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What on earth is strategy decoding?

In short, Strategy decoding refers to the process of transforming an organization’s strategy into understandable and executable behavior by all employees through visual methods.

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What are the basic principles of strategic decoding:

1. The principle of vertical consistency:

Based on the company’s strategy and business objectives of the department, it is vertically decomposed from the top management to the bottom position to ensure vertical consistency.

2. The principle of horizontal consistency:

Based on the company’s end-to-end logistics, establish joint responsibility and collaboration between departments to maintain horizontal consistency.

3. The principle of responsibility implementation:

Establish a KPI indicator responsibility decomposition matrix: ensure the department takes full responsibility for organizational goals and provide a basis for the determination of individual performance goals.

4. The principle of balance and tendency:

The selection of indicators should be considered in a balanced manner and reflect the characteristics of the responsibility of the department.

The significant inputs and outputs of strategy decoding

Inputs:
  • Corporate strategy
  • Annual key tasks of the upper department
  • Requirements from the upper department
  • Consumer demands for the department
  • Business plan of the department
  • Department shortages and improvements
  • Organizational structure and responsibilities of the department
Outputs:
  • Organizational strategy clarification chart
  • Organization KPIs
  • Breakdown of organizational key tasks

What’s coming next?

In the next post, we will guide you through OKR and how enterprises can use it to improve talent management.

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