organizational wellness through sequestration and beyond nov 2012

Organizational Wellness through Sequestration and Beyond

Nov 2012

Proprietary Information Included

Facts on Sequestration

Cuts begin to take effect on

January 1st, 2013 since the

bipartisan supercommittee did not agree to

a $1.2 trillion deficit-reduction package back in

November of 2011.

• Cuts will be $1.2 trillion total.

• Will be evenly divided over a nine-year period.

• Cuts are evenly distributed between:• defense spending (except that on wars);• discretionary domestic spending (does not

include Social Security, Medicare, Medicaid, Veteran’s Benefits).

• Cuts are across the board(no discretion by legislators).

• Range from 7.6% to 9.6% of each budget.

• 2012 Budget $3.8 trillion.

• 2012 Social Security, Medicaid, Medicare, Vets benefits is $2.25 trillion.

• Cuts in 2013 have to come in what is left over (about $1.6 trillion).

• Can be avoided if Congress passes another budget deal that would achieve at least $1.2 trillion in deficit reduction.

• Republicans don’t want to raise taxes to generate the revenue.• Democrats are reluctant to

make dramatic changes to entitlement programs to achieve savings.

• There is talk of a stopgap plan during the lame-duck session to buy legislators more time to come up with a grand bargain.

Facts on Sequestration

NSBA fears that small businesses

will bear a disproportionate

and unfair burden under the

current sequestration

plan.

• Identify government cost overruns and ensure government is aware that they are their responsibility.

• Ensure all Firm-Fixed Price contracts are accurately assessed and that the government does not create mission creep at your expense.

• Ask for performance reviews on time to show value to the government.

• Market and Diversify your portfolio in terms of the following:

• Types of contract vehicles (IDIQ, FFP, T&M, etc…)• Agencies supported (both Prime and Subs)• Capabilities Offered• Commercial and Government clients (domestic/International)

• Conferences (such as VA Small Business Partnership)

• Offer to restructure your contract vs. termination.

What Can a Government Contracting Small Business Do ?

NSBA fears that small businesses

will bear a disproportionate

and unfair burden under the

current sequestration

plan.

• Cross train vs. hiring after attrition.

• Freeze wages and limit bonuses.

• Lower overhead costs.

• Only hire when there is a billableposition.

• Solidify relationships with in-person visits.

• Find efficiencies and be effective.

• Measure performance

• Develop and Maintain a Strategic Plan.

What Can a Government Contracting Small Business Do ?

Improve your overall

effectiveness through a mixture of marketing

diversity and strategic

planning.

Organization Wellness & Development Model Including Balanced Scorecard

Strategic Planning

As part of ensuring the

wellness of an organization the Balanced

Scorecard can be a key

component. Understanding

how each element within the BSC relates to one another

for the betterment of

the organization is

paramount.


Mission: Through solid leadership and creating a culture where all employees thrive equally, efficiently and effectively produce and sell XXXX in the US and abroad.

Vision: To be a world-class organization.

Core Values: Honor ~ Respect ~ Loyalty ~ Trust OperationalExcellence

Business Process ExcellenceEnhanced PartnershipsEffective

Communication

Cus

tom

erIn

tern

al

Proc

ess

Lear

ning

and

Gro

wth

Feed

back

Bas

ed R

esou

rce

Rea

lloca

tion

LG 3.0 Leverage Technology

LG 2.0 Improve Infrastructure

Usage

C 4.0 Build Relationships &

Enhance Partnerships

C 3.0 Improve Timeliness

IP 1.0 Improve Operational Business Practices

IP 2.0 Improve Adherence to

Regulatory Processes

IP 3.0 Improve Marketing &

Communications

C 2.0 Optimize Operations

C 1.0 Improve Quality

LG 1.0 Optimize Human Capital

F 1.0 Improve Productivity

Fina

nce

Strategic Themes:

F 2.0 Improve Shareholder

Value

F 3.0 Improve Revenue Growth

F 4.0 Increase Margins


Organizational Maturity Model

Organizational maturity occurs

when an organization not

only develops measures of

success, but puts goals to those measures and

then drives strategy through

measuring strategic

performance in addition to

project level performance.



Organization Wellness & Development Model’s Transparency Model

This model shows how

Spider Software is integral to

ensuring a transparent

view of performance and strategic management

aspects of your organization.

This includes ROI of contract support which enables you to

reach your strategic

objectives and vision.

Three functions, one software

tool.


Strategic Planning

In this Phase we get a flavor for the cultural constraints and

enablers as well as

preferred practices and techniques of

the organization

which ultimately ensures a

smooth strategic

transition.


pricemeals

loungeshubconnectivity bags

seatingchoices

friendlyservice

frequentdepartures

Factors of Competition

low

high

Inve

stm

ent

OtherAirlines

Car

The strategic profile of Southwest Airlines differs dramatically from those of its competitors in the airline industry. Note how Southwest’s profile has more in common with the car than with the profile of other airlines.

Southwest

Adapted from Charting Your Company’s Future: “Harvard Business Review” Vol 80, No. 6

Southwest Airlines Strategic Profile

Organizational S.W.O.T.

Weaknesses:Strengths:

Adverse FactorsBeneficial Factors

Exte

rnal

Env

ironm

ent

Inte

rnal

Env

ironm

ent

Opportunities: Threats:


OrganizationalCustomers & Stakeholders

Stakeholders:

Customers:


Mission & Vision Statements

Core Values


Strategic Planning

In this Phase the backbone

of your Strategy is developed

including specific

definitions of the meaning

behind the strategic pieces to

ensure a long-term

understanding of the vision

and mission.


Strategic Themes & Results: “Pillars of

Excellence”

“and exceed the needs of our customers’ (internal and external)….”

“and create the right day-to-day internal processes or operating procedures…."

“If we recruit the right people, with the right skills, and provide them the right tools and organizational culture….”

“we will be as profitable as we possibly can be.”

Res

ourc

e R

eallo

catio

n

Strategic Objectives - the building blocks of your strategy

Customer

Internal Processes

Finance

Operational Excellence

Cause and EffectStrategic Theme:

LG 2.0 Improve Infrastructure Usage

IP 1.0 Improve Operational

Business Practices







Learning and Growth


OperationalExcellence

Business Process ExcellenceEnhanced PartnershipsEffective

Communication

Cus

tom

erIn

tern

al

Proc

ess

Lear

ning

and

Gro

wth

LG 3.0 Leverage Technology

LG 2.0 Improve Infrastructure

Usage

C 4.0 Build Relationships &

Enhance Partnerships

C 3.0 Improve Timeliness

IP 1.0 Improve Operational Business Practices



IP 3.0 Improve Marketing &

Communications




F 1.0 Improve Productivity

Fina

nce

Strategic Themes:

F 2.0 Improve Shareholder

Value


F 4.0 Increase Margins

Mission: Through solid leadership and creating a culture where all employees thrive equally, efficiently and effectively produce and sell XXXX in the US and abroad.

Vision: To be a world-class organization.

Core Values: Honor ~ Respect ~ Loyalty ~ Trust


Feed

back

Bas

ed R

esou

rce

Rea

lloca

tion

Including Balanced Scorecard Strategic Planning Organization Wellness &

Development Model

In this Phase the Scorecard

is carefully developed.

Human capital, time and financial

resources are allocated to

specific projects, called

initiatives, thereby setting

your organizational

strategy into action.


The Scorecard is…• developed from the strategy map.

• translates strategic objectives into a comprehensive set of performance measures, targets and initiatives.

Fictitious For-Profit Company Scorecard (Sample)

Company Objective and Accountable

Objective Statement Measure Target/Threshold Initiative

LG 1.0 OPTIMIZE HUMAN CAPITAL

Director of Human Resources

Maximize use of current billeted structure by resolving billet mismatch, filling open billets and accurately reporting the force structure to our accountables while ensuring position descriptions are updated and match current duties.

% of billets mismatched 3%/10%

Accurately report all mismatched billets.

Identify those in mismatched billets needing certification or training to be fully qualified.

Identify those that cannot match their billeted needs and downgrade the billet or transfer the person to a better fit billet.…turns Strategy into Action!


Objective Statements

If during a strategic review

you find that the discussion

continues to evolve around changing the

measure for an objective, the

focus should not be on the

measures. Instead change

or clarify your objective

statement.

The objective statement (commentary), which defines what success looks like for an objective, when written well will make finding your measures and supporting initiatives easy to discover.


A Strong Measure

Measures tell us if there is

a cause-effect

relationship between the

initiatives and

objectives in the desired

direction we want the

objective to move.

Validated – to ensure it measures the right thing

Verifiable – to ensure accuracy

Leading – process in nature

Lagging – outcome in nature


Targets & Thresholds

• A negotiated process w/the leadership team. • Should not be arbitrary!• Should reflect best practices (benchmark)• Should not celebrate mediocrity, use BHAGs (from Built to Last)

• Should reflect needs of those who benefit from the objective.

Targets are the desired values of performance for the

objective to change from Amber to Green.

Thresholds are the desired values of performance for the objective to change from Red to Amber.


The key discussions an organization should have at its strategic

review, after checking the status of an

objective, are around the initiatives.

All too often the topic of conversation in a strategic review are objectives and their measures, targets, and thresholds. Leadership has to ensure that the relationship between the objectives, measures (target/thresholds) and initiatives are fully understood.

Objectives (which

represent the highest

priorities of an organization)

are important, as this is your

end state; what you are

trying to achieve.

Strategic Review Discussions Should Focus Around Initiatives










Identify those that cannot match their billeted needs and downgrade the billet or transfer the person to a better fit billet.


Initiatives (Projects)

Initiatives (or projects) have a hypothetical relationship with the objectives they support. Once these initiatives (projects) are completed, the measures attached to the objective tell us if the objective is trending in the desired direction. If the completion of the initiative (project) pushed our objective in its desired direction, the measures will tell us so and our initial hypothesis of a cause and effect relationship will have been true.

Initiatives are where resources

are obligated.

Dollars are spent, time

is allocated,

and human capital is invested

over time.










Identify those that cannot match their billeted needs and downgrade the billet or transfer the person to a better fit billet.


Initiatives and Project Management

Initiatives may be small (write an SOP, buy some equipment) or they may be large (standardize an enterprise-wide process, purchase enterprise-wide software).

• If small, there is limited budget and human capital expended.

• If large, there may be large amounts of money and human capital expended.

Initiatives that are large

expend large amounts of

resources need to be managed

through the Project

Management Model to

ensure they are as

efficient and effective as

possible.


Project Management and Quality Assurance

If large in nature they are expending budgeted strategic dollars, valuable organizational time and human capital resources.

• The project needs to be managed through an EVM tool, and…. • …be subjected to a QA program such as LSS, CMMI or ITIL.

Projects that

expend large

amounts of resources should be subjected

to a quality assurance

program to ensure they

are as efficient

and effective as

possible.



Strategic Planning

Phase Four is the key area

for automation and long-term sustainability.

This is the crucial point

where the hired

consulting staff leaves your

organization and you fly solo. Your

ability to understand

this phase will determine your

strategic survivability.


Organizational Alignment Drives:• Common organizational vision• Common organizational strategic priorities• Subordinate performance contributes to, and is aligned with, the enterprise-wide target performance

The Power of Enterprise-wide Alignment!


How Do Complex Organizations Assemble, Track, and Maintain their Scorecard

If you want to know how your

organization is performing...how

many different reports or systems

do you have to check? How many

people do you call or email?

Strategy Management requires the ability to know how your strategy is performing at every level of your organization at every moment.

Automating your

organization’s scorecard

provides you timely,

accurate information on

your current performance

from anywhere in the world.


Automating your

organization’s scorecard

provides you timely,

accurate information on

your current performance

from anywhere in the world.


Dashboards and Strategy

Maps can help to identify

problem areas at a glance.

Through these gauges we can

drill down to the details of

each objective and make

sound decisions based on

current data.



Strategic Planning

Phase Four is the key area

for automation and long-term sustainability.

This is the crucial point

where the hired

consulting staff leaves your

organization and you fly solo. Your

ability to understand

this phase will determine your

strategic survivability.


Avoid the 10 Pitfalls to Success

1. Measure Everything – too many measures ensures you are good at nothing.

2. Use PP to manage your Strategic Model – a good software tool is needed here.

3. Leadership fails to Tell the Story – leadership has to be committed to telling the organizational strategic

story.

4. Everyone has to know the BSC value added story – if not, no one will buy-in to the change.

5. There must be BSC Champion – this person meets with individuals and small groups to keep everyone

engaged in the BSC process.

6. Failure to flex the model to the organization – the model is imperfect in nature and must flex to the needs

of the organization, when appropriate.

7. Know when to flex the organization to the model – otherwise the model will fail the organization.

8. Don’t stop the organization from functioning while implementing this model – it must be allowed

to operate at-speed while making the transition.

9. Governance – failure to implement management and sustainment instructions are the most common reasons the

model is ineffective.

10. Failure to prioritize initiatives – failure to prioritize your initiatives against established criteria could lead to

overspending your budget and stalling your path to the organizational vision.


Past Performance

We are proud of our past

performance in the

governmental, non-profit and

commercial Balanced

Scorecard arena.

We have past performance within The National Institutes of Health, U. S. Army Corps of Engineers, U. S.

Army Office of The Surgeon General, The Balanced Scorecard Institute, Department of the Navy…..


Spider Strategies, Inc. Executive VP Bio.

Timothy J. Ciampaglio is the Executive Vice President of Operations for Spider Strategies, Inc, a small government contracting and consulting business focusing on Balanced Scorecard Strategic Planning consulting and automation. Mr. Ciampaglio currently holds a TS Clearance and is a 23 year veteran of the United States Coast Guard where he focused on Maritime Operations, Training and Education, and Balanced Scorecard Strategic Planning. As a consultant of The Balanced Scorecard he holds a Master Professional Certification and is the Senior Consultant for The Army’s Surgeon General in the automation, development and methodology of The Balanced Scorecard. He has developed and managed BSCs for US Army Corps of Engineers, USCG and other commercial entities. He is currently an adjunct professor at The George Washington University Graduate School of Arts and Sciences teaching Strategic Human Resources Planning and Management. He holds a B. S. in Psychology from Towson University and a Masters of Public Policy and Management, from Carnegie Mellon University.

[email protected]


mailto:[email protected]

Spider Strategies Inc.COO’s Bio

[email protected]


Conor D. Crimmins is the Chief Operating Officer of Spider Strategies, Inc., and has nearly 10 years of experience in performance and strategy management, metric development and strategy automation. Mr. Crimmins’ primary focus is on performance management integration and cascading alignment in multi-tiered organizations. At present, Mr. Crimmins serves as the Software Project Manager for the US Army Strategic Management System (SMS), the Army’s Enterprise Performance Management Program Office. Mr. Crimmins holds a Bachelor of Arts in Political Science and International Relations from Carleton College and a Certificate in Political Economy from The Center for European Studies at Maastricht University. Mr. Crimmins is a visiting presenter on Balanced Scorecard Automation at the Balanced Scorecard Institute; a participating member of the Secretary of the Army’s Initiative Group; and the Software Project Manager for the US Army’s Strategic Management System Program Office. Mr. Crimmins holds a Top Secret Clearance from the Department of Defense.

organizational wellness through sequestration and beyond nov 2012

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