Results don't just happen...they're planned for!
Strategic planning is the process of devising a plan of offensive and defensive actions intended to maintain and build competitive advantage over the competition. For strategy to be successfully implemented, it must be linked and aligned to all aspects of operations through a method that addresses risks, manages financial constraints and adheres to an ever increasingly complex maze of legal and regulatory requirements. Regardless of your organization’s size, industry or business model - strategic planning and well-executed implementation play critical roles in establishing and maintaining long-term growth and profitability
At FMA, our Plan4 Results™ approach enables managers to focus on precise and fully customized strategic plans, while minimizing the potential impact of threats.
MAP THE STRATEGY
An organization must clearly map mission, vision, and strategy in order to determine what they want to accomplish. A strategy map is a one-page illustration that shows what the organization hopes to accomplish in terms of the customer, financial, and societal goals, and how it will achieve desired results using processes and resources. A strategy map should include the following perspectives:
Since the strategy map describes initiatives the firm must successfully complete in order to achieve the best possible outcome for shareholders and stakeholders, it can be used to identify potential risks. Categories of risks that should be assessed include:
Risks should be ranked based on financial impact and likelihood of occurrence. This assessment will place risk events in one of four risk response categories:
DESIGN A RISK-BASED MANAGEMENT CONTROL SYSTEM
Organizations should employ a comprehensive framework to enhance the execution of strategies. Based on Simons’ (2000) “Lever of control” framework, five controls should be engaged to manage risk:
Management should regularly monitor the risks listed above to ensure that the management control system is working, as well as the appropriateness of the organization’s strategy.
Strategic execution capabilities will be improved by integrating strategy mapping with control, compliance, and risk management activities. A risk-based control system enhances management’s ability to properly manage risks, threats, and opportunities in order to achieve the organization’s strategic plan.
To learn more, access our calendar and request a meeting or schedule a free phone consult to briefly review our capabilities and how they might align with your core business needs:
For additional information, download our Company Brief