The SFO Diagnosis is composed of questions like:
• Are strategic issues considered as urgent matters in the organization?
• Does the strategy permeate all organization levels?
• Are we sure of our strategic choices vis-à-vis the competition?
• Is our strategy well translated into operational terms?
• Is the strategy implementation monitored through performance indicators and concrete targets?
• Are our business and support units aligned with the strategic plan?
Therefore, the purpose of the SFO Diagnosis is to provide feedback on how focused the organization is on its strategy. The criteria used in the SFO diagnosis are based on the experience of organizations that succeeded in implementing their strategy and describe what works best when establishing a strategy management system which drives organizations toward intended results.
A good diagnosis tool does more than saying where the company stands today; it helps organizations to focus on what is necessary to become more competitive and to achieve higher performance levels.
The regular use of the SFO generates a consistent procedure to ensure progress. But it can do more: it can detect problems at early stages facilitating faster adjustments and by comparing the results achieved and the targets established, it can motivate people become to work more efficiently.
The strategy management process integrates the strategic planning process (formulation-focused) and the BSC strategic execution (implementation-focused). This integration can be made either by formulating strategy with the BSC methodology principles, or by adopting the BSC for perfecting the strategic planning process as long as they are apporached as parts of the same process.
The strategy management process is inherently cyclical and integrated from its formulation and planning to management and learning, including also business units strategy planning as well as financial and human capital planning. Processes that are not integrated may result in bad strategy execution, as shown next.
SETTING UP STRATEGY REVIEW MEETINGS
Once it has been made clear that strategy is not static, it is essential to prepare the organization to review it frequently and whenever results are far from the established targets. Forums addressing the issue systematically provide executives with a more in-depth analysis and stronger basis for making decisions in line with the strategy.
Our approach proposes a unique model for strategy management, through which companies hold strategy review meetings in two circuits: one for monitoring and controlling and the other for learning. The former is intended to detect and repair errors and the latter, in addition to detecting and correcting errors, it questions and changes its causes.
Integrating the strategy planning and implementation processes requires:
- the organization’s special view of the Strategy;
- the definition of the required competencies for the processes integration;
- the assignment of roles and accountability to the strategy professional;
- the choice of who this professional must report to and
- the definition of the interfaces with other functions.
Destas reflexões que surge o SMO, com objetivo principal de fazer da gestão da estratégia uma competência essencial.
By ensuring these requirements are fulfilled, the SMO reaches its major objective which is to make strategy a core competence.
WHY USING IT?
O SMO - STRATEGY MANAGEMENT OFFICE(R)