Maturity Assessment Of Strategy Implementation In Higher .

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CentralEuropean Conference on Information and Intelligent SystemsPage 169 of 250Maturity Assessment of Strategy Implementation inHigher Education InstitutionValentina Kirinić, Melita KozinaFaculty of Organization and InformaticsUniversity of ZagrebPavlinska 2, 42000 Varaždin, Croatia{valentina.kirinic, melita.kozina}@foi.hrAbstract. The purpose of the paper is to identify andanalyse the core processes and additional processeswithin the complex strategy implementation processand to assess their capability levels. Based on theassessed process capability levels, maturityassessment of strategy implementation in a highereducation institution has been demonstrated. TheBalanced Scorecard (BSC) method was used inresearch in order to identify the key processes ofstrategy implementation, while the ISO/IEC 15504standard was used for the capability assessment of theidentified processes in order to determine the realmaturity of strategy implementation in a highereducation education, BSC, ISO/IEC 15504, ISO/IEC 15288,ISO/IEC 15289, assessment, capability level, maturitylevel1 IntroductionStrategy implementation is one of the phases ofstrategy management. Associated processes are veryimportant but very complex due to theirimplementation and continual improvement. Thepurpose of this paper is to identify the key processesof strategy implementation in a higher educationinstitution and assess their actual capability, as well asto determine the maturity level of strategyimplementation in general.The Balanced Scorecard (BSC) is a modernmethod of great importance for the process ofstrategic management. The BSC translates rehensive set of performance measures thatprovide the framework for strategic measurement andmanagement systems (Kaplan & Norton, 1996).Using this method, the authors have identified the keyprocesses of strategy implementation and analysedtheir outcomes, as well as their input and output workproducts. What are the strategic goals and criticalsuccess factors in order to achieve our vision? Whatmetrics are required to monitor progress? Whataction plans are required to achieve strategic goalsand critical success factors? These are just somequestions important for strategy implementation andits core processes.In addition to the core processes, additionalproject and organization/management orientedprocesses also support strategy implementation. In thepaper, these processes are systematized and assignedto relevant maturity levels initially based oninformation technology-related standards.The ISO/IEC 15288 (2008) standard was used tobuild the initial set of additional processes, whileISO/IEC 15289 (2011) was used to identify input andoutput work products (information products –documentation) related to the selected processes.ISO/IEC 15504 (2003) was used for capabilityassessment of identified processes in order todetermine the true maturity level of strategyimplementation in a higher education institution andsuggest the necessary improvements.The paper has been structured in several chapters.Chapter 2 describes how a set of strategyimplementation processes has been built. The processassessment model (PAM) according to ISO/IEC15504 is described in Chapter 3. In order to generatethe maturity level of strategy implementation, it isnecessary to first assess the capability level for eachof the identified processes in strategy implementation.This assessment is based on the PAM concept anddescribed using several steps in Chapter 4.2 Strategy ImplementationProcesses in Higher EducationNowadays, more than usual, higher educationinstitutions (HEIs) are facing many changes in allaspects – social, political, economic. This uncertainenvironment requires HEIs to put more effort n based on deep analysis of all factorsVaraždin, CroatiaFaculty of Organization and InformaticsSeptember 21-23, 2016

CentralEuropean Conference on Information and Intelligent SystemsPage 170 of 250affecting strategy success. In this regard, HEIs shouldact as any other business, i.e. commercially orientedcompany.According Shah and Sid Nair (2014), literature onthe development and implementation of strategies islimited to universities, and the authors argue the needfor involvement of universities (HEIs) in thedevelopment and implementation of strategy(strategic decisions) which would be consistent withthe institution's resources and risk management.Regardless of the strategy decision quality, theway the implementation of strategy is prepared andexecuted, and the final results are comprise the mainindicators of strategy success. Maturity of HEIs forstrategy implementation and capabilities of strategyimplementation processes are the focus of this paper.According to Harrington (2006), strategyimplementation is an iterative process ofimplementing strategies, policies, programmes andaction plans that allow a company to utilize itsresources in order to take advantage of opportunitiesin a competitive environment. Many factors should beconsidered in order to make strategy implementationsuccessful.Kaplan and Norton (1996) related to the balancescorecard approach in implementing strategies andidentified four main implementation factors:clarifying and translating vision and strategy,communication and linking, planning and targetsetting, and strategic feedback and learning.Based on analyses of previous strategyimplementationframeworks, Okumus (2003)identified 11 key implementation factors: izational structure, organizational culture,leadership, operational planning, resource allocation,communication, people, control, outcome; grouped infour categories: strategy content, strategy context,operational processes and strategy outcomes.In the analysis presented in the paper, the Okumusstrategy implementation framework (2003) has beenused to build the initial set of key factors and to linkthem to the processes which should be consideredduring all phases of strategy implementation.In Table 1, the first two columns relate to strategyimplementation factors and related issues. The factorsare grouped into Strategy context (external), Strategycontext (internal) and Operational process.The third column of Table 1 contains processes some of them mapped to those defined in ISO/IEC15288 and ISO/IEC 15504-2 standards, as well asprocess purposes.These processes are defined on the basis of predefined and systematized factors and issues that affectthe success of the implementation strategy. The focusis on strategy implementation processes (later treatedas core processes) related to the factor Operationalplanning and communication and their foundation,comprising the methodology of the BalancedScorecard (BSC).This analysis does not cover specific businessprocesses used in realizing strategy / strategicdecision, as this depends on area of implementation,in this case the aspect of challenge of university/HEIfunctioning (eg. introducing a new study programme,internationalization – attracting foreign students).Based on the Balanced Scorecard methodology,the following issues and processes (core processes ofstrategy implementation) were defined: Strategic decision operationalization (strategy mapdefinition): processes of definition perspectives,strategic goals, critical success factors (CSF), keyperformance indicators (KPI) and cause-effectrelationships among objectives & goals; Definitionofthestrategicdecisionimplementation plan (the project – tasks, time,resources) – the process of defining action plans; Communication ofimplementation plan;thestrategicdecision Control of strategic decision implementationactivities (implementation/action plan control) –the process of control and feedback; Improvement of strategic decision ationfactors/criteria to the system life cycle processes fromtwo groups - Organizational project-enablingprocesses and Project processes (ISO/IEC 15288,2008) - were used for systematization of otherprocesses required to implement strategy/strategicdecisions.Documentation (work products) as indicators toassess the capability of the processes have beensystematised based on the ISO/IEC 15289 (2011)standard.The full list of input and output documentation foreach process is not presented in the paper. Onlydocumentation for one process is given, as anexample. Input documentation (work/informationproducts) for the process of Risk management shouldconsist of: The project management plan; The risk management plan; The risk profile (list of risks); The quality assurance procedure; The problems mation products) for the same processshould contain: The risk management policy and plan; The risk action request; The monitoring and control reportLater in process assessment (Chapter 3), thisdocumentation would be used as one of the indicatorsfor determining the level of process capability.Varaždin, CroatiaFaculty of Organization and InformaticsSeptember 21-23, 2016

Central European Conference onInformation and Intelligent SystemsPage 171 of 250Table 1 - Strategy implementation factors, criteria/issues and the processes related to the process of strategy implementationFactors(SIF in (Okumus,Criteria2003))(Issues in (Okumus, 2003))Strategy context (external)2. EnvironmentalRisk managementuncertaintyStrategy context (internal)3. OrganizationalOrganization structure andstructuredecision making style coherenceIntegration of informationsystemsQuality culture5. Leadership anddecision making(style)Setting goalsDecision makingVaraždin, CroatiaProcess (mapped to ISO/IEC 15288):process purposeRisk management: the process continuously identifies, assesses and reduces risksOrganizational structure definition:the process defines key components of the organizational structure - roles, responsibilities, communication, .Alignment of organizational structure and decision-making:the process adjusts the decision-making process and organizational structureIntegration of information systems - departmental/institutional - with the central/university IS(Information management):the process provides relevant, timely, complete, valid and, if necessary, confidential information to all involvedparties in making and implementing strategic decisions, as well as those decisions influenced by themQuality management:the process defines requirements, controls and oversight, and continuously improves the quality oforganizational processes, procedures, and resultsLeadership involvement in development and implementation of strategy:the process defines the efforts to achieve active participation of the management in strategy development andits effective presentation (communication) to all stakeholdersDecision making (Decision management):the process selects the most useful means of taking action if there are alternativesLeadership (Project portfolio management):the process ensures adequate/optimal uptake of organizational resources in successful (simultaneous)implementation of all organizational projectsFaculty of Organization and InformaticsSeptember 21-23, 2016

Central European Conference onInformation and Intelligent SystemsPage 172 of 250Table 1. Strategy implementation factors, criteria/issues and the processes related to the process of strategy implementation (cont.)Factors(SIF in (Okumus,Criteria2003))(Issues in (Okumus, 2003))Operational process6. OperationalStrategic decisionplanningoperationalization (strategy mapdevelopment)8. Communication7. Resources9. PeopleVaraždin, CroatiaProcess (mapped to ISO/IEC 15288): process purposeDefinition of perspectives:the process of defining perspectives/business aspectsDefinition of strategic goals:the process defines the desired future state of the organization with respect to business prospectsDefinition of Critical Success Factors (CSF) that contribute to the achievement of strategic objectives:the process determines internal and external factors that affect the achievement of the strategic objectivesDefinition of Key Performance Indicators (KPI) against the strategic objectives and their target values:the process defines metrics/measurements and their target valuesDefinition of cause-effect relationships among objectives:the process analyses the correlation among goals within the perspectives - lagging perspectives (such aslearning and development, and operational excellence) and leading perspectives (such as clients and theirsatisfaction, as well as financial success)Definition of actions plans in order to achieve objective target value (Project planning):the process links strategic objectives with potential strategic initiatives and define the ways they can be realizedDefinition of the strategicdecision implementation plan (theproject – tasks, time, resources)Communication of the strategic (decision implementation) plan on all organizational structure levels:Communication of the strategicthe process ensures awareness and understanding of business objectives and ways to achieve themdecision implementation planIMPLEMENTATION - business processes that realize strategy/strategic decision (depending on the implementation area)Control of strategic decisionControl and feedback on strategic decision implementation (Project assessment and Control andimplementation activitiesmeasurement):the process ensures the execution of the measurement and other evaluation processes for the purpose of(implementation/action planreporting on the progress of implementing strategic decisions and improvement possibilitiescontrol)Improvement of strategicImprovement activities for implementation and monitoring of strategic decisions (Quantitativedecision implementation activities performance management and Change management):the process successfully (on time, with minimal risks, taking into account all aspects and affected processesand stakeholders) improves the process of strategic decision implementation and improves the strategic mapbased on the analysis of control resultsResources (material)Resource (asset) management/Infrastructure management/Configuration management:the process defines, provides and maintains assets - objects, tools and communication, and informationtechnology necessary for running the businessPeopleHuman resource management and Knowledge management-KM:the process ensures optimal structure of the staff, their roles, scheduling and their abilities/knowledge(recording, promotion and documenting - KM)Faculty of Organization and InformaticsSeptember 21-23, 2016

CentralEuropean Conference on Information and Intelligent SystemsPage 173 of 2503 Process Assessment ModelAccording to ISO/IEC 15504Assessment was conducted according to the modeldefined in the requirements of ISO / IEC 15504-2Information technology - Process assessment - Part 2:Performing an assessment. The basic model for suchan assessment is shown in Fig.1 (ISO/IEC 15504-2,2003).The concept of the Process Assessment Model(PAM) according to ISO/IEC 15504-2 includes twodimensions: the process dimension and the capabilitydimension and attributes (measurement framework).The process dimension is related to the concept of theProcess Reference Model (PRM). A PRM definesprocesses in terms of a purpose statement and one ormore outcomes that should be satisfied when theprocess is performed. It is important in order toachieve the purpose of the process or the relevantprocess capability. In this research, the PRM is relatedto the strategy implementation process and itspractices.The second dimension of the PAM is related to themeasurement framework for the process capabilityassessment through process attributes and relevantcapability levels (incomplete, performed, managed,established, predictable and optimizing). A PAM alsocontains indicators used in the assessment process inorder to determine the process attribute rating for eachprocess. Process performance indicators such as basepractices and work products are used only for theattribute PA1.1. Process capability indicators such asgeneric practices, generic resources and generic workproducts are used for all attributes (from PA1.1 toPA5.2). Capability level CL0 is related to theincomplete process. This process is not implementedor fails to achieve its process purpose. Capabilitylevel CL1 is related to the performed process. This isan implemented process that achieves its processpurpose. Capability level CL2 is related to themanaged process. The previously describedperformed process is planned, monitored andadjusted, and its work products are appropriatelyestablished, controlled and maintained. Capabilitylevel CL3 is related to the established process. Thepreviously described managed process is implementedusing a defined process that is capable of achieving itsprocess outcomes. Capability level CL4 is related tothe predictable process. The previously describedestablished process operates within defined limits toachieve its process outcomes. Capability level CL5 isrelated to the optimizing process. The previouslydescribed predictable process is continuouslyimproved in order to achieve business goals.4 Maturity Assessment of StrategyImplementation Using theISO/IEC 15504 StandardIn order to conduct the maturity assessment ofstrategy implementation in an institution, the authorshave identified the main processes within the strategyimplementation activity and assigned them to relevantmaturity levels from 1 to 5 (shown in Fig. 5). Thebasic process set (minimum and additional) wasassigned to maturity level 1 (ML 1) and the extendedprocess set (minimum and additional) was assigned tomaturity levels 2 to 5 (ML2 to ML5).In order to generate the maturity level of strategyimplementation, it is necessary to first assess thecapability level for each process assigned to ourmaturity level categories. This process capabilityassessment was based on the previously describedPAM model according to the ISO/IEC 15504 standardFigure 1 - The Process Assessment Model according to the ISO/IEC 15504-2 standardVaraždin, CroatiaFaculty of Organization and InformaticsSeptember 21-23, 2016

CentralEuropean Conference on Information and Intelligent SystemsPage 174 of 250and conducted through several steps. A special ratingscale (NA – not applied (0-15%); PA – partiallyachieved (15-50%); LA – largely achieved (50-85%);FA – fully achieved (85-100%)) was used for theassessment.Assessment steps are described below.Step 1: to define the target capability level for theassessment of all identified processes within strategyimplementation. For the purpose of our research inthis paper, the target capability level is CL2(Managed).Step 2: to assess the capability level for eachprocess within the strategy implementation accordingto the PA1.1 attribute in order to explore whether theprocess achieves its purpose. In the research, theauthors have conducted capability assessment for allstrategy implementation processes. Assessment forthe Quality Management process is described in thepaper in detail. The assessment procedure is equal forall other processes. The capability assessment forquality management according to the PA1.1 attributeis shown in Fig. 2. Process performance indicators aredifferent input/output work products which depend onprocess outcomes.Step 3: to assess the capability level for eachprocess within the strategy implementation accordingto the PA2.1 and PA2.2 attributes in order to explorewhether the performed process is managed. Capabilityassessment for the quality management according toattributes PA2.1 and PA2.2 is shown in Fig. 3. Theprocess capability indicators are generic workproducts, depending on process achievements.Step 4: to compare the assessed capability level ofeach process within strategy implementation with thetarget capability level CL2. Quality managementProcess:Purpose:LevelLevel 0Incomple

15288 and ISO/IEC 155042 standards, as well as - process purposes. These processes are defined on the basis of pre-defined and systematized factors and issues that affect the success of the implementation strategy. The focus

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