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Value Based Management (VBM)

 

The strategic management process is designed to enable managers to align their business practices with the vision, mission and values of the company. Most companies are normally very good at strategizing and structuring, but many fail when it comes to implementation. It is this lack of efficient implementation that stands in the way of long-term success.   The CRG strategic management approach is not only aimed at the executive level during formulation of the company's competitive strategy, but also focuses on how to successfully implement the strategy through the participation of the workforce. This is done through workshops at executive and middle management levels and through personal interaction and training with managers and employees at all levels.  

The Approach

 

 

The CRG Strategic Management Services process has three stages, covering the current situation, the future and bridging the gap. 

1.  The Current Situation


An analysis of the company's leadership and the business environment, both internal and external, is completed. The main objective of this exercise is to answer the question: What do we look like now?  Knowing what the company and the external environment looks like provides management with the ability to identify opportunities and threats which the company can then explore or guard against. Identification of the company's internal strengths and weaknesses will allow management to improve where needed, using the strengths to overcome weaknesses and threats and to assist in successfully exploiting business opportunities.   During this phase, results of customer, employee, competitive and environmental surveys are used as input. 

2.  The Future

It is important for a company to know where it wants to go and what it wants to achieve. Developing a vision, mission and establishing a value system for a company gives the company that direction.

  

Although this process starts with the Executive team, the CRG approach ensures that a shared vision is created as the process involves all levels of the organization. This will ensure buy-in and the focus needed for the implementation of the strategy.

  

3.  Bridging the Gap

  

You know where you are. You know where you want to go. In order to bridge the two, a gap analysis is conducted to determine what has to be done to realize the future. Based on the result of the gap analysis, a core strategy and well-defined goals are formulized. These are company specific and indicate how the future is going to be realized, preparing the company to successfully execute their strategy. This phase is essential for the successful implementation of the company's performance management system as it is the cornerstone for the development and implementation of a Balanced Scorecard.

  

The executive management team is responsible for creating the context within which transformation can successfully take place. It is however the responsibility of middle managers, supervisors and employees to implement the strategy. The important question that the executive team must answer is "How do we take the rest along with us?"

  Our participative approach to strategic management ensures that the results of the executive session are transferred to the next level of the organization. The strategic objectives are transferred into practical managerial and operational objectives.  CRG assists clients based on the results of the strategic management process to develop a comprehensive Balanced Scorecard for strategic, managerial and operational decision making and action. The results can be captured and reported through Enterprise Scorecard.

 

 Implementation can now start based on firm support of all stakeholders. The Balanced Scorecard will ensure that any initiative started will be in line with the company's strategy. The measures will cover the achievement of both short and long-term objectives and it will be relatively easy to determine the incentives that are needed for attaining the strategic objectives.

 
1 Value Based Management