Strategy Optimization
MoW is conducting a yearly strategic assessment that is meant to capitalize on the foreseen opportunities and avoid the prevailing threats. This is accompanied by capturing the strategic learning from the previous strategy-performance-year cycle. Business plans at all BSC are modified accordingly. The annual strategy performance cycle could be demonstrated by the following process model.
Strategy Execution
On quarterly basis, Mow reviews the performance of its strategy. The cycle starts by the core strategic business units, moves to the supportive strategic business units, and ends up with the corporate business unit. Each of these reviews is attended by the top management, including HE, the Minister and the US. At these quarterly-conducted meetings, each of the objective owners is responsible to present the performance of his objective. The tool that supports strategy management at MoW is the Strategy Executive Manager software.
Portfolio Management
To close the performance gap between the current state and the desired state, a number of strategic initiatives are generated.These initiatives are assessed, integrated, selected, prioritized, budgeted, and managed through the Project Management System. The following graph can demonstrate the relation between initiatives and projects.
The main area that is controlling the flow between the initiatives and the projects is the prioritization process. Following the yearly modification for the strategy, a new business plan is formulated and agreed-on by H.E. the Minister and the relevant SBU. The screened initiatives’ list from each SBU is prioritized into 15 categories according to 2 main coordinates; strategic importance and difficulty (risk). A sample of the resulted priority list is exhibited by the following graphs;
Risk Incorporation
Even though strategy formulation was conducted after a comprehensive strategic analysis that has considered the opportunities and the threats that are surrounding the Ministry, and in addition to the annual strategic assessment, Ministry of Works felt the need to discipline the surrounding risks and mitigate it in an instrumental Enterprise Strategic Risk Management. We have adopted ISO 31000 definition and handling of risk. This notion has stated at the hit of the economic crises at the beginning of 2009. The strategic risks that surround each of the strategic objectives were identified, assessed, planned for mitigation, and incorporated at the same strategy optimization cycle. The following exhibit can demonstrate the incorporation process.