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The Execution Premium: Linking Strategy to Operations for Competitive Advantage

In a world of stiffening competition, business strategy is more crucial than ever. Yet most organizations struggle in this area--not with formulating strategy but with executing it, or putting their strategy into action. Owing to execution failures, companies realize just a fraction of the financial performance promised in their strategic plans.

It doesn't have to be that way, maintain Robert Kaplan and David Norton in The Execution Premium. Building on their breakthrough works on strategy-focused organizations, the authors describe a multistage system that enables you to gain measurable benefits from your carefully formulated business strategy. This book shows you how to:

ˇ Develop an effective strategy--with tools such as SWOT analysis, vision formulation, and strategic change agendas

ˇ Plan execution of the strategy--through portfolios of strategic initiatives linked to strategy maps and Balanced Scorecards

ˇ Put your strategy into action--by integrating operational tools such as process dashboards, rolling forecasts, and activity-based costing

ˇ Test and update your strategy--using carefully designed management meetings to review operational and strategic data

Drawing on extensive research and detailed case studies from a broad array of industries, The Execution Premium presents a systematic and proven framework for achieving the financial results promised by your strategy.

Robert S. Kaplan is the Baker Foundation Professor at the Harvard Business School. He has been a codeveloper of both activity-based costing and the Balanced Scorecard.

David P. Norton is a founder and director of the Palladium Group, a consultancy focusing on strategy execution, and is codeveloper of the Balanced Scorecard

Table of Contents:

1 Introduction 1

2 Develop the Strategy 35

3 Plan the Strategy 69

4 Strategic Initiatives: Launching the Strategy into Motion 103

5 Aligning Organizational Units and Employees 125

6 Plan Operations: Align Process Improvement Programs 157

7 Plan Operations: Sales Forecasts, Resource Capacity, and Dynamic Budgets 185

8 Operational and Strategy Review Meetings 221

9 Meetings to Test and Adapt the Strategy 251

10 The Office of Strategy Management 281

Index 305

416 pages, Hardcover