This diagram illustrates the concept of decomposing an enterprise plan to lower levels of organization as well as finer granularity in detail. Then, when the plan is highly refined and granular, it is consolidated to higher levels for approval, resourcing, and release. Note the role that strategic planning (consolidating Mission, Vision, Goals, and Performance Measures) at a given level of an organization plays in the overall strategic management of the organization.
Most organizations that attempt the strategic management process progress down to the point of defining Goals and Performance Measures. Too often, they stop strategic management at this point, and do not document their strategic plan, because if a Goal is defined and they committed to it, and Performance Measures are set, then the managers are accountable for achieving those Measures in accomplishing those Goals. This accountability assumes they took into consideration as much of their environment as they could control during the early stages of strategic management. If they did not consider what they could and couldn’t control, then the goals and measures are unrealistic and probably cannot be achieved. Likewise, if they are expected to achieve the same goals and measures when significant changes have taken place in their environment, then the expectations are unrealistic because the basic assumptions underling the Mission, Vision, Goals, and Measures would have changed.
If the performance measures change, then the strategic plan and detailed strategies must change.
