1. BY VASSILIS MOULAKAKIS
BUSINESS ANALYST

2. The Objective:
Given that an organization has developed or updated its strategy, how does it
ensure that the necessary financial, human and other resources are committed
to the strategy? How is accountability clearly established?

3. THE STRATEGY GAP

4. PROPOSED STRATEGIC PLANNING
Architecture–Decompose the strategy into strategic maps and strategic themes. e.g.
improve customer satisfaction and social crm strategy brand presence, optimize group’s
convergence and digitalization business architecture.
Targets–Develop stretch targets through cause and effect scenarios, e.g. optimize group’s
targets through corporate and international portfolio management. E.g. find the strategic
portfolio of programs-projects
Initiatives–Define a portfolio of cross-functional initiatives for each strategic theme
Accountability–Assign accountability by strategic theme, every theme that is strategic focus
should have an owner and someone accountable
Functions –Align functional plans with enterprise strategy, functional plans on how sales
management conducted or marketing campaigns should be linked to strategy.
Funding–Link the strategy to the budget, very important issue budget will change solely
from ground up, which means that strategy will drive Company not Budget.
Purchasing- Theoretical cost model identified and consolidated to planning processes. E.g.
production cost management through activities and contract alignment to cost model.
The Strategic Execution toolset

5. TWO IMPORTANT ISSUES NEED TO BE TAKEN INTO ACCOUNT WHEN DESIGNING A STRATEGICALLY
ALIGNED MEDIA ORGANIZATION PLANNING AND BUDGETING PROCESS
a) Strategy Planning–generally deals with the two to five year
window, focused on long term direction and programs
b) Operational Planning & Budgeting–focused on the one to two year
horizon

6. Proposed Strategic Theme
Make organizational changes towards Customer
Financial PROFIT MAXIMIZE
SHAREHOLDER VALUE
Grow Customer base
Cost consolidation
& containment ABC
Customer
Improve social CRM
Power our relationships and
Optimize risk mgmt on credit
Partner strategy
optimization
Internal
Develop convergence
& Digitalization
services Develop
Optimize Back office
Six sigma for
Processes
Technical Quality
e.g. purchasing
Learning
IT alignment and convergence
HR alignment and strategic focus training
Organizational change towards full digitalization

7. The perspective strategic planning and budgeting mechanism in more detail
for a Media group

8. A perspective Company mechanisms to align strategy and budget

9. PROPOSED MEDIA OPERATIONAL PLANNING & BUDGETING
Information–Enable the Operational Planning & Budgeting process through robust information
architecture and enabling technology.
Driver Models–Use driver-based models representing the business value chain as the foundation for
operational and financial planning.
Investments–Rationalize investments through a multi-criteria approach and dynamically manage
resource allocation.
Service Agreements–Align operational activities and strategic initiatives through service agreements.
Initiatives –Estimate the financial impact of strategic initiatives (“STRATEX”) and track it separately to
facilitate trade off decisions on expenditures.
Forecasts–Use rolling forecasts to estimate expected near and mid-term future performance.
Performance Analysis & Review–Take corrective action to address performance gaps based on
causal analysis and review.

10. STRATEGIC INVESTMENTS APPRAISAL

11. ROLLING FORECAST AS A PRIME BUDGETING PRACTICE FOR ORGANIZATIONS

12. DRIVER BASED MODELS FOR BUDGETING DERIVED FROM STRATEGY

13. Our performance GAP and how Performance management handles our
Performance ???? The airline service paradigm

14. MY STRATEGIC VIEW
Strategic themes should be the basis Targets should reflect the cause-effect nature
for planning and execution of strategy. of strategy, rather than focusing on single
They provide a convenient framework factors
for cross-business integration.
Accountability should be assigned by
Initiatives should be bundled by theme, strategic theme at the executive level of
prioritized, funded and managed as a portfolio the organization
prior to the beginning of the budgeting
process Strategic investments should be
grouped as a common budget
Each function should identify a portfolio of category / account, (similar to G&A,
strategic initiatives, derived from the themes of R&D, etc.) so they can be managed
the integrated strategic plan, as the input to appropriately.
their functional plans. Operational investments should be prioritized
Driver based models, built on a deep and funded using a multi-criteria approach.
understanding of the activities and core Investment management should then be
processes supporting the economic business integrated in to the rolling forecast to
model, are essential for successful rolling dynamically re-evaluate and re-allocate
forecasts as they provide the bridge between resources.
operational activities and financial outcomes
Rolling forecast, based on driver models, support dynamic,
continuous planning in everything from strategy refreshes and
target setting to the development of the annual plan.