Building a Performance Based Strategy

January 16th, 2011

Tags: performance measurement, performance based strategy

To begin some definitions are required so we are all on the same page.  The definitions that support our premise are the following.

Objectives = Things and Activities that you do

Goals = Milestones and Business Metrics that can be Measured

The objectives, which are the things you want to accomplish in the coming year, lead to the goals you are trying to achieve which are measured by milestone attainment and business metrics.  To achieve the objectives and the goals requires a strategy for the business.

The strategy is the focus for each individual business leader within the organization.  You must ask yourselves what are the strategic components that each business leader is responsible for and which are collaborative, or co-owned.  Your leadership team also needs to look at the tactical aspects that are required to deliver the strategy, the objectives, and the goal attainment.

The tactical activities become the business plan that drives the strategy which focuses all the business leaders on the objectives to accomplish which are measured by the goal attainment.

Steps for Building the Performance Based Strategy

  • Review the past year’s Business Results
  • Conduct a Brainstorm session on Objectives for the coming year
  • Brainstorm the business metrics and the goals to achieve for the those metrics
  • Develop the strategy for the business to achieve the objectives and meet or exceed the goals
  • Define the tactical and strategic activities that are required to fulfill the objectives
  • Assign responsibilities for tactical and strategic activities to specific business processes
  • Build your operating plan for the coming year

Your operating plan is now tied to your performance based strategy.  Complete your objectives, achieve your goals, and the strategy is fulfilled.

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