Journey of Organizational Strategy to Business Value

Companies have an operating vision on which they build their strategies. These strategies/goals/missions are converted to gain the planned organizational values. There is a decomposition hierarchy to convert “Strategy” into “Value”. According to the definition “Value is the net result of Realized benefits less the cost of achieving these benefits” [1]. The worth of gained value can be tangible or intangible. I have elaborated here the flow that depicts the journey of any organizational strategy to realize its value. More or less the companies follow the similar hierarchy to achieve their mission.

  • The goals of the organization are defined as its strategies
  • This strategy is then decomposed into multiple objectives.
  • Multiple Initiatives are taken to create deliverables as a part of Projects, Programs and Portfolios.
  • The created deliverables are the Outputs of the taken initiatives.
  • The Results obtained through outputs are called Outcomes
  • These outcomes are converted into Benefits
  • The organization Value is then calculated from these benefits.

I hope you got the clear understanding how the company strategy is converted into tangible/non-tangible Benefits.

These benefits can be following:

  • Increased customer satisfaction
  • Maximum Productivity
  • Efficient Operations
  • Improved Cost Control
  • Effective Decision making
  • Enhanced market competitiveness
  • Better communication

Organization goals are referred to as Drivers because they contain the objective and plan about their completion. There is a strong bond between strategy, goal and benefit. Specials consideration should take place in assuring that goal is aligned to the planned benefit. This alignment can be assured using benefits traceability matrix.

Strong sponsorship and positive leadership play an important role in achieving the maximum planned benefits. The benefits can be reviewed and updated during Portfolio, Program and Project activities at all phases.

I hope you have enjoyed this blog and got an understanding about Organizational strategy and its journy towards realizing the values.

References

  1. Benefit Realization management: A Practice Guide [Pages 7-11]

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