Linking Strategy to Everyone


If you were to Google the word ‘strategy’, one of the first definitions you could see is “a plan of action or policy designed to achieve a major or overall aim”.[1] Every corporation has a strategy, even if it is not formally written or known by the executive team.

The strategy of a company commonly outlines the goals that the company has and how they are going to be achieved. But how can you link the strategy of the company directly back to any employee? With a well-constructed company strategy, you would have Key Performance Indicators (KPIs) and standards to be achieved. These will allow the management team to ascertain if the strategy is being properly implemented and if there are any changes required in the implementation plan.

The KPIs can be related back to each and every employee with their own KPIs performance management system which will track their activities but can also be the basis of their bonus payment.

For example, we could look at a steel manufacturer which is bases their strategy on the Customer Value Proposition (CVP) of strong relationships within anyone in the company’s network. On a corporate level, the executive team could be tracking this by customer retention rates. For the sales department, each sales person can be tracked on the same metric for customers of the business. For the shipping and production departments, their activities can be linked to that metric by the number of complaints that have been received by customers based on that department’ activities.

With any performance management system, you want to use more than one KPI and you do want some of the KPIs to offset each other. For example, an offset to complaints from customers, for the production department, would be the amount of waste or re-work that the department completes. Without that offsetting factor, you could have the production department throwing out all bad products to avoid complaints but yet not trying to decrease the amount of bad product produced.

How does your strategy filter down to each employee? Have you created that direct link that your staff understand and are held accountable to? Please comment below and let us all know!

Have an awesome week.


Picture Source: birgerking (Flickr Common Creative)

Kevin MacDonald is the CEO of L6S Business Consulting Inc. L6S offers services in management consulting, Controller and CFO contracting, and lean management with either project work or teaching/mentoring of staff. Kevin holds his CMA accounting designation along with a Black Belt in Lean Six Sigma.

Kevin is active in the community by volunteering for different groups, his condo board and donates platelets at the Canadian Blood Services clinics on a bi-weekly basis.

[1] Google., February 17, 2015


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