Capturing and leveraging the right performance data and metrics to improve strategy

What is it about?

Good strategy hinges on having timely, balanced, and high-quality data, and a talented team of decision-makers prepared to interpret and respond to these data. But what information is critical to have to have in hand, to inform strategic planning and decision-making? For many firms, the strategic planning process is compromised from the outset, because the management team lacks a multidimensional strategic data bank -- one that can crystallize the issues and opportunities the firm faces. While data abound, many managers lack critical and balanced information. As a result, subjective opinion and selective historical performance reviews overly influence strategic decisions. Key managers make impulsive or gut-based decisions about how to best allocate resources, respond to competitive threats, or seize (apparent) opportunities in the marketplace. In contrast, decision-makers in high performing firms systematically cultivate critical information. They capture, and share, a range of inputs on the firm, its markets, the industry, and the environment, then translate these data into useful form. This article describes the content required and important process steps that help optimize the strategic planning process.

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Why is it important?

Good strategy hinges on good information and analysis. Without the right, multidimensional data inputs, strategy will suffer: management bias, the loudest voices at the table, myopia, will cloud the planning process. What categories of information are critical? How best to present it efficiently? This article, targeted at C-level and senior executives, spells it out.