Page 38 - DCAP307_PLANNING_AND_MANAGING_IT_INFRASTRUCTURE

Planning and Managing IT Infrastructure

Notes If a division or divisions’ strategic statement is called for it is important to be sure those statements
are totally in agreement and in sync with the business unit strategy. If conflict or contradiction
exists between the strategic statements of the business and the divisions it is a clear sign of the
misalignment of the core strengths, resources, skills, and goals and objectives within the
organisation.
Once the business and the divisions or business unit strategies are completed, the next step is to
develop functional strategies for those functions central to the operations for the businesses.
Again, these functional strategies must be aligned and in agreement with the business and
divisions strategies. Alignment will help to direct the functional managers to conduct activities
and execute tactical plans that are consistent with the business strategy and division strategy.
Alignment of all of the strategy work will help to assure efficient and effective use of the
strengths, skills, and resources of the business.
Following the completion of the basic elements of developing a strategic statement for the
company, divisions and functions will be the development of an annual business plan.
This work will be done from the bottom up; it will be focused on and consistent with the
direction defined by the strategic planning process.

The business plan will be built around the tactical and executioner elements of conducting
business. It will establish annual goals and objective important to achieving the longer term
strategic plan. It will define specific goals and objectives that are measurable and meaningful.
These goals and objectives will consist of both traditional financial goals such as revenue,
income, cash flow, and key financial ratios. In addition it will include key sales and marketing
goals such as volume, market share and market penetration or frequency of purchase or use. It
will also include goals and objectives for key functional areas such as manufacturing or supply
chain. The business plan will detail the tactical activities to be undertaken to achieve annual
business goals.

Notes The selective mix of long term Strategic Goals and near term annual business plan
Goals will become the source for selecting the few key metrics to become the “balanced
scorecard”.

The Balanced Scorecard

The measurement system of the business affects both the behaviour of the managers and the
employees and the results they achieve for the business. What the business measures, tracts, and
reports are generally what it gets for results?
In sports “score” is kept to determine who wins, who performs, what records are set and who the
champion is. In business “score” is kept to report results, to effect behaviour, to reward and to
recognise performance. But, it is also kept to determine progress against the long-term goals of
the strategic plan and the short-term goals of the annual business plan.
Traditional financial measures alone do not adequately report results of the more complex,
competitive business environment of today. So the scorecard of the past becomes the “balanced
scorecard” of today. The measured results today move beyond the traditional goals of income,
cash flow and financial ratios. They add process performance measurements around issues like
continuous improvement, supply chain management, and customer satisfaction.
Significant improvement in these new measures will focus behaviour to “do the right things”
and will result in improved traditional financial results. A balanced view and narrowly focused
use of financial measures and operational measures will drive managers and employees to

32 LOVELY PROFESSIONAL UNIVERSITY