How do the strategic objectives, key performance indicators (KPIs), and initiatives connect with one another? In this webinar, The KPI Institute’s General Manager, Adrian Brudan, explains the link between these elements of an organization’s performance measurement and management architecture. Find out how standardization in performance terminology can lead to measurable benefits. The webinar also includes discussions on SMART objectives and best practices for KPI naming standards.
In an era of uncertainty, determining what impacts an organization’s direction is as important as identifying those factors, understanding the risks, and knowing which ones truly matter. Achieving such clarity is possible through strategic foresight, a structured approach used to anticipate opportunities and challenges to prepare for future changes. This approach is even more crucial in the government sector, where authorities are responsible for public resources, well-being, and long-term stability.
Singapore serves as an exemplary case study in this realm. The country ranked fifth in the World Intellectual Property Organization’s Global Innovation Index 2023 and has been recognized for its ability to translate “innovation investments into innovation outputs.” Similarly, the Singapore Country Report 2024 for the BTI Transformation Index, where Singapore ranks 21st out of 137, provides further examples of how the country maintains strategic priorities and implements policies effectively in several areas.
Singapore’s adaptability is also reflected in its ranking in The KPI Institute’s Government Service Index 2023. Singapore ranked first in Future Readiness, which, in the context of government services, refers to the capacity and preparedness of government agencies and institutions to adapt, innovate, and effectively meet society’s evolving needs and challenges in the future.
Future readiness also emphasizes forward-thinking and proactive approaches to governance. Several perspectives were assessed in this dimension of the index, wherein Singapore took the top spots in Strategic Prioritization (first), Innovation (second), R&D Expenditure (second), Regulation of Emerging Technologies (second), Investment in Green Energy and Infrastructure (fifth), and Hightech and Medium-high-tech Manufacturing (first).
Singapore’s decades-long history of planning, as noted on the Centre for Strategic Futures’ (CSF) website, started with an experiment in the Ministry of Defence in the late 1980s. It was further refined in 1995 when the Scenario Planning Office was set up in the Prime Minister’s Office. In 2003, it was renamed the Strategic Policy Office (SPO) “to reflect the strengthened links between foresight work and strategy formulation.”
In 2009, the CSF was established within the Strategic Policy Office to focus on whole-of-government strategic planning and prioritization. Its vision is “to build a strategically agile public service ready to manage a complex and fast-changing environment.” This suggests a focus on adapting governmental structures and processes and emphasizes the importance of flexibility within the public sector to address future complexities and changes. Its mission is focused on three main areas: “building capacities, mindsets, expertise, and tools for strategic anticipation and risk management; developing insights into future trends, discontinuities, and strategic surprises; and communicating the insights to decision-makers for informed policy planning.”
Strategic Foresight Tools
To develop insights into future trends, the CSF applies sophisticated strategic foresight tools recognized as Scenario Planning Plus (SP+). SP+ serves six purposes: defining focus, environmental scanning, sense-making, developing possible futures, designing strategies, and monitoring. The process goes as follows: the nature of the problem is established first, and then problems are divided into five domains—simple, complicated, complex, chaotic, and disorder—using tools such as complexity theorist Dave Snowden’s Cynefin Framework Problem Definition.
Subsequently, with Driving Forces Analysis and Prioritisation [sic] tools, potential trigger events are examined based on how they can influence existing trends and then subsequently ranked according to their potential impact on stakeholders. Afterward, Scenario Planning is used to generate narratives and models to comprehend conceivable future conditions. This method makes use of stories to depict possible future scenarios, questioning assumptions and stimulating deliberation on long-term strategies.
One of the responsibilities of the CSF is to distribute the SP+ toolkit throughout the Singaporean Government. To achieve this, the center conducts a series of workshops called “FutureCraft.” Experts are invited to join said workshops, which focus on introducing key skills and tools relevant to government foresight work. Through its publications, the CSF disseminates information that aims to address real-world challenges and offer different approaches to envisioning the future, such as the Driving Forces Cards 2040.
By embracing strategic planning as a core approach, the Singaporean government fosters resilience, adaptability, and competitiveness, thus paving a sustainable path for the country’s future. Governments across the globe can learn from Singapore’s example of creating strategic foresight units to become better equipped to make informed strategic choices, anticipate potential complex socioeconomic obstacles, and gain a competitive edge.
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Editor’s Note: This article was originally published in Performance Magazine Issue No. 30, 2024 – Government Edition.
The transformative shifts occurring today compel employees to recalibrate their thinking, embrace cutting-edge technologies, adapt behaviors, and operate in new environments. While these changes hold the promise of progress, they simultaneously introduce disruptions.
Effective change management is a critical factor for organizational success in this dynamic scenario. Change management relies on strategic leadership, as highlighted in the Certified Agile Strategy Execution course offered by The KPI Institute (TKI). This program emphasizes the importance of shaping a strategic vision and guiding employees through essential actions for its realization. It involves anticipating change, maintaining flexibility, and empowering others to drive strategic change when needed.
However, TKI’s State of Strategy Management Practice Global Report – 2023 reveals a stark reality in the business environment: 34% of professionals identify poor management of changes as a significant contributor to strategic failure. Meanwhile, on the employees’ side, the challenge of change fatigue emerges during transformation changes.
Change Fatigue
Even with the most adept strategic leadership, the continuous wave of changes can affect employees’ resilience, impacting their performance and engagement. As outlined in Capterra’s 2022 Change Fatigue Survey, the prevalent consequences of change fatigue on employees include loss of productivity, less trust in the employer, and losing enjoyment in the job (see Figure 1).
Figure 1. Most Common Effect of Change Fatigue Among Respondents Experiencing Change Fatigue | Source: Adapted from Capterra’s 2022 Change Fatigue Survey
Leadership, therefore, must prioritize addressing their employees’ readiness for change to mitigate resistance and prevent change fatigue.
Drawing from a study featured in the International Journal of Ethics and Systems, the influencers of this readiness are internal perceptions of competence, relatedness, and autonomy, as well as the knowledge-sharing models employed in the organization.
When employees feel competent and confident in their skills, the likelihood of adaptation to change significantly increases. Similarly, individuals who hold a sense of connection with their colleagues and the organization find themselves better equipped to weather change collectively. Employees who feel independent and in control of their work naturally take ownership of the change process. This autonomy empowers them with a sense of purpose.
Lastly, the seamless integration of structured documentation and dissemination of explicit knowledge with human-centric exchanges enhances information accessibility and fosters a collaborative and interconnected work environment.
A deep understanding of these factors enables leaders to implement interventions that foster a positive and adaptive organizational culture. This, in turn, strengthens teams against change resistance and fatigue. Examples of such measures are the following:
Prioritize skills development and invest in training programs to enhance employees’ confidence in their skills and ability to adapt to changes.
Foster a workplace culture that emphasizes collaboration and communication, reinforcing a sense of relatedness among employees.
Delegate responsibilities, involve employees in decision-making, and offer opportunities for autonomy within the context of change initiatives.
Establish a comprehensive knowledge-sharing environment to ensure that employees have access to information and resources essential for a seamless change.
According to TKI, when strategic initiatives are expected to extend beyond incremental adjustments—delving into changes that not only redefine the “what” but revolutionize the “how”—then an organization must implement a meticulously crafted approach to communication and engagement. It should be able to counteract its employees’ natural resistance to change and sustain productivity levels.
Leaders should use transparent and consistent communication to keep employees informed about upcoming changes, set up feedback mechanisms that allow employees to express their concerns and suggestions, and, finally, acknowledge and recognize employees for their resilience.
The complexities of change management require leaders to be proactive in addressing the concerns of their teams. To mitigate negative responses from employees during periods of change, leaders must prioritize equipping their workforce with the essential resources and knowledge necessary for adaptation. Furthermore, leaders must embody the change they seek, serving as models of adaptability.
Effective change management coupled with supportive leadership are the keys to sustaining optimal employee performance and satisfaction in the ever-evolving business environment.
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Editor’s Note: This article was originally published in Performance Magazine Issue No. 29, 2024 – Strategy Edition.
Successful strategy execution is the bridge between strategic goals and measurable results. An organization’s strategy outlines its goals, aspirations, and intended course of action. However, a strategy that remains confined to boardroom discussions holds limited value. It is the collective effort of employees that determines whether a strategy flourishes or falters.
However, effective strategy execution requires more than just outlining goals and directives. It involves aligning the workforce with the strategic vision, fostering a culture of ownership, and providing the necessary resources and tools.
Case in Practice: Al Saedan Real Estate Company
Al Saedan Real Estate Company, a leading real estate developer in Saudi Arabia, is a notable example of integrating strategy execution and employee performance. In 2021, the company initiated its internal project “STEP” (Strategy Transformation Project) and formulated a task force (Transformation Leaders) comprising members from various departments and organizational levels to execute and transform its new vision. Below, we delve into the various aspects of this strategy implementation.
1. Strategic Alignment, Clear Communication, and Cascading Goals
By implementing a transparent communication system, Al Saedan’s leadership ensured that each team member understood how their work contributed to the company’s ambitious goals. This approach not only boosted motivation but also streamlined efforts toward strategy execution.
2. Setting SMART Goals
Al Saedan implemented a goal-setting process that aligned individual employee goals with the company’s strategic objectives. Each employee had SMART (Specific, Measurable, Achievable, Relevant, and Time-bound) goals that directly supported the strategic initiatives.
3. Performance Metrics and Feedback Loops
The company introduced a data-driven performance management system.
Cross-functional teams were formed to encourage collaboration and innovation.
Teams had access to real-time dashboards showing key performance metrics related to the strategy.
Regular one-on-one feedback sessions discussed progress, challenges, and development opportunities.
4. Empowerment and Autonomy
The teams had the autonomy to make decisions and experiment with new ideas, fostering a culture of ownership and creativity.
By tracking and sharing progress through visually appealing charts, employees were empowered to take ownership of their contributions.
This transparency fueled innovation and collaboration across departments, propelling the company toward its objectives.
5. Recognition and Rewards
Al Saedan Real Estate Company’s recognition and rewards program is designed to ignite motivation and inspire employees to excel in their respective roles while actively contributing to the attainment of the organization’s strategic goals. The program encompasses a variety of gestures, including personalized plaques and trophies for individual achievements, an extra day of paid vacation to express appreciation for hard work, performance-based bonuses tied directly to specific targets and milestones, and celebrations of team excellence marked by team lunches, certificates of achievement, and extensive company-wide recognition.
Furthermore, the company values long-term commitment and consistently outstanding results, providing opportunities for career advancement and growth, including promotions and salary increases. The spirit of innovation is also nurtured and acknowledged through the company’s “Innovation Awards” and innovation certificates. An annual awards ceremony serves as the grand culmination of the program, highlighting the best talents across the company’s different functions.
As a direct outcome of our strategic execution, we have recently launched numerous real estate projects. These ventures span across residential, commercial, and hospitality sectors and have been made possible through strategic alliances and partnerships we have forged along the way.
Engaged employees who fully grasp the company’s mission play a pivotal role in achieving our objectives. Moreover, our commitment to SMART goals has become the foundation of our strategic progress, ensuring that our objectives are not mere aspirations but actionable plans.
Our success is also a direct outcome of our dedication to data-driven approaches. Lastly, we have observed that our company’s culture, which champions employee empowerment, directly correlates with increased ownership, enhanced collaboration, and a continuous drive for improvement.
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About the Guest Expert: Rami Al Tawil, Organizational Excellence Director at Al Saedan Real Estate Company, holds a master’s degree in industrial engineering from Jordan University of Science and Technology. With 19 years of expertise spanning Strategy Planning, Performance Management, Business Improvement, and more, he excels in aligning employees with strategic visions for consistent performance improvement.
Editor’s Note: This article was originally published in Performance Magazine Issue No. 28, 2024 – Employee Performance Edition.
Planning and strategy are often confused with one another. They are even combined in the term “strategic planning.” But a strategy is something very different than a plan. When the distinctions are blurred, problems arise—as evidenced by the consistently high failure rates in strategy.
The confusion about what strategy is stems largely from the widespread and inaccurate use of the word itself. People tend to use “strategy” to distinguish a concept from something ordinary, like in “strategic HR” and “strategic marketing.” They also use it in their day-to-day language to reflect their ideas about how to achieve some goal. For example, “My strategy to lose weight is to eat 10% less than usual every day.”
In business, or organizations more generally, strategy means something else. It must be because otherwise, every plan, approach, and process can be called a strategy, which brings us nowhere. This is how a strategy and a plan are different (see Figure 1).
Figure 1. The Differences Between Strategy and Planning
A strategy is a logic that describes how an organization creates and captures value. It is the starting point from which goals can be derived.
A plan is a process that describes the steps an organization intends to take in order to achieve its goals and thereby realize its strategy.
Since plans and planning are widely known, it is important to zoom in on the strategy part of this comparison. A strategy lays out the logic according to which an organization creates and captures value. As described in my recent book, “The One-Hour Strategy,” this covers six elements that comprise the 6M Framework:
Magic: The products and services the entity offers and what they do for customers
Market: The customers whose needs the business serves and the alternatives it competes against
Means: The assets and capabilities that a company and its partners can bring to the table
Money: The way and amount of revenue generated versus existing costs and risks
Meaning: The things that the company finds most important and to which it most aspires
Momentum: The factors outside one’s control that help or hinder them in what they do
This is not just a list. There is a logic reflected in the image. The heart of a strategy is the company’s Magic (the value it creates). It is a link between the Means (how one does this) and the Market (where and for whom one does it).
It is also the link between Money (how value is captured) and Meaning (the why). And around that, there is Momentum (the environment), which either works for a company or against it.
Finally, as reflected by the other arrows, a good strategy is an integrated set of choices that all align so that all 6 Ms fit together as one coherent whole.
Seen as such, there is no need to confuse a strategy and a plan. The two are simply very different.
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About the Guest Expert:Jeroen Kraaijenbrink is an accomplished strategy educator, mentor, author, and consultant with over two decades of academic and industry experience. He has a PhD in industrial management and has helped improve the strategic planning and implementation of numerous organizations across a variety of industries.
Editor’s Note: This was originally published in Performance Magazine Issue No. 29, 2024 – Strategy Management Edition.
