The Strategy Gap: Leveraging Technology to Execute Winning Strategies

Praise for The Strategy Gap

"With a better handle on the financial pulse of the business, enterprises will be better able to meet the Street′s expectations of financial transparency and corporate accountability. The writers do a masterful job of getting readers to this point of awareness, and further display their insight by explaining how corporate performance management (CPM) and finance are essentially joined at the hip in concept and execution. This interdependence must be embodied in methodology and technology for CPM to work. Chapter ten (What Lies Ahead) is a must–read for C–level executives and their IT counterparts that want to quickly catch up on some of the new technologies shaping CPM and finance."
Alan Y. C. Yong, Director, Financial Analytics, Aberdeen Group

"This book is a must–read for all students of business, from college students to CEOs. The authors have an uncanny ability to create excitement on topics that have been a part of business vocabulary for a long time. Without doubt, this book will also affect the thinking of software innovators who see opportunities for a new generation of software to support the book s concepts and theories."
Dr. G. R. Wagner, Distinguished Professor, Peter Kiewit Institute, University of Nebraska

"The Strategy Gap provides a pragmatic insight into where the barriers to execution of a corporate strategy are. Backed by excellent examples, we′re shown not just ′here′s what you should do′ but also ′here′s how to do it.′ The book helps make the black art of turning strategy into tactics a clearer process that is more accessible to those who need it. The Strategy Gap is almost a handbook of how to take strategic decisions and support their execution with the help of information technology."
Rick Crandall, Chairman, Giga Information Group

"This book authoritatively describes the disconnect between many companies′ strategic planning efforts and the successful implementation of the plans. It combines academic rigor and practical ′how to.′ It brings strategists′ and technologists′ knowledge together in a very insightful, readable, and useful book."
Hugh Watson, C. Herman and Mary Virginia Terry Chair of Business Administration, Terry College of Business, University of Georgia

Foreword xi

Preface xiii

Acknowledgments xv

Chapter 1 Strategy Gap 1

What Gap? 1

Failure of Strategic Plans 3

Management–Induced Gaps 5

Process–Induced Gaps 7

Technology System–Induced Gaps 13

Role of the Chief Financial Officer 19

Corporate Performance Management 20

Summary 23

Chapter 2 Strategy in the Next Economy 25

Strategy Challenge 25

Business as Unusual 26

Change and Uncertainty 27

Strategy Defined 30

Strategy Management 33

Integrating Top–down and Bottom–up Strategic Management 34

Discontinuities 37

Summary 40

Chapter 3 Corporate Performance Management Processes 43

Event–Driven Approach 43

Key CPM Processes 44

Summary 62

Chapter 4 Measurement and Methodologies 64

Does Measurement Make a Difference? 64

State of the Measurement Art 67

Effective Performance Measurement 71

Performance Measurement Methodologies 73

Summary 85

Chapter 5 Corporate Performance Management Systems 88

Impact of Technology on the Finance Function 88

Characteristics of CPM Systems 93

Architecture of a CPM System 96

CPM Data Tier 100

CPM Application Tier 111

CPM Client Tier 112

Summary 121

Chapter 6 Corporate Performance Management at Work 122

Early Adopter Approach 122

Summary 137

Chapter 7 Getting Started 139

One Piece at a Time 139

Choosing the Right Team 140

Building a CPM Road Map 142

Calculating Return on Investment 152

Summary 160

Chapter 8 Designing a Corporate Performance Management Solution 162

Design Framework 162

CPM Data Model 163

User Interface 168

Reports and Analyses 174

Summary 182

Chapter 9 Implementing a Corporate Performance Management Solution 184

Knowledge and Choices 184

Project Planning 185

Build or Buy? 188

Selecting a CPM Package 192

Controlling the Implementation 198

Summary 206

Chapter 10 What Lies Ahead 207

Communicating Value 207

Connected World 210

Closing the Gap between Finance and Information Technology 213

Summary 214

www.wiley.com/go/strategygap (password: Strategy)

Appendix A CPM Process Review Template

Appendix B Strategy into CPM Data Model Template

Appendix C CPM Project Scope Template

Appendix D Software Evaluation Checklist

Appendix E Sample Implementation Project Plan

Appendix F CPM Vendor Proposal Template

Appendix G Software Vendor Scorecard Template

Index 217

MICHAEL COVENEY is Senior Director of Strategy Management for Comshare, Incorporated, a leading provider of software to help companies implement and execute strategy.

DENNIS GANSTER is Chairman, President, and CEO of Comshare.

BRIAN HARTLEN is Senior Vice President of Marketing for Comshare.

DAVE KING, PhD, is Senior Vice President of Product Development as well as Chief Technology Officer for Comshare.