Achieving organizational goals: conditions, strategies and methods. Main directions for achieving strategic goals

To implement the management function, both tactical and strategic, control is necessary “by definition.” But at the same time, there is also the eternal problem of the manager: what and how should be controlled?

For any project (and strategy implementation may well be considered a large, long-term project), the performance indicators that will be used for monitoring must be clearly defined, as well as how these indicators can be calculated from the basic available data.

Financial indicators themselves cannot correctly and objectively characterize the entire set of actions necessary to implement the strategy.

Alone financial indicators today it is no longer enough to describe the process of increasing the shareholder value of an enterprise, since the importance of intangible assets increases. A system is needed that includes both financial and non-financial indicators that clearly shows how “customer value” is created. These indicators should be systematized, preferably based on the enterprise strategy. The entire business management system must be built in accordance with a new set of indicators and new ways of measuring them. Only this can ensure the “strategic direction” of the entire set of actions of the enterprise’s employees.

Organizations may have hundreds or even thousands of variables that are vital to success, but none of them can be a complete measure of their strategic success. Some of these variables may be key success factors. Their very definition often only indicates that certain actions are under control. But the idea of defining KPI suggests that on their basis it is possible to develop key performance indicators of the organization (KPI).

Through the selection of key performance indicators, the company receives a balanced picture of the totality of short- and medium-term goals, financial and non-financial performance indicators, indicators for assessing leadership or lag, as well as its external and internal prospects. Such a system is known as BSC. It is assumed that the main task of the BSC is to increase the shareholder value of the company.

BSCb is more focused on clearly identifying where revenue growth comes from, which customers are driving it, and why. BSC identifies those key business processes that an enterprise should focus on improving in order to best satisfy the customer. To do this you need:

clarify cause-and-effect relationships between financial, market, production and innovation perspectives;
identify factors that provide long-term competitive advantages;
divide the main strategy into separate tactical components and identify goals that do not require regular review;
ensure alignment of business unit strategies;
compare global goals with the current tasks of each employee;
identify ineffective links, use limited resources with maximum efficiency and facilitate the implementation of enterprise transformation programs;
disclose the main causes of losses and damages;
identify supply chain problems;
update corporate strategy as appropriate prerequisites arise.

It is suggested that when starting to develop a BSC system, managers should pay close attention to four “foci”:

How will the company's strategy affect the achievement of strategic goals? (Financial point of view.)
How do we position ourselves target markets? (Client's point of view.)
What processes are strategically important? (Process point of view.)
Which core competencies will help us achieve our strategic goals? (Learning and development perspective.)

In the “cut” of the points of view defined above, managers must identify the main cause-and-effect relationships between the main goals and subgoals of the strategy. In effect, this cause-and-effect chain describes how desired goals can be achieved in various “foci.”

For example, it is understood that improvements in the focus of training and development have a direct and positive impact on the improvement of internal processes. Process development, in turn, has a positive impact on customer satisfaction. All this ultimately helps to improve the company's financial position and increase its shareholder value.

The purpose of this procedure is to achieve an understanding of the balance (interdependence) between direct indicators and indirect indicators - symptoms.

Despite the apparent complexity of developing such a system, 10-12 weeks are usually enough, and three days may be enough for the top management team (provided that they meet on this topic once a month, and work on it in between meetings project team). However, implementation may take an indefinite amount of time if the organization has not fully decided on its strategy.

Consultants cannot work for the project team - they can only provide support and support for changes.

You can start with relatively simple programs. For example, the largest corporation "Mobil" used the usual spreadsheet editor "Excel", creating 33 accounting books in it according to the number of its business units. As the system matures and the work with it becomes more complex, you can use specialized software. But it is still more reasonable to always be guided by the principle of the slide rule - it is better to get an approximate, but correct answer than, accurate to the sixth digit, but incorrect.

Strategic goals are a system of main guidelines for the long-term development of an enterprise, in accordance with which it is developed financial strategy and policy is formed on the main aspects financial activities.

Strategic goals - definitions in general view what the organization wants to become in the future; relate more to the organization as a whole than to its specific branches and divisions.

Strategic goals are often referred to as formal goals because they define the intentions that the organization seeks to achieve in the future.

The main strategic goal of the financial activity of an enterprise is to maximize its market value. The strategic goals of this activity may also include: increasing growth rates equity; optimization of the capital structure from the standpoint of an acceptable level of risk; achieving and maintaining financial balance; increasing the return on equity ratio and others.

Indicators of achievement of strategic goals: market share, company capitalization, growth rates.

67. Concept of balanced indicators and key performance indicators KPI
Balanced Scorecard or BSC - the concept of transferring and decomposing strategic goals for planning operational activities and monitoring their achievement, a mechanism for interconnecting strategic plans and decisions with daily tasks, a way to direct the activities of the entire company to achieve them.

The BSC concept supports strategic planning, implementation and further adjustment of the strategy by combining the efforts of all departments of the enterprise.

The strategic map and BSC necessarily define the responsibility of departments and employees for achieving goals and indicators.

The BSC methodology allows you to transfer strategy to the level of the company's operational activities. Correct Application methodology allows you to solve the following problems: 1. Establishment of specific parameters of strategic goals: strategic indicators with their numerical values - KPI (key performance indicators), cause-and-effect relationships between goals, connections between strategic indicators, deadlines for achieving strategic goals; 2. Distribution between officials company responsibility for achieving strategic goals; 3.
The development of the BSC begins with the creation of a strategic map. The strategic map reflects the cause-and-effect relationships between the most important tasks necessary to achieve the target result. The target result is determined from several perspectives: finance, clients, business processes, personnel development. For each task included in the strategic map, its own key indicators are determined that will measure the effectiveness of solving this task.

BSC has a number of advantages: - provides the management of the enterprise with a complete picture of the business; - allows you to prevent the occurrence of critical situations; - facilitates interaction at all organizational levels and provides an understanding of strategic goals to all participants production process; - provides strategic feedback and training; - helps to transform a huge amount of data received from a variety of enterprise information systems into information that is understandable.

Disadvantages of BSC: 1) BSC cannot be adapted to any conditions. 2) When implementing the company’s business strategy and developing the BSC, you must be careful to preserve information security company and data privacy. This is due to the fact that in order for employees to understand the company’s strategy, their awareness of all the company’s indicators and internal motivation, all the mechanisms of the company’s work should be disclosed to them. In this case, there is a risk of information leakage.

Key performance indicators Key Performance Indicators, KPIs) - performance indicators of a unit (enterprise) that help the organization achieve strategic and tactical goals. The use of key performance indicators gives an organization the opportunity to assess its health and help evaluate the implementation of its strategy.

When considering inclusion in standard map management level, the corporate vision is usually formed, with indicators being checked against each of the following criteria, listed in descending order of priority: the indicator reflects a key aspect economic activity companies; indicator plays a significant role in the adoption management decisions; the indicator is “manageable”; the indicator has a potential stable cause-and-effect relationship with other indicators; the indicator is easy to calculate and collect primary reporting information; indicator has economic sense when consolidating at higher levels of responsibility.

The achievement of strategic results is taken into account. The number of such results should not be large (3-7). Each of these should be measured quantitatively or in terms of “degree of improvement” on an appropriate scale (% or points). For example, according to the strategic goal “Increasing competitiveness”, the company entered the group of 5 leading companies in this market segment. The strategic goal “Sustainability of Development” describes the sales growth rate, financial stability, increasing economic and financial potential and other indicators.

2. Synergy of strategic results. This assessment takes into account the impact of the strategy on other elements of the system and subsystems of the organization in which it is implemented, and on other systems with which it interacts. Important components Synergies are economic results without the appearance of additional economic effects. For example, when implementing a development strategy, the company acquired a food production enterprise. As a result of the implementation of the differentiation strategy, a number of synergistic effects emerged. So, trademark The company received additional support through the sale of food products. Local authorities, due to the fact that new jobs were created in the region, provided support in the form of preferential taxation. A trucking freight company has reduced transportation rates for the company due to the fact that the total volume of transportation orders has increased. On the vacant premises of the acquired company, the opportunity arose to build a packaging production workshop. The company also took ownership of the plant's office, located in the city center, which made it possible to move the company's main office there and increased its prestige. An economic assessment of all components of the synergistic effect and comparing them with costs showed the high effectiveness of the strategy.

3. Economic results. The main economic results of the strategy are assessed - income from sales and other activities, profit, business value, earnings per share, costs, payback periods for investment projects that ensure the implementation of the strategy and other indicators.

Economic calculations are central to justifying the effectiveness of the strategy. However, often assessing the effectiveness of a strategy is reduced to just cost calculations and characterization of several of its indicators. To justify economic feasibility strategic costs, it is necessary to determine all the elements of the economic effect, calculate the timing of their occurrence, and take into account the synergy effect. Assess cost-effectiveness.

The most important characteristic economic results of the strategy is net profit from its implementation by years and periods of its development. The calculation is made by calculating for each year and by period the difference between income and expenses, taking into account the payment of taxes:

The main criterion that comprehensively evaluates the economic results of the strategy is full economic result of the strategy (PER). This criterion is measured in monetary units and shows the full real economic contribution strategies for the development of the economy of the company, other organizations, territories, taking into account the synergistic effect.

4. Social results of the strategy. They characterize the influence of strategy on the social progress of the company, the region in which it is located, and society as a whole.

Economic growth without social progress is today considered unacceptable in civilized business. Abroad, such companies are sharply criticized, lose clientele and are forced to leave the market.

Today, many firms trying to gain a position in global markets fail to succeed because they neglect social and environmental factors. Modern clients prefer companies that conduct a balanced social policy development, affecting not only the economic results and sustainability of the company, but also improving the working conditions of personnel, improving environmental performance, developing organizational culture, supporting the territories in which it operates.

Companies that strive only for economic results show the selfishness of the owners, uncertainty about the future and arouse the hostility of a significant part of consumers.

5. Environmental results characterize most important requirements to ensure environmental protection. The modern economy is becoming increasingly dependent on environmental standards and restrictions and is environmentally oriented. In industrialized countries and gradually throughout the world, strict standards are being introduced that limit the possibilities of uncontrolled development of production. The role of environmental components, including resource saving, is growing sharply. Already today in the world there is an acute shortage of such resources as pure water, energy and a range of natural resources. This deficit is getting worse every year. The competitiveness of companies is increasingly determined by their ability to develop and implement clean, resource- and energy-saving technologies. The development and implementation of “clean” technologies requires additional investment. Indicators of environmental results are reducing the level of environmental pollution, restoring the biosphere, and saving scarce resources.

6. Hazard reduction emergency situations and preventing damage. The rapid growth of production capacity, the development of complex technologies and energy consumption are accompanied by the danger of emergencies of a man-made nature, which represent major accidents, fires, industrial accidents that can cause irreversible changes in environment, lead to mass death of people, destruction of flora and fauna. The influence of the strategy on reducing the risk of emergency situations is the most important component of the socio-economic effect.

7. Risks. Risk is characterized by the likelihood of adverse events occurring. Assessing the risk of a strategy is essential for making strategic decisions. If the risk level is higher than the maximum acceptable for the strategy being developed, the question of abandoning it is raised. The more reliable the project planning, the higher and more accurate the assessment of its risks should be.

To assess risks, it is advisable to use sensitivity analysis methods that involve assessing changes in the economic results of strategies and risks depending on changes in external and internal conditions. It is important to take into account all possible and most probable changes in the environment that affect the decline in economic results and the efficiency of the company. Risks can change dramatically at different stages of strategy development (short-term, medium-term, long-term). If it is impossible to quantify the risks, then you can use a scale rating:

a) the event is impossible;

The balanced scorecard improves the management system by bringing the behavior of a particular employee in line with the objectives set by the company's management. It links the existing customer base, internal processes, employees and systematic activities aimed at long-term financial success. One of the objectives of the balanced scorecard is to translate the company's overall strategy into a system of clearly defined goals and objectives, as well as indicators that determine the degree of their achievement, within the framework of four main components: finance, customers, internal business processes, learning and growth.

A balanced scorecard is a mechanism for transforming a company's strategy into a sequence of actions aimed at achieving set goals, and at all levels of company management. It improves the management system by bringing the behavior of a particular employee in line with the tasks set by the company's management. The balanced scorecard highlights more important and integrated sets of indicators that link the existing customer base, internal processes, employees and systematic activities aimed at long-term financial success.

One of the objectives of the balanced scorecard is to translate the company's mission and overall strategy into a system of clearly defined goals and objectives, as well as indicators that determine the degree of their achievement, within the framework of the four main components of finance, customers, internal business processes, learning and growth. Using these components of the balanced scorecard, managers can answer the following basic questions:

What kind of company does it present to its shareholders and potential investors? (Financial component.)
What kind of company does it present itself to its customers? (Client component.)
Which business processes should the company improve, which ones to abandon, which ones to focus on? (Component of business processes.)
Can the company continue to develop, improve efficiency and increase its value? (Learning and development component.)

Examples of strategic goals

Let's look at examples of strategic goals within the four main components of the balanced scorecard: finance, customers, processes and development.

Finance is one of the key components of the balanced scorecard. In general, it covers growth and performance strategies. IN non-profit organizations this high-level component is often replaced by the mission component. In any case, in all organizations, it shows how the company expects to benefit its founders (i.e. increase market value enterprises) - whether shareholders, management or customers. Examples of such goals include:

profit growth;
increase in net cash flow;
increasing product profitability;
minimizing production costs;
achieving industry leadership in sales volume per employee;
increasing return on equity.

Typically, financial goals are at the top of the organizational goal tree, but there is a very close relationship with the goals of customers, internal processes and organizational growth. In order to determine the company’s strategic goals in the financial component, the following questions should be answered:

What are our financial goals in relation to the proposed vision?
What are the strategic intentions of the company's owners?
What role does the company play for shareholders?
What are the shareholders/owners going to do with the company in the future?
What can be done to increase the company's income?
What new products can be created to increase revenue?
How to provide customers with additional value on existing products/customers?
Is it possible to create new products?
Can new uses for the products be found?
Can new customers and markets be found?
Is it possible to make new connections?
Can new combinations of products and services be created that provide value to customers?
Is it possible to create a new pricing policy?
How can you improve the efficiency of your company?
How can you optimize your cost structure?
Is it possible to improve productivity in increasing income?
Is it possible to reduce production costs?
Can the combination of distribution channels be improved?
Is it possible to reduce operating costs?
How can you increase the efficiency (return) from the use of assets?
Is it possible to shorten the money-money cycle?

The second level is the client component. It shows how the organization strives to appear in the eyes of customers, i.e., it reflects the company's competitive offer. This component is critical to the overall strategy of the organization because it clearly determines the choice of market position and the key customers it targets. Examples of goals include:

increase customer satisfaction;
minimize the number of lost clients;
increase the profitability of transactions with clients;
expand your customer base;
to be recognized as a market leader in new types of products;
achieve a certain market share in target segments.

As part of the development of the client component, it is necessary to identify key market segments where the company intends to focus its efforts to promote and sell its products. The set of relevant indicators necessarily includes indicators that determine the value of the company for customers (everything that ensures customer loyalty). It should be noted that identifying the main criteria for the value of an offer for a client or buyer is a very difficult task, requiring a thorough analysis of the client’s needs. For example, value for the client may be Fast shipping and the speed of response to the received order, and accordingly, indicators characterizing the achievement of these goals may be order processing time and average speed delivery in hours.

Interviewing senior and middle managers using the following questionnaire can help in determining the strategic goals of the client component:

What customer performance metrics do we need to excel at to achieve our desired financial metrics?
How can you increase your market share?
How to retain old clients?
How to acquire new clients?
Is it possible to satisfy the consumer?
Profitability of transactions with clients.
Which of the following factors will play a significant role for the company's customers: properties of products/services: price, quality, lead time or delivery; functionality; customer relations: services, relationship intimacy; image, brand?
What is the best strategy for working with clients: product leadership, improving customer relationships, effective execution?
How will your products/services differ from competitors?

The third level is a component of internal business processes. Indicators at this level are largely determined by the client direction. This perspective identifies the key internal processes in which the organization must outperform its competitors in order to achieve the objective expressed in the competitive proposal. The projection of internal processes should not be strictly tied to existing structural units in the company (for example, the marketing department, finance department or distribution department), rather it should indicate how to organize the interaction of various departments in order to implement the strategy. Examples of such goals:

minimize product production cycle time;
minimize inventory levels;
reduce the number of equipment reconfigurations;
provide high quality in everything;
minimize product returns;
reduce the development time for new products.

The internal business processes component identifies the main operations that need to be improved and developed in order to strengthen competitive advantages. Its indicators characterize the processes that make the main contribution to achieving the intended financial results and customer satisfaction.

In order to determine the company’s strategic goals in the business process component, you can ask the following questions:

What internal processes must we excel at to satisfy our customers?
How can you use the synergies between departments?
Which of the following processes are the most significant for the company: customer knowledge (improving the process of managing customer relationships; efficiency of operations and logistics; product leadership, speed of introducing new products to the market, product novelty?

At the core of the overall strategy is a development, learning and growth component. This projection defines the main elements corporate culture, technologies and skills that are very important for the organization for the optimal execution of the target state of internal processes, and therefore strategy. An example of such goals:

to form highly qualified personnel;
minimize staff turnover.

The development perspective defines the infrastructure that an organization must build to ensure its growth and development in the long term. It is quite natural that ensuring long-term success and prosperity is hardly possible only with the help of technologies used at the moment. The growth and development of an organization is determined by three main factors: human resources, information systems and organizational procedures. To ensure its long-term presence in the market, a business must invest in employee training, information Technology, systems and procedures.

Other indicators of the learning and growth component may include:

employee satisfaction;
staff retention;
skills and qualifications of employees;
the ability to instantly obtain information necessary for making management decisions;
putting forward initiatives;
efficiency of the information system.

When choosing strategic goals for this component, we try to cover the following issues:

What needs to be done to develop internal resources to succeed in business processes?
What strategic competencies should the company develop?
What strategic technologies are you going to create?
How to create a climate in the team that will contribute to strategic changes in the company?
How to achieve employee satisfaction?
How to retain your staff?
Strategic planning

Lawyer, successful economist, professional investor and right hand billionaire Warren Buffett. Munger said that with the help of this network it is possible to analyze and even predict the outcome of events. That's why Buffett called him an ideal business partner.

These 16 mental models are used by many entrepreneurs, executives, and leaders.

Making decisions

1. Warren Buffett's Two List Strategy

Write down 25 of your goals. List your five most important goals in one. And put the remaining 20 in another and safely forget about it. This way you will prioritize and focus on what matters most. If desired, the first list can be reduced to three items.

2. Rule 10/10/10

Many of us feel guilty for making hasty decisions without thinking about the consequences. Therefore, the 10/10/10 rule involves answering three questions:

How do you feel about the decision taken after 10 minutes?
How will you feel in 10 months?
And in 10 years?

This way you will analyze the impact of the decision on your life. Perhaps you will realize that everything is not as scary as it seems.

3. Playing blind

When making a decision, you have incomplete information. Therefore, the outcome of the situation to some extent does not depend on you. But the decision-making process is completely in your power.

This can be compared to playing poker. If you lose, don't blame fate. Replay the situation and find out what the turning point was. If you realize your mistake, learn from it.

4. The correct point of view and disagreement with a single opinion

You may be right or you may be wrong. You can also follow or not follow the majority opinion. But everything depends on your point of view. If it is wrong, then you will not succeed in business by agreeing with conventional wisdom. Talk to someone who has an opposing point of view. This will increase the chances that you will make the right decision.

5. Rule of three

When you are trying to convince someone of something, always give three reasons why the person should do it. Exactly three. This way your arguments will be taken into account and will not be forgotten. And your speech will be structured and convincing.

Strategy

6. Protective ditch

In ancient times, the fortress was surrounded by a moat that protected it from enemies. Business can be compared to a fortress. The protective ditch is competitive advantage companies. In other words, a business is protected by its unique characteristics that distinguish it from the rest.

7. Network effect

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Network effect is the influence of the user or the company itself on the value of the product in the eyes of other people. The value of any product depends on the number of buyers. The network effect creates solid foundation for the development of the company.

8. Centralized, decentralized and distributed control

Decentralized and distributed control systems are characterized by the distribution of functions. This means that the decision is made by all participants in the system. Top management exercises minimal control and coordinates its actions with others.

IN centralized system there is a single control center that holds the entire process in its hands.

9. Game theory

Studies human behavior in strategic situations. They refer to situations where, when making a choice, a person considers the response of other people. Strategic thinking is useful not only in games, but also in business. In other words, game theory implies choosing a strategy that would minimize the opponent's advantages.

10. Economies of scale

Economies of scale enable rapid growth of a company without increasing the cost of costs. Examples of companies that use this mental model include Google, Facebook, and Twitter. The number of users of these networks is increasing, but companies are not spending extra money on it.

Leadership

11. Pyramid principle

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The principle consists of three key points:

Answer the question first.
Then formulate your arguments.
Finally, organize your ideas into a logical chain.

The pyramid principle works great when paired with rule of three. This will help you convince your interlocutor and successfully convey your point of view.

12. 99/50/1

The leader must be sure to communicate with his team of performers at these critical moments:

at the beginning of the project, when 99% of the work remains to be done;
in the middle of the journey, when 50% of the work is already done;
at the finish line, when only 1% of the work remains to be done.

This method will allow you to use your time efficiently and allow your team to create a worthwhile product.

13. Directly responsible person

The term appeared thanks to Apple. She places the name of the Directly Responsible Individual (DRI) next to each item on the agenda. Each employee is responsible for completing his or her task. This reduces the need for frequent meetings.

14. Team of teams

In a team of teams, all employees interact with each other. The decision is made collectively, since everyone is bound by a common goal.

15. Radical Candor

The key is the leader's ability to convey healthy criticism to employees. You shouldn’t evade, you need to politely and openly tell the truth. After all, the manager is interested in the growth and success of his team members.

16. Listen, decide, speak

This mental model belongs to an ex. to CEO Twitter to Dick Costolo. He argues that when making decisions, you need to act in this order.