XPP – Execution Premium Process, of Kaplan and Norton, is a strategy implementation methodology used widely in many organizations. The XPP Methodology is helping organizations for the effective execution of their Business Strategy. Holistic, practical, and proven, the XPP ensures that your key business processes, operations, and technologies support your strategy.
The overall XPP methodology involves six steps. The XPP methodology has been used to help hundreds of organizations worldwide to:
- Clarify strategy by establishing their vision and mission.
- Drive performance by managing strategic initiatives.
- Optimize data by leveraging business intelligence and analytical tools and technology to gather the right data
The Execution Premium Process is designed to address one of management’s greatest challenges: linking strategy formulation and planning with operational execution. It consists of six major stages:
- Develop the Strategy: Your organization must be able to state exactly what business you are in, identify the key issues you face, and determine how best to compete.
- Translate the Strategy: Your organization must be willing to develop strategic objectives, measures, targets, initiatives, and budgets that will ultimately guide action and resource allocation.
- Align the Organization: Your organization must be able to link company strategy to the strategies of individual business units while both aligning and motivating employees to optimize strategy execution.
- Plan Operations: Your organization must link long-term strategy with day-to-day operations, aligning strategy with operating plans and budgets while focusing on those process improvements that are most critical to the strategy
- Monitor and Learn: Your organization must be committed to monitoring performance results once a strategy has been developed, planned, and implemented, enabling you to determine if the strategy is being properly executed.
- Test and Adapt – Your organization must also test fundamental strategic assumptions to determine if you, indeed, do have the right strategy.