Project Management Accounting: Budgeting, Tracking, and Reporting Costs and Profitability, Second Edition

Implementing Strategy throughout the Company

The rest of this chapter explains the process of implementing a plan of strategy throughout a company. We cover these steps:

• Define the company mission.
• Set concrete objectives that move the mission forward.
• Develop the deliverables that accomplish the objectives.
• Create criteria for prioritizing objectives based on alignment with the mission, financial opportunity, and resource availability.
• Develop and prioritize the projects corresponding to the deliverables.
• Begin execution of the projects.
• Create a process to monitor results and prioritize and select future projects.

Business Action Framework

In addition to drawing on the STO solution model, we also draw on work by noted author and speaker Michael Hugos, who developed the theory and process that he named the Business Action Framework. The STO model points out that strategy, developed based on the mission and objectives of a company, must be driven down into the organization via portfolio management. The Business Action Framework provides a method of defining the mission, objectives, and strategy of a company.

The Business Action Framework employs the insights of the company's executives to determine any action that must be taken to advance the company success. Hugos points out that the action may be a response to a challenge or problem, or an attempt to capitalize on market conditions or to diversify the company's business activities. The framework is meant to bring the executives ...