Strategy development with success milestones

The Challenge

Business strategy development was done with an annual planning mindset and tended to focus merely on sales and revenue goals. BU Heads and Corp Function Heads looked at revenue goals as the primary objective, rather than the big picture of how to envision the company’s long-term future.

We need to bring structure to the strategy development and execution starting with qualitative goals leading to quantitative goals.

The Approach

Strategy Development: With a detailed study of various business units and their revenue streams, the organizational objectives for the next 3 years were developed through collaborative workshops with the Managing Director and the leadership team. These objectives were used to set success milestones for each business unit.

Sales Drivers: In order to achieve success milestones, a money map was created to sharpen focus on revenue streams prioritization, with the McKinsey 3 horizon approach being the base input for categorization.

Business Planning: Using the OGSM approach (Objective-Goals-Strategies-Measures), a guideline on converting the strategy into annual business plan was created and socialized with the leadership team.

Mentoring: Each BU Head and the Sales Heads were mentored on the process to be followed to translate strategy using OGSM approach into their respective business plans. The business plans were reviewed as part of their year end cycle with clearly identified goals and lead indicators to meet the revenue and margin budgets.

The Impact

The larger objective of the organization is well understood by all business leaders

All business units have a clear understanding of their horizons and how to govern each horizon

A repeatable process for strategy development and business planning is in place

TVS Electronics Ltd., has been associated with Effilor consulting for more than 2 years in the areas of strategy, business consulting, business roadmap, business architecture and annual planning. Effilor has brought in a lot of value addition in terms of structured thinking approaches to help scale our business. Their ability and depth in understanding our long term vision, mission and business models quickly and recommend methods that most suits our business situation, greatly helped in our planning cycle. We continue to engage with them on key projects for the MD’s choice and Senior Leadership Team. We wish the team all the very best and look forward to your continued support in scaling TVS E to newer horizon.

Nageswar Rao, CHRO

GROWTH & STRATEGY

Manufacturing & Industrial