Methodology

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DecideAct is a versatile system supporting different goal-alignment methologies

Over the years, various methodologies have been developed around aligning organizations to a shared vision, which is then supported by overall goals and actions throughout the organization. This requires a systematic approach where goals and actions are arranged in a hierarchy ― which in many ways cuts across the organizational hierarchy.

History of corporate goal setting

Peter Drucker introduced Management By Objectives (MBO) in the sixties; Kaplan and Norton introduced the Balanced Scorecard in the eighties; also in the eighties, George Doran introduced the S.M.A.R.T. method of goal setting and Key Performance Indicators (KPI); and recently Google Inc. popularized John Doerr’s Objectives and Key Results (OKR) model, which has since gained considerable momentum.

PCF – Pillar Critical Factor

The DecideAct software is a versatile platform that can support all of the above concepts. Its basic framework is a hierarchy called Pillars and Critical Factors (PCF), which is built in a very similar way to the OKR methodology. The hierarchy can be shown as follows:

pcf

Key Performance Indicators are attached to Pillars and Critical Factors to enable measurement of progress against measurement of results from attached initiatives. Comparing these two is a valuable learning experience in implementing the strategy and then reviewing or adapting, as the case may be.

OKR – Objective Key Result

Whereas OKR has performance indicators embedded in the statements, these are separate for Pillars, CSF, and the PCF methodology. Overall corporate objectives are thus similar to Pillars and contain coroporate Key Results, which are similar to Critical Factors. The Corporate Key Results are thus what the next unit will relate to as objectives as it defines its OKRs, as shown on the following diagram:

okr

Customized system setup to your needs

In many cases, companies use their own terminology to indicate the different layers of the strategic hierarchy. The DecideAct system is built to accommodate these different needs.