More and more, companies are operating in an environment that is highly dynamic and increasingly complex. To remain successful, they have to satisfy constantly changing demands. Consequences include a noticeable increase in restructuring projects, strategic reorientation initiatives and increasingly detailed refinements of business models. Our experience has shown that most newly formulated strategies are not implemented successfully, if at all.
Putting in place strategic measures requires a toolkit that supports successful implementation and continuously makes the achievement of targets transparent to management: steering logic.
Steering logic ensures that strategy is strictly translated into operational management. This is where critical key points are fixed, such as the “strong axes” of steering, local degrees of freedom or principles of profit responsibility. These are in turn broken down into targets, key performance indicators and measures, and finally assigned to responsible persons.
Defining, introducing and sustainably establishing a new steering logic are important steps for a company. They are not part of the everyday routine, yet have to be introduced while normal business operations continue as usual. Meeting this challenge depends on having fully committed managers and management systems. Moreover, the entire implementation has to take place in a concentrated and comprehensive fashion, within a limited time period – not least to avoid overburdening the company and to ensure that internal communications remain clear.