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BUILDING THE STRATEGY
MANAGEMENT OFFICE
INTEGRATING STRATEGY AND EXECUTION
STRATAEGOS.COM
BUILDING THE STRATEGY MANAGEMENT OFFICE | STRATAEGOS CONSULTING 2
STRATEGY MANAGEMENT IS CRUCIAL FOR
EVERY ORGANIZATION
1
2
3
4
Industries are continuously disrupted by new entrants, new
technologies, changing customer demands, increased
globalization and the changing role of governments
Executives need to continuously adapt their strategy to
maintain a ‘fit’ with the increasingly turbulent environment.
For decades, survey after survey reveal that most strategies
fail or do not produce the envisioned results.
This is the strategy execution problem: the failure to achieve
results after a seemingly viable strategy has been
developed.
BUILDING THE STRATEGY MANAGEMENT OFFICE | STRATAEGOS CONSULTING 3
MOST ORGANIZATIONS LACK EFFECTIVE
STRATEGY MANAGEMENT
1
2
3
4
Many organizations have a fundamental disconnect between the
formulation of their strategy and the execution of that strategy.
Organizations often lack an effective strategy management
process that allows executives and managers to turn the strategy
into operational results.
Strategy management involves managing both the development
and execution of a strategy.
Many organizations separate strategy development and strategy
execution and focus on strategy development instead of strategy
execution.
BUILDING THE STRATEGY MANAGEMENT OFFICE | STRATAEGOS CONSULTING 4
WHAT IS A STRATEGY MANAGEMENT OFFICE?
Many organizations have a strategic planning unit that is responsible
for strategy development but lack a unit that is responsible for
strategy execution and monitoring.
A strategy management office is an organizational unit that manages
both strategy development and execution in an integrated way.
The office is responsible for coordinating the whole process of
analysis, development, planning, execution and control of the
strategy.
The office facilitates senior management with strategy analysis and
development and middle management with strategy execution and
monitoring and control.
1
2
3
4
AN INTEGRAL APPROACH TO STRATEGY DESIGIN, STRATEGY EXECUTION AND STRATEGY CONTROL
BUILDING THE STRATEGY MANAGEMENT OFFICE | STRATAEGOS CONSULTING 5
1
STRATEGY
FORMATION
2
STRATEGY
PLANNING
4
EXECUTION
CONTROL
3
STRATEGY
EXECUTION
MANAGING THE STRATEGY CYCLE
INTEGRATING STRATEGY DEVELOPMENT AND EXECUTION
STRATEGY
FORMATION &
PLANNING
Develop the strategy
and translate the
strategy into
strategic objectives
and an execution
plan with operational
objectives,
processes, and
activities.
STRATEGY
EXECUTION &
CONTROL
Execute the strategy
and control the
strategy by
monitoring the
progress of the
execution and when
required, making
adjustments to the
strategy or its
execution.
BUILDING THE STRATEGY MANAGEMENT OFFICE | STRATAEGOS CONSULTING 6
THE STRATEGY MANAGEMENT SYSTEM
AN ANNUAL PROCESS FOR STRATEGY DESIGN, STRATEGY EXECUTION AND STRATEGY CONTROL
STRATEGY
MANAGEMENT
STRATEGY
DESIGN
EXECUTION
PLANNING
STRATEGY
EXECUTION
STRATEGY
CONTROL
1 2 3 54
• Develop goals &
vision
• Develop strategic
options.
• Develop scenario’s.
• Choose the strategy
• Write strategic plan
• Communicate the
strategy
• Translate the strategy
into tasks & activities
• Assign responsibilities
• Develop annual
organization unit plan
• Provide periodic
stratus reports
• Organize progress
review meetings
• Adapt the
execution of the
strategy
• Analyze the strategy
and execution
• Organize strategy
review meetings
• Adapt the strategy.
• Rewrite strategic plan
• Plan the annual
strategy management
process
• Organize strategy &
execution summits.
• Support strategic
decision-making of the
board.
BUILDING THE STRATEGY MANAGEMENT OFFICE | STRATAEGOS CONSULTING 7
STAGE 1 – ORGANIZE STRATEGY MANAGEMENT
AN INTEGRAL APPROACH TO STRATEGY DESIGIN, STRATEGY EXECUTION AND STRATEGY CONTROL
o Plan the annual strategy management process.
o Organize strategy management summit for senior management.
o Support strategy management decision-making of senior
management.
BUILDING THE STRATEGY MANAGEMENT OFFICE | STRATAEGOS CONSULTING 8
STAGE 2 – DEVELOPING THE STRATEGY
o Facilitate senior management in developing the strategic goals, and
vision of the organization.
o Develop strategic variants for each scenario.
o Support senior management in developing a strategy that is able to
achieve the strategic goals and vision.
o Write down the strategy into a multi-year strategic plan.
o Monitor the performance of the strategic plan and assessing whether
adjustments need to made.
o Translate changes in the external environment into strategic choices
for top management.
AN INTEGRAL APPROACH TO STRATEGY DESIGIN, STRATEGY EXECUTION AND STRATEGY CONTROL
BUILDING THE STRATEGY MANAGEMENT OFFICE | STRATAEGOS CONSULTING 9
STAGE 3 – PLANNING THE EXECUTION
o Communicate the strategy to employees and stakeholders.
o Translate the strategic plan into concrete objectives, tasks, activities
and responsibilities.
o Translate the strategic plan into annual plans for each organization unit.
o Support organization unit heads in drawing up annual plans that
outline how their department will contribute to the strategy.
o Ensure that the annual organization unit plans are aligned to the
strategy and do not conflict with each other.
o Coordinate with finance and HR to ensure sufficient budget and
resources for the execution of the strategy.
AN INTEGRAL APPROACH TO STRATEGY DESIGIN, STRATEGY EXECUTION AND STRATEGY CONTROL
BUILDING THE STRATEGY MANAGEMENT OFFICE | STRATAEGOS CONSULTING 10
STAP 4 – MONITORING THE EXECUTION
o Monitor the execution of the strategic plan and annual organization unit
plans.
o Provide periodic status reports to senior management and middle
management about the progress of the strategy and its execution.
o Organize three types of management control meetings:
• Strategy review meetings in which top management discuss the
progress of the strategic plan and its execution.
• Execution review meetings in which top management discuss the
progress of the annual plan and its execution with the responsible
middle manager.
• Operational review meetings in which middle management discuss
the progress of the annual plan and its execution with team members.
AN INTEGRAL APPROACH TO STRATEGY DESIGIN, STRATEGY EXECUTION AND STRATEGY CONTROL
BUILDING THE STRATEGY MANAGEMENT OFFICE | STRATAEGOS CONSULTING 11
STAP 5 – CONTROLLING THE EXECUTION
o The strategy management office supports top management in
decision-making about the strategy and its execution.
o The strategy management office organizes periodic strategy review
meetings in which top management makes decisions about the
strategy and its execution.
o When objectives are not being met the office assessed whether is
because of a flawed strategy or poor execution.
o When the hypothesis of the strategy are no longer valid the office
proposes changes to the strategy or a completely new strategy.
AN INTEGRAL APPROACH TO STRATEGY DESIGIN, STRATEGY EXECUTION AND STRATEGY CONTROL
BUILDING THE STRATEGY MANAGEMENT OFFICE | STRATAEGOS CONSULTING 12
DR. ARNOUD VAN DER MAAS
o Dr. Arnoud van der Maas is a strategy
consultant and author in strategy execution.
o International expert in strategy execution.
o Founder of Strataegos Consulting – specialized
in strategy consultancy and research.
o Received a PhD in Strategic Management from
Rotterdam School of Management, Erasmus
University.
DR. ARNOUD VAN DER MAAS
STRATEGY EXECUTION EXPERT
STRATEGY EXPERT AND OWNER OF STRATAEGOS CONSULTING
BUILDING THE STRATEGY MANAGEMENT OFFICE | STRATAEGOS CONSULTING 13
STRATAEGOS SOCIAL MEDIA
CONNECT WITH US ON SOCIAL MEDIA
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3K+ CONNECTIONS
Connect with us on LinkedIn
for leading edge articles,
posts and updates on
Strategy & execution.
TWITTER
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Follow us on Twitter for
news, articles, posts and
updates on Strategy &
Execution.
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Follow us on SlideShare, for
presentations, articles and
PhD thesis on Strategy &
Execution.
CONNECT WITH US
FOR LEADING EDGE KNOWLEDGE ON STRATEGY & EXECUTION
arnoudvandermaas
Connect with us for
posts on strategy &
execution.
/arnoudvandermaas
Follow us for
presentations on
strategy & execution.
/arnoudvdmaas
Follow us for blogs
on strategy &
execution.
arnoudvandermaas
Connect with us to
discuss strategy &
execution.
S
CONTACT US
COMMENTS OR QUESTIONS?
info@strataegos.com
Mail us with every
question about
strategy & execution.
+31 6 4222 8093
Call us for advice
about strategy &
execution.
www.strataegos.com
Visit us for presentations
and articles on strategy &
execution.
/arnoudvandermaas
Connect with us for
blogs on strategy &
execution.

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Building the Strategy Management Office

  • 1. BUILDING THE STRATEGY MANAGEMENT OFFICE INTEGRATING STRATEGY AND EXECUTION STRATAEGOS.COM
  • 2. BUILDING THE STRATEGY MANAGEMENT OFFICE | STRATAEGOS CONSULTING 2 STRATEGY MANAGEMENT IS CRUCIAL FOR EVERY ORGANIZATION 1 2 3 4 Industries are continuously disrupted by new entrants, new technologies, changing customer demands, increased globalization and the changing role of governments Executives need to continuously adapt their strategy to maintain a ‘fit’ with the increasingly turbulent environment. For decades, survey after survey reveal that most strategies fail or do not produce the envisioned results. This is the strategy execution problem: the failure to achieve results after a seemingly viable strategy has been developed.
  • 3. BUILDING THE STRATEGY MANAGEMENT OFFICE | STRATAEGOS CONSULTING 3 MOST ORGANIZATIONS LACK EFFECTIVE STRATEGY MANAGEMENT 1 2 3 4 Many organizations have a fundamental disconnect between the formulation of their strategy and the execution of that strategy. Organizations often lack an effective strategy management process that allows executives and managers to turn the strategy into operational results. Strategy management involves managing both the development and execution of a strategy. Many organizations separate strategy development and strategy execution and focus on strategy development instead of strategy execution.
  • 4. BUILDING THE STRATEGY MANAGEMENT OFFICE | STRATAEGOS CONSULTING 4 WHAT IS A STRATEGY MANAGEMENT OFFICE? Many organizations have a strategic planning unit that is responsible for strategy development but lack a unit that is responsible for strategy execution and monitoring. A strategy management office is an organizational unit that manages both strategy development and execution in an integrated way. The office is responsible for coordinating the whole process of analysis, development, planning, execution and control of the strategy. The office facilitates senior management with strategy analysis and development and middle management with strategy execution and monitoring and control. 1 2 3 4 AN INTEGRAL APPROACH TO STRATEGY DESIGIN, STRATEGY EXECUTION AND STRATEGY CONTROL
  • 5. BUILDING THE STRATEGY MANAGEMENT OFFICE | STRATAEGOS CONSULTING 5 1 STRATEGY FORMATION 2 STRATEGY PLANNING 4 EXECUTION CONTROL 3 STRATEGY EXECUTION MANAGING THE STRATEGY CYCLE INTEGRATING STRATEGY DEVELOPMENT AND EXECUTION STRATEGY FORMATION & PLANNING Develop the strategy and translate the strategy into strategic objectives and an execution plan with operational objectives, processes, and activities. STRATEGY EXECUTION & CONTROL Execute the strategy and control the strategy by monitoring the progress of the execution and when required, making adjustments to the strategy or its execution.
  • 6. BUILDING THE STRATEGY MANAGEMENT OFFICE | STRATAEGOS CONSULTING 6 THE STRATEGY MANAGEMENT SYSTEM AN ANNUAL PROCESS FOR STRATEGY DESIGN, STRATEGY EXECUTION AND STRATEGY CONTROL STRATEGY MANAGEMENT STRATEGY DESIGN EXECUTION PLANNING STRATEGY EXECUTION STRATEGY CONTROL 1 2 3 54 • Develop goals & vision • Develop strategic options. • Develop scenario’s. • Choose the strategy • Write strategic plan • Communicate the strategy • Translate the strategy into tasks & activities • Assign responsibilities • Develop annual organization unit plan • Provide periodic stratus reports • Organize progress review meetings • Adapt the execution of the strategy • Analyze the strategy and execution • Organize strategy review meetings • Adapt the strategy. • Rewrite strategic plan • Plan the annual strategy management process • Organize strategy & execution summits. • Support strategic decision-making of the board.
  • 7. BUILDING THE STRATEGY MANAGEMENT OFFICE | STRATAEGOS CONSULTING 7 STAGE 1 – ORGANIZE STRATEGY MANAGEMENT AN INTEGRAL APPROACH TO STRATEGY DESIGIN, STRATEGY EXECUTION AND STRATEGY CONTROL o Plan the annual strategy management process. o Organize strategy management summit for senior management. o Support strategy management decision-making of senior management.
  • 8. BUILDING THE STRATEGY MANAGEMENT OFFICE | STRATAEGOS CONSULTING 8 STAGE 2 – DEVELOPING THE STRATEGY o Facilitate senior management in developing the strategic goals, and vision of the organization. o Develop strategic variants for each scenario. o Support senior management in developing a strategy that is able to achieve the strategic goals and vision. o Write down the strategy into a multi-year strategic plan. o Monitor the performance of the strategic plan and assessing whether adjustments need to made. o Translate changes in the external environment into strategic choices for top management. AN INTEGRAL APPROACH TO STRATEGY DESIGIN, STRATEGY EXECUTION AND STRATEGY CONTROL
  • 9. BUILDING THE STRATEGY MANAGEMENT OFFICE | STRATAEGOS CONSULTING 9 STAGE 3 – PLANNING THE EXECUTION o Communicate the strategy to employees and stakeholders. o Translate the strategic plan into concrete objectives, tasks, activities and responsibilities. o Translate the strategic plan into annual plans for each organization unit. o Support organization unit heads in drawing up annual plans that outline how their department will contribute to the strategy. o Ensure that the annual organization unit plans are aligned to the strategy and do not conflict with each other. o Coordinate with finance and HR to ensure sufficient budget and resources for the execution of the strategy. AN INTEGRAL APPROACH TO STRATEGY DESIGIN, STRATEGY EXECUTION AND STRATEGY CONTROL
  • 10. BUILDING THE STRATEGY MANAGEMENT OFFICE | STRATAEGOS CONSULTING 10 STAP 4 – MONITORING THE EXECUTION o Monitor the execution of the strategic plan and annual organization unit plans. o Provide periodic status reports to senior management and middle management about the progress of the strategy and its execution. o Organize three types of management control meetings: • Strategy review meetings in which top management discuss the progress of the strategic plan and its execution. • Execution review meetings in which top management discuss the progress of the annual plan and its execution with the responsible middle manager. • Operational review meetings in which middle management discuss the progress of the annual plan and its execution with team members. AN INTEGRAL APPROACH TO STRATEGY DESIGIN, STRATEGY EXECUTION AND STRATEGY CONTROL
  • 11. BUILDING THE STRATEGY MANAGEMENT OFFICE | STRATAEGOS CONSULTING 11 STAP 5 – CONTROLLING THE EXECUTION o The strategy management office supports top management in decision-making about the strategy and its execution. o The strategy management office organizes periodic strategy review meetings in which top management makes decisions about the strategy and its execution. o When objectives are not being met the office assessed whether is because of a flawed strategy or poor execution. o When the hypothesis of the strategy are no longer valid the office proposes changes to the strategy or a completely new strategy. AN INTEGRAL APPROACH TO STRATEGY DESIGIN, STRATEGY EXECUTION AND STRATEGY CONTROL
  • 12. BUILDING THE STRATEGY MANAGEMENT OFFICE | STRATAEGOS CONSULTING 12 DR. ARNOUD VAN DER MAAS o Dr. Arnoud van der Maas is a strategy consultant and author in strategy execution. o International expert in strategy execution. o Founder of Strataegos Consulting – specialized in strategy consultancy and research. o Received a PhD in Strategic Management from Rotterdam School of Management, Erasmus University. DR. ARNOUD VAN DER MAAS STRATEGY EXECUTION EXPERT STRATEGY EXPERT AND OWNER OF STRATAEGOS CONSULTING
  • 13. BUILDING THE STRATEGY MANAGEMENT OFFICE | STRATAEGOS CONSULTING 13 STRATAEGOS SOCIAL MEDIA CONNECT WITH US ON SOCIAL MEDIA LINKEDIN 3K+ CONNECTIONS Connect with us on LinkedIn for leading edge articles, posts and updates on Strategy & execution. TWITTER 300+ FOLLOWERS Follow us on Twitter for news, articles, posts and updates on Strategy & Execution. SLIDESHARE 28+ PRESENTATIONS Follow us on SlideShare, for presentations, articles and PhD thesis on Strategy & Execution.
  • 14. CONNECT WITH US FOR LEADING EDGE KNOWLEDGE ON STRATEGY & EXECUTION arnoudvandermaas Connect with us for posts on strategy & execution. /arnoudvandermaas Follow us for presentations on strategy & execution. /arnoudvdmaas Follow us for blogs on strategy & execution. arnoudvandermaas Connect with us to discuss strategy & execution. S
  • 15. CONTACT US COMMENTS OR QUESTIONS? info@strataegos.com Mail us with every question about strategy & execution. +31 6 4222 8093 Call us for advice about strategy & execution. www.strataegos.com Visit us for presentations and articles on strategy & execution. /arnoudvandermaas Connect with us for blogs on strategy & execution.