The key is for executives to develop, at a minimum, a formal strategy management system based on a Balanced Scorecard methodology. For example, IBM client Mueller Inc. developed an award-winning Balanced Scorecard implementation using IBM business analytics software to accelerate information delivery; provide in-depth insight into sales, finance inventory and purchasing; gain fact-based analytic and decision-making capabilities; and improve customer sales and service. With a Balanced Scorecard methodology and the associated business analytics in place, Mueller's management now spends more time on strategy and improving the business. Operations, sales and customer information can be accessed quickly and consistently and shared across the organization to improve results. The consequence for Mueller is better quality products, improved performance, and the ability to increase customer satisfaction.

In order to strategically execute business objectives successfully, like Mueller, companies must connect their long-term strategy to daily operations and identify required business process improvements in support of their strategy. This requirement means that managers must understand, document and manage their organization's process architecture: the complete set of business processes that make up its business model.

To get started, here are five key questions executives must ask themselves to better understand their process architecture and management capabilities:

• Do we have an operational process model of the business? • Have we identified the business process improvements that are most critical for executing the strategy? • Have we linked the strategy with our operating plans and budgets? • Have we aligned strategic initiatives with business processes? • Have we established the IT platform needed to support management?

Designing and Leveraging Strategic Goals

Once the tough questions have been answered and managers fully understand the link between their company's process architecture and business model, it's time for executives to connect the dots between business decisions and tactics and align them with strategy. This can be achieved as follows:

• Ensure that the design and implementation processes are led by the executive team. • Ensure that the scorecard is heavily integrated into the monthly management process. It shouldn't be an occasional tool. • Enlist a leader, such as a strategy officer, to own the process. • Use the scorecard and associated strategy maps to communicate the strategy and the importance of each strategic objective. • Tie incentive plans to achievement targets. This will improve the chances of people adhering to strategy execution. • Move from using scorecards at the tactical level to driving their use at the strategic level as you measure performance outcomes such as strategy effectiveness, revenue growth, and profit.

The IBM client study conducted by Palladium Group discovered that "organizations that report achieving breakthrough performance as a direct result of executing their strategy and that report using the Balanced Scorecard (especially for three or more years) outperform other organizations in both strategy management and operational execution."

All organizations are under pressure to manage risk, improve business processes, and be more accountable. Demands for greater transparency will only increase. Smart companies are building the systems now to gain time and cost efficiencies; make processes visible, repeatable, and accurate; and achieve greater control of company performance. By combining business analytics and strategy management methodologies, these organizations can effectively and transparently link their strategy to operations to pave a winning path to future growth.