Strategic management – from strategy to practical action
Strategy creates direction. Results arise when objectives are transformed into plans, responsibilities
into a cohesive management framework.
The value of strategy arises from execution
Strategy defines where the company wants to go. The role of management is to translate this direction into concrete objectives, plans and actions. The challenge easily arises when strategy, financial planning and operational activities exist separately from each other.
Revise EPM helps connect objectives, planning, outcomes and metrics into a continuous management process.
✔ Mitä tavoittelemme?
Strategy and objectives define the direction.
✔ Mitä meidän pitää tehdä?
Tavoitteet muutetaan toimenpiteiksi ja suunnitelmiksi.
✔ Mihin resurssit käytetään?
Budjetit ja suunnitelmat konkretisoivat valintoja.
✔ Miten onnistumista mitataan?KPI:t ja muut mittarit kertovat kehityksen.
✔ Mihin olemme menossa?
Forecasts bring the future into management.
✔ Mitä pitää muuttaa?
Deviations and analysis guide decisions.
Connect objectives to measurable actions
Metrics can relate to, for example:
✔ sustainability
Transform objectives into a financial plan
Strategy and economic planning go hand in hand. Growth, investments, staff, new markets, and other strategic choices affect the company's revenue, costs, profitability, balance sheet, and cash flow.
Revise EPM helps to align business objectives:
Look forward, not just backward
With these, management can consider four questions:
A business is not managed in a vacuum
Changes can affect the company's goals, plans and forecasts. In strategic management, the company's own information must therefore be able to be examined
in relation to the changing operating environment.
A single entity for company management
Revise EPM connects the company's planning, goals, outcomes and metrics for management use.
Strategy & goals
Align the company's direction with measurable goals.
KPIs & dashboards
Track essential business metrics.
Budgeting
Convert goals into a financial plan.
Forecasting
Keep the future outlook constantly up to date.
Reporting
Connect outcomes and comparisons for management use.
Cash flow
Connect outcomes and comparisons for management use.
Analytics
Identify deviations, trends and areas for development.
AI & management support
as features develop.
Make strategy a continuous part of company management
outcomes into a whole that supports the company's continuous management.