Tool sharing: How does Huawei BLM model improve the strategic execution of enterprises?

BLM (business? Leadership? Model) strategic model, translated into business leading model in Chinese, was jointly developed by professors from IBM and Harvard Business School, and was fully implemented in IBM Group and various business departments in 2003.

Huawei introduced IBM's BLM strategic model in 2006, and has always insisted on using the BLM model in the process of formulating the company's strategic planning. Huawei's success today is partly due to the BLM model.

BLM model is a complete strategic planning methodology from strategic planning to war execution.

The BLM model consists of eight factors that influence and interact with each other, namely, strategic intention, market insight, business design, innovation focus, key tasks, formal organization, talents, atmosphere and culture.

These eight aspects can be divided into two modules: strategy formulation module and strategy implementation module. Among them, the strategy formulation module includes four elements: strategic intention, market insight, business design and innovation focus; The strategy execution module includes key tasks, formal organization, talents and cultural elements.

BLM strategic model is not a brand-new strategic management theory. IBM integrated two strategic theories and formed the BLM strategic model: the strategic formulation module integrated the VDBD model (value-based business design) of Mercer Consulting, and the strategic execution module integrated the "organizational consistency model" of Harvard Business School professors Michael Tasman and Charles O 'Reilly.

This paper mainly focuses on the strategy execution module.

Michael. Tasman and Charles? O 'Reilly's "Organizational Consistency Model" is as follows:

Michael. Tasman and Charles? O'Reilly thinks:

1. The organizational ability of an enterprise consists of four parts: key tasks, organization, talents and culture.

2. The root cause of the enterprise performance gap is almost related to the lack of consistency, mismatch or inconsistency among the four components. Therefore, if we can quickly diagnose the root cause of the performance gap, we can make up for the performance gap by adjusting these four components.

3. If any organization wants to maintain good and stable benefits, it must maintain the consistency of these four components.

I. Gaps

Gap refers to the difference between the actual performance and the target performance of an enterprise, and the target performance comes from the enterprise's vision (the vision defines the long-term goal of the enterprise), strategic goal and short-term goal.

The gap can be subdivided into performance gap and opportunity gap.

1, performance gap

The performance gap means that there are market opportunities, but because of poor performance, there is a gap between actual performance and target performance. For example, the sales revenue of new products is planned to reach 50 million this year, but for various reasons, only 30 million has been completed, resulting in a gap of 20 million.

2. Opportunity gap

Opportunity gap means that enterprises are doing very well in implementation, and there is no performance gap, but in order to achieve greater goals, they are looking for new market opportunities. The opportunity gap usually comes from: (1) not grasping the new opportunities in the market; (2) Improve performance standards.

Why should we distinguish between performance gap and opportunity gap?

Because the measures to bridge the performance gap and the opportunity gap are different.

The compensation of performance gap can usually be achieved by paying attention to good execution without adjusting enterprise strategy and business design; However, filling the opportunity gap often needs to adjust the enterprise strategy and carry out new business design, for example, enterprises need to enter new business areas.

To analyze the gap, we should not only find the performance gap and opportunity gap, but also analyze the reasons for this gap.

Second, the key tasks

The key task is to transform enterprise strategy into executable business activities. The key task is to achieve strategic goals and make up for the performance gap.

By determining key tasks, find the focus of strategic landing. The key task is to connect the axis of strategy and implementation, and it is the running link from strategy to implementation.

Key tasks occupy a core position in the strategic implementation system. The other three elements in the strategy implementation system: organization, talents and culture need to be consistent with key tasks.

In the implementation plan of each key task, it is necessary to specify the specific responsible person and completion time.

In order to ensure that key tasks are put in place, key tasks should be decomposed into project plans in detail and managed by project managers.

Third, organization

In order to ensure that the key work can be effectively promoted and implemented, it is necessary to establish corresponding organizations to support it.

Organization should include at least four aspects: (1) organizational structure, department setting, hierarchical management and responsibility orientation; (2) Business and management processes; (3) Various operation and management mechanisms and systems; (4) Performance and incentive system.

Organization is the key to the success of key tasks. When designing an organization, we need to seriously consider what kind of organizational structure, management system and performance mechanism are needed to support the implementation of key tasks, so as to ensure the successful completion of key tasks.

Whether the organizational design is reasonable or not depends on the consistency with key tasks. Organizational design is carried out through the following three steps:

1, sort out the ideal organizational ability target state according to the key tasks;

2. Objectively describe the current situation of the organization and analyze the possible problems and obstacles;

3. Develop solutions to problems/obstacles.

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Fourth, talents.

Talent refers to the key human resources that can effectively perform key tasks.

The talent dimension mainly considers the reserve of key talents, including which key talents the company needs in order to complete its strategic tasks, the quantity and quality of key talents, and how to select, use, educate, retain and motivate key talents.

Whether the talent dimension is reasonable depends on whether key talents can guarantee the implementation of key tasks. The talent dimension can be realized through the following three steps:

1, key location identification

Key positions refer to jobs that directly affect the implementation of key tasks. The identification of key positions is divided into two steps: (1) Define corresponding key business and management processes according to key tasks; (2) According to the key business and management processes, sort out the key positions necessary for each process.

2. List of key talents

The inventory of key talents should first describe the requirements for key positions, including knowledge, skills and attitude requirements, and then inventory the reserves of key talents according to the current situation and expectations.

3. Personnel management measures.

After taking stock of key talents, the next thing to do is how to acquire, motivate and retain these strategic talents. There are three ways to solve the talent supply: first, internal training; The second is foreign recruitment, and the third is foreign talent cooperation.

Verb (short for verb) culture

Culture refers to the behavior that members of an organization abide by and agree with. Effective organizational culture contributes to the effective implementation of key tasks.

The shaping of culture first needs to evaluate whether the existing organizational culture supports the implementation of the new strategy, and then determine which cultural elements need to be changed.

The first step of cultural elements is to evaluate the present situation of organizational culture.

Organizational Culture Evaluation Scale (OCAI Scale) is a common tool for evaluating organizational culture.

OCAI Scale is an organizational culture scale based on competitive value framework developed by organizational behaviorists Quinn and Cameron.

Organizational culture scale considers the influence of cultural differences on enterprise efficiency from two dimensions. The first dimension is the internal and external orientation of corporate culture: pay more attention to internal or external; The second dimension is the stability of organizational culture: more emphasis on flexibility or stability.

The two dimensions divide corporate culture into four types: team culture, entrepreneur culture, hierarchical culture and market culture.

(1) Team culture: harmonious organization, friendly environment, like a big family, employees communicate with each other. Leaders are considered as mentors, even parents. Rely on loyalty or tradition to unite employees, emphasize team cohesion and morale, pay attention to customers and employees, and encourage teamwork, participation and negotiation.

(2) Entrepreneurial culture: the working environment is full of vitality and creativity, employees dare to be the first and take risks, and leaders act as innovators, willing to innovate and take reasonable risks; The organization emphasizes providing unique products and services and is ready to meet challenges.

(3) Hierarchical culture: the company is very formal and has a clear hierarchy and structure; Employees have rules to follow. Leaders play the role of coordinator and organizer. Organizations rely on formal rules and policies to unite employees.

(4) Market culture: the company is result-oriented, the working environment is full of competition, the internal operation mode is consistent with the market, the enterprise emphasizes competitiveness and efficiency, and the competition among employees is goal-oriented; Leaders play the role of promoters and competitors. The organization emphasizes high standards and strict requirements, a performance-oriented culture and the realization of goals.

After evaluating the organizational culture, if it is found that the organizational culture cannot support the strategy and key tasks, it is necessary to transform, reshape and recreate the corporate culture according to the needs of the strategy and key tasks.

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