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Über dieses Buch

This book demonstrates how an improved strategic management approach, leveraging established management concepts in conjunction with the innovative technology solutions offered by business intelligence, can lead to better performance. It presents the three main barriers to effective strategy execution and explains how they can be overcome. Creating a shared understanding of the strategy at all levels of the organization using a Value ScorecardTM and following the Strategic Alignment ProcessTM allow organizations to measure and monitor performance. Strategic Alignment Remote ControlTM is presented as the ultimate tool for managers to remain in control of their business.

Seven case studies from different industries across the globe provide examples of how the organizational performance can be improved. They include companies like Daimler, Tetra-Pak, Würth, Germany's Federal Employment Agency, the city of Aix-Les-Bains, and Giesecke & Devrient. Additional examples from organizations like Disney, Marriott, Volkswagen, Avis, FedEx, and Harrahs help to demonstrate how applying the concepts introduced adds unique value.

The second edition of this book has been updated and improved. Additionally it includes a separate section on decision-making under uncertainty and the results of a survey on the adoption of business intelligence.



1. Management Challenges in Dynamic Business Environments

Why do some organizations outperform others? Why are so many companies going out of business every year? What are the reasons why they have problems coping with the challenges in the market? A prediction from Gartner indicates that more than 35 % of the top 5000 global companies will regularly fail to make insightful decisions about significant changes in their business and markets (Gartner, 2009a). This sounds alarming. Does this seem to reflect the current status quo? How can organizations potentially increase their chance of survival under these circumstances? I will try to address these and additional questions in the following introduction.
Bernd Heesen

2. The Strategic Alignment Process

In a dynamic environment a new management philosophy is required, one with a recipe how to deal with complexity and how to create a learning organization which can swiftly make decisions and is agile enough to implement and execute what was decided.
Bernd Heesen

3. Preparation for Strategy Execution

This chapter presents how management should prepare an effective strategy execution (see Fig. 3.1). The first task is to formulate the enterprise strategy and define associated measurable strategic objectives. A prerequisite to define measurable objectives is a shared definition and understanding of the performance indicators, which can be utilized to measure the current status of performance as well as the extent to which initiatives to reach the strategic objectives have been successful. But then there is one major task left to actually measure and track the performance over time. Tracking multiple performance indicators for different levels of the organization quickly becomes a complex task which can only be managed with the help of information technology.
Bernd Heesen

4. Strategy Execution

This chapter presents how management can improve the strategic alignment by utilizing the management section of the Strategic Alignment Remote Control™ (see Fig. 4.1).
Bernd Heesen

5. Outlook

John Maynard Keynes, the well known father of the Keynesian economics once said: “When the facts change, I change my mind”. In this sense decision making heavily relies on facts and having shared many new examples demonstrating the potentials of business intelligence the question you may ask yourself: “Is my organization equipped and utilizing business intelligence sufficiently? Are there any missed potentials to use this innovation? What is the added value to innovate and use more business intelligence?”
Bernd Heesen

6. Case Studies

As explained in Sect. 5.​1 the adoption of innovations is significantly affected by its attributes: (a) relative advantage, (b) compatibility, (c) complexity, (d) trialability, and (e) observability. The purpose of the case studies in this book is to help you get additional insights about the relative advantages and benefits these organizations were able to gain from implementing measurement systems and business intelligence. Trialability of an innovation and the observability of the results of an innovation adoption reduces the uncertainty for potential adopters. The trial experience from peers and the effects of their implementation can be a substitute. I hope you will find the following case studies useful from that perspective as they demonstrate how performance management systems can impact the effectiveness of strategy execution.
Bernd Heesen


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