SAP Strategy Management (SM) offers a platform where you can monitor whether you are making progress in line with the strategy you have developed. SM builds a powerful bridge between strategy and execution. SM uses Norton-Kaplan Balanced Scorecard method and saves a significant amount of time and effort in strategy formulation and follow-up processes compared to manual processes.
One of the most important features of SM is to facilitate the communication of strategic decisions taken by top management to other levels of hierarchy within the company. In other words, the overall strategy is broken down into smaller pieces to fit into subgroups and their targets. Afterwards, the planning parameters of these targets are determined and the plans and targets of units are created accordingly to be communicated to the relevant unit managers. KPIs (key performance indicators) and performance measurements of each unit are also monitored within this framework. By bringing the performances of different units together, the success grade of your company in the implementation of the company’s overall strategy is revealed.
Thanks to SM, it is easy, accurate and transparent to run this system in a short time whereas execution using manual processes is prone to human errors and takes longer time.
Another outstanding benefit of SM in terms of corporate strategy emerges in the project development processes. Thanks to SM’s follow-up and assessment tools, you can easily determine which projects are required in order to attain the goals set within the framework of your current corporate strategy, or detect the deficiencies or disruptions in your current projects.