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Level 5 – Strategic Tool |

Level 5 – Strategic Tool

Description

The fifth level is of course the top and most desired level in the maturity model. Vision and goals are fully integrated in the organizational culture, which is based on measurement and accountability. Strategic planning and management skills are embedded in the organizational culture and they are constantly improving. There is an organization-wide performance management culture. The end-users are well-trained and they support the improvement of data quality, and follow the designated procedures and standards.

The use of performance management has expanded beyond the confines of the organization itself, affecting the performance of, for example, suppliers, customers and partners. The organization has a mature, proactive and dynamic competence centre. The performance management operations and development plan changes continually. It is used to manage, and it is refined as the organization expands its performance management capabilities. Information is trusted across the organization and it is effectively used at all levels in the organization. The data is high quality, fully integrated and enables real-time reporting and analysis. Information is a fundamental component in setting strategic, tactical and operational actions so that the organization can achieve all its strategic goals. Performance management helps the organization to get an overall picture of what is happening in the organization, and it is a central part of the organization’s control and management systems.

Performance management processes are continually helping to improve operations. Metrics and scorecards are used comprehensively and they are routinely revised based on continuous improvement. Performance management is integrated into every level across the organization. The scorecard can be characterized as a strategy scorecard that includes result indicators and predictive process indicators. The strategy scorecard is based on a strategy map that is used to illustrate the organization’s strategy, and any cause-effect relationships.

The technological architecture is service oriented and analytical data and other functionalities are delivered as services. As a result, the data in the centralized data warehouse can be used effectively for almost any application. All relevant performance data is saved in the centralized data warehouse. The information systems used in the organization provide flexibility to adapt to rapid changes in business and information needs.

Key Capabilities

  • High quality data
  • Strategy feedback and refinement
  • Continuous strategic planning
  • Strategy scorecard
  • External data sources
  • Integration between architectures and processes
  • Service-oriented architecture

Maturity Levels

Components in Detail

Component Description for level 5
Communication Communication is continuous; vision and values are developed in co-operation; supports external communication
Information Information is trusted across the organization; data is fully integrated; information is highly valued asset in the organization
Intangible assets Vision and values are fully integrated into organization culture; measurement and accountability culture exists; organization-wide PM culture; individuals understand the impact of performance goals; mature, proactive and dynamic competence centre
Management and responsibility Top management is assigned to use PM; the PM organization is formal and coordinates operations across the organization
Methods and tools Methods and tools are critical for competitiveness; learning and development functions become a natural process; a constant development process is maintained; methods and tools are driving the improvement in effectiveness
Performance Relative performance goals; objectives are compared to competitors; metrics are used comprehensively; key metrics are assessed periodically; analysis and optimization; processes are integrated together; combination of processes such as rolling forecasting and budgeting; strategy scorecard
Scale and scope Use expanded to external stakeholders; information is shared with external parties; solution supports strategic, tactical and operational decision-making; goals and metrics are everything that is done in the organization
Strategy and Business Business strategy oriented: provides feedback for strategy and refines strategy; constant strategic planning; PM has become a strategic management tool; PM cannot be replaced; real business value is gained from investments
Technology Service-oriented architecture; full-scale organization-wide analytical architecture; integration into enterprise architecture; data warehouses and analytical functions become part of basic infrastructure; EDW is a strategic resource; external data sources used widely

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