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Strategy Execution: Dollars and Sense

By Cammy Elquist LoRé

Strategy Execution:  Dollars and Sense

The main focus of OnStrategy is to make strategy planning an accessible process with management tools to increase the success of proper implementation and strategy execution.  The big challenge for so many organizations however is identifying how to budget for the accomplishment of goals, objectives and actions.  In “Linking Strategy and Planning to Budgets” (HBR, Balanced Scorecard Report #B0605A), David Norton cites the defining issues as:

1) the need for cross-business integration; and
2) the linkage of a long-term process (strategy) and a short term process (budgeting).

After breaking into a half-dozen principles, we learn about developing a useful accounting approach along side of traditional conventions of OPEX (Operating Expenses) and CAPEX (Capital Expenses).  Enter in STRATEX to finance initiatives associated with strategy (first coined by Eloteq, a high-tech manufacturer in Finland). We will look into this and other approaches for budgeting in our upcoming newsletters, but we do find inspiration in approaches such as STRATEX, as it addresses a major hesitation (proper funding) in organizational buy-in and strategy execution.




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