CERTIFIED STRATEGY AND

BUSINESS PLANNING
PROFESSIONAL
Develop strategies to drive
business performance in a
turbulent environment
 VISION

Empower the world to achieve performance excellence

MISSION
Provide integrated performance solutions through rigorous research,
educational programs and advisory services

VALUES

Added value Best know-how Common sense Data and facts Efficiency

Offering more Through the Fairness, Expertise and Key principle for
through integration of modesty and opinions prioritization and
innovation and multidisciplinary friendship based on getting things
value for money global expertise specific data done

© The KPI Institute 2024. All rights reserved. 2

 “Empower the world to achieve performance excellence”

Year of
2004 establishment
250+ Research reports
published to date
20 Years spent on
researching KPI best
200+ Staff
members
practice
25,000+ Participants
trained
4 Australia 6
Offices Europe CONTINENTS
60 Countries where we delivered
educational programs On which we delivered
around the Middle East
world South-East Asia trainings
40 Global partner
organizations

+21,300 +69,000 +119,000 +2,000,000

KPI examples published Companies registered Members on our Professionals
online communities reached

© The KPI Institute 2024. All rights reserved.

 KEY RESOURCES

21,300+ KPIs, 16 functional areas, 25 industries

+ 200 Performance Management related

publications: KPI Dictionary Series, Top 25 KPIs,
primary research studies, ready to use
Performance Management Toolkits

One place to access your course materials and

the Certification Exam

2,000+ articles and 20+ subject matter

interviews

+ 800 products, ranging from publications to

scheduled training courses, eLearning, webinars,
even free reports and KPI related posters.

© The KPI Institute 2024. All rights reserved. 4

 PUBLICATIONS

TOP KPIs REPORTS 16 25

Fuel your professional growth with the best- Functional areas Industries
of-breed collection of knowledge resources
and stay abreast of the latest trends.

Integration
a collection of the most popular KPIs
Rigorous standards
thorough analysis of each KPI according to
smartKPIs.com documentation form and
standards
Support
a valuable baseline resource for informing
and addressing performance management
and measurement challenges

© The KPI Institute 2024. All rights reserved. 5

 PUBLICATIONS

RESEARCH STUDIES
Primary and secondary research studies revealing trends and practices in strategy and
performance management.

Discover the research publications here. Discover the index reports here.

© The KPI Institute 2024. All rights reserved. 6

 PUBLICATIONS

MAGAZINES
Best insights from articles and interviews with practitioners, industry news and much more
can be found in our quarterly editions of Performance Magazine.

Discover the latest magazine editions here.

© The KPI Institute 2024. All rights reserved. 7

 PROFESSIONAL CERTIFICATION PROGRAMS
Produced by: In Partnership with:

Certified Strategy and Business Planning Professional

Certified Agile Strategy Execution Professional

Certified Key Performance Indicators Professional
Certified Performance Management Professional
Certified Balanced Scorecard Management System Professional
Certified OKR Professional
Certified Employee Performance Professional
Certified Performance Management Systems Audit Professional
Certified Data Analysis Professional
Certified Data Visualization Professional
Certified Benchmarking Professional
Certified Innovation Professional
Access the 2024 training calendar here. Certified AI Enablement Professional

© The KPI Institute 2024. All rights reserved. 8

 EXECUTIVE PROGRAM IN STRATEGY &
PERFORMANCE

1. Postgraduate Diploma in Strategy & Performance

3 semesters (18 months) to cover 8 specialized courses and

develop a final practitioner portfolio (36 assignments).

• Certified Strategy and Business Planning Professional

• Certified KPI Professional
• Certified Performance Management Professional
• Certified Employee Performance Management
Professional
• Certified Agile Strategy Execution Professional
• Certified Performance Management System Audit
Professional
• +2 Elective Courses

Access the course presentation here.

© The KPI Institute 2024. All rights reserved. 9

 EXECUTIVE PROGRAM IN STRATEGY &
PERFORMANCE

2. Graduate Certificate in Strategy and Performance

2 semesters (12 months) to complete 4 specialized courses and develop a final

practitioner portfolio (20 assignments).

• Certified Strategy and Business Planning

Professional
• Certified KPI Professional
• Certified Performance Management
Professional
• Certified Agile Strategy Execution Professional

Access the course presentation here.

© The KPI Institute 2024. All rights reserved. 10

 COURSE
CERTIFIED
AGENDA STRATEGY AND BUSINESS PLANNING PROFESSIONAL

1 KEY CONCEPTS 6 CASE STUDY I

2 CORPORATE IDENTITY
7 VISION AND CHOICE OF A
GROWTH STRATEGY

3 CHOICE OF A COMPETITIVE 8 SMART OBJECTIVES AT

STRATEGY CORPORATE LEVEL

4 STRATEGIC INTERNAL
ENVIRONMENTAL
9 CASE STUDY II
SCANNING

5 STRATEGIC EXTERNAL 10 PLANNING AT

ENVIRONMENTAL SCANNING DEPARTMENTAL LEVEL

© The KPI Institute 2024. All rights reserved. 11

 LEARNING CERTIFIED
OBJECTIVES STRATEGY AND BUSINESS PLANNING PROFESSIONAL

Reflect on the best Build up a strategic

practices in the field, 1 mind-frame, based
3
through case studies on thoroughly
i
and debates explained concepts

2
Use strategy planning tools, in
individual and team exercises
© The KPI Institute 2024. All rights reserved. 12
 LEARNING CERTIFIED
ROADMAP STRATEGY AND BUSINESS PLANNING PROFESSIONAL

Recommended within 3 weeks after the core-course

Course Forum In-house Additional Learning

feedback discussions Webinar
presentation reading journal
AFTER- 11 12 13 15
14 16
COURSE

Certification Individual learning map and Participation to CORE-

Action COURSE
10 exam exam preparation course sessions
plan
9 8 7

Pre-requisite
6 reading
PRE-COURSE
Recommended 1 week before core-course

1 2 3 4 5

Needs Pre-course Guidance and Forum Expectations

assessment evaluation quiz schedule introduction

© The KPI Institute 2024. All rights reserved.

 LEARNING ROADMAP DETAILED

1. Pre-course stage activities 4 hours (estimation)

Activities Details Duration (h)

Complete a survey so that we can offer you a relevant
Needs assessment 0.5
and tailored learning experience
Pre-course evaluation Take a quiz to get an overview of the level of
0.5
quiz knowledge you have on the course topic
Introduce yourself on the forum and interact with the
Forum introduction 0.5
rest of participants from the course
Share your expectations regarding the training course
Expectations 0.5
on the forum
Go through a series of documents to better
Prerequisite reading 2
understand training content

© The KPI Institute 2024. All rights reserved. 14

 CERTIFICATION ROADMAP DETAILED

2. Core-course stage activities 24/28 hours (estimation)

Activities Details Duration (h)

Course Participation Attend and engage in the training activities 20/24*
After each course session, 0.5 hours should be
Individual Learning
allocated to review the materials to consolidate
Map and Exam 3
learning. Prior to the exam, it is recommended to make
preparation
one final course review.
Take and pass the exam which contains 75 multi-
Certification exam choice questions. The minimum score to pass the exam 1**
is 50 points out of 75.

* The course delivery can take 20 days for online classrooms (5 days of 4-hour sessions) or it can last for 3 days
(8 hours per day) in the case of a face-to-face class.
** The exam can be taken online or paper-based in the case of face-to-face deliveries.

© The KPI Institute 2024. All rights reserved. 15

 CERTIFICATION ROADMAP DETAILED

3. After-course stage activities 12 hours (estimation)

Duration
Activities Details
(hours)
Course feedback Complete the brief survey to share your course experience. 0.5
Create a plan for the improvement initiatives you would propose
Action plan 2
to the performance management system in your organization.
Forum Initiate at least one discussion and contribute to another
0.5
discussions discussion in the online forum.
Watch the webinar and share:
Webinar 2
• 3 key learning points
Submit a short PowerPoint presentation to showcase the most
Online
important takeaways from the training course (~30 slides). Use the 4.5
presentation
presentation to share knowledge in your organization.
Additional
Read supplementary resources for learning reinforcement. 2
reading
Reflect on each stage of the learning experience and capture the
Learning journal 0.5
reflections in the journal template provided.

© The KPI Institute 2024. All rights reserved. 16

 Module 1
Agenda:

KEY CONCEPTS 1 Strategy planning defined

2 Assumptions behind strategy planning

3 The process of strategy planning- an

overview

© The KPI Institute 2024. All rights reserved. 17

 STRATEGY DEFINED

How can we define strategy?

Mintzberg- 5P

Perspective
Phase 1 Phase 2

Pattern Plan/Ploy Position

PAST TODAY FUTURE

Mintzberg, H. – “Opening Up the Definition of Strategy” – in: Quinn, J.B., Mintzberg, H., James, R. – “The Strategy Process” – Prentice Hall – 1998

© The KPI Institute 2024. All rights reserved. 18

 STRATEGIC PLANNING ASSUMPTIONS

1. We can 2. We can
define a agree on
unique tightly defined
position objectives
(target)
Strategic
Planning
Assumptions

4. We will focus
3. We can on flawless
identify the most execution & risk
efficient course management
of action

O’Donovan, D. & Rimland Flower, N. – “The Strategic Plan is Dead. Long Live Strategy” – Stanford Social Innovation Review – January 2013
http://ssir.org/articles/entry/the_strategic_plan_is_dead._long_live_strategy
Lowell, B. – “Just-in-time strategy for a turbulent world” – McKinsey Quarterly – https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/just-in-time-
strategy-for-a-turbulent-world

© The KPI Institute 2024. All rights reserved. 19

 STRATEGIC PLANNING PROCESS

Corporate level

Regional level

Business unit level

Functional area level

Team level

Employee level
Employee level

Adapted after Faulkner, D., Bowman, C. – “The Essence of Competitive Strategy” – Prentice Hall, 1995

© The KPI Institute 2024. All rights reserved. 20

 STRATEGY IN THE PERFORMANCE CYCLE
VISION & SMART STRATEGIC
OBJECTIVES

NEW STRATEGY 2. Defining

success (what
we hope to CORPORATE – DEPARTMENTS
accomplish) - EMPLOYEES

6. Executing & 3. Defining

reviewing & strategy (what PILLARS / PROGRAMS /
recalibrating we need to do PROJECTS
the strategy 1. Defining to make it
meaning (why & happen)
how we are
doing this)
Mission & Values

5. Defining the 4. Defining the

management execution
MANAGEMENT system (how we structure (who ORGANIZATIONAL
SYSTEM manage doing it) does it) STRUCTURE

CORPORATE – DEPARTMENTS - EMPLOYEES

© The KPI Institute 2024. All rights reserved. 21

 STRATEGIC PLANNING TIMEFRAME
PARTICIPANTS

• Financial department
• Management team
• Management team
• Union representatives
• Office for strategy
• Office for strategy planning / consultants
planning / consultants

✔ Vision
OUTPUTS

✔ Corporate identity ✔ Growth strategy ✔ Testing

✔ Competitive strategy ✔ Strategy tree ✔ Budgeting
✔ Corporate initiatives

PROGRESS DIRECTION 6 weeks minimum

Meeting
Corporate Phase Department Phase
NOW

DIRECTION
FEEDBACK
Meeting 3 weeks 3 weeks Meeting

✔ Internal environment scanning

OUTPUTS

✔ External environment scanning ✔ Department-level strategies and action

✔ SWOT analysis plans
✔ Scenario planning
PARTICIPANTS

• Departments • Departments & management team

• Office for strategy planning / consultants • Office for strategy planning / consultants

© The KPI Institute 2024. All rights reserved. 22

 HOSHIN KANRI BUSINESS METHODOLOGY
Introduced in the Japanese companies in the 1960s as these transformed principle of management by
1 objectives into a new integrating organizational management system, called Total Quality Management

Hoshin Kanri translates to policy management and represents the concept of guiding an entire company
2 in an agreed-upon, clear direction.

Establish
Develop 3–5-
organization
year plan
vision

ACT PLAN
Top level management A Catchall of targets &
P
sets vital few policies means Develop
Annual
annual
reviews
CHECK C D
DO objectives
Review of process Daily management of
& results targets & means

Regular Deploy to
Implementation
reviews depts

Source: Witcher, B. (2002), Hoshin Kanri: A Study of Practice in the UK

© The KPI Institute 2024. All rights reserved. 23

 SPECIFICITIES OF PLANNING FOR PUBLIC INSTITUTIONS

The strategy of the territory vs. the strategy of the institution

Various degrees of partnership in strategy planning:

• In-house strategy
• Consultant driven in-house strategy

• Strategy planning within a partnership structure

• Strategy planning with broad public consultation
Cascading & alignment

Integration with other types of planning exercises

© The KPI Institute 2024. All rights reserved. 24

 REFERENCES

▪ Andrews, K. – “The Concept of Corporate Strategy” – in: Quinn, J.B., Mintzberg, H., James, R. – “The Strategy
Process” – Prentice Hall – 1998

▪ Blackwell, A., Wilson, L., Street, A., Boulton, C., Knell, J. – “Radical innovation: crossing knowledge boundaries
with interdisciplinary teams” - University of Cambridge Computer Laboratory, 2009 –
https://www.cl.cam.ac.uk/techreports/UCAM-CL-TR-760.pdf

▪ Faulkner, D., Bowman, C. – “The Essence of Competitive Strategy” – Prentice Hall, 1995

▪ Lowell, B. – “Just-in-time strategy for a turbulent world” – McKinsey Quarterly – June 2002
https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/just-in-time-
strategy-for-a-turbulent-world

▪ Mintzberg, H. – “Opening Up The Definition of Strategy” – in: Quinn, J.B., Mintzberg, H., James, R. – “The
Strategy Process” – Prentice Hall – 1998

▪ O’Donovan, D. & Rimland Flower, N. – “The Strategic Plan is Dead. Long Live Strategy” – Stanford Social
Innovation Review – January 2013
http://ssir.org/articles/entry/the_strategic_plan_is_dead._long_live_strategy

▪ Porter, M. – “What Is Strategy?” – Harvard Business Review, November – December 1996 Issue
https://hbr.org/1996/11/what-is-strategy

© The KPI Institute 2024. All rights reserved. 25

 Module 2
Agenda:

CORPORATE 1 Impact

IDENTITY 2 Mission

3 Corporate values

4 Corporate capabilities

© The KPI Institute 2024. All rights reserved. 26

 CORPORATE IDENTITY

THE CHANGE WE WILL CREATE

IMPACT
…a positive change for each of our
customers, for each community &
country where we operate in and, last but
not least, the world as a whole

= our core purpose, the main reason why

MISSION STATEMENT
the company was set up

HOW WE WILL CREATE THAT CHANGE

MISSION
… the way in which we intend to act, in
order to achieve our desired impact

= our commitment / promise to our

stakeholders

Collins, J., & Porras, J. – “Building Your Company's Vision” – Harvard Business Review, October 1996 Issue
https://hbr.org/1996/09/building-your-companys-vision
© The KPI Institute 2024. All rights reserved. 27
 MISSION STATEMENT DEFINED

Format „The mission is a brief statement, typically one or two

sentences, that defines why the organization exists,
Objective especially what it offers to its customers and clients.”

Kaplan & Norton

Content

Google’s mission is
to organize the world’s information and make it universally accessible and useful

MISSION IMPACT

Kaplan, R., & Norton, D. – “Mastering the Management System” Harvard Business Review – January 2008 Issue
https://hbr.org/2008/01/mastering-the-management-system/ar/1 http://www.google.com/intl/en/about/

DISCLAIMER: The KPI Institute is in no way associated or endorsed by Google. All references to Google trademarks and brands are used in strict accordance with the Fair
© The KPI Institute 2024. All rights reserved.
Use Doctrine and are not intended to imply any affiliation of The KPI Institute with Google.
28
 MISSION

Source: https://www.danone.com/about-danone.html

DISCLAIMER: The KPI Institute is in no way associated or endorsed by Danone. All references to Danone trademarks and brands are used in strict accordance with the Fair
© The KPI Institute 2024. All rights reserved.
Use Doctrine and are not intended to imply any affiliation of The KPI Institute with Google.
29
 NEW TRENDS
The trend nowadays is
to focus on:

multiple
stakeholders, not just
clients
multiple levels of
impact, such as on
individuals,
communities and the
whole world
multiple types of
impact, such as
economic, social and
environmental

Source: About Us | FedEx

DISCLAIMER: The KPI Institute is in no way associated or endorsed by Fedex. All references to Fedex trademarks and brands are used in strict accordance with the Fair Use
© The KPI Institute 2024. All rights reserved. 30
Doctrine and are not intended to imply any affiliation of The KPI Institute with Fedex.
 KEY STAKEHOLDER ANALYSIS
A stakeholder is a group or individual, who has an interest in what the organization does, or an expectation
from the organization. Stakeholder analysis is a technique meant to identify and understand their needs and
expectations.
Interested parties mapping relevant for ISO 9001, ISO 14001 and ISO 45001

Workers Consumers

Management Unions Community Regulators

team

Internal External
Interested Special
Interested
Contractors Top
and Parties interest Parties Legislators
management
Subcontractors groups

Suppliers Board of Shareholders Media

Directors

Source: ISO 9001 Guidance, available at: https://www.iso9001help.co.uk/4.2%20 Interested%20Parties.html

© The KPI Institute 2024. All rights reserved. 31

 CORPORATE IDENTITY
Best practice:
CORE VALUES
Deutsche Telekom

Task:
Based on the picture below,
guess which are the guiding
principles of Deutsche Telekom.

HOW WE WILL ACT

❏ ... the borders of acceptable
behavior in pursuing our
mission

❏ = our guiding principles

Collins, J., & Porras, J. – “Building Your Company's Vision” – Harvard Business Review, October 1996 Issue https://hbr.org/1996/09/building-your-companys-vision
https://www.telekom.com/en/company/details/the-company-values-of-telekom-355188
DISCLAIMER: The KPI Institute is in no way associated with or endorsed by Deutsche Telekom. All references to Deutsche Telekom trademarks and brands are used in strict
© The KPI Institute 2024. All rights reserved.
accordance with the Fair Use Doctrine and are not intended to imply any affiliation of The KPI Institute with Deutsche Telekom.
32
 ”
CORE VALUES

HOSPITALITY we’re passionate about delivering exceptional

H
guest experiences

I INTEGRITY we do the right thing all the time

L LEADERSHIP we’re leaders in our industry and in our communities

T TEAMWORK we’re team players in everything we do

O OWNERSHIP we’re the owners of our actions and decisions

N NOW we operate with a sense of urgency and discipline

Source: Hilton Brands | Global Hospitality Company

DISCLAIMER: The KPI Institute is in no way associated or endorsed by Hilton. All references to Hilton trademarks and brands are used in strict accordance with the Fair Use Doctrine
and are not intended to imply any affiliation of The KPI Institute with Hilton.

© The KPI Institute 2024. All rights reserved. 33

 CORE VALUES

“Our core values make us

who we are. As we change
and grow, the beliefs that
are most important to us
stay the same—putting
people first, pursuing
excellence, embracing
change, acting with integrity
and serving our world. Being
part of Marriott
International means being
part of a proud history and a
thriving culture.”

Source Core Values and Heritage | Marriott International Corporate Values

DISCLAIMER: The KPI Institute is in no way associated or endorsed by Marriott. All references to Marriott trademarks and brands are used in strict accordance with the Fair Use
Doctrine and are not intended to imply any affiliation of The KPI Institute with Marriott.

© The KPI Institute 2024. All rights reserved. 34

 CORE VALUES

CORE VALUES BEHAVIORS

ACCOUNTABILITY 01 RESPONSIBLE

RESPECT RESPECTFUL
02

EMPOWERMENT AUTONOMOUS
03

CREATIVITY CREATIVE
04

INTEGRITY HONEST
05

© The KPI Institute 2024. All rights reserved. 35

 VALUE STATEMENTS

Source: http://welcome.bp.com/offers/ukdocs/careers_offer_documentation_UK_Values_and_Behaviours.pdf

DISCLAIMER: The KPI Institute is in no way associated or endorsed by BP. All references to BP trademarks and brands are used in strict accordance with the Fair Use Doctrine and are not intended
© The KPI Institute 2024. All rights reserved. 36
to imply any affiliation of The KPI Institute with BP.
 EMPLOYEE JOURNEY

❏ Applied
❏ Promoted
❏ Lived ❏ Accepted
❏ Embraced ❏ Known
❏ Understood
❏ Perceived as relevant

Do
Align Feel
Engage
Think
Inform
© The KPI Institute 2024. All rights reserved. 37
 BEST PRACTICE

It's not like we're carrying sand and gravel. You know, we're carrying chemotherapy
drugs, and important manuscripts, and electronic parts, and pieces for airplanes that are
grounded. So when we pick it up and say, We're going to have it there early the next
morning, I mean we have to deliver. There's nothing else to it.”
”
Smith, F. – Interview published by the Academy of Achievement, 2010 - http://www.achievement.org/autodoc/page/smi0int-4

Source: FedEx Annual Report (2021), https://s21.q4cdn.com/665674268/files/doc_financials/annual/2021/389437(1)_12_FedEx_AR_WR.pdf

DISCLAIMER: The KPI Institute is in no way associated or endorsed by Fedex. All references to Fedex trademarks and brands are used in strict accordance with the Fair Use Doctrine and are not
© The KPI Institute 2024. All rights reserved. 38
intended to imply any affiliation of The KPI Institute with Fedex.
 EXPECTED VALUE & CORPORATE VALUES

OWNER
Usually, values are created from PERSPECTIVE MANAGEMENT
within, as a way to express what PERSPECTIVE
the organization (business
owners, managers and 1
employees) truly believe in
⇒ guiding principles 2
CORE
VALUES

Corporate values should,

nevertheless, express the
internalization of the customer’s
expected value & be in line with
the company’s value proposition. 4 3
EMPLOYEE CLIENT
PERSPECTIVE PERSPECTIVE

© The KPI Institute 2024. All rights reserved. 39

 COMPANY JOURNEY

CORPORATE COMPETITIVE
VALUES ADVANTAGE
Corporate
expertise &
support
systems

01 02 03

Individual Meaningful
behaviors differentiators

CORPORATE
CAPABILITIES

© The KPI Institute 2024. All rights reserved. 40

 EXERCISE
THE TOY MAKER

Define a mission statement and a set of

corporate values for the Toy Maker.

Brief history

● The company was set up in the Kingdom

of Saudi Arabia, in 2020;

● Its main focus is the production of easy-

to-grip wooden cars for kids 1-3 years
old;

● For now, it only sells these toys in the

Kingdom of Saudi Arabia.

DISCLAIMER: The Toy Maker is an imaginary company; names, businesses, places, locales and incidents are either the products of the author’s imagination or used in a fictitious manner.
Any resemblance to an actual company or actual events is purely coincidental.

© The KPI Institute 2024. All rights reserved. 41

 CORPORATE IDENTITY MEETING

CHANGE (IF
NECESSARY)

REVIEW AGREE

Adapted after & inspired by Collins, J., & Porras, J. – “Building Your Company's Vision” – Harvard Business Review, October 1996 Issue https://hbr.org/1996/09/building-your-companys-
vision
© The KPI Institute 2024. All rights reserved. 42
 CORPORATE IDENTITY - QUALITY STANDARDS

01 02

01 INSPIRATIONAL CONCISE
08
02 03 04
Authentic
Specific EASY TO
Descriptive
SPECIFIC REMEMBER
07
03 Easy to
Concise remember 05 Clear 06 Realistic
AUTHENTIC CLEAR
06
04
07 08
05
DESCRIPTIVE REALISTIC

Adapted after & inspired by Collins, J., & Porras, J. – “Building Your Company's Vision” – Harvard Business Review, October 1996 Issue https://hbr.org/1996/09/building-your-companys-
vision
© The KPI Institute 2024. All rights reserved. 43
 REFERENCES

▪ Bowen, S. – “Mission and Vision” - University of South Carolina - 2018

https://www.researchgate.net/profile/Shannon-
Bowen/publication/327879895_Mission_and_Vision/links/5bdf41c5299bf1124fbb7716/Mission-and-
Vision.pdf
▪ Collins, J., & Porras, J. - “Building your Company’s Vision” – Harvard Business Review, October 1996
Issue
▪ Interbrand – “Unlocking the Power of Employees to Drive Success: Actionable Ideas for Companies of
Any Size” http://jimc.medill.northwestern.edu/wp-
content/uploads/sites/9/2014/02/archives/2012/Unlockingpower.pdf
▪ Kaplan, R., Norton, D. - “Mastering the Management System” - Harvard Business Review, January 2008
Issue
▪ Kaplan, R., Norton, D. – “Using the Balanced Scorecard As a Strategic Management System” Harvard
Business Review – July-August 2007 Issue
https://hbr.org/2007/07/using-the-balanced-scorecard-as-a-strategic-management-system
▪ Porter, M. – “What Is Strategy?” – Harvard Business Review, November – December 1996 Issue
https://hbr.org/1996/11/what-is-strategy

© The KPI Institute 2024. All rights reserved.

 REFERENCES

▪ http://www.businessdictionary.com/definition/vision-statement.html
▪ https://newsroom.fedex.com/wp-content/uploads/2021/05/Q3_FY2021_Corporate_Overview_5-6-
21.pdf
▪ http://www.hiltonworldwide.com/about/mission/
▪ https://www.marriott.com/culture-and-values/core-values
▪ http://welcome.bp.com/offers/ukdocs/careers_offer_documentation_UK_Values_and_Behaviours.pdf
▪ Smith, F. – Interview published by the Academy of Achievement, 2010 -
http://www.achievement.org/autodoc/page/smi0int-4
▪ http://annualreport.van.fedex.com/2015/

© The KPI Institute 2024. All rights reserved. 45

 Module 3
Agenda:

CHOICE OF A 1 Low-cost, low-price strategy

COMPETITIVE 2 Differentiation strategies

STRATEGY
3 Customer service & relationship strategy

4 Networking effect strategies

© The KPI Institute 2024. All rights reserved. 46

 COMPETITIVE STRATEGY

Competitive strategy is about being different. It means deliberately

choosing a different set of activities to deliver a unique mix of
value”.
Michael E. Porter
”
Since capabilities are built over time, in a
gradual manner, they restrict our freedom of
choice when it comes to competitive
strategies;

In fact, capabilities act as enablers for

particular competitive strategies, pointing us
towards the ones that would yield maximum
results if applied properly

Porter, M. – “What Is Strategy?” – Harvard Business Review, November – December 1996 Issue
https://hbr.org/1996/11/what-is-strategy

© The KPI Institute 2024. All rights reserved. 47

 OPTION 1: LOW COST- LOW PRICE

Organization Organization
Focus on low-cost Focus on low-price

PRICES FOR FREE

LOWER ECONOMY
THAN
COMPETITORS

VALUE =
affordability
of the core
product Competitors Macro-environment
THE FOR FREE ECONOMY
STRATEGY & OPERATIONAL PLAN = a collection of projects meant to:
• Boost operational efficiencies • Can you think of ways in which you
• Optimize the supply chain management and delivery
• Generate scale economies and learning curves can offer free products and still
remain in business?

Adapted after Keller Johnson, L., Luecke, R. - “The Essential Strategy” – Harvard Business School Press, & The Society for Human Resource Management, 2006

© The KPI Institute 2024. All rights reserved. 48

 OPTION 2: DIFFERENTIATION
Organization Organization
Focus on quality Focus on niche markets

LOW ACCESS
PREMIUM CUSTOMER
“PACKAGING” GROUPS

VALUE =
VALUE = personalized
quality of the offering for a
augmented small group of
product Operating Operating
consumers
market market
STRATEGY & OPERATIONAL PLAN = collection of STRATEGY & OPERATIONAL PLAN = a collection of
projects to come up with: projects to make this offering available to:

a. A “best fit”, individually tailored solution for each

a. Groups which present some difficulty to access
customer
b. Groups consisting of a small number of
b. A premium prototype
dispersed consumers
c. A luxury solution

Adapted after Porter, M. – “What Is Strategy?” – Harvard Business Review, November – December 1996 Issue https://hbr.org/1996/11/what-is-strategy

© The KPI Institute 2024. All rights reserved. 49

 OPTION 3: CUSTOMER RELATIONSHIP
Organization Organization
Focus on variety Focus on Customer Service
PRODUCT/
SERVICE BUILD UP
VARIETY LOYALTY

VALUE = the
VALUE =
human touch &
variety of
connection
choice
Operating Operating
market market
STRATEGY & OPERATIONAL PLAN = collection of projects STRATEGY & OPERATIONAL PLAN = a collection of projects
meant to create an offering: meant to:
a. Addressing a variety of needs for a small number of
customers ▪ Create personal contact & build customer relationships
b. Including a variety of brands for an average number of ▪ Build up loyalty through rewarding the relationship
customers ▪ Continually learn about each individual customer
c. Addressing a variety of needs through a variety of ▪ Put in 110% for the customer
brands for very many customers

Adapted after Porter, M. – “What Is Strategy?” – Harvard Business Review, November – December 1996 Issue https://hbr.org/1996/11/what-is-strategy

© The KPI Institute 2024. All rights reserved. 50

 OPTION 4: NETWORK EFFECTS
Organization
Focus on network effect
LOWER
OPERATIONAL
RISK

VALUE =
belonging to a
community
NETWORKING
STRATEGY
STRATEGY & OPERATIONAL PLAN = a collection of projects meant to create:
• Direct networks
• Indirect networks and / or
• Learning networks
Network effects maximize virtuous circles, with the risk of dealing with vicious circles later on

Goolsbee, A. – “Why the network effect is so striking” – article published in Financial Times “Mastering Strategy” - The Complete MBA Companion In Strategy – Pearson
Education Limited 2000

© The KPI Institute 2024. All rights reserved. 51

 OPTION 5: BLUE OCEAN STRATEGY

New Fit
Existing Fit

BLUE
RED OCEAN
OCEAN STRATEGY
STRATEGY

War Trade- No No trade-

offs contest offs

Adapted after Kim, C., Mauborgne, R. –“Blue Ocean Strategy” – Harvard Business Review, October 2004 Issue
https://hbr.org/2004/10/blue-ocean-strategy; http://www.blueoceanstrategy.com/tools/

© The KPI Institute 2024. All rights reserved. 52

 REFERENCES

▪ Goolsbee, A. – “Why the network effect is so striking” – article published in Financial Times “Mastering
Strategy” - The Complete MBA Companion In Strategy – Pearson Education Limited 2000
▪ Kaplan, R., Norton, D. – “Mastering the Management System” - Harvard Business Review, January 2008
Issue - https://hbr.org/2008/01/mastering-the-management-system/ar/1
▪ Keller Johnson, L., Luecke, R. - “The Essential Strategy” – Harvard Business School Press, & The Society
for Human Resource Management, 2006
▪ Kim, C., Mauborgne, R. –“Blue Ocean Strategy” – Harvard Business Review, October 2004 Issue,
https://hbr.org/2004/10/blue-ocean-strategy
▪ Porter, M. – “What Is Strategy?” – Harvard Business Review, November – December 1996 Issue -
https://hbr.org/1996/11/what-is-strategy
▪ http://www.blueoceanstrategy.com/tools/

© The KPI Institute 2024. All rights reserved. 53

 Module 4
Agenda:

INTERNAL 1 Processes

ENVIRONMENT 2 Procedures
SCANNING
3 Resources

4 Functional vs. structural approaches

© The KPI Institute 2024. All rights reserved. 54

 INTERNAL ENVIRONMENT SCANNING DEFINED

To make a full analysis of the 01

status-quo (a list of processes,
procedures and resources)

To identify any gaps between 02

the existent and the needed
and to suggest ways to solve
existing problems
This way, the internal environment scan helps
identify corporate strategic objectives and projects

To make an assessment of each 03

process, procedure and
resource available to the
company

This way, the internal environment scan

anchors the process of planning in
reality

© The KPI Institute 2024. All rights reserved. 55

 INTERNAL ENVIRONMENT SCANNING REASONS

1 2 3 4

Understand how Identify what “we

the business have” so that we Anchor the
Understand how strategic
we are fulfilling works, so we can later compare
can improve its it with what “we planning
our mission now process in
functioning should have” in
through the order to reality
strategy successfully
implement the
strategy

© The KPI Institute 2024. All rights reserved. 56

 INTERNAL ENVIRONMENT SCANNING

AT THIS STAGE (OF THE SCAN), CURRENT PROCESSES NEED TO BE:

MAPPED

2
1 3

IDENTIFIED ASSESSED
(through relevant criteria:
efficiency, speed, accuracy etc. so
that we can determine our
current performance in executing
them)

© The KPI Institute 2024. All rights reserved. 57

 CURRENT PROCESSES

STANDARDIZE them
through procedures

Point to the
need to develop
strategies that
will allow us to:

OPTIMIZE them
(incrementally or through
Act as limitations re-engineering)
on how much we
can achieve

© The KPI Institute 2024. All rights reserved. 58

 CURRENT PROCEDURES
THE INTERNAL ENVIRONMENT SCAN LOOKS AT THE PROCEDURES IN PLACE, AS:

1 2
Documented
Standardized ways processes that guide
to perform certain execution and enable
processes monitoring and
tracking

Organizations can have different levels of maturity when it comes

to how they standardize their processes – and the internal
environment scan can determine this level.
Mature organizations will have a quality management system in place,
where processes are documented through standard operating
procedures and procedure manuals.

© The KPI Institute 2024. All rights reserved. 59

 INTERNAL ENVIRONMENT SCANNING
The internal environment scan looks at the resources that the company can mobilize while
acting to fulfil its mission. It also assesses which of these resources are strengths and which
are weaknesses.

STRENGTHS WEAKNESSES

They enable action & They reduce performance and

performance and facilitate our make actions to reach our mission
efforts to reach our mission difficult or impossible
They are better than similar resources They are not as good as similar resources
at the disposal of our competitors at the disposal of our competitors

© The KPI Institute 2024. All rights reserved. 60

 INTERNAL ENVIRONMENT SCANNING: RESOURCES
ANALYSIS
Material resources (location,
buildings, technology)

Information resources

Know-how, tacit & codified knowledge,

expertise

Human resources

Financial resources

© The KPI Institute 2024. All rights reserved. 61

 INTERNAL ENVIRONMENT SCANNING

When analysing the internal

environment, companies need to
identify the resources currently
existing at the organization’s disposal.

If these resources prove not to

be enough, the company
needs to look in the external
environment, to see if it can
If no other resources can find additional resources:
be mobilized, the existing ⮚ That are easily
resources act as available in case
constraints and/or they’re needed
limitations to how much ⮚ That can be available
we can do. at higher costs/ risks
At the same time, resources also point to the
need to develop strategies meant to improve
them or find additional resources
© The KPI Institute 2024. All rights reserved. 62
 INTERNAL ENVIRONMENT SCANNING
THERE ARE TWO WAYS IN WHICH WE CAN DO
THE INTERNAL ENVIRONMENT SCAN

01 02

STRUCTURAL
FUNCTIONAL APPROACH
APPROACH
Letting departments do Using some kind of business
their own internal audit model that explains how the
and prepare their scan entire organization creates
reports value and profit in a
sustainable manner and
doing a full inventory on all
of its components.

© The KPI Institute 2024. All rights reserved. 63

 REFERENCES
▪ Alon, G., Mieghem, J.V. – “Scaling Operations: Linking Strategy and Execution” -
https://www.coursera.org/learn/operations-strategy

▪ Alon, G., Mieghem, J.V. – “Operations Strategy: Principles and Practice” - Dynamic Ideas LLC; 2nd edition, 2015

▪ Casadesus-Masanell, R., Ricart, J. – “How to Design a Winning Business Model” Harvard Business Review, January–
February 2011 Issue- https://hbr.org/2011/01/how-to-design-a-winning-business-model

▪ Gunther McGrath, R. – “Transient Advantage” – Harvard Business Review, June 2013 -

https://hbr.org/2013/06/transient-advantage

▪ Kaplan, R., Norton, D. – "Measuring the Strategic Readiness of Intangible Assets” - Harvard Business Review,
February 2004 Issue- https://hbr.org/2004/02/measuring-the-strategic-readiness-of-intangible-assets

▪ Johnson, M. W, Christiensen, C., Kagermann, H. - “Reinventing Your Business Model” – Harvard Business Review,
December 2008 Issue – https://hbr.org/2008/12/reinventing-your-business-model

▪ Osterwalder, A., Pigneur, Y. – “Business Model Generation: A Handbook for Visionaries, Game Changers, and
Challengers” - John Wiley and Sons; 1st edition, 2010

▪ Strategyzer – The Business Model Canvas - https://www.strategyzer.com/canvas/business-model-canvas

▪ UN Global Compact Leaders Summit 2013: Architects of a Better World – “The Value Driver Model A tool for
communicating the business value of sustainability” - Final Version, 2013

© The KPI Institute 2024. All rights reserved. 64

 Module 5
Agenda:

EXTERNAL 1 PESTEL analysis

ENVIRONMENT 2 Porter’s 5 forces

SCANNING
3 SWOT analysis

4 Scenario planning

© The KPI Institute 2024. All rights reserved. 65

 EXTERNAL ENVIRONMENT SCANNING

External macro-
environment
-independent -

External micro-
environment
Organizations are open - transactions -
systems, interacting with
their environment

Internal environment
- control -

Klimontovich, Y. L. – “Statistical Theory of Open Systems. Volume 1: A Unified Approach to Kinetic Description of Processes in Active Systems”-
Kluwer Academic Publishers
© The KPI Institute 2024. All rights reserved. 66
 EXTERNAL ENVIRONMENT SCANNING

REASONS FOR PERFORMING AN EXTERNAL

ENVIRONMENT SCAN - TO IDENTIFY:

OPTIMAL COURSE
OPPORTUNITIES THREATS OF ACTION

© The KPI Institute 2024. All rights reserved. 67

 EXTERNAL ENVIRONMENT SCANNING

Tux Racer screenshot: http://tuxracer.sourceforge.net/download.html

© The KPI Institute 2024. All rights reserved. 68

 MACRO-ENVIRONMENT: PESTEL

P E S T E L

Socio-
Political Economic Technological Environmental Legal
cultural

Kaplan, R., & Norton, D. – “Mastering the Management System” - Harvard Business Review, January 2008 Issue https://hbr.org/2008/01/mastering-the-management-system/ar/1

© The KPI Institute 2024. All rights reserved. 69

 FLOWCHART OF PESTEL ANALYSIS

1 2 3 4
SCANNING FORECAST ASSOCIATION INTERPRETATION

Assessment
Identification of Identification of Identification of
whether the
the factors within possible changes the
factor represents
each macro- related to the association of the
a potential
environment scanned factors factors
opportunity of
segments
threat

Carvalho, G. and Castaneda, J. (2022), PESTEL analysis and the macro-environmental factors that influence the development of the electric and hybrid vehicles industry in Brazil, Case
Studies on Transport Policy, Volume 10, Issue 1, https://www.sciencedirect.com/science/article/pii/S2213624X22000347

© The KPI Institute 2024. All rights reserved. 70

 MICRO-ENVIRONMENT: PORTER 5

Bargaining Substitute
power of products or
suppliers services

Threats to
our way of
Bargaining doing Existing
business competitors –
power of
buyers similar products

Newcomers –
similar
products

Porter, M. – “The Five Competitive Forces That Shape Strategy” - Harvard Business Review, January 2008 Issue
http://hbr.org/2008/01/the-five-competitive-forces-that-shape-strategy/ar/1

© The KPI Institute 2024. All rights reserved. 71

 EXTERNAL ENVIRONMENT SCANNING

Environmental scanning
should be done, on a permanent basis, by an
organizational entity (such as the Marketing
department or the Office for Strategy Planning) and
should be reviewed, on a regular basis, by all
functional areas.

Before the first strategic planning meeting takes place,

the entity responsible should prepare an inclusive report
called “Environmental scanning”.

© The KPI Institute 2024. All rights reserved. 72

 EARLY WARNING SYSTEM

Sync with evolutions within

both the macro- and the micro-
environment
Identify events & mini-
trends (trends in very
early stages of
Fine tune information formation)
system to work as an
early warning
system

Make good
tactical
decisions

© The KPI Institute 2024. All rights reserved. 73

 TRADITIONAL FORMAT - SWOT ANALYSIS

Desirable influence on Undesirable influence on

achieving our mission achieving our mission

FACTORS

From within the

Certain in the
present
internal environment STRENGTHS WEAKNESSES
& within our control

From the external

Possible in the
future
environment & OPPORTUNITIES THREATS
outside our
control

© The KPI Institute 2024. All rights reserved. 74

 ALTERNATIVE FORMAT - SWOT ANALYSIS

S O W W T S

Impact Impact
Chance Problem

PROJECTS PROJECTS PROJECTS PROJECTS

Multiply Eliminate Eliminate Multiply
Intensify Reduce Reduce Intensify
Preserve OBJECTIVE Manage Manage OBJECTIVE Preserve

Cocean, R., Moisescu, O.I., Toader, V. – “Economie și planificare strategică în turism” – Ed. Risoprint, 2014

© The KPI Institute 2024. All rights reserved. 75

 SWOT & STRATEGY

1st draft of the Strategy

Tree

OUTPUT INTEGRATED
STRATEGY TREE

Additional strategic
objectives from the SWOT The SWOT alone cannot create the strategy, as it is a
reactive tool – it helps the organization deal with its
external environment, but it does not help in
identifying its vision or the best path to reach it

The main output of the SWOT analysis is a list of additional

strategic objectives to be included later on in the strategy, so that
the organization can manage successfully potential problems and
chances that it might encounter in the future

© The KPI Institute 2024. All rights reserved. 76

 PURPOSE OF SCENARIO PLANNING
While the SWOT tells us how to deal with each threat and opportunity alone, scenarios
show us how many such threats and opportunities could combine together in the future.
They depict various potential ways in which the market may look like in the future. The
purpose of scenario planning is:

4. To identify tools
for monitoring 1. To identify the
throughout main potential
strategy scenarios
execution

3. To fully understand 2. To choose one,

the impact of the considered to be
chosen scenario on more likely, as the
several strategic kpis basis for planning
(such as sales, costs,
customer satisfaction
etc.)

© The KPI Institute 2024. All rights reserved. 77

 REFERENCES
▪ Bearden, B., Ingram, T., La Forge, R. – “Marketing - Principles & perspectives” - 2/e, Irwin McGraw Hill, 1999
http://www.mhhe.com/business/marketing/bearden/

▪ Carvalho, G. and Castaneda, J. – “PESTEL analysis and the macro-environmental factors that influence the
development of the electric and hybrid vehicles industry in Brazil” - Case Studies on Transport Policy, 2022,
https://www.sciencedirect.com/science/article/pii/S2213624X22000347

▪ Cocean, R., Moisescu, O.I., Toader, V. – “Economie și planificare strategică în turism” – Ed. Risoprint, 2014

▪ Kaplan, R., & Norton, D. – “Mastering the Management System” - Harvard Business Review, January 2008 Issue
https://hbr.org/2008/01/mastering-the-management-system/ar/1

▪ Klimontovich, Y. L. – “Statistical Theory of Open Systems. Volume 1: A Unified Approach to Kinetic Description of
Processes in Active Systems”- Kluwer Academic Publishers, 1995

▪ Kotler, Ph., Caslione, J. – “Chaotics: the Business of Managing and Marketing in the Age of Turbulence” - AMACOM,
2009

▪ Kotler, P., Keller, K.L. – “Marketing Management” – 12th Edition, Pearson Education Inc, 2006

▪ Porter, M. – “The Five Competitive Forces That Shape Strategy” - Harvard Business Review – January 2008 Issue
http://hbr.org/2008/01/the-five-competitive-forces-that-shape-strategy/ar/1

▪ Ringland, G. - “Scenario Planning. Managing For the Future” – 2nd Ed., John Wiley & Sons, Ltd. – 2006

▪ http://tuxracer.sourceforge.net/download.html

© The KPI Institute 2024. All rights reserved. 78

 Module 6
Agenda:

VISION & 1 Defining the vision

CHOICE OF A 2 Choosing a growth strategy

GROWTH
STRATEGY

© The KPI Institute 2024. All rights reserved. 79

 VISION

What we will become

Our desirable future, the

way we want to BE

VISION Usually, a qualitative statement

which defines success

The way this company should look like in the future

(10-30 years from now), so it can better pursue its mission

Collins, J., & Porras, J. – “Building Your Company's Vision” – Harvard Business Review, October 1996 Issue
https://hbr.org/1996/09/building-your-companys-vision
© The KPI Institute 2024. All rights reserved. 80
 VISION

Current delivery on PURPOSE OF Better delivery on

the promise THE STRATEGY the promise

PROMISE
(MISSION STATEMENT)

The future
The current
organization
organization
The vision

© The KPI Institute 2024. All rights reserved. 81

 EXERCISE
Case study - Vodafone
Task: Spot the
differences - 2017
vs. 2021

2017

2021

DISCLAIMER: The KPI Institute is in no way associated or endorsed by the Vodafone Group Plc. All references to the Vodafone Group Plc trademarks and brands are used in
strict accordance with the Fair Use Doctrine and are not intended to imply any affiliation of The KPI Institute with the Vodafone Group Plc.

© The KPI Institute 2024. All rights reserved. 82

 VISION STATEMENT

Specifies where an organization is going. It is a

goal state embodying a long-term ambition of
where an organization would like to be in the
future relative to its competitors.

Offers a strategic attainment goal that may

be somewhat ideal or normative relative to
real-world constraints, but offers
inspiration to the organization to overcome
barriers in a concerted effort.
Bowen, S. (2018), Mission and Vision, University of South Carolina, available at: https://www.researchgate.net/profile/Shannon-
Bowen/publication/327879895_Mission_and_Vision/links/5bdf41c5299bf1124fbb7716/Mission-and-Vision.pdf
© The KPI Institute 2024. All rights reserved. 83
 VISION STATEMENT SOURCES
The executive level or senior management normally takes the lead in determining or refining
organizational vision because of its close connection to strategy. Senior management is wise to
involve employee publics/stakeholders at all levels of the organization when designing a vision
statement.

QUALITATIVE RESEARCH
DISCUSSION FORUMS

EMPLOYEE SURVEYS
ANONYMOUS FEEDBACK FORMS

Offer valuable insight about the desired visionary goal.

Bowen, S. (2018), Mission and Vision, University of South Carolina, available at: https://www.researchgate.net/profile/Shannon-
Bowen/publication/327879895_Mission_and_Vision/links/5bdf41c5299bf1124fbb7716/Mission-and-Vision.pdf
© The KPI Institute 2024. All rights reserved. 84
 VISION & GROWTH STRATEGIES

One of the main components of the vision is the perspective on the company’s growth – how
big it wants to become, in how many markets it aims to operate etc.

Normally, companies have three options:

TO GROW
TO SHRINK

TO REMAIN AT THE
SAME LEVEL
The most interesting &
complex is the option to
grow the business – which
can be done in several ways

© The KPI Institute 2024. All rights reserved. 85

 GROWTH STRATEGIES
Internationalization:
expansion across geographical
Intensive growth: borders
gaining more market ⮚ The Uppsala model
share within the current ⮚ Born-globals
geographical market ⮚ Value delivery networks
⮚ M&A
⮚ Franchising and licensing
⮚ Joint ventures and alliances

Kotler, Ph., Keller, K.L. –”Marketing Management” – 12th Edition, Pearson Education Inc, 2006
Lin, S. – “Internationalization of SMEs: Towards an Integrative Approach of Resources and Competences”
http://halshs.archives-ouvertes.fr/docs/00/69/24/65/PDF/LIN_Simin-Internationalization_of_SMEs.pdf

© The KPI Institute 2024. All rights reserved. 86

 GROWTH STRATEGIES

Integrative growth: expansion across the

value chain

Forward
integration

Horizontal integration
into value chains and Backward
networks integration

Kotler, Ph., Keller, K.L. – “Marketing Management” – 12th Edition, Pearson Education Inc, 2006

© The KPI Institute 2024. All rights reserved. 87

 GROWTH STRATEGIES
Diversification growth: expansion across sector
borders

Into related areas Into non-related areas

Kotler, Ph., Keller, K.L. – “Marketing Management” – 12th Edition, Pearson Education Inc, 2006

© The KPI Institute 2024. All rights reserved. 88

 ALLOCATING RESOURCES & INVESTMENTS
TO A PORTFOLIO OF COMPANIES
Zenger suggests that growth strategies for conglomerates or groups should be rooted in a
SOUND CORPORATE THEORY:

”
THEORY

“a tool used to
select, acquire, and All too often such
organize companies get into
complementary SOUND CORPORATE trouble when the
bundles of assets, founders’ successors
activities, and lose sight of that
resources. [...] theory—whereas
Companies that enjoy turnarounds, when they
sustained success are occur, often involve a
typically founded on return to it.”
a coherent theory of
value creation. THEORY

Zenger, T. – “What Is the Theory of Your Firm?” - Harvard Business Review, June 2013 Issue
https://hbr.org/2013/06/what-is-the-theory-of-your-firm

© The KPI Institute 2024. All rights reserved. 89

 REFERENCES

▪ Bowen, S. - “Mission and Vision”- University of South Carolina, 2018-

https://www.researchgate.net/profile/Shannon-
Bowen/publication/327879895_Mission_and_Vision/links/5bdf41c5299bf1124fbb7716/Mission-and-Vision.pdf

▪ Collins, J., & Porras, J. – “Building Your Company's Vision” – Harvard Business Review, October 1996 Issue -
https://hbr.org/1996/09/building-your-companys-vision

▪ Kotler, Ph., Keller, K.L. – “Marketing Management” – 12th Edition, Pearson Education Inc, 2006

▪ Lin, S. – “Internationalization of SMEs: Towards an Integrative Approach of Resources and Competences” -

http://halshs.archives-ouvertes.fr/docs/00/69/24/65/PDF/LIN_Simin-Internationalization_of_SMEs.pdf

▪ Mintzberg, H. – “The Rise and Fall of Strategic Planning” - Harvard Business Review – January-February 1994 Issue
https://hbr.org/1994/01/the-fall-and-rise-of-strategic-planning/ar/1

▪ Zenger, T. – “What Is the Theory of Your Firm?” - Harvard Business Review, June 2013 Issue
https://hbr.org/2013/06/what-is-the-theory-of-your-firm

▪ https://investors.vodafone.com/sites/vodafone-ir/files/vodafone/annual-report/vodafone-full-annual-report-
2017.pdf

▪ https://investors.vodafone.com/sites/vodafone-ir/files/vodafone/annual-report/vodafone-full-annual-report-
2021.pdf

© The KPI Institute 2024. All rights reserved. 90

 Module 7
Agenda:

SMART 1 Long-term vs. strategic objectives

STRATEGIC 2 SMART strategic objectives

OBJECTIVES AT
CORPORATE 3 The strategy tree

LEVEL

© The KPI Institute 2024. All rights reserved. 91

 TRANSLATING THE VISION

Usually qualitative statement, meant to inspire and rally

VISION

© The KPI Institute 2024. All rights reserved. 92

 TRANSLATING THE VISION
“Despite the best intentions of those at the top, lofty
statements about becoming “best in class,” “the number
one supplier,” or an “empowered organization” don’t
translate easily into operational terms that provide
useful guides to action at the local level. For people to
act on the words in vision and strategy statements,
those statements must be expressed as an integrated
set of objectives and measures, agreed upon by all
senior executives, that describe the long-term drivers
of success.”

Kaplan, R., & Norton, D. – “Using the Balanced Scorecard As a Strategic Management System”, Harvard Business Review, July-August 2007 Issue - https://hbr.org/2007/07/using-the-
balanced-scorecard-as-a-strategic-management-system

© The KPI Institute 2024. All rights reserved. 93

 OBJECTIVES DEFINED

Objective KPI

Increase customer satisfaction % Customer satisfaction

Defined using verbs => Start with $, %, #

suggesting the resolve to measuring the achievement of a
implement strategic actions desired level of results.
(KPI Institute standard).

Brief, but explicit description of what

the organization intends to achieve as a
result of implementing its strategy.

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© The KPI Institute 2024. All rights reserved. 94

 SMART OBJECTIVES
Option 1: Increase customer satisfaction to 85% (from the current 60%) by the end of 2025,
under the Marketing Director’s coordination.
Option 2:

OBJECTIVE Increase customer satisfaction

KPI % Customer satisfaction

TARGET 85%

TIME By the end of 2025

OWNER Marketing Director

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 TRANSLATING THE VISION

VISION

LONG-TERM
OBJECTIVE
STRATEGIC Fundamental question: what
OBJECTIVE does this mean?
OPERATIONAL
OBJECTIVE 1st time => long-term
objective
2nd time => KPI
3rd time => target
The vision can (and normally
should) be translated into more
than one long-term objective

© The KPI Institute 2024. All rights reserved. 96

 TRANSLATING THE VISION

VISION

LONG-TERM
OBJECTIVE
STRATEGIC
OBJECTIVE
OPERATIONAL Fundamental question: to be here in 10 years,
OBJECTIVE where do I need to be in 3-5?

⮚ The exercise shall be repeated for each long-

term objective
⮚ The exercise can be continued to identify
operational objectives for the next year
⮚ A nice way to visualize this uses a timeframe line

© The KPI Institute 2024. All rights reserved. 97

 TRANSLATING THE VISION

VISION

LONG-TERM
OBJECTIVE
STRATEGIC
OBJECTIVE Fundamental question: to get this, what do I
OPERATIONAL need?
OBJECTIVE
Strategic Strategic
objective objective ⮚ The chosen strategic objective will lead to other
strategic objectives, through cause-effect links
Strategic Strategic ⮚ Looking at the strategic objectives one level
objective objective below, we need to ask: are they necessary and
are they sufficient to reach the strategic
objective on top?
STRATEGY TREE ⮚ A nice way to visualize this uses the strategy
tree
© The KPI Institute 2024. All rights reserved. 98
 TRANSLATING THE VISION

VISION

LONG-TERM
OBJECTIVE
STRATEGIC
OBJECTIVE
OPERATIONAL
OBJECTIVE
Strategic Strategic
objective objective

Strategic Strategic
NOW objective objective Timeframe

1 year 3-5 years 10 years

Check out the template for the strategy tree!

© The KPI Institute 2024. All rights reserved. 99
 REFERENCES

▪ Collins, J., & Porras, J. – “Building Your Company's Vision” – Harvard Business Review, October 1996 Issue
https://hbr.org/1996/09/building-your-companys-vision

▪ Kaplan, R., Norton, D. – “Mastering the Management System” - Harvard Business Review, January 2008 Issue
https://hbr.org/2008/01/mastering-the-management-system/ar/1

▪ Kaplan, R., Norton, D. – “Using the Balanced Scorecard As a Strategic Management System” – Harvard Business
Review, July-August 2007 https://hbr.org/2007/07/using-the-balanced-scorecard-as-a-strategic-management-
system

▪ The KPI Institute – “KPI professional certification course” - available at: http://store.kpiinstitute.org/

▪ Zenger, T. – “What Is the Theory of Your Firm?” - Harvard Business Review, June 2013 Issue
https://hbr.org/2013/06/what-is-the-theory-of-your-firm

© The KPI Institute 2024. All rights reserved. 100

 Module 8
Agenda:

PLANNING AT 1
Overview of the planning process at
department level
THE
The algorithm of cascading the corporate
DEPARTMENT 2
strategy
LEVEL
Planning “business as usual” vs. identifying
3
new projects at department level

© The KPI Institute 2024. All rights reserved. 101

 BUSINESS PLANNING: REASONS

We cascade the corporate strategy at department levels, in order to:

CORPORATE
STRATEGY

Set strategic and operational objectives for each

Plan business as department and each individual member of the
usual and identify department – that will allow performance
department-level monitoring and control
projects to put the
corporate strategy Align all functional priorities
into practice with corporate objectives

DEPARTMENT 1 DEPARTMENT 2

© The KPI Institute 2024. All rights reserved. 102

 BUSINESS PLANNING: REASONS

Cascading SMART strategic

Corporate Strategic objectives from the corporate to
objective
the employee level ensures
alignment at all levels of
operation.

Strategic Strategic
Department objective Department objective

© The KPI Institute 2024. All rights reserved. 103

 BUSINESS PLANNING: REASONS

Corporate STEP 1:
Communicating the corporate
objectives and the corporate
portfolio of projects to all
departments
Strategic
objectives
Project
portfolio
STEP 2:
Planning at department level.

Department A Department B STEP 2.1

Cascading strategic
objectives +
identifying the
STEP 2.2 departmental
Strategic
objectives
Aligning the Strategic
objectives
Strategic
objectives
portfolio of
departmental strategy projects that would
with other department- support the
level & corporate level competitive &
strategies growth choices
Kaplan, R., & Norton, D. – “Mastering the Management System” - Harvard Business Review, January 2008 Issue made at corporate
level
https://hbr.org/2008/01/mastering-the-management-system
Kaplan, R., & Norton, D. – “Using the Balanced Scorecard As a Strategic Management System” - Harvard Business Review – July-August 2007 Issue - https://hbr.org/2007/07/using-the-balanced-scorecard-as-a-strategic-management-system

© The KPI Institute 2024. All rights reserved. 104

 BUSINESS PLANNING - AN OVERVIEW

STEP 2: Planning at department level.

STEP 2.1
Cascading corporate strategic objectives + identifying the departmental portfolio of projects
that would support the competitive & growth choices made at corporate level

1 2 3

Individual First department planning meeting Second

study of input department
⮚ Cascading strategic objectives from corporate to
documents planning
department level meeting
⮚ Planning business as usual and identifying strategic
⮚ Estimating
projects / initiatives at department level
resources and
⮚ Documenting each project / initiative using the time
initiative form; identifying risks and elaborating a scheduling
risk management plan to mitigate them

© The KPI Institute 2024. All rights reserved. 105

 BUSINESS PLANNING - AN OVERVIEW

STEP 2: Planning at department level.

STEP 2.2
Inter-departmental planning - meeting

1 2 3 4

Individual Alignment and correlation Integrating Aligning

study of input of department strategies – objectives and department-level
documents involving an analysis of: initiatives strategies with the
corporate strategy

⮚ Interdependencies and
overlapping
⮚ Synergies and
contradictions

© The KPI Institute 2024. All rights reserved. 106

 BUSINESS PLANNING – THE ALGORITHM
CORPORATE OBJECTIVES CAN BE CASCADED AT BUSINESS UNIT / DEPARTMENT
LEVEL THROUGH USING:

Corporate Strategic objective

The same objectives – Supporting objectives

if the department owns – if the department
them or contributes to contributes to them
them directly indirectly
Same Supporting
Dept. A objective Dept. B objective

The same objective Corporate objectives are

can be cascaded to accompanied by specific objectives
more departments established at departmental level
Same
Sub Dept. A
objective

© The KPI Institute 2024. All rights reserved. 107

 PLANNING ”BUSINESS AS USUAL”

Once the corporate objectives

are cascaded, there should be
a brainstorming session at
department level, focused on
answering the question:

Strategic
objective

BUSINESS AS HOW ARE WE GOING

USUAL TO GET THIS DONE? NEW
These ideas will be PROJECT
carried out through
daily activities, that can These ideas reflect new
be assigned to someone undertakings, never done
as part of their job before, that need a team, a
description budget and special planning

© The KPI Institute 2024. All rights reserved. 108

 PLANNING NEW PROJECTS

⮚We need to plan every new project identified according to

the best practices set by the Project Management Institute
Strategic objective

⮚At this stage, we will plan up to the point of defining the

Project Charter, which will then need to be discussed and
agreed with the top management
Strategic project /
initiative
⮚Once the green light is received, the department can
proceed to planning the projects in detail, using tools such
as: the WBS, the Gantt chart, resource charts, budgets etc. It
can also monitor all projects simultaneously using tools such
as the portfolio of projects

Prasetyo, D. and Secokusumo, T. (2018), Strategy Map Cascading Method for Performance Management Implementation, Advances in Social Science, Education and Humanities Research, Volume 348,
https://www.atlantis-press.com/article/125918966.pdf

© The KPI Institute 2024. All rights reserved. 109

 REFERENCES

▪ Balanced Scorecard Institute - “Creating Organizational Strategic Alignment” – 2019

https://balancedscorecard.org/cascading-creating-alignment/

▪ Kaplan, R., Norton, D. – “Mastering the Management System” - Harvard Business Review, January 2008
Issue https://hbr.org/2008/01/mastering-the-management-system

▪ Kaplan, R., Norton, D. – “Using the Balanced Scorecard As a Strategic Management System” Harvard
Business Review – July-August 2007 Issue https://hbr.org/2007/07/using-the-balanced-scorecard-as-
a-strategic-management-system

▪ Mosse, R., Sontheimer, L.E. - “Performance monitoring indicators handbook” - World Bank Technical
Paper, No 334
http://documents.worldbank.org/curated/en/467601468739574415/pdf/multi-page.pdf

▪ Prasetyo, D., Secokusumo, T.- “Strategy Map Cascading Method for Performance Management
Implementation”- Advances in Social Science, Education and Humanities Research, 2018, Volume 348,
https://www.atlantis-press.com/article/125918966.pdf

▪ The KPI Institute – “KPI professional certification course” - available at: http://store.kpiinstitute.org/

© The KPI Institute 2024. All rights reserved. 110

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