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Effective Strategy Execution

The 2nd edition of "Effective Strategy Execution" is published by Springer. The new, updated edition includes the results of the survey, showing the level of adoption of the concepts contained in the book. An additional chapter on decision making in organizations complements the book now. The book website allows to preview content from the book.

Turbulent markets often require strategy adjustments and a prompt execution. Why do so many companies fail to execute their strategy and how can management increase their chance for business success? The book presents the three main barriers to strategy execution (strategy barrier, management barrier and IT barrier) and solutions how to overcome these obstacles to improve the effectiveness of the organization.

Effective Strategy ExecutionThe new tools and concepts presented in the book include the Value ScorecardTM to define the objectives on all levels of the organization. The Value Scorecard has the advantage to fit for-profit companies and non-profit organizations equally well. Once the goals are defined, how do you get everyone in the organization to pull in the same direction? The author describes his philosophy of MBO 2.0TM (Management by Objectives 2.0), an approach suited to create alignment and foster self-control. Communication is one of the key components of the alignment process and clearly best-practices information technology solutions should complement the conventional communication channels. To make sure that IT is only used where and when it adds value to the organization, causing more benefit than cost, the author reflects business needs first and derives what kind of business intelligence infrastructure is required. The World of Strategic Business IntelligenceTM is the model used to link the business perspective with the IT perspective. All these elements are combined in the Strategic Alignment ProcessTM to enable an effective strategy execution.

In a complex world management needs to remain in control and have visibility of all relevant facts ideally with zero latency. Would managers not like to have the same level of control over their business as they have over their TV using a remote control? For this purpose the author created the first ever Strategic Alignment Remote ControlTM.

The Strategic Alignment Remote Control provides access to the most relevant information just in time using alerts, dashboards, broadcasting and other convenient ways to address different information needs. This way management can focus their attention on the most critical issues and the most promising opportunities.

Many examples from leading private and public sector organizations operating in many different countries and industries supplement this book and make it a must read for anyone responsible for strategy execution. Seven international Case Studies from Daimler, Tetra-Pak, Würth, Germany's Federal Employment Agency, City of Aix-Les-Bains, Giesecke & Devrient and Midwest Bell show how the organizational performance can be improved. Additional examples from organizations like Disney, Marriott, Volkswagen, Avis, FedEx, and Harrahs help to demonstrate how the application of the introduced concepts adds unique value.

Participate in the free Big Data and Strategy Execution Effectiveness Survey, which allows you to measure and compare your organization's level of performance.

What is the value of new ideas and methods if they are not applicable? The case studies, which are included in this book, demonstrate how the effectiveness of strategy execution can be impacted by the introduction of measurement systems and business intelligence. The described organizations span four continents and reflect organizations of different sizes and industries.

The following case studies are included in the book:

        • Implementing a Balanced Scorecard to improve the performance of public administration: The case of the city Aix les Bains and its social cohesion policy
        • Improvement in After Sales Support via Remote-Service at Daimler AG
        • How Business Intelligence is leveraged at the Federal Employment Agency of Germany to increase the effectiveness of activities to prevent and reduce the duration of unemployment
        • Development of an operational reporting platform at Giesecke & Devrient to enable quicker, better-informed decision making
        • Midwest Bell's execution of a hidden strategy causing conflict of interest and resistance
        • Tetra Pak's journey to Business Intelligence maturity
        • Improving Strategic Alignment with CRM and Analytics at Würth: Excellence in Sales

The eBook of the second edition is well received, more than 4.000 chapter downloads in the first 18 months. Click on the picture to view the current statistic.

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Book recommendation:

The two-second advantage

Vivek Ranadive & Kevin Maney are convinced that in turbulent times it is not only critical to make the right decisions and execute them but time is of the essence. They use the ice hockey legend Wayne Gretzky as an example: "Like Gretzky on ice, the most successful people in various fields make continual, accurate predictions just a little ahead of and a little better than everyone else. It is the one common denominator of almost all consistent success. Talented people don't need to have a vision of the future ten years out or even ten days out. They need a highly probable prediction just far enough ahead to see an opening or opportunity an instant before the competition. That's true for athletes, artists, businesspeople, or anyone in any field" (p. 6). These concepts apply anywhere: "The salesman who sells more than anybody else had developed a talent for anticipating people's reactions to his pitches, allowing him to steer the conversation before it gets off course. The teacher who seems to get the most out of her students with the least effort has developed predictive models in her head for how kids behave and respond to certain teaching methods" (p. 8).

Predictive analytics (Business Intelligence) allows Sam's Club to know what its members are going to want to buy when they walk into the store (p. 11).

The problem is often not only the availability of information. There is an abundance of information. "As it turns out, getting just a little bit of the right information just ahead of when it's needed is a lot more valuable than all the information in the world a month or a day later"... "using an efficient 'mental model' to get a little ahead of events and make instant judgments about what to do next" is key to anticipate customer needs or avoid carrying too much or too little of a product (p. 12).

Even with computers getting more powerful every year, business can't search all its data each time it needs an answer (p. 14). Designing and implementing a business intelligence framework to support the unique "mental model" of the organization is what successful organizations need to work on to be at least two seconds quicker than their competition...