Aligning Resources and Processes for Effective Strategic Implementation
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As institutions prepare to implement new strategies, it is crucial to ensure that internal resources and processes are properly aligned to facilitate the achievement of desired outcomes. A recent report highlights the importance of reviewing an institution’s financial and non-financial resources, organizational structure, systems, infrastructure, and technology to support new initiatives.
Measuring and Monitoring
The success or failure of a strategy depends on whether an institution has the resources and capability to implement it effectively. Institutions must have a process in place to monitor and control the progress of implementation, with adequate reporting mechanisms in place. As recommended by the report, institutions should deploy a management information system that enables management to:
- Monitor current and forecasted economic conditions
- Track industry and market trends
- Evaluate exposure to different sectors
Performance Evaluation and Feedback
Institutions are expected to develop a performance evaluation system that tracks progress towards achieving financial and non-financial targets. Regular comparison of actual performance to desired outcomes serves as an important check on the success of implementing approved strategies, allowing management to take timely remedial actions to address significant deviations from set targets.
Supporting Processes
Several supporting processes are crucial for effective strategic planning and implementation:
- Planning and Management of Capital and Funding Needs: Institutions should view capital planning as a crucial element of the strategic planning process, taking into account:
- Current and future capital needs
- Anticipated capital expenditures
- External capital sources
- Human Resources Management and Development: Human resources management has a strategic focus, enabling institutions to adopt a forward-looking approach to deal with change and growth.
- Succession Planning: Institutions should develop management succession plans to cater for staff turnover and retirement, particularly for senior and middle management positions.
- Stress-Testing and Contingency Strategies: Institutions should employ stress-testing techniques to assess potential threats to the implementation of their strategies, identifying possible events or changes in the external environment that could have unfavourable effects on their business.
By prioritizing these supporting processes, institutions can ensure effective strategic planning and implementation, ultimately achieving their desired outcomes.