A Strategy Decision Dashboard is an essential tool for any business, providing a clear and concise overview of the company’s strategic objectives, actions, and measures. It allows for effective decision-making and ensures that all stakeholders are aligned towards the same goals. In this guide, we will explore how to create a Strategy Decision Dashboard in just one day, focusing on two key strategic profiles: Shareholder Value or/and Stakeholder Value.
Creating Shareholder Value
Objective:
The primary objective when creating shareholder value is to maximise the return on investment for shareholders. This involves increasing the company’s profitability and ensuring sustainable growth.
Strategy:
The strategy to achieve this objective involves focusing on revenue growth, cost reduction, asset efficiency, and risk management. It requires a deep understanding of the market dynamics, customer needs, competitive landscape, and internal capabilities.
Strategic Actions:
To implement this strategy, several strategic actions may be taken.
These could include:
Launching new products or services to increase revenue
Streamlining operations to reduce costs
Optimising asset utilisation to improve efficiency, and
Implementing robust risk management practices to safeguard against potential threats.
Strategic Measures:
The effectiveness of these actions can be measured using various financial metrics such as
Return on invested capital (ROIC), revenue growth rate, net profit margin, return on assets (ROA), and economic value added (EVA). These measures provide a quantitative assessment of the company’s performance and its ability to create shareholder value.
Conclusion:
Creating shareholder value is crucial for attracting and retaining investors. By aligning the company’s strategic actions with this objective and regularly measuring their effectiveness using appropriate financial metrics, companies can ensure that they are delivering maximum value to their shareholders.
Creating Stakeholder Value
Objective:
The objective of creating stakeholder value is to meet the needs and expectations of all stakeholders including employees, customers, suppliers, communities, and regulators. This involves not only delivering financial returns but also contributing positively to society and the environment.
Strategy:
The strategy to achieve this objective involves focusing on customer satisfaction, employee engagement, community development, and environmental sustainability. It requires a holistic approach that considers the interests of all stakeholders.
Strategic Actions:
To implement this strategy, several strategic actions may be taken.
These could include:
Improving product quality or service delivery to enhance customer satisfaction,
Investing in employee training and development to boost engagement,
Supporting local community initiatives to foster development, and
Implementing green practices to promote environmental sustainability.
Strategic Measures:
The effectiveness of these actions can be measured using various non-financial metrics such as
Customer satisfaction scores, employee engagement levels, community impact assessments, and environmental performance indicators. These measures provide a qualitative assessment of the company’s performance and its ability to create stakeholder value.
Conclusion:
Creating stakeholder value is essential for building a sustainable and socially responsible business. By aligning the company’s strategic actions with this objective and regularly measuring their effectiveness using appropriate non-financial metrics, companies can ensure that they are delivering maximum value to all their stakeholders.
Conclusion and Take Away
In conclusion, creating a Strategy Decision Dashboard involves defining clear objectives, formulating effective strategies, implementing strategic actions, and measuring their effectiveness using appropriate metrics. By focusing on both shareholder value and stakeholder value, companies can ensure that they are balancing the needs of investors with those of other stakeholders. This not only drives financial performance but also contributes to societal well-being and environmental sustainability. Remember, a well-crafted Strategy Decision Dashboard is not just a tool for decision-making but also a powerful instrument for driving strategic alignment and fostering organisational success.
