The Ledger

Redesigning Models Using the Plan-Do-Check-Act Principle

In many large global companies, people complain about growing organizational complexity with lots of silos, scattered accountabilities, which leads to inadequate decision-making and steering capabilities. Steering means setting targets, and entering an area of closed-loop thinking and acting. Commonly we see a “Plan-Do-Check-Act” closed loop established as steering model principle. Data comes at us faster than we can make sense of it, and redesigning a steering model can give us the insights we are lacking.

Read More at The Digitalist by SAP >

The Benefits of a Steering Model Redesign

Every executive team beginning to map out a transformational strategy needs to translate that strategy into concrete activities. And once executed as operational processes, that strategy can be determined to be effective only if the impact can be measured. For the CFO, this means instituting a steering model that maps directly to the transformation being undertaken.A “steering model,” in short, is a framework for operationalizing corporate strategies and objectives into measurable targets.

Read more at The Digitalist by SAP >

Strong Strategies Require Balance

“Successful strategy execution calls for skillful orchestration of sometimes opposing forces and competing needs.”

Putting a strategy into practice can be very difficult. The main obstacle to executing strategy is the failure to balance the tensions that characterize the execution effort. Getting strategy done well often calls for trade-offs between delivering short-term results and implementing foundational changes that require time. Yet companies that can achieve a balance between opposing forces are far more likely to realize successful strategies that endure.

Read More at The Harvard Business Review >

Shorter Time Frames Lead to Better Forecasting

Brad McMillan, Chief Investment Officer at Commonwealth Financial Network, discusses the importance of time frames in economic forecasting in a recent Forbes Magazine article. He claims that when shorter time frames are used, you can have better visibility than over longer periods. The goal is to identify signs of trouble ahead and then reacting to them instead of predicting when they will show up. Over longer periods, though, the variability and potential for surprises make forecasts increasingly unlikely. It’s much better to keep an eye on the data, develop warning signs, and watch for them rather than watch the calendar.

Read More at Forbes Magazine >