If you ask most CEOs today whether they believe that they have timely and updated information revealing the current performance and state of their business and where it is heading, they will probably reply “No way – not even close!”
Most CEOs today believe they do not have sufficient 'real time' knowledge of whether they are successfully achieving the strategies they have set out for their businesses and how the markets may be changing. They also believe they do not have sufficient knowledge about how their competitors are altering their own strategies to build competitive advantage in reaction to market and competitor changes.
This lack of fact-based strategic intelligence is an increasing problem in today’s competitive environment, where the impact of major decisions made in short time-frames can be the difference between business success and failure. PA’s research has clearly demonstrated that by placing specific focus on obtaining and using this type of strategic information, senior management can develop important insights into the predictability of future earnings performance – something the market increasingly sees as a measure of economic health and management competence.
So, what is strategic information management?
Strategic information management represents a move away from conventional business thinking and practice. Instead of asking “How do I use the available information?” executives should ask “What information do I really need and how do I get and use it effectively and regularly?” To excel at value creation, companies must be able to answer questions such as:
- Where is value being created and destroyed in my organization, and why?
- What is the size and profitability of our markets? Are our markets growing or declining?
- How effectively are my strategies being executed? What is driving shareholder value in my business?
- How can I make higher-value strategic decisions?
- What are the relative strengths of our competitors?
- How are changes inside and outside my business likely to impact its value?
- What kind of executive 'dashboard' will help me know if I am likely to realize my strategic objectives?
- What kind of information should I share with stakeholders such as my directors, shareholders, etc?
Strategic information will answer these and other important questions. However, our experience is that, for this to be truly successful, business leaders must also develop a process to manage the use of strategic information so that it is available when needed and serve as a reliable source of insight.
PA has a unique, integrated and highly strategic approach to helping clients create immediate and sustained value through the use of strategic information. Our approach is to help clients develop an information model or blueprint that integrates strategic and performance management with innovative technology to support more effective decision-making. Further, we embed this process within our clients' organizations so that it becomes a source of ongoing value creation for the business.
Ultimately, PA’s approach to strategic information management enables our clients to realize superior returns and achieve a sustainable competitive advantage.
