In today’s fast-paced business environment, mastering strategy management is more critical than ever. It allows you to define your competitive edge, implement proper resource allocation, risk management, and performance measurement, and most importantly, drive innovation while building resilience for long-term success.
Committed to empowering organizations in that pursuit, The KPI Institute launched the State of Strategy Management Practice Report in 2022. The State of Strategy Management Practices Report is a detailed examination of current trends, challenges, and innovations within the realm of strategy management. This report synthesizes data from a wide range of sources, including surveys of industry leaders, interviews with experts, and an analysis of real-world case studies.
The report consists of three main sections: Strategy Planning, Strategy Measurement, and Strategy Execution. Each of these sections includes several areas of interest such as general practices, strategy review, key performance indicators (KPI) deployment practices, strategy execution challenges, and project management practices. It also offers recommendations for best practices to enhance strategy management and equip organizations to better navigate emerging trends and disruptions.
The State of Strategy Management Practice Report is an annual publication, and the continuity allows organizations to stay adaptable in a changing business environment. With this ongoing commitment, organizations are able to grasp the broader perspective and identify patterns and shifts, allowing them to adjust strategies and make continuous improvements.
In the State of Strategy Management Practice – 2023 Middle East Report, results in the Strategy Planning section show that most surveyed professionals see strategy formulation as consistent and structured, with 47% using specialized methodologies. In contrast, 38% reported no specific methodology, indicating a more flexible approach. It is also important to note that 15% acknowledged an informal process. Although an informal process may offer flexibility, it’s important to consider the potential drawbacks and challenges that arise from having a strategy without a strict framework.
Furthermore, in the Strategy Measurement section, 22% of respondents reported that their organizations lack a formal performance management system (PMS). The absence of a PMS creates several challenges, obstructing strategy execution and limiting the organization’s ability to adapt to change and capitalize on opportunities. This is further reflected in the Strategy Execution section, where professionals were asked about their organizations’ success in executing strategy; 57% acknowledged being aware of cases where the strategy had failed.
Given these red flags, it is crucial to recognize that strategy management practices must evolve to meet organizational needs and adapt to the external environment. To determine whether the figures above have improved and if organizations have enhanced their strategy management, The KPI Institute conducted another research this year, diving more into the Middle East and North Africa (MENA) region. The findings will be presented in the third edition of the State of Strategy Management Practices Report.
The State of Strategy Management Practices Report – 2024 MENA Region will be available soon. This report presents statistics from over 100 organizations and features insights from leaders of top companies. This edition has been more refined as it offers advice from The KPI Institute’s own experts on developing more effective organizational systems for strategy planning and execution.
Stay tuned for the official release date and details on obtaining your copy. For updates and exclusive content, sign up for our newsletter and follow us on LinkedIn.
Does your organization adopt an employee or customer-centric operating methodology? For decades, the main focus of businesses in the Middle East has been on the customer, embracing mottos such as “The customer is always right” or “Customer comes first,” with the primary objective of attaining high customer satisfaction to expand market share. While this remains a universal goal, the approach to achieving it varies among companies, with some prioritizing employees over customers.
Employee performance management has gained increased attention in recent years compared to previous decades. This shift is largely a result of a changing mindset in both the private and public sectors regarding core business principles and operating methodologies. Companies have started to be more aware that what leads to customer satisfaction is a happy workforce, prompting them to focus more on managing employee performance.
Business magnate Richard Branson encapsulates this shift with his statement: “Clients do not come first. Employees come first. If you take care of your employees, they will take care of the clients.” This shows us the importance of transitioning towards a more employee-centric business model to keep employees satisfied and engaged while achieving business goals. For all these reasons, employee performance management plays a pivotal role.
To better understand what employee performance management entails, it is important to examine its sub-processes:
Employee performance planning: The planning phase is a prerequisite, establishing the groundwork for the entire process. It is imperative to clarify roles, responsibilities and competencies by having the proper job descriptions and competencies framework developed based on the market’s best practices.
Employee performance measurement: This phase teaches the creation of scorecards at the employee level, guiding the assessment of competencies and behaviors. It also delves into the advantages and disadvantages of creating a final performance index for each employee, incorporating clearly defined criteria such as objectives, KPIs, competencies, and behaviors.
Employee performance review: This phase details organizing and conducting employee performance review meetings, ensuring value for managers and employees. During meetings, managers transparently discuss employee performance, acknowledge achievements and progress, and highlight improvement areas.
Employee performance improvement(talent management): This phase emphasizes the right course of action after the performance review meeting and the enablers of performance improvement. It guides the addressing of low-, medium-, and high-performing staff members, underscoring the importance of a monitoring process to ensure the effective implementation of corrective actions.
Performance recognition: This process guides the creation of rewarding models for acknowledging high-performing individuals and teams, enabling the design of a sustainable reward system encompassing financial and non-financial rewards.
In 2023, several aspects of performance management, especially employee performance management, have evolved. This shift is a response to the so-called “post-pandemic new normal,” forcing businesses to rethink survival strategies for 2024 and beyond. Six main trends have emerged:
A noteworthy change is the evolution of the job landscape. Financial security, which once deterred employees from leaving their jobs, is no longer the sole factor. Jobs now offer employees opportunities for growth, continuous feedback, flexible working hours, remote or hybrid work options, and comprehensive benefits, enhancing their work-life balance. These trends underscore the imperative for businesses to shift towards employee-centricity to achieve strategic objectives and foster sustainable business practices with reduced turnover.
Employee performance management will witness further changes, particularly in performance review and goal-setting. The workplace will increasingly focus on personal and professional goals, transforming performance reviews from a process into project-based evaluations, enhancing the workspace and contributing to a more sustainable business.
To prepare you for the year ahead, The KPI Institute can equip you with the industry-leading tools and skills required to nurture employee performance. Sign up for the Certified Employee Performance Management Professional and Practitioner courses now and secure your slot here.
