|
Page 8 of 9
To measure is to know. Throughout the processes of strategy translation, -planning, -implementation, and -delivery the established performance indicators need to be checked regularly. If and when indicators are outside set tolerance(s) adjustments will have to be made in either one or a combination of the four strategy processes.
Every organization shall have to determine the frequency - strategy heartbeat - of applying the strategy monitoring processes. When doing so organizations need to make a distinction between the strategy processes.
In an annual budget driven organization the choice could be made to apply the strategy monitoring process as follows:
Strategy Formulation:
|
once a year |
Strategy Translation:
|
twice a year
|
Strategy Realization:
|
Six times a year
|
|
|
The FTR Framework contains a control cycle with five functions: one for checking and four for adjusting. Every time (according to the established frequency) the indicators are checked and based on the level and type of discrepancies, there is the choice to apply one of the following adjustment functions:
 Option 1: To be used when it is expected that the discrepancies can be fixed by adjusting the way the programs and projects are run and / or the way the delivery is done. Are they still managed the right way?
Option 2: To be used when it is expected that the discrepancies can be fixed by adjusting the composition of the portfolio. Are the programs and projects still the right ones to do?
Option 3: To be used when the discrepancies are caused by using wrong indicators and or criteria. Did we translate the strategy the right way?
Option 4: To be used when it is expected that the discrepancies can only be adjusted by adjusting the strategy. Is what we want still the right thing to achieve?
|
