OE21 Guideline: 2.2 Strategy Implementation

Strategic Objective:

Strategic Objective:

Quality Objective:

Quality Objective:

Approved: MM-DDD-YY



Maximize the value of the organization to all stakeholders 

Create strategy action plans, allocate resources, workforce plans, & metrics 

Approved by: G. Washington Chair, Leadership Focus Team (LFT)

Lead: Leadership Focus Team (LFT-IT)  Support: All focus teams


STRATEGY ACTION PLANS are projects aimed at accomplishing Strategic Themes (Key Intended Outcomes; see KIOs 1-5). Each strategic theme is achieved with one or more strategic objectives. Each strategic objective has one or more labor or non-labor tasks (activities) that are performed by people, over time. Strategy Action Plan projects are planned over time, allocated to performing organizations and consume labor hours or non-labor dollars. The hierarchy of Strategic Action Plans is as follows:


  • KEY INTENDED OUTCOMES (Strategic Themes = 5 KIOs)  listed at the bottom of this content) 

  • STRATEGIC THEME - Each strategic theme is associated with one unique Strategy Action Plan

  • STRATEGY ACTION PLAN - include one or more strategic objectives

  • STRATEGIC OBJECTIVES -  one or more tasks (activities)

  • TASKS (Activities) have one performing organization, and a time-phased schedule with labor dollars (hours x rate per hour) or non-labor dollars (material, travel, other costs) that are planned to accomplish each task.


STRATEGIC ACTION PLAN PROGRESS is measured as (% complete vs. % planned) for each Task (activity). The individual task % of completions are summarized up to the Strategic Action Plan to indicate the actual progress of accomplishing the Strategic Theme.


RESOURCE ALLOCATION is used by the organization to ensure that financial and human resources are available to accomplish the Strategic Themes (KIOs) and their Strategy Action Plans. Resource Allocation is also used to provide budgets for all work units and departments to do their daily jobs outside of Strategy Implementation.


KEY INTENDED OUTCOMES (KIOs) (Strategic Themes - see Figure 2.2-2)







The organization has adopted the Baldrige Framework Item 2.2 Strategy Implementation and 7.4b Strategy Implementation Results as the internal policy, including the following sub-items:


2.2a(1) STRATEGY ACTION PLANS - The organization implements its strategy using Strategy Action Plans, which are used to track the progress of the accomplishment of strategic goals and objectives. Strategy Action Plans are "projects" containing tasks (activities) leading to achievement of strategic objectives and strategic goals.


2.2a(2) STRATEGY ACTION PLAN IMPLEMENTATION - The organization deploys its Strategy Action Plans to the workforce, and where appropriate, to key suppliers and partners who may be assigned responsibility for plan accomplishment. The senior leaders of the organization ensure that the Strategy Action Plans are completed as planned, or they incorporate changes as needed.


2.2a(3) RESOURCE ALLOCATION - The organization ensures that financial and other resources are available to support the achievement of Strategy Action Plans, and to manage (mitigate or eliminate) RISKS to ensure financial viability. The organization measures and improves financial performance results as defined in Baldrige 7.5a(1) Financial Results, including current levels and trends in key measures or indicators of financial performance, as well as aggregate measures of financial return, financial viability, and budgetary performance, by market segments and customer groups, as appropriate.


2.2a(4) WORKFORCE PLANS - The organization ensures that Strategy Action Plans support short- and longer-term strategic objectives, and address potential impacts to workforce members and any changes in workforce capability and capacity needs, as well as the workforce learning and development process.


2.2a(5) PERFORMANCE MEASURES - The organization tracks the achievement of Strategy Action Plans by comparing actual percent (%) complete versus percent (%) planned for each task(activity) in the Strategy Action Plan. These percentages are summarized to total Strategy Action Plan percent of completion vs. plan. These progress indicators are combined with cost tracking to measure Strategy Action Plan accomplishment.


2.2a(6) PERFORMANCE PROJECTIONS - The organization projects future competitive and collaborative environments based on results of our Strategic Assessments (see Standard 2.1) plus daily observations of changes in competitive offerings and critical marketplace and workforce-related information (competitive related news, white papers, thought leader publications, social media, blogs, etc.). From these observations, the organization projects possible changes that might result from new business ventures, entry into new markets, new technologies, or other significant changes that could impact the success of our strategic plan. These observations also may lead to awareness of "gaps" in performance compared to competitors or leading similar organizations.


2.2b. ACTION PLAN MODIFICATION - The organization implements timely and appropriate changes to Strategy Action Plans and track their progress as defined in Baldrige 2.2a(5) Performance Measures and 2.2a(6) Performance Projections.   


7.4b. STRATEGY IMPLEMENTATION RESULTS - The organization tracks progress and outcomes of implementing its Strategic Action Plans. Where appropriate, the organization uses these results to build and strengthen its core competencies and to initiate new products, services or programs that may necessitate taking intelligent risks.



2.2 Flow Diagram.PNG

2.2 Flow Diagram (Figure 2.2-1 Strategy Implementation)

2.2 Strategy Implementation Model

Figure 2.2-3 Strategy Implementation Model

Inputs to 2.2 Strategy Implementation

2019-2020 Baldrige Performance Excellence Framework Criteria Commentary Item 2.2

  • P.2-LFT-S Organizational Profile Part 2 (survey)

  • P.2-LFT-S Organizational Profile Part 2 (doc)

  • 2.2-LFT-S CFO Performance (survey)

  • 2.1-LFT-S1 S.W.O.T. Strengths (survey)

  • 2.1-LFT-S2 S.W.O.T. Weaknesses (survey)

  • 2.1-LFT-S3 S.W.O.T. Opportunities (survey)

  • 2.1-LFT-S4 S.W.O.T. Threats (survey)

Measurement and Analysis Tools and Techniques

  • 2.2-LFT-D CFO  Performance Assessment Report (.doc)

  • 2.2-LFT-A Product Service Value Contribution (.xlsx)

  • 2.2-LFT-D  Resource Allocation/Approval Strategy Action Plans

  • 2.2-LFT-D Strategic Plan 

Outputs from 2.2 Strategy Implementation

Milestone 1 - Mission, Vision, KIO(s), Strategy Objectives
Milestone 2 - Strategy Action Plans

  • 2.0-LFT-P Leadership Excellence Strategy Plan (.xlsx)

  • 3.0-CFT-P Customer Excellence Strategy Plan (.xlsx)

  • 5.0-WFT-P Workforce Excellence Strategy Plan (.xlsx)

  • 6.0-OFT-P Operations Excellence Strategy Plan (.xlsx)

Milestone 3 - Resource Allocation/Approval Strategy Action Plans
Milestone 4 - Strategic Plan 

2.2 Implementation Instructions




Task 2.2.1 OE21 Implementation of Mission, Vision, KIO, Assessments and Strategic Objectives - Figure 2.2-3 presents Standard 2.2 Strategy Implementation Model, using an example for one of the five strategic themes (KIO-2 Customer Excellence). The top-down flow shown in Figure 2.2-3 traces the actual process flow in strategy implementation, as follows:


  • Mission Statement is created; 


  • Vision Statements is created;


  • Strategic Themes:  Five (5) Key Intended Outcomes (KIOs). KIOs are used as "umbrellas" for strategic objectives and strategic action plans. KIOs help the organization keep a balanced and complete set of strategies implemented by the focus teams (LFT, CFT, OFT, WFT, CAT). 


KIO-1 Leadership Excellence

KIO-2 Customer Excellence

KIO-3 Operations Excellence

KIO-4 Workforce Excellence

KIO-5 Community Excellence


Strategies have a wide range of definitions, depending upon what an organization decides are critical to success. Strategic themes are used to ensure that no particular stakeholder is left out of strategic planning including employees, leaders and managers, customers, key stakeholders, and the community stakeholders. 


  • Strategic Assessments (Standard 2.1) are conducted;


  • Strategic Objectives are created from analysis of the Strategic Assessments and planned as milestones to be completed on specific planned dates.


Figure 2.2-3 shows three examples of Strategic Objectives: (Boost Sales, Penetrate a New Market, and Add a New Product). All three are primarily aimed at improving KIO-2 Customer Excellence. 

At this point, the organization should have documented Mission, Vision, Strategic Themes (KIOs) and Strategic Objectives.  

PROGRESS: You have reached Milestone 1 (good work). Input the status [10%] on the organization's OE21 Intranet Main page alongside the title of this standard.

Task 2.2.2 Strategy Action Plans Implementation - Figure 2.2-3 shows how Strategy Action Plans related to Strategic Objectives and Key Intended Outcomes (KIOs). Strategy Action Plans are projects with tasks and milestones. The example in Figure 2.2-3 shows a Strategy Action Plan for strategic theme KIO-2 Customer Excellence. Guidelines for Strategy Action Plans include:

  • Guideline 1 - Strategy Action Plans are projects with tasks and milestones. The preferred approach is to create logical tasks leading to the accomplishment of each Strategic Objective.

  • Guideline 2 - Each task in the Strategy Action Plan is associated with (one) performing organization (e.g., a work unit or a supplier). A single performing organization may be a person or a team of persons with similar competencies (e.g., a team of programmers).

  • Guideline 3 - Each performing organization responsible for a task subdivides the task into cost-related elements, including: labor hours (quantity), labor rate/hour, non-labor dollars (for material, contracts or other non-labor estimates)

  • Guideline 4 - Progress is measured as task completion percent (%) at scheduled dates

  • Guideline 5 - Strategy Action Plans support the written Strategic Plan.

  • Guideline 4 - If these plans include cost estimates, they are reviewed and approved by the Leadership Focus Team (LFT).

  • Guideline 6 - The total costs for all Strategic Action Plans are the estimated costs of the final Strategic Plan.

  • Guideline 7Instructions for using OE21 Project tools (including Strategic Action Plans) are found in OE21 Standard 6.1b (Tasks 6.1b-2 through 6.1b-5. 

The following OE21 decision support tools are used by each focus team (LFT, CFT, OFT, WFT) to create  four Strategy Action Plans:

  • 2.0-LFT-P Leadership Excellence Strategy Plan (.xlsx)

  • 3.0-CFT-P Customer Excellence Strategy Plan (.xlsx)

  • 5.0-WFT-P Workforce Excellence Strategy Plan (.xlsx)

  • 6.0-OFT-P OFT Operations Excellence Strategy Plan (.xlsx)

​These OE21 tools are configured as project manager tools, used for planning and managing small projects including most Strategic Action Plans. Larger projects with hundreds to thousands of tasks require project management tools with greater capability. Figure 2.2-4 provides an example of part of  Strategy Plan. 


2.2 Project Manager table.JPG

Figure 2.2-4 Example of a Project with three (3) tasks

At this point, the Strategy Action Plans are complete and ready for review and approval. The cost impact of the Strategy Action Plans is a major consideration before approval. The Chief Financial Officer (CFO) or equivalent position is responsible for reviewing and approving estimated costs of Strategy Action Plans. To assess the "affordability" and availability of budgets for strategy plans, the CFO implements Resource Allocation. 

PROGRESS: You have reached Milestone 2 (good work). Input the status [25%] on the organization's OE21 Intranet Main page alongside the title of this standard.

Task 2.2.3 Resource Allocation - The Chief Financial Officer (CFO) is responsible for assessing,  reporting and allocating resources toward the organization's financial performance, including aggregate measures of financial return, financial viability, and budgetary performance, as appropriate. The objectives of resource allocation are as follows:


1. Ensure financial and other resources are available for Strategy Action Plans

2. Discover the opportunity to expand the business, program outputs or market share

3. Help predict possible business failure and initiate action before it is too late

4. Understand how well the organization costs are within allocated budgets

5. Discover profitable or financially beneficial products, services or programs


Resource Allocation ensures that the financial and other resources (i.e., department and work unit budgets), are available to support Strategic Action Plans while meeting the ongoing financial obligations of the organization.


CFO Financial Performance Assessment - This assessment is a survey that captures the CFO, CPA or Financial Manager's opinion of key indicators of financial performance, including Quick Ratio, Cash Flow to Debt Ratio, Net Income/Loss and Operating Margins for the top products or services provided by the organization. The CFO Financial Performance Assessment includes the CFO/CPA opinions regarding as a minimum these four key financial management indicators:


(1) QUICK RATIO - This metric is also known as the acid test ratio. The quick ratio is cash, accounts receivable and other assets that can be quickly realized divided by your total current liabilities. This ratio tells you if you can cover your debt without tapping into your inventory. It looks at a point in time for your business and determines if it is healthy. NOTE: If assets are greater than liabilities, the quick ratio will be greater than one. Decimal ratios show that the organization needs a fast infusion of cash to remain stable. If the Quick Ratio is greater than two, this indicates that the organization may have twice the capital needed and should consider expanding the business, market share or other forms of boosting financial and operating results.

​​ ​

(2) CASH FLOW TO DEBT - The U.S. Small Business Administration cites underfunding and poor cash flow as one of the main reasons a small business fails. Cash Flow to Debt ratio is the net income plus depreciation divided by total debt and is considered a good predictor of failure. A number less than one means the organization cannot cover its bills without securing additional funds. A ratio greater than one but less than two is good, and anything higher shows the availability of surplus capital, which may lead to opportunities to invest and expand.


(3) NET INCOME/LOSS - indicates that the organization is successfully (or unsuccessfully) managing costs within allocated budgets. The formula is:


             Net Income/Loss = Revenue (Income) - Expenses (costs)


(4) OPERATING MARGINS -The operating margin provides focus on the profitability of the total organization or for each main service or product. The Operating Margin is the profit after deducting variable costs of production or service delivery (cost of goods sold or delivered). If this ratio is equal to one, then there is no cost for doing business and all the income from sales is profit. If the ratio approaches zero, all the income from sales is eaten up by producing the item. Somewhere in the middle of these two extremes is a good profit margin. This ratio only looks at operating costs and before-tax sales. It does not take into consideration after-tax effects or cash assets. In the Financial Performance Assessment, the operating margins for the top five products or services are provided by the CFO or Financial Manager.


(5) OTHER ASSESSMENT INFORMATION - The CFO Financial Performance Assessment also includes questions related to standard/good financial management practices, including maintenance and distribution of balance sheets, income statements, budget vs. cost reports, validation of data/reports, timely distribution of financial data/reports, proper controls over cash, check writing, financial transactions, risk management, and IRS and other legal and regulatory reporting. 

(6) COST OF GOODS SOLD (COGS) - The Leadership Focus Team (LFT) CFO or Financial Manager is responsible for calculating the cost of goods sold (COGS) for each significant product, service or program. This is often a complex calculation involving many of the following financial analysis requirements used by businesses:


Inventory costs:
* beginning and end of year


Direct costs:
* cost of merchandise purchased
* cost of raw materials
* packaging costs
* work in process
* cost of finished products inventory
* production/creation supplies
* direct overhead costs related to production


Indirect Costs:
* labor (for workers who touch the product)
* costs to store or wholesale the product
* depreciation of equipment used to produce, package, or store the product
* salaries of those who oversee production or creation
* equipment used for administrative work (support services)


Facilities Costs:
* percent allocated to facilities costs


Calculate COGS and apply inventory methods (LIFO or FIFO).


Disclaimer: The information in this standard and on this website are intended to be general and not tax or legal advice. Every situation is different and circumstances change.


The CFO or Financial Manager is responsible for integrating the financial intake (revenue or sales) with the estimated COGS and providing a usable spreadsheet output to the other focus teams.


An example of usable outputs (value contribution for each key product, service or program) is provided in the Product/Service Value Contribution model, as shown in Standard 6.1b Task 6.1b-2 (Figure 6.1b-3). 


The example shows that the organization's product/service portfolio has winners and losers. The highest value contribution (Gross Profit) is from Category 1000 Total Ice Skate Revenue, and the lowest is Category 3000 Total Fitness Center, which is operating at a loss.


Task 2.2.4 Execute the CFO Financial Performance Assessment - The CFO or Financial Manager in charge of financial performance provides inputs to the CFO Financial Performance Assessment. The OE21 Facilitator launches the assessment and provides the survey link to the CFO or Financial Manager who then responds. The following OE21 tools are used to support the CFO Financial Performance Assessment:

  • 2.2-LFT-S CFO Performance (survey)

  • 2.2-LFT-D CFO  Performance Assessment Report (.doc)

Export CFO Financial Performance Results and Create Report - The OE21 Facilitator exports the CFO Financial Performance results, and supports the CFO or Financial Manager in the use of the data to create a one to a two-page report of findings. The LFT reviews and shares this report with the other focus teams to maintain transparency across the organization. 

Task 2.2.5 Assess Product Service Value Contribution - The CFO works with the Customer Focus Team (CFT) to create the Product Service Value Contribution Report. This report summarizes the revenue, cost of goods sold (COGS), expenses and gross profit (value) for each of the organization's products, services or programs. The CFO is responsible for the validity of the data and the CFO and CFT construct spreadsheet models used to highlight these data as shown in Figure 2.2-5.

This report should be sorted to show highest-to-lowest gross profit products or services. The results as shown in Figure 2.2-5 should be used as part of strategic planning, with the objective of replacing or making significant changes to those low or no-profit products or services. 


Figure 2.2-5 Product or Service Value Contribution Report - Spreadsheet Model

At this point, the CFO and LFT have sufficient financial data to determine how to allocate resources for ongoing operations and for the accomplishment of Strategy Action Plans. 

Task 2.2.6 Approve Strategy Action Plans - The Leadership Focus Team (CEO and CFO included) review the estimated costs for all Strategy Action Plans provided by each focus team. This process may result in decreases in some plans and increases to others. Once the final budgets are approved for each plan, the responsible focus teams will make the necessary adjustments to the tasks, and their labor and non-labor dollars planned. Once the plans are in alignment with the  resource allocation for the plans, the CEO and CFO approve each of the Strategy Action Plans and directs that the projects begin on their scheduled start dates.

  • PROGRESS: You have reached Milestone 3 (good work). Input the status [60 %] on the organization's OE21 Intranet Main page alongside the title of this standard.


Task 2.2.7 Input Strategy Action Plan Metrics - To measure the progress of the Strategy Action Plans at the end of each month, the cumulative percent of project completion (%) and the cumulative percent of the project planned (%) are collected from the Strategy Action Plans, and input into the OE21 Results (metrics) files listed below. These tools create Trend Charts showing the comparison of actual to the planned percent of completion. 

  • 2.0-LFT-M Leadership Excellence Results (.xlsx) 

  • 3.0-CFT-M Customer Excellence Results (.xlsx)

  • 5.0-WFT-M Workforce Excellence Results (.xlsx)

  • 6.0-OFT-M OFT Operations Excellence Results (.xlsx)


Figure 2.2-6 Strategic Action Plan Metrics is an example of how strategy accomplishment is measured and managed. 

Task 2.2.8 - Create the STRATEGIC PLAN - The Strategic Plan is a key document used to maximize the value of the organization to all of its stakeholders including workforce, customers, outside stakeholders, and community. The OE21 strategic plan model is based on the Baldrige Framework and the U.S. Government Performance and Results Act (GPRA) model. The Strategic Plan is subdivided into the following sections:


Section 1: A Comprehensive Mission Statement covering the major functions and operations of the organization (from Organization Profile Part 1)


Section 2: A list of Strategic Objectives for each Strategic Theme


Section 3: A description of how the strategic objectives are to be achieved, with reference to the OE21 Strategy Action Plans created in this OE21 standard.  


Section 4: A description of the Strategic Assessments created in OE21 Standard 2.1 Strategy Development. These strategic assessments are used in establishing or revising strategic objectives and action plans, and to set a schedule for future strategic assessments. Strategic assessments are normally conducted annually or when significant organizational changes or events require an update.


Section 5: An identification of those Key Factors external to the (organization) and beyond its control that could significantly affect the achievement of the strategic goals, objectives, and action plans, including Performance Projections of short- and longer-term strategic planning horizons.


The Strategic Plan will begin with the initial draft and will be updated until the final draft is approved, with inputs from the implementation of all remaining OE21 Standards.


Task 2.2.9 - Deploy Strategic Plan - The Strategic Plan is published on the INTRANET by the Leadership Focus Team (LFT-IT). The LFT-IT then notifies all levels of the workforce that the Plan is available to view. The focus teams are responsible for the execution of the Strategic Plan (Strategy Action Plans). 

  • PROGRESS: You have reached Milestone 4 (congratulations). Input the status [100%] on the organization's OE21 Intranet Main page alongside the title of this standard.

A_2.2 Strategy Plan Metric.PNG

Figure 2.2-6 Strategic Action Plan Metrics (example)