization. The process of determining tactical programs occurs in step1218of phase1205. Step1218includes steps2101-2106, which are described in this section.

The input to the process ofFIG. 21includes:1. DBO Overview, which includes DBO definitions and performance measurement criteria (i.e., output from the process ofFIG. 20).2. SBOs (i.e., output from the process ofFIG. 17).3. RBOs (i.e., output from the process ofFIG. 15).4. RBO performance measurement criteria (i.e., output from the process ofFIG. 16).

In step2101, which follows step2003ofFIG. 20, DBO owner15assembles a DBO enablement team21whose purpose is to develop a set of tactical programs to facilitate the achievement of each DBO developed in the process ofFIG. 18; Tactical programs are a portfolio of projects of any number or size and are deployed using the organization's program management method.

In step2102, DBO enablement team21reviews the DBO measures and targets that are confirmed and approved via the process ofFIG. 20. In step2103, DBO enablement team21develops tactical programs which are aligned to DBOs. In step2104, DBO enablement team21assigns all tactical programs developed in step2103to KRAs. The association between strategy and BAU is further strengthened by the alignment of each tactical program to the organization's KRAs in step2104.

In step2105, DBO owner15confirms and approves (i.e., agrees) the tactical programs developed in step2103. In step2106, DBO owner15assigns owners (i.e., tactical program owners) to the tactical programs developed in step2103. Step2106is followed by step2201of the process of determining tactical program performance measures and targets inFIG. 22.

In one embodiment, one or more members of DBO enablement team21become assigned tactical program owners in step2106. The assigned tactical program owners are typically drawn from the business area or sub-business area that will execute the majority of tactical projects within the tactical program portfolio. This association of a business area or sub-business area with the tactical programs facilitates an integration of an organization's tactical programs with the organization's BAU activities (i.e., facilitates an association between the organization's strategy and its BAU activities).

While DBO owner15is responsible for overall control of a DBO, and for achievement of the measures and targets associated with the DBO, it is the tactical program owners assigned in step2106who are responsible for managing the portfolio of tactical projects established in step2103to execute the tasks and activities required to make the strategy operational. Each tactical program owner assigned in step2106is responsible for not only achieving, but also tracking and reporting the progress and status of any tactical programs assigned to the tactical program owner. Typically, DBOs are monitored fortnightly or monthly, while tactical programs are monitored weekly.

The output of the process ofFIG. 21includes:1. Tactical programs aligned to the KRAs and DBOs of the organization; and to the executing business area of the organization.2. Identified tactical program owners.
4.9 Develop Tactical Programs & Projects—Determine Tactical Program Performance Measures & Targets

FIG. 22is a flow diagram of a process of determining tactical program performance measures and targets in the Develop tactical programs & projects phase1205of the process ofFIG. 12, in accordance with embodiments of the present invention. The process of determining tactical program performance measures and targets occurs in the second step (i.e., step1219) of phase1205and includes steps2201-2206, which are described below.

Input to the process ofFIG. 22includes:1. Tactical programs (i.e., output from the process ofFIG. 21).2. DBO Overview, which includes DBO definitions and performance measurement criteria (i.e., output from the process ofFIG. 20).3. SBOs (i.e., output from the process ofFIG. 17).4. RBOs (i.e., output from the process ofFIG. 15).5. RBO performance measurement criteria (i.e., output from the process ofFIG. 16).

In step2201, which follows step2106ofFIG. 21, DBO enablement team21reviews the performance measurement criteria that were developed for a DBO in the process ofFIG. 19.

As used herein, a directly aligned tactical program is defined as a tactical program that can be directly measured by a DBO measure or target. Measurement criteria for a tactical program include measure definitions, source data location, output formats, measure frequency, targets and tolerance criteria. Measurement criteria for a directly aligned tactical program are directly aligned to one or more DBO measures and targets. Further, as used herein, an indirectly aligned tactical program is defined as a tactical program that cannot be directly measured by a DBO measure or target.

If DBO enablement team21determines in step2202that the performance of any tactical program developed in step2103ofFIG. 21can be directly measured by a DBO performance measure or target (i.e., step2202identifies a directly aligned tactical program), then in step2203, the DBO enablement team assigns the DBO performance measure and/or target to the identified directly aligned tactical program. Step2203is repeated for all directly aligned tactical programs identified in step2202.

If DBO enablement team21determines in step2202that no tactical programs can be directly measured by a DBO performance measure or target (i.e., step2202identifies only indirectly aligned tactical programs), then in step2204, the DBO enablement team develops performance measures and targets for the indirectly aligned tactical programs identified by step2202. Step2204also follows step2203to develop measures and targets for any tactical programs that were not identified as being directly aligned by step2202.

In step2205, DBO owner15reviews and amends, if amending is necessary the new tactical program measures and targets developed in step2204. The review and refinement of measures and targets in step2205is then finalized and documented in step2206in a DBO Enablement Plan. Typically developed in presentation format, the DBO Enablement Plan is presented by DBO owner15to the executive leadership team at a strategic enablement meeting (a.k.a. strategic enablement meeting1220ofFIG. 12; see Section 4.10 presented below). The purpose of the DBO Enablement Plan is to provide a clear definition of the intention, expectations, requirements (i.e., resources, assets, etc), risks, dependencies and extent of any investment funding required to enable execution of a DBO and the DBO's tactical programs. Step2206is followed by step2301of the process of conducting a strategic enablement meeting inFIG. 23.

Output of the process ofFIG. 22includes:1. Tactical program performance measurement criteria including a review-ready version of tactical program measures and targets.2. DBO Enablement Plan.
4.10 Develop Tactical Programs & Projects—Strategic Enablement Meeting

FIG. 23is a flow diagram of a process of conducting a strategic enablement meeting in the Develop tactical programs & projects phase1205of the process ofFIG. 12, in accordance with embodiments of the present invention. The strategic enablement meeting is a review and consensus meeting attended by executive leadership team20and all DBO owners15. Attendance by strategy manager11and a communications manager23is also recommended. During the strategic enablement meeting, relative importance of each DBO and tactical program is agreed by executive leadership team20, with DBOs and tactical programs weighted or prioritized using a method dictated by the organization's performance measurement system.

The key objectives of the process ofFIG. 23are to:Provide an absolute, objective understanding of the strategic objectives, outcomes and priorities of the organization;Identify and eliminate any potential duplication of tactical programs;Identify cross-organizational dependencies; andEncourage consensus, cross-organizational agreement and understanding of the end-to-end strategy.

The strategic enablement meeting is step1220of phase1205, and includes steps2301-2311, which are described below.

Input to the process ofFIG. 23includes:1. DBO Enablement Plans (i.e., output from the process ofFIG. 22).2. SBOs (i.e., output from the process ofFIG. 17).3. RBOs (i.e., output from the process ofFIG. 15).4. RBO performance measurement criteria (i.e., output from the process ofFIG. 16).

In step2301, which follows step2206ofFIG. 22, each DBO owner15is required to present his or her DBO Enablement Plan to executive leadership team20in the strategic enablement meeting. Each DBO Enablement Plan presented in step2301was developed in step2206ofFIG. 22. The DBO Enablement Plans must include proposal(s) for investment funding for review and endorsement by the leadership team before submission to the investment committee and funding area owner to formally request a DBO budget, per the organization's strategic management process.

In step2302, executive leadership team20reviews one of the DBO Enablement Plans presented in step2301. If executive leadership team20determines in step2303that tactical programs, measures and/or targets require refinement, then in step2304, the DBO owner15who presented the DBO Enablement Plan reviewed in step2302refines or amends the tactical programs, measures or targets. Subsequent to step2304, the inquiry step2303is repeated.

If executive leadership team20determines in step2303that no tactical programs, measures or targets require refinement, then the executive leadership team20in step2305confirms and approves the DBO Enablement Plan reviewed in step2302, including the tactical programs, measures and targets. Following step2305, DBO owner15provides strategic management process200(i.e., populates SMS) with the finalized DBOs, tactical programs and performance measurement criteria associated with an approved DBO Enablement Plan. Step2305is also followed by step2401in the process of determining tactical projects inFIG. 24.

If executive leadership team20determines in step2306that not all DBO Enablement Plans have been approved in step2305, then the process ofFIG. 23repeats starting at step2302at which point another DBO Enablement Plan is reviewed by the executive leadership team.

If executive leadership team20determines in step2306that all DBO Enablement Plans have been approved in step2305, then strategy manager11develops a draft strategic plan in step2307. In step2308, executive leadership team20reviews the draft strategic plan developed in step2307and amends the strategic plan if necessary. In step2309, executive leadership team20confirms and approves (i.e., agrees) the strategic plan reviewed in step2308. In step2310, strategy manager11finalizes the strategic plan confirmed in step2309. In step2311, communications manager23receives all the necessary detail required to develop a “public” view of the finalized strategic plan (i.e., a view of the strategic plan for all members of the organization). Step2311also includes communications manager23performing steps guided by the organization's strategic planning process to articulate and communicate the strategic plan across the organization. A boilerplate format of a strategic plan output by the process ofFIG. 23is depicted inFIG. 26.

The output of the process ofFIG. 23includes:1. Approved DBO Enablement Plans, including approved tactical programs and performance measures and targets for tactical programs.2. Approved Strategic Plan.
4.11 Develop Tactical Programs & Projects—Determine Tactical Projects

FIG. 24is a flow diagram of a process of determining tactical projects in the Develop tactical programs & projects phase1205of the process ofFIG. 12, in accordance with embodiments of the present invention. The determining of tactical projects is the fourth step (i.e., step1221) of phase1205. Step1221includes steps2401-2406, which are described below.

Input into the process ofFIG. 24includes:1. Approved DBO Enablement Plans, including tactical program definitions and performance measurement criteria (i.e., output from the process ofFIG. 23).2. DBO Overview, including DBO definitions and performance measurement criteria (i.e., output from the process ofFIG. 20).3. SBOs (i.e., output from the process ofFIG. 17).4. RBOs (i.e., output from the process ofFIG. 15).5. RBO performance measurement criteria (i.e., output from the process ofFIG. 16).

In step2401, which follows step2305ofFIG. 23, DBO owner15assembles a tactical program enablement team22whose purpose is to define and develop the tactical projects that will facilitate the achievement of each tactical program that was developed in the process of FIG.21. A tactical program enablement team22is assembled for each tactical program within the DBO. In step2402, tactical program enablement team22reviews tactical program measures and targets. In step2403, tactical program enablement team22develops tactical projects. The tactical projects developed in step2403are established to execute the required activities and tasks of an associated tactical program, and are deployed using the organization's project management method. Each tactical project is directly aligned to a tactical program. In step2404, tactical program enablement team22assigns all tactical projects of step2403to KRAs. In step2405, tactical program owner17confirms and approves (i.e., agrees) the tactical projects developed in step2403. In step2406, tactical program owner17assigns tactical project owners to the tactical projects developed in step2403. Each tactical project owner is responsible for not only achieving, but also tracking and reporting the progress and status of the tactical project assigned to the tactical project owner. In one embodiment, tactical projects are monitored by their owners weekly. Step2406is followed by step2501in the process of determining tactical project performance measures and targets inFIG. 25.

In one embodiment, members of tactical program enablement team22become tactical project owners who are assigned to tactical projects in step2406. In one embodiment, the assigned owners are drawn from the business area or sub-business area that will execute the majority of the tactical project's activities. This alignment of a tactical project to a business area or sub-business area facilitates an integration of an organization's tactical projects with the organization's BAU activities. This association between the organization's strategy and BAU is further strengthened by the alignment of each tactical project to the organization's key result areas (KRAs), as provided by step2404.

Output of the process ofFIG. 24includes:1. Tactical projects aligned to the KRAs and tactical programs of the organization, and to the executing business area of the organization.2. Identified tactical project owners.
4.12 Develop Tactical Programs & Projects—Determine Tactical Project Performance Measures & Targets

FIG. 25is a flow diagram of a process that includes determining tactical project performance measures and targets in the Develop tactical programs & projects phase1205and the Manage phase1206of the process ofFIG. 12, in accordance with embodiments of the present invention. Determining tactical project performance measures and targets is the final step (i.e., step1222) of phase1205and includes steps2501-2506, which are described below. Furthermore,FIG. 25depicts the external activities involved in the final phase (i.e., Manage phase1206) of the SEM.

Input to the process ofFIG. 25includes:1. Tactical projects (i.e., output from the process ofFIG. 24).2. Tactical programs (i.e., output from the process ofFIG. 21).3. DBO Overview, which includes DBO definitions and performance measurement criteria (i.e., output from the process ofFIG. 20).4. SBOs (i.e. output from the process ofFIG. 17).5. RBOs (i.e., output from the process ofFIG. 15).6. RBO performance measurement criteria (i.e., output from the process ofFIG. 16).

In step2501, which follows step2406ofFIG. 24, tactical program enablement team22reviews tactical program measures and targets assigned or developed in the process ofFIG. 22. The review in step2501includes the tactical program enablement team, which is typically composed of tactical project owners, reviewing the performance measurement criteria developed for the DBO and the tactical program.

As used herein, a directly aligned tactical project is defined as a tactical project that can be directly measured by a tactical program performance measure or target Measurement criteria for a tactical project include measure definitions, source data location, output formats, measure frequency, targets and tolerance criteria. Measurement criteria for a directly aligned tactical project are directly aligned to tactical program measures. Further, as used herein, an indirectly aligned tactical project is defined as a tactical project that cannot be directly measured by a tactical program performance measure or target.

If tactical program enablement team22determines in step2502that the performance of any tactical project can be directly measured by a tactical program performance measure or target (i.e., step2502identifies a directly aligned tactical project), then in step2503the tactical program enablement team assigns the tactical program measure and/or target to the identified directly aligned tactical project.

If tactical program enablement team22determines in step2502that the performance of no tactical projects can be directly measured by a tactical program performance measure or target (i.e., step2502identifies only indirectly aligned tactical projects), then in step2504the tactical program enablement team develops measures and targets for the identified indirectly aligned tactical projects. Step2504also follows step2503to develop measures and targets for any tactical projects that were not identified as being directly aligned by step2502.

In step2505, tactical program owner17reviews the tactical project measures and targets of steps2503and2504and amends the tactical project measures and targets, if necessary. In step2506, tactical program owner17confirms and approves the tactical project measures and targets reviewed in step2505. Step2506is followed by Manage phase1206, which concludes the Strategic Enablement Method. In one embodiment, tactical program owner17provides strategic management process200(i.e., populates SMS) with the finalized (i.e., approved) tactical programs, including program definitions and related performance measurement criteria. Further, tactical project owner18provides strategic management process200(i.e., populates SMS) with the finalized (i.e., approved) tactical projects, including tactical project definitions and related performance measurement criteria.

FIG. 26is an example of a strategic plan2600output by the process ofFIG. 12, in accordance with embodiments of the present invention. An organization may use the format presented by plan2600, or a variation that satisfies the needs of the organization for articulating and communicating the organization's strategic plan (i.e., the output of the Strategic Enablement Method).

5 Computing System

FIG. 27is a block diagram of a computing system that is included in the system ofFIG. 1and that implements the processes ofFIGS. 2 and 12, in accordance with embodiments of the present invention. Computing system2700generally comprises a central processing unit (CPU)2702, a memory2704, an input/output (I/O) interface2706, a bus2708, I/O devices2710and a storage unit2712. CPU2702performs computation and control functions of computing system2700. CPU2702may comprise a single processing unit, or be distributed across one or more processing units in one or more locations (e.g., on a client and server).

Memory2704may comprise any known type of data storage and/or transmission media, including bulk storage, magnetic media, optical media, random access memory (RAM), read-only memory (ROM), a data cache, a data object, etc. Cache memory elements of memory2704provide temporary storage of at least some program code in order to reduce the number of times code must be retrieved from bulk storage during execution. Storage unit2712is, for example, a magnetic disk drive or an optical disk drive that stores data. Moreover, similar to CPU2702, memory2704may reside at a single physical location, comprising one or more types of data storage, or be distributed across a plurality of physical systems in various forms. Further, memory2704can include data distributed across, for example, a LAN, WAN or storage area network (SAN) (not shown).

I/O interface2706comprises any system for exchanging information to or from an external source. I/O devices2710comprise any known type of external device, including a display monitor, keyboard, mouse, printer, speakers, handheld device, printer, facsimile, etc. Bus2708provides a communication link between each of the components in computing system2700, and may comprise any type of transmission link, including electrical, optical, wireless, etc.

I/O interface2706also allows computing system2700to store and retrieve information (e.g., program instructions or data) from an auxiliary storage device (e.g., storage unit2712). The auxiliary storage device may be a non-volatile storage device (e.g., a CD-ROM drive which receives a CD-ROM disk). Computing system2700can store and retrieve information from other auxiliary storage devices (not shown), which can include a direct access storage device (DASD) (e.g., hard disk or floppy diskette), a magneto-optical disk drive, a tape drive, or a wireless communication device.

Memory2704includes computer program code2714for the strategic management process implemented by the Strategic Management System disclosed herein. Further, memory2701includes computer program code2716for the Strategic Enablement Method disclosed herein. Still farther, memory2704may include other systems not shown inFIG. 27, such as an operating system (e.g., Linux) that runs on CPU2702and provides control of various components within and/or connected to computing system2700. The present invention contemplates program code2714and program code2716residing on or coupled to the same or different computing units within computing system2700.

Furthermore, the invention can take the form of a computer program product accessible from a computer-usable or computer-readable medium providing program code2714and/or program code2716for use by or in connection with a computing system2700or any instruction execution system to provide and facilitate the capabilities of the present invention. For the purposes of this description, a computer-usable or computer-readable medium can be any apparatus that can contain, store, communicate, propagate, or transport the program for use by or in connection with the instruction execution system, apparatus, or device.

Any of the components of the present invention can be deployed, managed, serviced, etc. by a service provider that offers to deploy or integrate computing infrastructure with respect to the method of defining a strategic plan via developing a plurality of strategy elements of the present invention. Thus, the present invention discloses a process for supporting computer infrastructure, comprising integrating, hosting, maintaining and deploying computer-readable code into a computing system (e.g., computing system2700), wherein the code in combination with the computing system is capable of performing a method of defining a strategic plan via developing a plurality of strategy elements of the strategic plan.

The flow diagrams depicted herein are provided by way of example. There may be variations to these diagrams or the steps (or operations) described herein without departing from the spirit of the invention. For instance, in certain cases, the steps may be performed in differing order, or steps may be added, deleted or modified. All of these variations are considered a part of the present invention as recited in the appended claims.

While embodiments of the present invention have been described herein for purposes of illustration, many modifications and changes will become apparent to those skilled in the art. Accordingly, the appended claims are intended to encompass all such modifications and changes as fall within the true spirit and scope of this invention. For example, an organization may implement the Strategic Enablement Method with a spreadsheet workbook without using a dedicated strategy management tool such as SMS. As another example, the disclosed activities performed by owners of strategy elements may be performed by pre-defined delegates of the owners.