Execution of the Strategic Plan

The financial and operational steering plan supporting the strategic plan

Chief Executive Officers (CEOs) need a financial and operational management tool to assess the progress of the implementation of their strategic plan and to measure its financial impact. CEOs delegate responsibility for this tool to their Chief Financial Officers (CFOs), who are accountable for their company’s financial management.

Context and challenges

There are two main stages in the creation of this management tool.

The modeling of the value-creation chain, to identify operational and financial lever indicators, will make it possible to attain strategic targets:

  • Construction of a 'Financial Tree' of operational and financial levers, using defined strategic targets, such as increased Return on Capital Employed of 3%, Free Cash Flow accounting for 8% of revenue, or a dividend accounting for 20% of the net result
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  • Selection of the most relevant levers (degree of impact, feasibility, measurability, etc.) and the related Key Performance Indicators (KPIs)
  • Cascading of targets to each Business Unit.

Design and implementation of the process, the management tool, and governance:

  • Creation of the Strategic Plan Dashboard (SPD)
  • Integration of the SPD into the company's Information Technology systems. A Business Intelligence tool will facilitate its implementation
  • Development of the governance model and communications plan (rules of internal and external communication, announcement of targets, sharing of results, etc.)
  • Alignment of individual targets with strategic plan targets

 

How can Argon Consulting help you?

Argon Consulting provides a proven modeling methodology for strategic plans and assists companies in adopting it.