From Strategy to Execution

pp 151-165

From Strategy Execution to Performance Management

  • Sanjay PoonenAffiliated withSAP
  • , Nenshad BardoliwallaAffiliated withSolution Management, Corporate Performance Management Products, SAP
  • , Adam ThierAffiliated withDevelopment, Corporate Performance Management Products, SAP

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The fundamental business goal remains constant: make a profit and return value to shareholders. The objective is straightforward: sell a product or a service to customers for more than it costs to produce and deliver it (profit = revenue — cost). Executing a strategy to achieve this objective in today’s unforgiving business environment is not nearly as straightforward. Global markets, intense competition, compliance constraints, disruptive technologies, and talent shortages are all pressuring companies to become more agile so that they can constantly adjust to a world of accelerated change. This condition of constant adjustment forces companies to embark on a non-stop cycle of strategy development, execution, measurement, and refinement. Companies that can effectively manage their performance within this steady cycle of change are well positioned for success; companies that can’t are likely to suffer a less fortunate fate.