Whether you are a CEO, CFO, business unit manager, or entrepreneurs, you know that execution is the key to a successful strategy. Viable business strategies fail because they are not properly managed. Yet because of the complexity of today’s organizations, rapidly changing market conditions, and the overwhelming amount of available operational data, managing the on-going execution and assessment of a business strategy is daunting. In fact, it requires the use of a strategy execution management methodology that is practical, easy to implement, easy to use, and tied to your business reality. Our methodology was designed to meet these needs.
Elements of Strategy Management
The VECKER Institute has identified five key elements of strategy management:
1. Goals – what you want to achieve from successfully implementing your strategies, and assessments of progress toward meeting each goal
2. Numbers – quantitative measurements of resources invested, operating performance, and returns
3. Risks – assessments of the significance of the internal and external uncertainties your business faces
4. Operations – qualitative assessments of strategic performance, asset management, and business processes and functions
5. People – assessments of the performance of employees, partners, suppliers, and advisors by role and in terms of how they work together
In the strategic planning process, the components of each element are set out. Every month, each component is looked at and scored in a structured, consistent, and logical way. The scores show how well each element is performing and indicate where you need to pay attention and take action to stay on target to meet your goals.
The VECKER Institute has written white papers that explain these elements and the strategy management process in greater detail. To read the white papers, click here: Getting the Most Out of Our Methodology
Performance Scores
Each of the components of the five key elements is scored on a scale of:
+1, indicating goals met, or good performance
0, indicating goals almost met, or somewhat satisfactory performance
-1, indicating goals not met, or poor performance
The scores from all components are weighted and summed to create an overall score for that element. The overall score tells you how well your company is doing with this element.
The scores from the five elements are weighted and summed to create a total score of company performance for the period, called the VECKER score.
Overtime, the scores are plotted to form the VECKER Plot, which shows the trend of your total business performance.
